The Policy Environment for Climate Vulnerability on Trade Competitiveness and Export Diversification in Tanzania’s Rice Value Chain

Abstract

Rice is an essential food crop that significantly contributes to Tanzania's economic growth, food security, and poverty alleviation. However, the country’s rice value chain is susceptible to climate change, fluctuations, and economic globalization. These issues can disrupt the rice value chain and diminish its capacity to benefit local people and economies. This study provides a detailed analysis of the policy environment for climate vulnerability on trade competitiveness and export diversification in the rice value chains in Tanzania. The study used a combination of institutional economics, political economy, and global value chain theories to evaluate how climate variability affects trade competitiveness and export diversification within the rice value chain in Tanzania. Analysis of the policy environment for climate variability on competitiveness and export diversification revealed significant gaps related to policy regulation, access to farm inputs, infrastructure, and resilience to climate vulnerability, finances, as well as trade and marketing that should be addressed to improve incentives in the rice value chain. The review emphasizes the improvement of policies and regulations for the rice value chain to tackle climate variability and improve trade competitiveness and export diversification that could strengthen the resilience of rice value chains against climate stresses. Climate vulnerability assessments are important in the implementation arrangements of the policy. Vulnerability mapping could help to target geographically impacted areas for immediate intervention to accelerate rice trading in the country. Investing in technology, strategic research on rice export development to enhance rice production quality and productivity can potentially increase Tanzania's competitiveness in international markets throughout the rice value chain. The study underscores the need for policies and initiatives that enhance the strength of value chains to climatic and economic tensions. This article is relevant for policymakers, academics, and other stakeholders interested in encouraging the sustainable development through the rice value chain in Tanzania.

Keywords: Climate Vulnerability, Trade competitiveness, Exports diversification, Rice Value Chain

DOI: 10.7176/JESD/14-13-02

Publication date:August 31^st 2023