3. Read the following passage and then answer the questions that follow.
It is indisputable that agriculture is the backbone of Tanzania’s economy and the hub of the country’s economic growth.
It employs roughly around 80 per cent of the population, contributing over 45 per cent of the Gross Domestic Product (GDP), which generates over 40 per cent of the export earnings. Yet, it has been enjoying very little attention from the authorities. The agricultural sector is still underdeveloped, peasantbased and productivity is low resulting in extreme poverty.
Tanzania has more than 44 million hectares of arable land, and a large amount of water resources and a wide variety of agroecological zones and climates. But less than 30 per cent of it is being used for production.
For the past two decades, agricultural GDP has grown at a low average rate of 3.3 % per annum falling far short of the needed growth of about 10 per cent. As a result, no investor has ever shown interest in investing in the sector since the liberalisation policy was put in force 20 years ago.
The existing poor infrastructure has magnificently been attributed as a contributing factor to that state of affairs. The Land Act of 1999 has also reported to be giving a hand to the problem that has made investors shy away from the sector.
Essential social services like water and electricity which are key components in agricultural production are still far from being realised, making it difficult for anyone with a good amount of money to invest in agriculture.
Questions
(a) Suggest a suitable title for this passage.
(b) According to the passage why is agriculture said to be the backbone of Tanzania?
(c) What should be done in order to attract investors in agriculture?
(d) From the passage identify the agricultural potentiality of the country.
(e) On your own views, what can be done to improve the agricultural sector?
5. Among the financial institutions, the bank sector is growing very fast. Assess the strength and weaknesses of banks in provision of financial services in the country.