Climate Risk Management in Agro-Pastoral Systems of Central and Northern Tanzania: Costs and Benefits of Local Adaptation

Abstract

In Tanzania, agro-pastoral practices have been adapted to climate change for several years. However, the economic benefits and costs of adaptation techniques for agro-pastoralists have not been well documented. Therefore, this paper analyses the economic benefits and costs of adaptation strategies to climate change and variability. The analysis used primary data collected from 411 agro-pastoral households randomly selected from 22 villages in five districts in northern and central Tanzania. Net present value, benefit-cost ratio and internal rate of return were calculated to determine the benefit-cost analysis of adaptation strategies. The planned adaptation strategies were found to be financially viable compared to business-as-usual practices. Sensitivity analysis also showed that maize-sunflower intercropping was viable, while maize-bean intercropping was more sensitive to a 10% change in yield. In addition, drip irrigation and micro-catchment rainwater harvesting have the potential to contribute to climate risk management in these dryland areas by minimising water use and maximising output per hectare; the main challenge is the high initial capital cost. There is therefore a need for extension agents to continue to promote crop and livestock diversification among agro-pastoralists in managing climate risks to reduce their vulnerability to climate change and variability. In addition, research and development (R&D) practitioners need to promote and capacitate agro-pastoralists in drip irrigation and micro-catchment rainwater harvesting adaptation strategies.