Document Type: Progress Reports

The primary focus of the SERA policy project during the quarter was on capacity building at both the individual and institutional levels. This included support to the Agricultural Council of Tanzania (ACT) to develop a strategic five‐year plan, an institutional evaluation of the Zanzibar Department of Food Security and Nutrition (ZDFSN), on‐going support to the Department of Food Security (DFS) of the mainland to improve their capacity to estimate food production and requirements, and monitor food security, and SERA staff teaching an eight‐week course on Policy Analysis to 20 students enrolled from various government ministries in Zanzibar.

New activities were also undertaken on research and policy analysis, including developing a concept note and scope of work for a land allocation and compensation study, and a week‐long field trip to the southern highlands to examine the food situation and respond to concerns raised by staff of the Ministry of Agriculture, Food Security and Cooperatives (MAFSC) about the impacts of the export ban, and continued support to Tanzania Seed Traders Association (TASTA) in their activities to improve seed policies. The Prime Minister’s announcement of the lifting of the maize export ban in September 2012 continued to gain recognition for the SERA project’s policy reforms and the SERA Chief of Party (COP) was invited to present the work on the export ban as a case study at a United States Agency for International Development (USAID) regional workshop in Uganda in October 2012. The COP and Senior Policy Advisor also provided support to the USAID mission on the Tanzanian commitments to the Group of Eight (G8) on various agricultural policy reforms. Meetings were held with senior staff of the Ministry of Finance in an effort to advance the development of a collateral registry in Tanzania, but those efforts have not been very effective and additional efforts will be required.

The communications and advocacy activities included video interviews with farmers, traders, and processors during the field trip to the southern highlands, and the incorporation of these into a video on the impact of the export ban in the southern highlands. The video was presented at the Feed the Future (FtF) partners meeting in November 2012 and received favourable comments. A request for proposal (RFP) was also prepared and disseminated for the development of a SERA website and a contract was awarded to a local firm.

The SERA project’s staff was given new challenges which allowed them to show their abilities, gain experience, and improve their skills. These included involving our junior policy analyst in the teaching of the skills portion of the policy course and giving a PowerPoint presentation on the course to the FtF partners meeting in November 2012, and our communications officer developing and presenting a multimedia presentation on the export ban at the partners meeting.

Going forward, the SERA project will begin new research on food security that is expected to result in a workshop to government and other stakeholders in June 2013. A land allocation and compensation study is expected to begin in February 2013 and be presented to government and other stakeholders in May or June 2013. Our institutional capacity building efforts will continue to support ACT, the ZDFSN and the DFS on the mainland. The development of SERA website is expected to be finished in Q2 and will be launched shortly thereafter.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the second full year of operation on September 30, 2013. This Quarterly Report, Quarter 3 (Q3) of SERA Project Year 3, covers the period from April 1, 2014 to June 30, 2014.

Q3 saw the achievement of an important milestone for SERA, with the approval of a contract modification on May 7, 2014, that substantially increased resources available for the remaining years of the Project. In addition to this milestone, the SERA team was very busy in Q3 with three teams of consultants conducting research, assessments, and training as well as SERA staff participating in a number of activities. The extremely busy schedule meant that some activities were delayed, and others delays were unavoidable because of the slow delivery of agreed activities by both government and private sector counterparts.

Improving the tax treatment of seed and seed packaging materials has been a priority for SERA since project inception and that effort culminated in a presentation by the SERA team to the Ministry of Finance (MoF) committee on taxation on April 15, 2014. SERA partnered with the Ministry of Agriculture, Food Security and Cooperatives (MAFC) and the Tanzania Seed Traders Association (TASTA) to present the case for tax exemption of seed packaging materials and improved tax treatment of seeds (Annex 1). No decision has been announced, but it was unfortunate that the petition for reduced taxes came during a year when the focus of the Ministry of Finance’s budget presentations was on reducing tax exemptions. If the improved tax treatment is not achieved this year, SERA will continue to strengthen the case and re‐submit next year.

A team of consultants from Associates for International Resources and Development (AIRD) visited Tanzania from May 12 – 23, 2014 to collaborate with SERA team to research policy issues for the Food Security Policy Options Paper being prepared for the Government of the United Republic of Tanzania (GoT). The activity is supported by the NAFAKA Staples Value Chain Project, in close collaboration with the MAFC. Three junior staff members from MAFC were invited to participate as a learning and capacity building activity, and the policy advisor of the MAFC Department of Policy and Planning (DPP) was included as a collaborator. The preliminary findings for that activity are attached as Annex 2 and AIRD will deliver a final report of findings and recommendations in Q4. The Policy Options Paper is scheduled to be presented to GoT in Q4.

The Economic Research Service (ERS) of the U.S. Department of Agriculture (USDA) and SERA team conducted a training session on the Food Basket Methodology (FBM) from June 9 – 20, 2014, for 12 staff from MAFC and two faculties from Sokoine University (SUA). The training focused on the estimation and use of the typical food basket costs for each of 19 regions in Tanzania mainland (see the training schedule in Annex 3). The training achieved its objectives and MAFC staff members are now better prepared to estimate and interpret food basket costs for individual regions. The SERA team will conduct follow‐up training in Q4 and the ERS team will return in Year 4 to assess results and begin training staff of the Zanzibar Department of Food Security and Nutrition (ZDFSN).

An assessment of data needs and availability for the Food Security Early Warning System (MUCHALI) was begun by a team of consultants and SERA staff on June 23, 2014, and will conclude in Q4. The MUCHALI Framework is the GoT’s early warning and disaster response activity, jointly directed by the Prime Minister’s Office (PMO) Disaster Management Department (DMD) and the Department of Food Security (DFS) of MAFC. The assessment will also review the objectives of MUCHALI and recommend changes as appropriate. The statement of work (SOW) for the activity is attached as Annex 4.

The draft Land Compensation and Benefits Sharing study undertaken by Landesa, with support and collaboration from SERA, was completed in April 2014 and will be presented at a national workshop with the Ministry of Lands, Housing and Human Settlements Development (MLHHSD). However, the activity has been delayed due to other work priorities at MLHHSD, and the referral of key findings of the study to expert legal review. The legal review was received on June 24, 2014, and will be finalized prior to discussions with MLHHSD. The workshop is targeted to take place in Q4. The executive summary of the report is attached as Annex 5.

The report on the Determinants of Tanzanian Maize Prices was completed and submitted on June 30, 2014. The research, econometrically estimated the contribution of regional and global maize prices, export bans, weather shocks, seasonality, fuel prices, and inflation on maize prices in 18 regions of mainland Tanzania using monthly data from 2004 to 2013. The results quantified the impact of the export ban on Tanzanian maize prices and also provided new insights into trade patterns and the impact of weather shocks and seasonality on maize prices. Estimation results showed that export bans increase the price impacts of weather shocks and seasonal price changes. A summary of the research is provided in Annex 6.

In addition to these activities, SERA team was involved in a number of workshops, meetings, and policy discussions. SERA staff participated in the monthly Policy Analysis Group meetings organized by the MAFC. The SERA Chief of Party (COP) met the Bill and Melinda Gates Foundation (BMGF) on April 28, 2014 to discuss policy, met with USAID in June to discuss land policy, met with a commodity advisor from National Merchants Bank (NMB) Bank on June 3 to discuss rice policy issues and their impact on sector lending. Capacity building activities with the ZDFSN continued, with SERA staff traveling to Zanzibar for meetings. The SERA Project received a request to organize a Data Harmonization workshop to bring together GoT, private sector and other stakeholders to discuss better coordination and sharing of data on key commodities. This follows the successful work completed by SERA on duty‐free rice imports and the workshop has received strong support from USAID, DFS of MAFC, and the private sector. The activity is planned for Q4. On June 23, 2014, the SERA COP participated in Policy Discussions organized by the Agriculture Advisor of Big Results Now (BRN) and will follow up with analysis of imports on key food commodities. The SERA COP was invited to a Southern Agriculture Growth corridor of Tanzania (SAGCOT) Roundtable held on June 26, 2014, where he presented a review of policy constraints to the rice value chain.

Escalating requests for policy analysis and SERA participation in policy discussions slowed accomplishments of the work plan, but also reflect that SERA’s contribution and analysis is gaining high regards from the GoT and other stakeholders. They also highlight the changing role of SERA from primarily undertaking research on policy issue to participation in policy discussions at an early stage. This change is welcome, despite challenges presented to completing the established work plan. Working relationships with the Prime Minister’s Office, Big Results Now, and SAGCOT are especially strong, while relationships with the Ministry of Agriculture, Food Security and Cooperatives are more difficult due to lack of support of the Ministry on agreed work activities. This was evident with the Food Basket Training for Ministry staff which did not receive sufficient priority from the Ministry. The launch of the SERA website was delayed due to slow progress in completing the final preparations of the site.

The Tanzania SERA Project will assist both the Government of the Republic of Tanzania (GoT) and the private sector in enabling a broad‐based, sustainable transformation of the agricultural sector through policy reform.  The project will focus on current policy and the regulatory environment for agriculture—from the transactional “hot” topics to the needed strategic foundational changes— building capacity of local institutions to lead informed dialogue on policy and regulatory issues in the agriculture sector and advocate for the necessary changes.

The vision for this project is twofold: to improve the policy and regulatory environment for agriculture growth and to build a group of public sector institutions, advocacy organizations, and individuals capable of performing rigorous policy analysis in support of evidence‐based advocacy and policy reform. At the conclusion of the project, we expect USAID will leave behind sustainable capacity within the GoT to initiate, develop, and utilize evidence‐based research in policy decisions and implementation, empowering local research and private sector advocacy groups to more effectively use analysis and strategic communications to lobby for change, and building national partnerships that create consensus around agriculture policy and monitor the impacts of policy.

The SERA project will focus all activities around priorities identified in collaboration with the Southern Agriculture Growth Corridor of Tanzania (SAGCOT) initiative.

Quarterly Highlights

• The SERA project was awarded to Booz Allen Hamilton in April 2011 and Donald Mitchell was selected as the Chief‐of‐Party (COP).
• The first Partners Meeting was held from May 23‐27 in Kilombero.
• The COP attended a Seed Industry Stakeholders Meeting in Arusha on June 3rd and prepared a BTO and draft Case for Value Chain Analysis.
• The COP attended a Cereals Working Group meeting on June 10 where the activities and mandates of the Cereals and Other Produce Board were discussed.
• The First Year Work Planning Workshop for SERA was held on June 27.

The SERA Policy Project saw several significant accomplishments in the third quarter, but also delays in completing major activities due to scheduling conflicts with important counterparts, delays in getting approval for activities, and the need to focus efforts on new policy challenges that emerged. Despite these delays, there were major accomplishments in policy analysis, capacity building, and communications and advocacy. Major accomplishments in policy analysis included: preparation of a policy paper on duty‐free rice imports, jointly supporting a team from Associates for International Resources and Development (AIRD) with the Staples Value Chain Project (NAFAKA) to study the contribution of the National Food Reserve Agency (NFRA) to food security and the impact of export and import permits on food crops trade, submission of a request to the Government of Tanzania (GoT) for more favorable tax treatment of agricultural seeds, fielding a team from Landesa to investigate land compensation and benefits sharing schemes, and preparation of a research proposal on rice demand and competitiveness to the World Bank for funding. However, the rice market study for Zanzibar was not completed due to work on other activities and the Food Security Workshop was delayed until Q4. The presentation of policy research sponsored under the Policy Seminar Series at Sokoine University has been delayed due to slow progress by researchers.

Our capacity building activities included continued support to the Zanzibar Food Security and Nutrition Department (FSND) of the Zanzibar Ministry of Agriculture and Natural Resources, the Agricultural Council of Tanzania (ACT), and the mainland’s Department of Food Security of the Ministry of Agriculture, Food Security and Cooperatives (MAFC). Activities with the Zanzibar Food Security and Nutrition Department included completing Phase One ‐ Review of the Food Security and Nutrition Program and facilitating the drafting of Phase Two ‐ Strategic Prioritization Plan, initiating a review of the Tanzania Social Action Fund (TASAF) – Zanzibar branch, and outlining a strategy for FSND’s Program Monitoring and Performance Plan. A two‐day workshop for 16 members of the FSND team and representatives from the Food and Agriculture Organization (FAO) was held to present the findings of Phase One ‐ Review of Food Security and Nutrition Program, engage participants in a stakeholders mapping exercise, review relevant legislation, and identify key priorities for Phase Two. Support to ACT was provided enabling 40 members to attend the Southern African Confederation of Agricultural Unions (SACAU) 2013 Annual Conference in Dar es Salaam on May 13‐14, 2013. A staff member from ACT also participated in the NFRA review conducted by the AIRD team in order to increase linkages with ACT and to develop the staff member’s individual capacity. The capacity building support to ACT is now largely complete and future capacity building efforts will be directed towards other organizations and individuals. Our capacity building activities with the mainland’s Department of Food Security included continued support for the development of the food basket approach to estimating food requirements and support for a staff member from the Department of Food Security to participate in the NFRA review. Support to the Department will continue through collaboration with the United States Department of Agriculture (USDA) team developing the food basket methodology and training staff on the estimation procedures. Individual capacity building through support to the Policy Seminar Series at Sokoine University has not progressed as planned due to the slow delivery of research papers by the four teams selected in the competitive grants process that was conducted in Q1. Renewed efforts to encourage the researchers to complete their work will be undertaken in Q4.

The SERA website was completed, but was not launched as planned in this quarter as we await United States Agency for International Development (USAID) approval. However, the Branding and Marking Plan was approved, which constitutes an essential milestone before the website could be submitted for approval. Our focus on developing a comprehensive database continued and a comparison of rice prices from the GoT, the private sector, and the East Africa Grain Council (EAGC) was completed as part of a policy review of rice imports. We expect to complete the database of monthly wholesale and retail food crop prices for 20 regions before the end of the current project year. The database will include data from 2000. New office furniture and equipment were purchased during the quarter following the renewal of our office lease for another two year. Collaboration with government and development partners continued and SERA has achieved an excellent reputation for quality analysis and responsiveness to client needs. Finally, approval from the Bank of Tanzania (BoT) to develop the Secured Transaction (Collateral Registry) was received after almost two years of discussion, and is a major development in our efforts to provide greater access to credit at affordable rates.

Challenges to the SERA project have been primarily with counterpart delays and scheduling conflicts that have slowed the delivery of activities. The Food Security Workshops for GoT and all stakeholders was planned for Q3 but has been delayed until Q4; this has required rescheduling venues and services. However past challenges, such as obtaining timely data, has improved due to the close working relationship developed with the Ministry of Industry and Trade (MIT), and the National Bureau of Statistics (NBS).

The SERA Project has collaborated with other FtF implementing partners and other stakeholders to improve policy and build capacity in the agricultural sector, including: jointly sponsoring the Policy Seminar Series at Sokoine University with FtF implementing partner iAGRI; working with FtF implementing partner NAFAKA in supporting the AIRD team to review NFRA’s contributions to the national food security system; co‐sponsoring the Policy Seminar Series with iAGRI; engaging WANZA BORA project to develop a capacity building activity for the Zanzibar FSND; and planning capacity building support for institutional performance monitoring with FtF implementing partner The Mitchell Group (TMG). The SERA Project has also developed a closer working relationship with SAGCOT following the appointment of a new Executive Director and has recently assisted them with activities related to rice imports and seed policy. The SERA Project continues to collaborate with the Tanzania Seed Traders Association (TASTA), the Prime Minister’s Office (PMO), Alliance for a Green Revolution in Africa (AGRA), Agriculture Non‐State Actors Forum (ANSAF), and EAGC and FAO; these working relationships continue on important policy issues and capacity building activities. Collaboration with FAO included discussion of the Strategic Grain Reserve on Zanzibar and discussions on food security on the mainland. Discussions are also underway with the FAO’s Southern Highlands Food Systems Program on improving marketing of agricultural commodities. In addition, the SERA Project continued to work closely with the USDA’s Economic and Research Service (ERS) to support the MAFC’s Department of Food Security. The SERA Policy team also met with and supported a team from Fintrac that was reviewing the policies of the seed sector. A joint research proposal on rice demand and competitiveness was prepared with the World Bank.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the third full year of operation on 30 September 2014. This Quarterly Report, Quarter 3 (Q3) of Project Year 4 (Y4), covers the period from 1 April 2015 to 30 June 2015.

In Q3 of Y4, SERA continued to support the Government of Tanzania (GOT) in its efforts to improve the agricultural policy environment in Tanzania and develop capacity to undertake policy analysis and advocacy. The presentation of the Policy Options for Food Security and Agricultural Growth and Poverty Reduction in Q2 was well received. In Q3, the GOT agenda was dominated by annual budget preparations and parliamentary sessions, and the forthcoming election on 25 October 2015; however, direct and indirect follow‐up communications with the GOT indicate that there are no objections to the recommendations presented and that there is interest in pursuing priority items. Despite the GOT’s focus on internal budgeting processes, SERA Project was able to make considerable progress of key policy issues and capacity building activities.

SERA activities included co‐sponsoring a seed industry stakeholder’s workshop with the Ministry of Agriculture, Food Security and Cooperatives (MAFC) and Alliance for a Green Revolution in Africa (AGRA), research on the implication of food basket costs for food security, the launch of a study on the agriculture business environment, and the development of a Concept Note for a study of food demand in Tanzania. Capacity building activities included meetings with the Department of Food Security (DFS) of MAFC to discuss piloting of the Food Basket Methodology (FBM), and the completion and final training for the Zanzibar Food Basket Methodology. The Strategic Plan for the Rice Council of Tanzania (RCT) was presented and accepted by the council’s Board of Directors (BOD). The final report on the Rapid Assessment of the Rice Sector was received and key results utilized by RCT. Communications activities included publication of a Policy Brief on the Secured Transaction/Collateral Registry System to facilitate the use of moveable assets as collateral on loans. Meetings with key Government officials were held to discuss SERA work plan and priority activities for the remaining period of the Project, which is scheduled to end in April, 2016.

A seed industry stakeholder’s workshop was held in Arusha on 11 – 12 June 2015 bringing together over 75 representatives from the public and private sectors to discuss progress and remaining challenges on key industry priorities. The MAFC presented progress on key policy issues related to plant breeders’ rights, licensing of public varieties, and the status of international accreditations. This activity was co‐sponsored with AGRA.

The Policy Brief on the Secured Transactions/Collateral Registry System was published and distributed to key Government officials and stakeholders. The Policy Brief, prepared by SERA consultant Dale Furnish, provides an overview and benefits of the System. The brief will be a useful tool in garnering support for the activity. The Bank of Tanzania (BOT) is undertaking preliminary work on the System, with additional support from SERA and the World Bank (WB) when appropriate.

Work began on the Food Basket Methodology Policy Brief. The Brief will provide new insights into food security in Tanzania and will be useful in designing better policies to respond to food security issues. When completed it will make a substantial contribution to SERA’s work on food security in Tanzania and will demonstrate the usefulness of the Food Basket Methodology for food security analysis.

A study of the business environment in agriculture was launched during a workshop at Coral Beach Hotel on 14 May 2015. The workshop was attended by staff from USAID, Southern Agricultural Growth Corridor of Tanzania (SAGCOT), the President’s Delivery Bureau (PDB), and SERA. The draft Concept Note was circulated prior to the workshop and a PowerPoint presentation was given at the workshop. The Concept Note compared corporate tax rates in Tanzania and neighbouring countries, and showed Tanzania to have corporate tax rates that are eight to ten percentage points (20‐30%) higher than in neighbouring countries. This was recognized as a significant obstacle to attracting corporate agriculture, and to achieving the objectives of SAGCOT and Big Results Now (BRN). The business environment for Tanzanian agriculture is poor, making it difficult to attract commercial investors, thus providing the reason for the study. The need for the study was fully endorsed by the participants. The study team will include a member from the Ministry of Agriculture, Food Security and Cooperatives, the SAGCOT Centre, and the President’s Delivery Bureau for Agriculture. Suggestions from the participants included inviting the Tanzania Investment Centre (TIC) to contribute a member to the study team, and to work closely with the Prime Minister’s Office (PMO) and the private sector.

The Concept Note for a study of food demand in Tanzania was developed by Edith Lazaro and circulated for review (Annex 4), and the data and proposed methodology have now been identified. In preparation for the activity, a meeting was held with Mr. Emilian Karugendo, Principal Statistician of National Bureau of Statistics (NBS) to discuss the 2011/2012 Household Budget Survey (HBS) that will be used in the study and to obtain all the data sets and documentation. Discussion where also held with Ms. Nadia Belghith, one of the authors of the recent Poverty Report released by the World Bank. With the preparatory work complete, the research study will begin in Q4.

SERA continued work on the implementation of the Food Basket Methodology on the Mainland and Zanzibar. Discussions with the National Food Security Department (NFSD) of MAFC for a pilot of the Food Basket Methodology continued and for a panel workshop with key stakeholders to discuss questions and concerns regarding use as an early warning tool on the mainland is planned for July 2015.

The Food Basket was completed for Zanzibar and the final training that will lead to the use and implementation of the methodology in future quarterly reporting has started. The training will be completed in Q4.

Two key capacity activities supporting the Rice Council for Tanzania where completed in Q3; the submission of the first Strategic Plan and the Rapid Assessment of the Rice Sector. Both activities contributed significantly to the organization’s development, stakeholders’ base, and advocacy efforts.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the third full year of operation on 30 September 2014. This Quarterly Report, Quarter 2 (Q2) of Project Year 4 (Y4), covers the period from 1 January 2015 to 31 March 2015.

The SERA Policy Project was very busy in the second quarter with the presentation of an important workshop and the start of several new activities. However, access to Government officials was limited by the busy schedule of Government staff as they prepared for the budget discussions in May and June, and national elections in October. SERA was advised that Government officials and staff were likely to be even less available for the next several months because of these obligations. Consequently, SERA activities were focused on completing existing projects where possible, and developing research and capacity building activities with non‐Government stakeholders.

Finally, there were several changes in senior leadership within the Government of the United Republic of Tanzania (GoT); a new Minister of Agriculture, Food Security and Cooperatives (MAFC), Honorable Stephen Wasira, and a new Minister of Lands, Housing and Human Settlements Developments (MLHHSD), Honorable William Lukuvi.

Important SERA work activities in Q2 included:

• Presentation of the workshop on Policy Options for Food Security, Agricultural Growth and Poverty Reduction to GoT,
• Support to the Rice Council of Tanzania (RCT) for their first strategic plan workshop,
• Start of the Rapid Assessment of the Rice Sector with RCT,
• Development of a draft Concept Note for the SERA‐led study of the Business Environment in Tanzanian Agriculture,
• Development of a draft Term of Reference (TOR) for a study of Gender in Maize Marketing; a study to be undertaken jointly with the World Bank (WB) and International Finance Corporation (IFC),
• Discussion with iAGRI on Phase 2 of the Policy Seminar Series, and,
• Discussions with the MAFC Seed Unit and Alliance for a Green Revolution in Africa (AGRA) on seed policy.

A rapid assessment of the rice market was completed in response to media reports that rice prices were rising rapidly. The assessment was provided to the Rice Council of Tanzania and the Department of Food Security of the MAFC. (Annex1). The research on Drivers of Maize Prices in Tanzania, completed jointly with the World Bank, was accepted for presentation at the International Association of Agricultural Economics (IAAE) in Milan, Italy in August 2015 and will be jointly presented by Don Mitchell, Senior Advisor of SERA and John Baffes, Senior Economist at the World Bank. Discussions are on‐going with the Department of Food Security of the MAFC on the implementation of the Food Basket Methodology (FBM) to measure the cost of a typical food basket in each region, and the Department has been requested to propose a pilot study to implement the FBM. The development of a collateral registry system by the Bank of Tanzania (BoT) was delayed due to other priorities of the BoT. The study of Land Compensation and Benefits Sharing Schemes undertaken by Landesa, an international non‐governmental organization (NGO) specializing in land issue, with SERA support was also delayed due to the change in Ministers at the MLHHSD . Edith Lazaro joined SERA as a research associate in February and she will study food demand in Tanzania. Don Mitchell, the Senior Advisor to SERA Project completed two trips to Tanzania (17 – 31 January 2015 and 18 February – 8 March 2015). SERA was not actively involved in policy research or capacity building on Zanzibar in Q2.

The workshop on Policy Options for Food Security, Agricultural Growth and Poverty Reduction was presented on 27 February to GoT officials and invited guests (Policy Options Workshop). The workshop was hosted by the Prime Minister’s Office (PMO) and chaired by Mr. Peniel Lyimo of the Big Results Now (BRN) activity on agriculture. The presentations were well received and the summary of the workshop, policy recommendations and actions are attached as Annex 2. The background papers will be finalized in Q3 and made available on the SERA website at www.tzsera.com. Mr. Lyimo concluded the workshop by noting that there were no strong objections to the 24 recommendations presented at the Policy Options Workshop and that many of the recommendations required only administrative approval and could be implemented quickly. The SERA Project will follow up with GoT to develop a prioritization and implementation plan. The USAID NAFAKA Staples Value Chain Activity supported the workshop with two international consultants who provided background papers and presentations.

The SERA Project moved forward with two capacity building support activities for the Rice Council of Tanzania namely, hosting a strategic planning workshop and conducting a rapid market assessment of the rice sector. The strategic planning workshop was held in March and the draft plan will be finalized and presented to stakeholders in Q3 (Annex 3). Phase 1 of the rapid assessment of the rice market started with a team traveling to Morogoro, Iringa and Mbeye for an initial field assessment (Annex 4). Phase 2 of the field assessment will be completed in Q3, as well as the final report. A draft Concept Note on the Business Environment in Tanzanian Agriculture was developed in Q2 (Annex 5) and meetings were held with senior officials of the Southern Agriculture Growth Corridor of Tanzania (SAGCOT) Center and BRN. The activity will be led by SERA in collaboration with the SAGCOT Centre, BRN and the MAFC. It will look at how the agricultural business environment in Tanzania compares with that in neighbouring countries. It will build on work done by the BRN, World Bank, and other organizations and seeksto better understand why investment in Tanzanian agriculture is low compared to other countries and other sectors in Tanzania. Initial interviews were conducted with key experts and insights gained were used in the preparation of the Concept Note.

A draft TOR on Gender in Maize Marketing (Annex 6) was developed by SERA for a joint study with the World Bank and International Finance Corporation. The proposed study will conduct farmer surveys in two regions to study maize marketing by men versus women farmers and after adjusting for quality and other factors, will try to determine whether female farmers receive lower prices for their maize. The study’s findings may lead to programs to reduce these differences through marketing education or information directed to women maize farmers. The WB and IFC used the TOR to secure financing from a donor and invited qualified firms to express interest in undertaking the study. The response was large, with 39 firms expressing interest and 6 were short‐listed to provide a proposal for the research. The study will be undertaken in Q3 and SERA Project will then continue the study in Q4.

The SERA team met with the iAGRI team in Q2 to discuss the second phase of the Policy Seminar Series at Sokoine University (SUA). The Policy Seminar Series was initially developed by SERA and jointly sponsored by SERA and iAGRI. Its objective is to encourage policy research by providing financial support to teams undertaking research on agricultural or nutrition policy issues of importance to FtF. Support is provided on a competitive basis and the first series of four studies was completed in Y3. The quality of some of the research was not acceptable and a more focused approach will be used in the second phase to try and improve quality. The second phase of the Policy Seminar Series will focus on land issues.

Seed policy has been a priority of SERA Project since Year 1 and previous efforts have focused on improving the tax treatment of seeds and seed packaging materials. This effort culminated in Y3 with a presentation by the MAFC Seed Unit and the Tanzania Seed Traders Association (TASTA) with SERA support to the Ministry of Finance (MoF) committee on taxation. However, severe budget constraints of GoT made it difficult to obtain tax relief and SERA Project will now focus on other policy issues. In that regard, meetings were held with the Seed Unit of MAFC and with AGRA staff in Nairobi and Dar es Salaam to identify important policy constraints to expanded use of improved seeds. Several issues were identified and SERA will work closely with the MAFC Seed Unit to address them. SERA will partner with AGRA to leverage resources and impacts, and will provide leadership on policy issues.

The SERA Project faced implementation challenges due to delays by key counterparts in the GoT in completing agreed work activities. In particular, progress on the collateral registry/secured transaction system, undertaken by the Bank of Tanzania was not achieved as the BoT did not complete work on the legal framework as planned; the National Food Security Department (NFSD) in the Ministry of Agriculture, Food Security and Cooperatives (MAFC) did not submit a proposal to pilot the implementation of the Food Basket Methodology as agreed; and discussions on the Data Harmonization workshop have not taken place.

The SERA Project works closely with other development partners in an effort to leverage resources and increase effectiveness. In Q2, SERA concluded an on‐going activity with the USAID FtF NAFAKA Staples Value Chain Activity to undertake research on trade policy and food security policy with the delivery of the Policy Options for Food Security, Agricultural Growth and Poverty Reduction paper on 27 February. The United States Department of Agriculture (USDA) has also collaborated with SERA on food security, consumer demand, and the Food Basket Methodology to measure food basket costs at the regional level. SERA also partnered with iAGRI to sponsor the Policy Seminar Series at Sokoine University and that activity continues. More recently, SERA has collaborated with the World Bank and International Finance Corporation on the gender in maize marketing study and with AGRA on seed policy. SERA has also collaborated with private sector organizations, including TASTA to improve seed policy and, this quarter, began a collaboration with AGRA on seed policy.

Implemented by Booz Allen Hamilton, the Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future Initiative (FtF) began in April 2011 and completed the second full year of operation on September 30, 2013. The second quarter Project Year 3 covers the period from January 1, 2014 to March 31, 2014.

SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. Quarter 1 (Q1) of Year 3 focused heavily on establishing relationships with new government actors in policy and on designing and staffing new activities to be undertaken in Year 3. Quarter 2 (Q2) developed these relationships and continued ongoing activities.

A number of important meetings were held with key government counterparts in Q2 and resulted in approval and support for new and ongoing activities on food security, land policy, access to credit, improved seed policy, and the economic environment. In particular, SERA staff met with senior staff of the Bank of Tanzania (BoT) in early January to discuss the development of the collateral registry system. In that meeting, SERA learned that the BoT has included the activity as one of its priority activities in its efforts to improve access to credit. This was a major accomplishment for SERA as since the project’s inception, we have worked to promote the development of a modern collateral registry system in Tanzania.

The draft Land Compensation and Benefits Sharing study undertaken by Landesa, with support from SERA, was discussed with the Ministry of Lands, Housing and Human Settlements Development (MLHHSD) in mid‐January. The discussion with the Ministry included the legal basis for local communities to engage directly with investors. This could provide an alternative to the current practice of communities converting their land to general land for the central government to control. Further work is being undertaken to obtain a second legal opinion from a respected Tanzanian land law expert. SERA also agreed to co‐sponsor a national workshop on land policy with the Ministry.

A meeting was held with the co‐directors of the MUCHALI Framework, which is the Government of Tanzania’s (GoT) early warning and disaster response activity. The program is jointly managed by the Department of Disaster Management in the Prime Minister’s Office (PMO) and the Ministry of Agriculture, Food Security and Cooperatives (MAFC). A work plan was developed to better utilize data to identify chronically food insecure villages and districts, and once identified, the potential for developing programs to assist such villages and districts out of poverty will be explored. A meeting was held with the Permanent Secretary of the Ministry of Agriculture to discuss the proposed SERA work plan on Food Security and other activities, and support and approval was received. The activities discussed included: 1) developing a policy options paper on food security, 2) continued training of Ministry staff on the Food Basket Methodology (FBM), 3) a study of food security data systems, 4) preparation of a submission to the Ministry of Finance (MoF) on improved tax treatment of seeds, and 5) further research to quantify the impacts of the maize export ban. All of these activities will begin in Q3 of Y3 and will be priorities for SERA.

Other activities undertaken in Q2 included continued capacity building with the Zanzibar Department of Food Security and Nutrition (ZFSND) and participation of senior SERA staff in the Big Results Now (BRN) lab. In addition to the work activities noted, two new staff joined the SERA team, including the Operations Manager, and the Communications and Capacity Building (CCB) Specialist.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is implemented by Booz Allen Hamilton. The SERA Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the fourth full year of operation on September 30, 2015. This Quarterly Report, Quarter 1 (Q1) of Project Year 5 (Y5), covers the period from October 1, 2015 to December 31, 2015. SERA is scheduled to conclude in March 2016, and discussions are underway with USAID for a no‐cost extension.

Tanzania elected a new President in October 2015, and the preparation for the election and establishment of a new Government following the election have impacted SERA activities as the focus of Government was on the election. The Bank of Tanzania (BOT), for example, was not able to maintain momentum on establishing the collateral registry and little progress was made on that activity. However, the preparation for the new Government also created opportunities such as the preparation of a Policy Note for the new Government, led by SERA and jointly authored with the World Bank, and the appointment of new actors into critical leadership positions, including a new Minister and Permanent Secretary (PS) of Agriculture and the consolidation of the Ministry to include agriculture, livestock and fisheries under a single Ministry called the Ministry of Agriculture, Livestock and Fisheries. The new PS for Agriculture was previously the PS in the Prime Minister’s Office (PMO) and worked closely with SERA while in the PMO. With the focus of Government on the election, SERA undertook activities that did not require direct interaction with Government officials, including a study tour to Zambia, completion of a survey of maize farmers, preparation for the Agricultural Policy Conference scheduled for February 2016, continued work on the food demand study, and continued support to the Zanzibar Department of Food Security and Nutrition (ZDFSN) to implement the Food Basket Methodology (FBM) to measure food basket costs.

The study tour to Zambia was very informative as it compared the agricultural business environment with Tanzania. The results are expected to be of great interest to the new Government which appears to be very focused on improving the business environment. The study tour, undertaken from November 15‐21, allowed a comparison of the corporate agricultural business environment between Tanzania and Zambia. The study team was led by the SERA Senior Advisor, Don Mitchell, and included Edith Lazaro (SERA), Daktari Hango from the Ministry of Agriculture, Food Security and Cooperatives (MAFC), and Emmanuel Lyimo from Southern Agricultural Growth Corridor of Tanzania (SAGCOT). Two other participants (Martin Masalu from Tanzania Investment Centre (TIC), and James Ngwira from the President’s Delivery Bureau (PDB)) were not allowed to travel by their management due to uncertainty about who was included in the new President’s ban on foreign travel by Government officials. These staff will participate in the study tour to Mozambique scheduled for January 2016. The trip report (Annex 1) provides the findings of the study tour.

The Maize Gender Study field work was completed in October 2015 by TNS East Africa Ltd and a preliminary report was received November 2015 (Annex 2). The study surveyed 300 men and 300 women maize farmers in Iringa and Ruvuma Regions. A prior companion study was undertaken by the World Bank/International Finance Corporation in July 2015 for the Mbeya and Rukwa regions using the same consultants, an almost identical questionnaire, and a similar sized survey of men and women maize farmers. The two surveys will be combined to obtain a survey of 1,200 farmers, equally divided among men and women farmers, to quantify the differences between men and women maize farmers. The results were expected to show that women maize farmers had access to fewer resources and had lower production, and would provide a basis for policy recommendations on how to narrow the gender gap—such as the recommendation to hire more female extension agents to focus on women maize farmers. The surveys data sets are being combined by TNS. The preliminary reports of both surveys confirm expectations and showed that women maize farmers are disadvantaged compared to men maize farmers in almost all areas. They have less education, smaller land holdings, use less inorganic fertilizers, less improved seeds, and have lower maize yields. Women maize farmers also receive about 70 percent of the maize prices received by men maize farmers when they market their maize. The findings are expected to be relevant to other sectors where women farmers may have similar characteristics compared to men farmers.

An Agricultural Policy Note for the new Government (Annex 3) was prepared by SERA at the request of the World Bank. The Policy Note went through extensive revisions and World Bank reviews, and was finally sent to the new Government in December along with Policy Notes on nine other sectors. The Policy Note was sent to the USAID Feed the Future team in Tanzania for concurrence but due to lack of time, a thorough approval review was not completed. Consequently, the views presented in the Policy Note were attributed to a USAID consultant and World Bank staff, and not to USAID. The Policy Note is broader in scope than SERA policy work and includes greater coverage of non‐food crops, smallholders, marketing, irrigation, and extension. Several World Bank staff, including the former and current senior agricultural economists, made substantive contributions to the Policy Note.

There were important personnel changes in Q1 as the Chief of Party, Marialyce Mutchler, was on extended leave. The former Chief of Party and currently the Senior Advisor, Don Mitchell, returned to lead the project.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future (FtF) Initiative is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms. SERA began in April 2011, and completed the fourth full year of operation on September 30, 2015. This Quarterly Report, Quarter 3 (Q3) of Project Year 5 (Y5), covers the period from April 1, 2016 to June 30, 2016. The SERA Project’s period of performance was originally set to end on April 6, 2016, however, a request for a no‐cost extension was approved by USAID that extended the period of performance through August 30, 2016.

The following tasks were completed in Q3:

• Presentation of the Close‐Out Plan to USAID on April 18.
• Presentation of the Business Environment Study to stakeholders on April 20, and completion of the Policy Brief (Annex 1).
• Completion of a Policy Brief on Policy Options for Food Security, Economic Growth and Poverty Alleviation (Annex 2).
• Completion of the Rice Market Efficiency Study (Annex 3).
• Completion of a report on the impact of the Global Food Crisis, in collaboration with the United States Department of Agriculture (USDA), that was accepted for publication in a forthcoming book on Food Security (Annex 4).
• Presentation of the draft Maize Gender Study, undertaken in collaboration with the World Bank (WB)/International Finance Corporation (IFC), at a workshop on May 23, and finalization of the report (Annex 5).
• Completion of the report on the Transparent Rules‐Based System for Emergency Food Imports (Annex 6).
• Completion of a training on a Healthy Food Basket to the staff of the Department of Food Security and Nutrition in Zanzibar (Annex 7). The training was conducted by Nancy Cochrane of the Economic Research Service (ERS) in collaboration with SERA staff and a nutrition expert.
• SERA project worked with the USAID ASPIRE Project to deliver training to over 40 participants from the Government of Tanzania (GOT) and the Revolutionary Government of Zanzibar (RGOZ) on the use of STATA statistical software.
• SERA concluded its support to the Tanzania Seed Trade Association (TASTA) by hosting a one‐day stakeholder workshop on June 3, 2016 in Arusha. 68 participants from the public and private sectors attended the workshop to discuss issues related to access to public bred varieties and the impact of the Maize Lethal Necrosis Disease (Annex 8).
• Completed a training on website design, development, and maintenance for key SERA beneficiaries (Annex 9).

Delays were encountered in these activities:

• The SERA Project had planned to support the Bank of Tanzania (BOT) to reform the Secured Transactions Laws and implement a Collateral Registry, but that activity was postponed by the BOT because of internal delays. No further SERA support is planned.
• The data for the Maize Gender Study was found to be incomplete and returned to Taylor Nelson Sofres (TNS) consultants on May 6 for revision and data checking. Revised data was received on June 24.

The Tanzania SERA Policy Project (SERA) of the United States Agency for International Development (USAID) Feed the Future Initiative (FtF) began in May 2011 and completed the second full year of operation on September 30, 2013. The SERA Policy Project is focused on improving the policy environment for agriculture, and developing individual and institutional capacity to undertake policy analysis and advocate effectively for policy reforms.

The first quarter of Year 3, from October 1 to December 31 of 2013, focused heavily on establishing relationships with new actors in policy and on designing and staffing new activities to be undertaken in Year 3. Several important staff changes took place in the Government of the United Republic of Tanzania (GoT) in Q3 and Q4 of Year 2, requiring SERA to establish new relationships with these key GoT officials. Among the most important, was the shift of the Permanent Secretary (PS) in the Prime Minister’s Office (PMO) to the State House to lead the Big Results Now (BRN) President’s Delivery Bureau. This led to the appointment of a new PS in the PMO. The acting PS in the Ministry of Agriculture, Food Security and Cooperatives (MAFC) was also appointed PS. Meetings were requested with new appointees, and held with the official appointed to lead the BRN President’s Delivery Bureau and the new PS in the PMO. A meeting could not be arranged with the new PS in the MAFC due to her busy schedule. Her policy priorities are not yet clearly understood and future efforts will be made to meet her while we continue to support and communicate with her through MAFC channels. A new policy coordinator was also appointed in the MAFC and has worked closely with SERA to identify policy priorities and coordinate policy analysis.

In addition to these relationship building activities, an analysis of the profitability of irrigated and rain‐fed rice in Zanzibar was completed and presented to the Revolutionary Government of Zanzibar (RGoZ) in December 2013. Work began on the design of a rules‐based system for food imports at the request of the GoT. Further analysis on land issues was undertaken, and a meeting requested with the Minister of Lands to present the findings. Additional efforts were made to encourage the GoT to develop and implement a collateral registry system. Capacity building activities continued with the Zanzibar Department of Food Security and Nutrition (ZDFSN) and the Department of Food Security (DFS) of the MAFC on the mainland. The capacity building activity with the DFS will be undertaken in Q2‐Q4 jointly with the Economic Research Service (ERS) of the U.S. Department of Agriculture (USDA). This activity will train approximately 30 staff of the MAFC and other Ministries on the food basket methodology for estimating food requirements at the regional level. A scientifically rigorous study of the impacts of the maize export ban on maize prices in each region was planned in Q1 and will begin in Q2 and continue into Q3. Recruitment to replace the Operations Manager and Communications Officer, who both left the project in 2013, was undertaken with advertisements in the Guardian and Daily News that received nearly 100 applications for each position. Interviews were conducted for the Operations Manager position and a candidate selected. The Communications Officer position was modified to more closely meet the changing requirements of the SERA Project. An international consultant was engaged to finalize the website which will be launched in Q2 of Year 3.