Handshake that made 'a Tanzanian moment' - BLUEPRINT Miracles of - Tanzania Investment Centre
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May - July 2020| FREE COPY
ISNN 2714-2116 Issue 01
Handshake
that made ‘a Tanzanian moment’
BLUEPRINT AVOCADO CASHEWS
Miracles of From tropical fruit Millions of
reforms to green gold opportunities
The Investor | A
Contents EXECUTIVE DIRECTOR’S
Message
Page 7:
The Investor is a quarterly Handshake that defined a Tanzanian GEOFFREY IDELPHONCE MWAMBE
magazine published by the moment
Tanzania Investment Centre
(TIC) distributed in 3,000 copies
throughout the country and Page 14: The miracles of blueprint reforms
abroad.
Editor-in-Chief
Geoffrey Idelphonce Mwambe
Page 16:
Opportunities aplenty in cashew
value addition
Managing Editor
U
Faraja Mgwabati
NLIKE missed calls, Corporation of Canada and investment promotion forum in
missed opportunities what it means to the country Mtwara Region that attracted
Editor can never be dialed back. and her people. local and foreign investors and
Kilasa Mtambalike And I wouldn’t have missed The Investor has come ultimately generated interest
Sales & Marketing
Page 22: this opportunity for the world
to welcome you, our reader,
at an opportune time, a
time to take stock of the
from over 40 prospective
investors. In this issue we
Sauda Kimolo Meet Tanzania’s own to the maiden edition of ‘The country’s achievements and outline potential areas for
queen of poultry Investor’. communicate to the world investment in the cashew sub-
Photography This is an opportunity for on the vast investment sector.
TIC to quench investors’ and opportunities that the country This edition has so much
Grace Semfuko
other stakeholders’ thirst for has to offer in various sectors. to offer as it features articles
information on investment There are unlimited on the investor of the month,
Coordinator opportunities and investment investment and business information on how the one
Latiffa Kigoda Page 26: Reclaiming past glory of livestock industry climate in general. opportunities in Agriculture, stop shop that provides
It includes information Manufacturing, Mining, Health, facilitation services at the
Contacts
Tanzania Investment Centre
Page 34: Tanzania named best wildlife destination
in the world
on investment procedures,
incentives, regulations and
Education, Transport, Fishing,
Aquaculture, Livestock,
Centre operates and why, with
ongoing reforms, the future
Shaaban Robert Street, generally what it takes for one Economic infrastructure looks bright for Tanzania in
P.O. Box 938, Dar es Salaam, to be able to invest in Tanzania. (including energy), ICT, Tourism areas of investment.
The past three years have and Services sectors. As the Government and
Mob: +255 737 879087
been challenging yet fruitful The Investor also comes at the Centre guarantee our
Tel: +255(22) 2116328-32, in matters of investment a time when the Fifth Phase readers and stakeholders of
Fax: +255(22)2118253, in the country because we Government has resolved to commitment to ensure that
Email: information@tic.co.tz have witnessed massive transform the country into an Tanzania becomes the best
www.tic.go.tz reforms and improvements Industrial Economy, prompting investment destination on the
Page 37: Why it is an opportune time to harmonise
in legal frameworks, policies, the need for informed reforms continent, we also welcome
FREE COPY
April-June 2020|
Investment laws
ISNN 2714-211
6 Issue 01
regulations and processes to attract investors in the partnerships in different forms
Handshake ment’ Page 38: The avocado Midas touch that have all led to increased industry sector. in supporting future editions of
that made ‘a
Tanzanian mo
investments and revenues to Cashew is among the priority the magazine.
the Government. areas that the Government has The Investor is designed to
Page 41: The first issue features an in-
depth analysis of the fruits of
purposely decided that should
be promoted and attract more
float your boat, it is the first issue
but read assuredly it certainly is
How Dar fairs in global the reforms and importance investment to create value not the last. We are here to stay.
performance indicators of the momentous agreement addition. Enjoy your reading.
AVOCADO
CASHEWS
Milions of r | A
between the Government of In July last year, the Tanzania
BLUEPRINT
Tanzania and Barrick Gold Investment Centre (TIC) hosted Thank you.
fruit
From tropical ties
Investo
rtuni
oppoThe
Miracles of to green gold
reforms
The Investor | 3
REGULAR offers legal counseling services help spur and attract invest- It is also imperative that pub-
to investors including on issues ments, bearing in mind that lic awareness campaigns and
involving conflicts between in- legislation and investments are education on different legisla-
vestors and the government, inextricably linked. tion and regulations concerning
Come to TIC for investment investors and surrounding com-
munities and/or between differ-
ent investors.
He said that legislation that
are deemed to be of disad-
vantage to investments and
investment should be imparted
to stakeholders to help them
implement their projects with
advice, investors counseled Along the same line, TIC also
called on all regulatory bodies
in the country to revisit laws to
business growth need to be
reviewed to work to the advan-
tage of the country.
relative ease.
By LATIFFA KIGODA
I
NVESTORS in the country for local and foreign invest-
have been counseled to con- ments and for doing business in
sult with Tanzania Invest- general.
ment Centre (TIC) offices coun- “That would in turn help
trywide whenever they need to achieve the government’s vi-
address various legal challeng- sion of transforming the coun-
es they face. try into a semi-industrialized
The plea was made by TIC Se- middle-income economy in
nior Legal Officer, Alex Stephen 2025. It should be noted that an
Mnyani during the commemo- industrialized economy is built
ration of the Legal Week in Dar on the strength of investments,”
es Salaam early February. he said.
The occasion was held in var- TIC offices are spread out
ious regions and be- in different zones
fittingly carried which include
a theme fo- Eastern Zone
cusing on (Dar es Sa-
invest- laam),
ment West-
a n d e r n
busi- Zone
ness (Kigo-
a n d ma),
t h e North-
role e r n
of the Zone
judiciary (Kiliman-
in creating jaro) and
an enabling Lake Zone
environment to (Mwanza) and
attract investments partook in the exhi-
to the country. bition to sensitize the public
He said that this year’s theme on issues pertaining to invest-
is a clear sign that the Judicia- ments and how investors are
ry in collaboration with other obliged to undertake their ven-
stakeholders is keen to ensure tures by abiding to existing laws
that existing legislation are re- and regulations.
spected with the view of creat- On that backbone, TIC also re-
ing an enabling environment minded all stakeholders that it A group of investors during a forum organised by TIC.
4 | The Investor The Investor | 5
LEAD STORY
A TANZANIAN MOMENT:
Handshake
that made
a difference
F
RIDAY, January 24, would have been just
another day bar for an ostensibly innocuous
handshake that would come to epitomize a
“Tanzanian moment”.
So, what’s in a handshake? Plenty of positive
energy, sign of a new beginning, the start of success
or, in some misfortune, failure; or just simply a
gesture symbolizing two parties on equal footing.
Let’s take a trip down memory lane for a little
refresher on famous handshakes.
The last time former US President Bill Clinton and
late Cuban leader Fidel Castro were in the same
room, in October 1995 at a United Nations reception
in New York, they were caught in an awkward
moment. They actually shook hands!
It was awkward in the sense that it was the first
time Castro, who had been in power for over 35
years then, had ever shaken hands with a sitting
American president, and considering that Cuban-
American relations is always a sensitive political
issue, the gesture was momentous.
Minister for Foreign Affairs and East Africa Cooperation, Prof. Closer to home, at the wake of March 2018,
Palamagamba John Kabudi, shakes hands with Barrick Gold Kenyan President Uhuru Muigai Kenyatta and
Corporation Chairman Prof. John Thornton as they exchange opposition leader Raila Amolo Odinga did a famous
signed framework agreements between the Tanzanian “handshake” in the spirit of “building bridges”
Government and Barrick Gold. towards attainment of peace and unity.
6 | The Investor The Investor | 7
We don’t need to
fight with investors
but rather engage
in discussions and
negotiations while
cooperating with
them in a win-win
situation, this spirit
should continue and
be sustained
President Dr John Pombe Magufuli looks on as the agreements are being inked.
It was a public declaration the government of Tanzania Gold Corporation and other of Barrick’s local operations. miners pay off. page.
to cease hostilities and find a signed an iconic mining investors from around the For sustainable development, Twiga Minerals Corporation “We cannot go into the details
common ground in the interest agreement with Barrick Gold world that Tanzania was the the president also reminded is now owned 84 per cent by of the agreement but there were
of moving the country forward Corporation that for the first best investment destination. the company to protect the Barrick and 16 per cent by the issues of contention such as
after a long period of politically time begot a win-win situation. “We don’t need to fight with environment and also work government. The deal provides under declaration of revenues
motivated skirmishes. The agreement has not investors but rather engage in closely with mining zones for a 50/50 sharing in the and payment of taxes, inflated
And then came the handshake only re-defined the current discussions and negotiations surrounding communities by economic benefits generated costs of mining operations and
in Dar es Salaam at the end and future outlook of mining while cooperating with them supporting them to improve by the mining operations after more,” he said.
of January this year. It was a operations in the country but in a win-win situation, this their welfare in education, the recoupment of capital He clarified that the 16
Tanzanian moment in the sense also serves as a precedence and spirit should continue and be health, water and other areas. investments. percent non-carried interest
that something unprecedented sets the tone for other African sustained,” he said. This comes at a time when Tanzania Investment Centre stake owned by the government
happened that would shape countries to learn from. Among other things, the country’s gold export had (TIC) Executive Director, is non-negotiable in all mining
the future of investment in After the signing of the the agreement ratifies the risen by 45.5 per cent in 2019 Geoffrey Idelphonce Mwambe operations but economic
the country and, perhaps, the agreement at State House in creation of Twiga Minerals to US$2.2 billion, compliments was part of the government’s benefits sharing would differ
continent. Dar es Salaam, President John Corporation, the management to increased output and higher negotiating team and admits from one mining company to
It was the climax of protracted Pombe Magufuli, architect company jointly owned by the prices at the world market as that the negotiations took long another.
negotiations that ultimately re- of the reforms that led to the government and Barrick that government efforts to curb for various reasons to ensure Mwambe noted that from
wrote the course of history after agreement, assured Barrick will oversee the management smuggling from small-scale that all parties are on the same now onwards all Mineral
8 | The Investor The Investor | 9
The two parties display the signed framework agreements. Development Agreements During the signing ceremony, Magufuli’s stance to revisit the been engaging with local flow. Gold subsidiary Acacia Mining (MDAs) would be in line with Barrick Gold President and miner’s agreement with the communities to restore the A similar result is expected at and the solution now reached”. three amended mining laws Chief Executive Officer, Mark government. mines’ social license to operate Bulyanhulu, where an integrated “The agreement would make namely: Mining written Laws Bristow said the joint venture, Following the agreement, and we are cooperating closely study aimed at optimizing the Africa a very different place in (Miscellaneous Amendment) which will give the government Barrick and the government will with the authorities to address complete ore-body should kick- ten years’ time if this formula Act, 2017, the Natural Wealth full visibility of and participation work together to implement a the environmental issues start the resumption of mining could be migrated across and Resources (Permanent in operating decisions made number of issues. at North Mara. In addition, operations there later this year. Africa. I would like to believe Sovereignty) Act, 2017 and the for and by the North Mara, In particular, Barrick will we are working on a local Early last month Bristow this is a foundation on which Natural Wealth and Resources Bulyanhulu and Buzwagi mines, partner with the University of supplier strategy as well as a was quoted on https://www. to go forward in Africa generally (review and renegotiation of was a pioneering move which Dar es Salaam and commit up community development plan miningmx.com/ declaring because it really does recognize unconscionable terms) Act, would take Barrick’s policy to US$10 million in funding over to create sustainable economic himself satisfied with the the importance of partnership,” 2017 of partnership with its host a 10-year period for training opportunities for the people agreement signed in January he said. “The new framework provides countries to a new level. and skills development in the around our mines,” Bristow and rejected the allegation that “Let’s set aside the $300m fine. a level playing field between the “Many people were mining industry, and will also said. his group had given away too That’s for past whatever and the government and investors in the pessimistic, saying that commit up to US$40 million Bristow said that there was much to reach the settlement Tanzanian government never mining sector,” said Mwambe, your criticism will keep to upgrade the road between a strong focus on rationalizing which included the payment threatened nationalisation. adding that negotiations with away investors, what has Bulyanhulu and Mwanza as and optimizing mine plans. of US$ 300 million to settle What it was after was a fair deal other major mining companies happened is a challenge to well as constructing a housing Following the successful tax claims by the Tanzanian and John’s (Barrick chairman, are ongoing in the same spirit the mining industry and all of compound and related transition to owner mining at government. John Thornton) involvement with the aim to review existing us to embark on something infrastructure. North Mara, this has already He concurred back in 2017 very clearly agreements to achieve a win- where we win together or lose “Since taking over the delivered a reduction in costs that Tanzania “had a legitimate captured that. win situation. together,” he said of President operatorship, we have and an increase in free cash beef” in its dispute with Barrick “Fundamentally, Acacia was 10 | The Investor The Investor | 11
1.0 What is Tanzania Investment Centre (TIC)? production and agro-processing, livestock farming as
well as fish processing and livestock products including
The Tanzania Investment Centre (TIC) was established meat, milk and leather.
in 1997 by the Tanzania Investment Act to be the Primary
Agency of the Government to coordinate, encourage, 2.3 Strategies Location
promote and facilitate investment in Tanzania and to
The country’s geography is greatly beneficial. Tanzania
advise the Government on on all investment related
is connected directly to the Indian Ocean giving it
matters. It facilitates both foreign and local investors.
trade links to Asia and sits in between the ocean and 6
The threshold for investment capital for foreign
landlocked countries (Uganda, DRC, Rwanda, Burundi,
required must be at least US$500,000 for projects Zambia and Malawi) that rely on Tanzania for passage
which are wholly owned by foreign investors or joint of goods. The country has 3 deep water ports (Dar
venture and US$100,000 for projects which are wholly es Salaam, Tanga and Mtwara) that are servicing the
owned by local Tanzanian. neighboring countries. Furthermore, its membership
to the SADC Free Trade Area and EAC Common Market,
1.1 How does TIC facilitate investors?
with developed rail and road networks, makes Tanzania
Tanzania has introduced numerous structural and a natural transportation gateway for East and Central
legal reforms to ensure easiness in starting and doing Africa
business /investment in the Country. These efforts
2.4 Peace and Political Stability
have been commended by both the World Bank and
Agreements being signed. the IMF. Investors are assisted to process the required Tanzania is one of the most peaceful and politically
authorizations permits and licenses through One stable countries in Africa. Since its independence in
Stop Facilitation Centre inside the TIC building. The 1961, the country has never experienced a civil war or
an irresponsibly-run business “A true measure of partners is nationalisation). Everybody is any major internal strife.
and it was not properly 50/50 after the recoupment of getting the benefit except the investment facilitation services currently provided
managed. It was a small capital expenditure although host country treasury.” includes; company incorporation, work permit class 2.5 Market access
company with a head office in this can be a few per cent either Bristow added that: “This is A&B, tax payer identification number, product standard
certificate, Tanzania foods and drugs authority business Over and above, investing in Tanzania also guarantees
London and another head office side. The beef in Tanzania was now a true partnership in that
permit, environment certificate, occupation, health, access to a market of more than 450 million people in
in South Africa. Management that these mines had been run when you win, you win together Eastern and Southern Africa in which Tanzania enjoys
was through ex-patriates living since the 1990’s but they had and when you lose, you both safety compliance certificate, land derivative right,
industrial and business license and residence permit preferential trade arrangements, by virtue of being a
in Dar es Salaam and Arusha not paid tax. That’s tantamount lose. This effectively splits the member of EAC and SADC. Tanzania Exports over 6,000
and not even on the mine sites. to 100% the other way (from pie as a national asset and one class A&B. Furthermore, stationed senior officers from
items under the AGOA, and is a Trade partner with China
National Identification Authority (NIDA), has joined the
thing a gold company will never (where over 4,000 items can be exported), Canada,
Centre to strengthen investment facilitation services to
lie about is the gold it produces and Japan. In addition, Tanzania is a gateway to six
investors through One Stop Facilitation Centre. landlocked countries in Eastern and Central Africa. It
so you can see the revenue.”
Bristow also emphasised the 2.0 Why invest in Tanzania? provides natural access to the Democratic Republic
benefits of having Tanzanian of Congo, Rwanda, Burundi, Zambia, Malawi and
The following are among the major reasons that explain Uganda. Investing in Tanzania therefore provides the
government representatives why potential investors should consider Tanzania as advantage and opportunity to access local, regional and
sitting on the boards of mining their investment destination: international markets.
companies where they could
see for themselves exactly what 2.1 Economic Stability with High Growth Potential: 2.6 Infrastructure Services
was going on.
Tanzania is experiencing sustained economic growth, To support these policies, we have in place basic
“Previously they have
with an average Gross Domestic Product (“GDP”) infrastructure services such as water, power, roads, rail,
never had the right to see the growth rate of around 7% per annum. This is a result of air transport, and telecommunication are available at
budget. Now they have the economic reforms and sound economic policies that varying degrees. Currently, one is assured of electricity
right, for example, to seek were introduced since the second half of the 1990’s. and more generation is on the way with current
the background on a capital construction of Nyerere Hydro-Electric Dam with capacity
request. That’s a legitimate 2.2 Rich Natural Resources to produce more than 2,000MW. Access to electricity is
request from a board member in rural Tanzania is over 75 percent. Most key economic
Tanzania is endowed with a variety of natural resources
to which we say – ‘sure’.” including a 1,424-kilometre coastline, enormous arable centres are connected with good roads and more are
land, world class tourist attractions, minerals, oil and gas. being constructed. Telecommunication is adequately
KILASA MTAMBALIKE and Available arable land, conducive weather and ground available throughout the country. Air transport to the
Gold bars. Sources along with surface water provide opportunities in agro- country and within the country is satisfactory.
12 | The Investor The Investor | 13
I
T has worked like a wonder drug, well, sort of, all things investment and businesses Charges) Regulations of 2008
BUSINESS ENVIRONMENT
considered. climate, it will ultimately 2016 and 2018 to reduce fees
Implementation of the blueprint recommendations stimulate investments and and charges.
Blueprint
on creating an enabling business environment to attract address the challenges “There are some regulatory
investments has had miraculous results. and shortcoming bodies such as NEMC, OSHA,
Contrary to mistaken beliefs, the easing of bureaucratic in the country’s former Tanzania Minerals
reforms
processes and reduction of fees/charges by some b u s i n e s s Audit Agency (TMAA) and
government institutions has actually increased revenues environment,” he Workers Compensation Fund
and customers to a record level. said. (WCF) decided to conduct
pull off
According to a status report prepared by the Tanzania In total, joint inspections in the mining
National Business Council (TNBC) under Business the report industry,” noted the report.
Environment Working Group, on the implementation revealed The report further shows that
there is significant improvement
miracles
of blueprint recommendations on business regulatory that
reforms, Ministry of Agriculture and Food Security as well in terms of time spent to obtain
as Occupational Safety and Health Authority (OSHA) were business licenses, permits and
among the top performers. registration certificates.
“Before reforms in 2016/17 the Ministry of Agriculture Some of the regulatory
2017/18 expected to collect TZS 4 billion and actual revenue bodies such as BRELA and
collection was 3.3 billion, which was equivalent to 83 TMDA adopted the use of ICT to
MINISTRY OF AGRICULTURE percent. promote e-business registration
In 2017/18 after reforms, the Ministry expected to collect and licensing while others such
EXPECTED COLLECTION as Tanzania Investment Centre
18.5 bn
TZS 18.5 billion and the actual collection was TZS 33.8
billion, which was equivalent to 182 percent of the expected (TIC), TBS, OSHA and NEMC
TZS have already developed their
revenue collection,” says the report
The report, noted that OSHA managed to increase its own information systems.
revenue collection from TZS11 billion in 2016 to TZS21 TNBC in collaborations with
ACTUAL COLLECTION
33.8 bn
billion in 2019. In addition, the registered workplaces other stakeholders charted out
the
TZS (customers) increased from 3,354 in 2017 to 16,457 in 2018/ the blueprint that called for the
public and private sectors to
19, which was 491 percent increase. Government
cooperate in creating enabling
Fees and charges removed by OSHA included workplace had abolished
EQUIVALENT TO business environment that will
registration fee that was previously charged between
182%
fees of 167 attract domestic and foreign
TZS 50,000 and TZS 1,800,000, workplace registration form b u s i n e s s investments to the country.
fee of TZS 2,000. It also covered removal of fine related to licenses, permits The Blueprint document
compliance with fire-fighting equipment of TZS 500,000, and registration was made legally binding by
which interfered with procedures overseen by the Fire and certificates and Parliament in July 2019 to
OCCUPATIONAL SAFETY AND Rescue Force. reduced the smoothen its implementations.
HEALTH AUTHORITY (OSHA) Other fees slashed by OSHA are Occupational Health fees of 9 business It calls on local and foreign
2016 REVENUE COLLECTION and Safety (OSH) Act Compliance License fee which was licenses, permits and investors to eye Tanzania as a
11 bn
previously charged at TZS 200,000 per annum and OSH registration certificates hub for investment following
TZS consultation fee of TZS 450,000 per hour for one expert. that makes a total of the government’s reforms
The study covered five regulatory bodies namely Tanzania 176. to address delays in issuing
Bureau of Standards (TBS), OSHA, Tanzania Medicines and In another progress, business licenses and permits
2019 REVENUE COLLECTION Medical Devices Authority (TMDA), Business Registration regulatory bodies
21 bn
and multiple regulatory bodies
and Licensing Agency (BRELA) and National Environmental such as OSHA, TBS and that discourage investors.
TZS
Management Council (NEMC). NEMC amended their The Blueprint among others,
Minister of State,
According to Tanzania Investment Centre (TIC) Director regulations for the sake of recommended 34 business
EQUIVALENT TO Prime Minister’s
91%
of Investment Promotion, John Mnali, the blueprint was a Office (Investment) reducing fees and charges. permits and licenses out of 380
long time coming. Hon. Angellah For instance, NEMC to be removed.
“It was long overdue as a roadmap for improvement of Jasmine Kairuki reviewed the Environmental
(MP). Management (Fee and FARAJA MGWABATI
14 | The Investor The Investor | 15
CASHEWNUTS
Opportunities
his house and afford to take Other regions with minimal
quantities include Morogoro,
his three children to private
schools, paying up to TZS TANZANIA IS THE Tanga and Ruvuma.
THIRD LARGEST
Tanzania is the third largest
aplenty in cashew
1,600,000 per annum in fees per
child.
Kasigere is just one of millions
producer of cashews in the
world after India and Ivory Besides being
of cashew farmers in Tanzania PRODUCER OF CASHEWS Coast according to the World
among the top
value addition
whose lives depend entirely on Bank.
the cash crop. IN THE WORLD During the same period
10-world producer,
According to Tanzania cashews export fetched the
country TZS 1.3 trillion, which
Tanzania is
S
Investment Centre (TIC)
AID Kasigere (45) is a change my life. But the coming report titled ‘Investment is more than the combined
happy man, and for all
the right reasons.
of the processing industries
in our villages and improved
Opportunities in Production
and Processing of cashewnuts’,
earnings from exports of
tobacco, tea, coffee, cotton, considered as
the producer of
2017 -2018
He is a cashew nuts farmer government regulations greatly in 2017/18 the country cloves and sisal.
from Nagaga Village, Masasi helped increase our income produced 315,000 metric tons As of the ongoing season, from
District in Mtwara region, and and stabilize prices. We no
longer need middlemen,” says
of raw cashews. October 31, 2019 to January 26
this year, Cashewnut Board of the best quality
his income has significantly The cashews or nick-named
CASHEWS EXPORT FETCHED
improved since 2016, Mr Kasigere. ‘green gold’ is predominantly Tanzania (CBT) had auctioned
cashews in the
TZS 1.3 Trillion
compliments to the springing Mr Kasigere says he used to cultivated in three regions of 228,598 tons worth TZS 578
up of cashew processing
factories in his area.
get TZS 300,000 per season but
since 2016 he is earning not
Mtwara (194,748 tons), Lindi
(76,000 tons) and Coast (20,000
billion.
CBT Acting Managing Director, world.
“Before then, it never occurred less than TZS 2 million, which tons), which account for 90 per Francis Alfred, told The Investor
to me that the crop would has helped him modernize cent of cashews in the country. that the auctions are still
16 | The Investor The Investor | 17ongoing and are expected to 25 and 6,000 tons of cashews
project registration processes
trade 290,000 tons this season. and implementation. per annum, hence the need for
Most of these cashews (87 per In July 2019, TIC hosted a large scale investment.
cent) are exported unprocessed series of investment promotion Cashew nuts are produced
to Vietnam and India as the fora in Mtwara focusing by more than 666,200
major buyers. Only 13 per cent on the cashew sub-sector. operators (individual farmers
(42,073 tons) of the cashews According to Mwambe, the foraand organizations), creating
were processed lo≠cally in millions of direct and in-direct
yielded positive results as it
2017/2018, which provides for jobs, from farm to the factories
generated interest from over 40
an opportunity for investors prospective investors. and the entire value chain.
to venture into this lucrative Acting CBT DG, Francis The presence of cashews
business. Alfred, also commended TIC processing industries not only
“We would like to welcome guarantees the country of more
for the initiative of organizing
serious investors in farming the forums, saying that they foreign exchange from kernels,
but most importantly in value were beneficial in many it also provides sustainable
addition so that we can reduce market and stable income to
ways, especially in the area of
export of raw cashews. If we attracting investment in the farmers like Kasigere.
can manage to process even 50 linkages of value chain in the The four cashew most
per cent that would be a great agro-processing industry. producing regions of Lindi,
milestone,” said Mr Geoffrey With regard to country’s Ruvuma, Mtwara and Pwani
Idelphonce Mwambe, the capacity to process cashews, have allocated land of 538,993
Executive Director of Tanzania data also shows that in 2019 hectares for farming and
Investment Centre (TIC). Tanzania had 28 cashew industrial development by
Mr Mwambe noted that processing industries; investors.
six
TIC was ready to facilitate of them were not working, Current investment needs for
investors through its one stop requiring capital injection cashews include production
facilitation centre, which brings through joint ventures. of raw cashew nuts, cashew
together various government processing machineries (for
Most of these industries are Cashew processing factories are labour intensive providing sustainable employment to many,
institutions, thereby easing kernel into various products,
small scale processing between especially women.
cashew apple and cashew shell further invest into cashew European imports of cashew the country.
liquid). farming and processing nuts from developing countries With 80 per cent of available
Others needs are in the country abound. more than doubled from €534m cashew land under cultivation,
manufacturing cashew Mechanisation would help in 2013 to €1.34bn in 2018. there are still vast, unexploited
processing machines in companies to improve quality, The country’s production is avenues to match the
partnership with Small reduce costs, maximize profits growing at 450 per cent, with production of Ivory Coast,
Industries Development and more efficiently use human significant opportunities for which produces over 750,000
Organization (SIDO) to promote resources. investors along the value chain. metric tons and is the largest
local capacity and technology If Tanzania’s producers can Like any other industry, producer in Africa and the
transfer. boost mechanization and cashew industry is open to world.
Figures indicate that in Lindi improve productivity, the sky is foreign direct investment (FDI) Taking advantage of the
Region there are 8 processing the limit. As consumers demand and partnerships between local government’s renewed interest
plants, whereas three (3) healthier snacking options, the and foreign companies. This in cashew, coupled with the
are not working and five (5) European and North American move will add value to the crop state’s resolve to achieve its
are operational. In Ruvuma market for cashew nuts is in the country. industrialization agenda; it
there is only one (1) cashew anticipated to continue to grow. Cashew processing, for does make sense to invest in
nut processing plant that’s Since 2013, shipments of example is a capital and the sub-sector.
operational. shelled cashew nuts into technology intensive business If current efforts are sustained
In Mtwara Region 10 cashew Europe have risen by an annual that is often beyond most local and strategies properly
processing factories are average of 21 per cent in value investors, so foreign investment implemented, within a few
operational and three are not and 12 per cent in quantity, should complement domestic years Tanzania might just as
working. And in Coast Region amounting to €1.6bn ($1.8bn) investors in the industry. well become the world’s largest
there are six (6) cashew nut and 180,000 tons respectively, Tanzania’s cashew industry producer of cashew with vast
processing plants that are according to the Centre for the is witnessing concerted opportunities for job creation
operational. Promotion of Imports from efforts by government and and foreign exchange earnings.
Against such a backdrop, Developing Countries. all stakeholders to increase
Said Kasigere of Nagaga village Masasi district in Mtwara posing enormous opportunities to
outside his new house. In the past five years, production and processing in BY THE INVESTOR REPORTER
18 | The Investor The Investor | 19China By investing in Tanzania, you get
is the access to East African Community
leading and Southern African Development
country in terms of Community markets with a combined
investments registered population of 466 million, according
at Tanzania Investment to 2018 data.
Centre (TIC) based on value ($5,962 million)
with 723 projects between 1996 and 2018. UK
is the leading country in terms of number of
projects (936) registered at TIC valued at $5,540 Three Tanzanian cities of Dar es
million during the same period. UK is also the Salaam, Mwanza and Songea
leading country in terms of number of jobs are among the world’s 15 fastest
created (274,401) against 87,126 created by growing cities, according World
projects with Chinese interest. Economic Forum (WEF) report.
Tanzania is a global leader in both
production and consumption of
Sesame seeds with 21 percent
(consumption) and 22 percent
(production), according to data
published by IndexBox.
Access to electricity in rural
Tanzania is above 75 percent
with more than 9,000 villages
out of 12,268 s connected to
the national grid.
Tanzania is the 3rd country in Tanzania imports
Africa with the largest cattle 85 percent of its
inventory after Ethiopia and pharmaceuticals,
Sudan. According to Food providing enormous
and Agriculture Organization opportunities to invest
(FAO), global cattle inventory in the sector for both
in Tanzania is 11th in the world medicines and medical
with 24,531,673 cattle. devices.
20 | The Investor The Investor | 21INVESTOR OF THE MONTH
Poultry is
her forte
I t all started with a bold decision and recognition of her efforts.
a small purse in the form of early After 15 years of her career with
retirement benefits, a decade plus UN Agencies (UNHCR and WFP), she
later, Elizabeth Christopher Swai is a voluntarily resigned from her lucrative
leading investor in Tanzania’s poultry job to venture into business on a full-
industry. time basis in 2006, using her retirement
Make no mistake, however, she benefits.
was born an entrepreneur. She She founded AKM Glitters
started dabbling in small Company Limited which
ventures at the tender deals with integrated
age of 14, while
still a primary
I started poultry business,
managing
school pupil business when I was three Kuroiler
in Njombe
Region. very young. I had my own breeder
farms, a
u
Growing
p ,
vegetable garden when I was only hatchery
and a feed
Elizabeth 14 years old which I attended to after mill in Dar Elizabeth
ventured
in a variety school and during weekends. I used es Salaam
and Coast Christopher
of small
businesses
to sell vegetables to expatriates Region.
AKM Swai
n a m e l y in our neighbourhood who used Glitters
gardening, Company
b a k i n g , to work in tea and timber is registered
vitenge sales and
backyard broiler
plantations at Tanzania
Investment Centre
keeping. (TIC) and issued with
“I started business when certificate of incentives, and,
I was very young. I had my own according to her, is the largest in East
vegetable garden when I was only 14 Africa and the only one in Tanzania
years old which I attended to after producing authenticated Kuroiler
school and during weekends. I used chicks to-date.
to sell vegetables to expatriates in our Valued at $5.5million (TZS 12.6
neighbourhood who used to work in billion), AKM Glitters has constantly
tea and timber plantations,” recalls invested resources and energy to
Elizabeth expanding and diversifying the
Now at 52, she owns and runs a business in order to satisfy the poultry
multi-billion organic poultry business, value chain.
creating jobs to thousands of farmers Currently the company delivers
across the country. She has also services in 25 regions through working
won numerous global awards in directly with 400 agents and 300,360
22 | The Investor The Investor | 23mill at Mwabepande with the months. The cocks weigh at
capacity to produce 90 tons per least 2.50 Kg at around three
day. months, at which a smallholder
At a time when the farmer can sell for meat.
government is pushing for more Plans are afoot to setup
investment in animal feed mills, additional hatcheries in
the company’s factory couldn’t Tanzania mainland and
have come at a more opportune Zanzibar to decentralize the
time. production of Kuroiler F1 day-
Early this month, Minister of old chicks.
State in the Prime Minister’s The company’s integrated
Office (Investment), Angellah poultry business strategy also
Jasmine Kairuki called for includes the production of high
investors to venture in animal quality and affordable chicken
feed mills, saying that there feeds for use on its parent stock Elizabeth Christopher Swai posing with two Chinese engineers
are many opportunities in the farms and also for sale to to who were installing plant equipment for the new feed mill.
sector. Brooding Units and smallholder targeted rural smallholder set the objective to produce and
“There is great demand of chicken farmers and other chicken farmers. distribute at least 10,000,000
animal feeds, this is an area that commercial markets across the For this reason, the Brooder dual purpose Kuroiler chicken
presents a lot of opportunities country. Unit Enterprise hubs are located within four years through 1,500
for investors,” the Minister told Access by smallholder close to the smallholder chicken brooder unit’s enterprises to
a meeting of Businessmen and farmers to affordable quality farmers as much as possible at least 1,250,000 smallholder
Government Leaders in Mwanza. feed will ensure improved either at the village, ward or farming households.
Elizabeth Christopher Swai posing with trays of eggs at her Minister Kairuki also visited feed conversion for increased district levels depending on the “Smallholder chicken farming
chicken farm before they are sent to the hatchery. AKM Glitters company in productivity. The business population of smallholder farm households are expected to
farmers by using its unique requiring a lot of investments in February where she discussed target is to produce and sell households. achieve a fourfold increase in
franchising model. It has also various stages of its value chain, promised that the Government at least 500,000 metric tons With the Brooder Unit model, egg and meat production and
employed 120 staff out of which are; feed mill operations, would address various per year of affordable quality AKM Glitters significantly reduces increased household incomes
which 40 are degree holders parent stock farms, hatchery, challenges that were facing the chicken feeds. high mortality (losses) of chicks from the sale of chicken and
comprising of doctors and abattoir, meat processing and company. Furthermore, the company in the first 4- weeks by ensuring eggs as well as improved
veterinary officers. packaging plant, logistic cold The company has started employs young graduates, fresh that the chicks are brooded, household nutrition especially
According to Elizabeth, the chain and extension services expansion of the feed mill at the from colleges and universities in reared and appropriately the children,” she said.
poultry industry in Tanzania, (training). cost of TZS 3 billion which will various disciplines and invests vaccinated before being sold Elizabeth is a founder member
especially in rural areas, is In addition to investing in have the capacity to produce 200 in training to groom future cadre to smallholder chicken farmers of African Agribusiness Academy,
unstructured but lucrative the seven-value-chain stages, tons per day upon completion of poultry professionals. or farmer groups. Brooder Africa Women in Agribusiness,
for investors and country’s there are other opportunities at Mwabepande and they are AKM Glitters has also adopted Unit Enterprises also serve as a member of Professional
economy as it creates jobs in venturing in farm inputs and finalizing parent stock farm with the Brooder Unit model to distribution hubs for production Poultry Association, Feed Mill
throughout its value chain. disease management system. the capacity of rearing 6,000 promote profitable enterprises inputs such as chicken feeds Association and an Interim Chair
“We need to structure the “For the poultry industry to chickens at Mkuranga. along the chicken value chain. and other farm inputs. of Tanzania Poultry Breeders
poultry industry so that we can strive, the government may According to her, the company The Brooder Units operate as With the ongoing investment Association, Executive Board
reach more people in the rural have to consider incentives to invests on parent stock independent micro, small and in the expansion of farm, Member Tanzania Business
while addressing employment, investors including tax waivers importation from Kegg Farms medium enterprises (MSME’s) hatchery, and feed mill Council – Livestock Sector.
nutrition and economic gap. for a period of five up to 10 India. Kuroiler parent stocks are and are a pivotal link with the infrastructure, AKM Glitters has Throughout the course of her
AKM Glitters is a growing years,” says Elizabeth. very expensive but worth it. entrepreneurial career, she has
company and is now receiving Currently, AKM Glitters Kuroiler is a dual-purpose partnered and received funding
international request to assist in Company has invested in three hybrid chicken well adapted from reputable organisations
structuring poultry business. areas of the value chain which to local management and institutions such Bill and
In 2019 AKM Glitters was include breeder farms (in under village conditions by Melinda Gates Foundation,
requested by UNDP in Comoros Bagamoyo and Mwabepande) smallholder farmers, under Rural Livelihood Development
to carry out an assessment in with a combined capacity of this management the hybrid Company, Swiss Contact, credit
the Isles after Cyclone Kenneth. 24,000 poultry. chicken(s) produce 200 - 260 facility from CRDB, CBA, Akiba
The discussion to implement Also, the company has a eggs during a 12-month egg- and DCB Bank. AKM Glitters also
the project in Comoros is on- modern hatchery facility worth laying period and gains weight is a partner of SAGCOTand many
going.” she says $800,000 in Mbezi Beach with faster compared to local or more.
She notes that poultry is capacity to hatch 106,000 eggs indigenous chicken(s).
a capital-intensive business per week. It also operates a feed Hens begin laying from 5-6 A worker at the farm holding two matured Kuroiler chicken. FARAJA MGWABATI
24 | The Investor The Investor | 25LIVESTOCK lacks factories of the caliber of the findings show that Kongwa hectares of land. Of these
Tanganyika Packers. Ranch is only 7 per cent hectares of land, it operates a
According to a Tanzania operational, Mkata Ranch is total of eight ranches in seven
Case to reclaim past glory
Investment Centre (TIC) report not in operation, Ngerengere regions of mainland Tanzania.
on investment opportunities in Livestock Multiplication Unit In its current state, Kongwa in
the livestock value chain, the (LMU) at 2 per cent and West Dodoma has 38,000 livestock
of livestock industry
sector and its many linkages Kilimanjaro Ranch operates at but has the full capacity of
along the chain have quantities 1 per cent. handling 100,000 animals;
of opportunities to offer. The report squarely imputes Mzeri in Tanga tends to 21,236
According to Economic Survey blame on mismanagement livestock but has the capacity
2018, the livestock sector had and carelessness to the poor of 60,000 and Ruvu in Coast
EVEN in its derelict state, it is hard to miss the sight of the Tanganyika Packers significant contribution to performance, noting that Region keeps 43,000 animals
factory from either side of the road (Kawe or Mwai Kibaki). the economy (whereas the there have been no practical but with the capacity of 120,000.
sector growth was 2.0 per cent significant signs of innovation Other ranches are no
I
t no longer serves its At its peak it processed some Packers Limited (TPL), shortage - contributing 7.61 per cent to to improve the ranches and exception to the noted trend
intended purpose, its vast 200,000 livestock annually of livestock was never one of GDP), so all is not lost after all. LMUs. as all ranches in the country
open fields now attracting before it ultimately caved in them. However, the report On the upside, these findings are operating below their
large congregations for political circa 1993 after years of decline Today, Tanzania is Africa’s particularly laments the state also bring to the fore the fact respective carrying capacities.
purposes or religious worship in slow motion. third largest cattle country of ranches belonging to the that NARCO’s ranches and LMU’s Yet the figures alone speak
instead of herds of cattle. If what’s left of the factory after Ethiopia and North National Ranching Company remain as important resources volumes and it is only right
The structure, however, as could talk, it would probably Sudan, accounting for about (NARCO), all of which are to attract further investment in that the data should be used to
dilapidated as it remains, is still be in poignant intonations. 1.4 per cent of the global cattle operating below capacity in the red meat value chain. recognize opportunity to fill in
imposing just as is the history of Of all the reasons attributed population and 11 per cent of terms of livestock population. For starters, the company the deficit and, in the process,
the abattoir itself. to the collapse of Tanganyika African cattle population but For example, figures from (NARCO) owns a total of 519,453 create jobs and wealth and
26 | The Investor The Investor | 27make the country competitive, employed to run these ranches Livestock contributes to crop
again. who should also be given and vegetable production
Therefore, investment plans annual performance goals/ by providing draft power for
should focus on increasing objectives – against which cultivation and organic manure.
livestock population in each they will be held accountable It is also a source of income for
of the ranches in order to (rewarded or demoted),” the a large segment of the country’s
attain their maximum carrying report recommends. population, provides high value
capacities. But ranch operations are protein in the nation’s diet,
These should include just a tip of the iceberg when contributes to food security and
purchase of quality breeder it comes to the livestock sector was once — and could be again
animals, purchase of immature and its value chain. — a major earner of foreign
animals for feedlotting, exchange.
infrastructure development and TZ LIVESTOCK POPULATION Products from livestock in the
107
purchase and/or improvement red meat value chain include
of water facility. MILLION ANIMALS meat, milk, and skins and
To attract investment and hides which are important raw
88%
tap into the potential of the red ARE KEPT IN materials for other commodities
SMALLHOLDER
meat value chain, the TIC report such as shoes and other leather
TRADITIONAL SYSTEMS
counsels that the organization products. Herd of cattle awaiting shipment.
structure of the ranching In spite of these facts, the value
system in the entire country be Tanzania’s livestock chain has faced, and continues great potential for investment of livestock by-products souvenirs.
overhauled. population is estimated at to face, a series of challenges through production, processing (blood, bones, horns, hooves, Hair and wool are used in the
“Instead of having animal 107 million animals, of which that have had a negative impact and marketing of milk and milk hair, wool, glands, intestines, manufacture of brushes, yarn,
scientists and veterinary doctors an estimated 88 per cent are on its performance. products. Currently, there are stomachs, feathers and gut fabrics and fibers; glands and
running the ranches, people kept in smallholder traditional The TIC report sheds lights on about 600,000 dairy cattle and contents) produced daily to organs for pharmaceuticals;
with demonstrated business systems but the animals have the fact that opportunities in 22 milk processing plants with attract investment. intestines for making sausage
acumen, entrepreneurial overreaching impact to the local, regional and international the capacity of 700,000 liters Currently, Tanzania lacks casings, musical instruments/
spirit and with good project environment, households and markets are largely under of milk per day but capacity industries for processing these strings and surgical ligatures;
management skills should be the economy. exploited or not exploited at all. utilization is only 30 per cent. by-products. In this regard, stomachs, other offal,
For the country not to Annual milk production is investors are encouraged to condemned meat for making
continue losing market share estimated at 1.65 billion liters, venture in this area. These tallow for soap and glycerin,
to its competitors, needed are of which 70 per cent comes from by-products have various lubricants, grease and waxes.
investments to revive industries the traditional sector, while the uses which are of economic While gut contents, manure are
in key areas of the sector’s value remaining 30 per cent comes importance. used to make compost, biogas
chain such as production and from the commercial sector. Experts have asserted that as fuel for heating and lighting.
processing of dairy products, The report identifies potential the uses range from liquid With the third largest
tanneries and so forth. areas of investment in the dairy blood being a source of population of livestock in Africa,
Besides urging for joint value chain as establishment of pharmaceuticals as albumin Tanzania also has at her reach
ventures with National Ranching dairy farms in order to increase for the glue, textile and dye resources that provide the
Company (NARCO) and other milk production, establishment industries and dried blood as base for a significant hides and
privately-owned ranches of milk collection centers, blood flour, blood meal for skins production industry with
to modernize the existing construction of milk processing animal feed and as fertilizer. estimated production potential
ranches, more investments are plants and manufacturing of Bones are used as animal of about 92 million sq. ft per
needed in the establishment dairy equipment and packaging feed, fertilizer, gelatin and glue, annum.
of new ranches (cattle, sheep, materials. manufacture of combs, buttons The availability of hides and
goats) and farms and feed-lot/ According to the report, on cutlery handlers, glue, gelatin, skins as raw materials provides
fattening programs. the average, 70 – 120 cattle are tallow and ornaments. Further advantageous position for the
Investments are also slaughtered daily in Municipal hooves and horns also are used country for investment setup
encouraged in the production and City abattoirs – apart from as meal, fertilizer, gelatin and in the tanning sub-sector and
of hay, compounded animal those slaughtered in rural areas. glue, manufacture of combs, subsequent leather products
feeds and vaccines. This number confirms the buttons, hairpins and articles manufacturing sub-sectors.
A healthy looking kid. availability of large quantities of tourists’ attraction including
The dairy industry also has a Continues on page 32
28 | The Investor The Investor | 292. Project’s Business Plan/Feasibility Study. the premise/office/land)
Business plan should state clearly the 8. Company Board Resolution to register
project objective, information regarding project (original)
the investor (profile), details of invest- 9. Certified copy of Memorandum and Arti-
ment costs (foreign and local expected cles of association
capital expenditure), how the proposed 10. Copy of TIC payment receipt as proof of
investment will be financed, specif- payment of $1,100
ic sources(s) of finance for the project, 11. Tax Payer Identification Number (TIN)
terms and conditions of the loan if ap- 12. Covering letter (should provide an ex-
plicable, sources of technology if appli- pression of interest to invest and list all
cable, project financial and economic the documents attached in the applica-
analysis, market study, project capacity, tion)
production process if applicable, envi-
ronmental impact assessment, expected
employment generation, proposed im- COST:
plementation schedule, etc. Cost of Certificate of Incentive is $1,100. Pay-
3. Certified Copy of Audited Accounts for ments can be made through Standard Chartered
the past three years (This applies to the Bank or NMB Bank PLC after obtaining control
existing projects). number at TIC Accounts Department.
4. Certified Copy of Certificate of incorpora-
HOW TO... tion TIME FRAME
5. Evidence of financial capital (stamped If all submitted documents meet TIC require-
Obtain certificate of
Bank Statement) ments, you can obtain your Certificate of Incen-
6. Certified Copy of Tenancy agreement (if tives between 5 and 10 working days depending
you are renting premise/office/land) or on the nature of business.
7. Certified Copy of Title deed (if you own
incentives from TIC
T
anzania Investment Centre (TIC) is the first STEPS
point of call for potential investors. It is the
primary agency of the Government respon- 1. Obtain and fill application form
sible for coordinating, encouraging, promoting 2. Notarize filled application form with a
and facilitating investments. To qualify for and lawyer
obtain TIC Certificate of Incentives minimum fixed 3. Obtain control number at TIC Account
investment cost for new, and expansion projects Department
should be at least US$ 100,000 for projects which 4. Pay for Certificate of Incentives’ fee
are wholly owned by Tanzanian Citizens and US$ 5. Submit application for certificate of
500,000 for projects which are wholly owned by incentives
foreign investors or if a joint venture. 6. Obtain Certificate of Incentives
7. Apply for fiscal incentives from Tanzania
TIC provides services through One Stop Facilita- Revenue Authority (TRA)
tion Centre, whereby more than 10 Government
Institutions are stationed to serve investors under
one roof instead of visiting various government REQUIREMENTS:
agencies. At the end of the registration process Submission should be in hard and soft copies
investor is issued with a Certificate of Incentives. and the soft copies should be in PDF format. Premier Majaliwa Kassim Majaliwa gives thumbs up to Neema Kitala, an officer with BRELA based
The procedure to apply for Certificate of incen- 1. TIC Project Registration form (must be at TIC, after being briefed on the company registration processes under One Stop Investment
tive is as follows: filled and certified before submission) Facilitation Centre in 2019. He is flanked by TIC Board members, Ilala District Commissioner
Sophia Mjema (second left) and TIC Executive Director Geoffrey Idelphonce Mwambe (left).
30 | The Investor The Investor | 31You can also read
