DPG PSD Trade Delegation to Mbeya Region, 19-22 March 2013

1. DPG PSD Trade Delegation to Mbeya Region, 19-22 March 2013

3. FÖRDELNING PRODUKTIVA TILLGÅNGAR EDUCATION GLOBAL AND REGIONAL TRADE MARKETS HEALTH SKILLED HUMAN RESOURCES INFRASRUCTURE GROWTH RULES AND REGULATIONS FINANCIAL SERVICES MACRO ECONOMY PEACE AND SECURITY LAND VOICE RESEARCH AND INNOVATION DEMOCRATIC GOVERNANCE

5. FÖRDELNING PRODUKTIVA TILLGÅNGAR EDUCATION GLOBAL AND REGIONAL TRADE MARKETS HEALTH SKILLED HUMAN RESOURCES INFRASRUCTURE PRIVATE SECTOR IN MBEYA RULES AND REGULATIONS FINANCIAL SERVICES MACRO ECONOMY PEACE AND SECURITY LAND VOICE RESEARCH AND INNOVATION DEMOCRATIC GOVERNANCE

6. Mbeya Region - great potential • Wonderful climate – anything grows • Active agricultural sector • Positive enthusiastic people

7. Part of SAGCOT • New airport • New mines opening up • Ripe for private sector development

8. International & Local Business • Working together • Promoting the area • Interested in the smallholder • Providing access to new markets • Offering new techniques • Undertaking good advocacy • Mbeya Business Forum

10. Rungwe Avocado Company • 3500 out growers • Provide transport & pickers for the crop • Promoting local growers • Farmers can make Tsh 7 million per hectare • Price per kg of avocadoes has increased from 290 Tsh in 2012 to 345 Tsh in 2013.

11. Raising quality – inputting new techniques & varieties

12. Complying with international standards • Access to international market – 50 tonnes M&S and UK supermarkets

13. Coffee Farmers Alliance Tanzania • Aim: Increased income for 25 000 coffee farmers • Co-funding – International Coffee Partners (ICP) togetherwith donors • Knowledge and experience from private sector – ICP provide market information • Sustainabilitybeyondaid – business interest from private parters • Not-for-profit implementor – Hanns R. Neumann Stiftung in cooperation with farmer organizations • Provide a choice for growers

14. Access to better varieties – a better quality product

15. Access to training – field farmer schools

16. Improved milling

17. Access to international auctions

18. Sapphire Maize Storage project • AGRA-funded and now DfID SAGCOT programme through Technoserve • Local government provided new doors and pallets for storing grain. • Agronomy training provided • Joint marketing • Assistance in finding markets for local community • Credit through warehouse receipt system • Promoting saving through SACCOS

20. New methods, techniques & markets introduced to farmers groups

21. Business Skills training • Business acumen lacking • Extension workers – not up to date and need to be re-energised • New techniques needed– TAPP, farmer field schools • Access to buying inputs – more local distributors needed.

22. Government interaction with private sector still needs to improve • More facilitation – less control • Stable consistent policies • Regular ongoing communication

23. ENABLING not DISABLING – over-regulation & duplicate regulation by multiple bodies is cited

24. More support for SME’s needed • LGA’s inconsistent in their approach – no cohesion – different fees charged & rules applied • TCCIA one stop shop for SME’s • NTB system for harassment of SME’s • Farmer associations often politicised and not representing the farmers • Middle men still taking the lion’s share

25. Access to Finance • Still a critical issue • Pride Rural Finance Window • Average loan Tsh 300,000 for 4 - 9 months @2.5% per month. • 5-6% default rate • More prevention work needed

26. Infrastructure • Border post – Tunduma

27. Traffic chaos – long queues, congestion, lack of parking • Traffic has doubled in the last 2 years. • All fuel to Zambia, copper from Zambia & DRC goods pass through Tunduma • TMEA One Stop Border Post is underway – still in planning and design stage.

29. TAZARA – past its sell by date?

30. ..or the way forward?