This brief is based on a value chain survey carried out on the maize and legume seed sectors in Tanzania. The results showed that the majority of maize farmers in the surveyed districts are still using recycled seed. An important development is that the seed sector has opened up in recent years and there is growing private sector participation. Nevertheless, inefficient supply chains and low purchasing power were the two main challenges of seed markets in Tanzania. In the long-term, increasing the supply of these key inputs through greater participation of the private sector players is important. Second, strengthening the role of the public sector by focusing on the issues of sector governance, training, and research and foundation seed production will be crucial for success. On farmers’ weak purchasing power, a strong credit system is inevitable. Innovations to deliver such credit to smallholder farmers are needed.