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TANZANIA AN AGRICULTURAL TREASURE

TANZANIA AN AGRICULTURAL TREASURE. Tanzania – Facts & Figures. Young Nation – got independence in 1961 Located in East Africa bordering kenya, Uganda, Rwanda, Burundi, DRC, Zambia, Malawi and Mozambique. Language – Swahili a national language, English is the official business language.

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TANZANIA AN AGRICULTURAL TREASURE

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  1. TANZANIA AN AGRICULTURALTREASURE

  2. Tanzania – Facts & Figures Young Nation – got independence in 1961 Located in East Africa bordering kenya, Uganda, Rwanda, Burundi, DRC, Zambia, Malawi and Mozambique. Language – Swahili a national language, English is the official business language. Estimated population is 43 million (with an est. growth rate of 2.4% per annum. 6.4% estimated GDP growth for 2011. Current president, President Jakaya Kikwete Peaceful Nation Dedicated to secure private sector growth

  3. Agriculture – ”A Dominant Player” • Tanzania has 44 million hectares of arable land, only 24% is being utilised. • Agriculture accounts for about 80% of the employed population and contributing about 25% of GDP and about 66% of merchandise exports. • Contributes to 30% of foreign exchange earnings. • Investment opportunities are available in production, processing, marketing and service provision.

  4. Opportunities Within Key AGRO Sectors Agro-processing –Includespreservation of meat, fish, fruit & vegetables, oils & fats, dairy products, grain mill products, animal feeds and manufacturing of bread, sugar, coffee, tea, nuts and spices). Livestock – Includes beef production, milk production, poultry, pig farming. 99% belongs to small scale farmers.   Crops – Main crops include coffee, cotton, flowers, sugarcane, tea, tobacco, maize, wheat, rice. Fish – Fish processing (mainly around lake Victoria) Agricultural inputs – • Establishing factories for manufacturing/assembling of farm machinery and implements. • Investment in manufacturing of fertilizers and agricultural chemicals. • Establishment of factories for packaging material for various agricultural commodities.

  5. Challenges Low productivity throughout the value chain Farmers: Low on farm productivity, fragmented small farmer base leads to limited access to raw materials. Poor conditions feeder roads increase cost of transportation and post harvest losses, lack of knowledge and know-how (poor crop management and farming methods). Processors: Access to affordable hygienic processing facilities. Inconsistent supplies result into under utilization and low factory productivity. Packaging materials difficult and expensive to source, low base of skilled workforce and limited adoption of certification/standards. Retailers: Under developed distribution network - small and fragmented retail market with very few large outlets. Consumers: Lack of local consumer awareness of standards, hygiene. Others: Outdated legal framework and poor regulation on quality standards. Unreliable electricity.

  6. FAQs • Can I own land? • A: Land is owned by the government and leased out for a period of 99 years • Where is my market place? • A: Local and export market (access to the EAC markets) • How to find employees? • A: Availability of trainable and low cost workforce • Financing posibilities? • A: Interest rates applied by commericial banks are very high (23% - 18%). Plans to form an Agriculture Development Bank (ADTB). Tanzania Investment Bank (TIB) to have a special window for concessionary lending for agricultural production. Insert footertext via 'Insert' / 'Header & Footer'

  7. Incentives for Foreign Investors • Tax Holiday : Up to 5 years • Duty Exemption : Zero-rated duty on capital goods, all farm inputs including fertilizer, pesticides and herbicides. : Zero-rated VAT on agricultural exports and for domestically produced agricultural inputs. • Taxation : Corporate Tax Rate of 30% : Indefinite carry-over of business losses against future profit for income tax. • Exit : The right to transfer outside the country 100% of foreign exchange earned, profits and capital

  8. Government Initiatives Kilimo kwanza (agriculture first) SAGCOT – Southern Agriculture Growth Corridor of Tanzania Stretches from Dar es Salaam to Zambia Investment of $2.1 billion of private investment over a 20 year period. Members include government, global business, Tanzania Private Sector, farmers and donor institutions. Creation of employment, poverty eradication, food security, provide smallholder producers to engage in profitable agriculture. Norwegian firm Yara International to invests US$20 million in new fertilizer terminal in Tanzania (a SAGCOT partner).

  9. Welcome to TANZANIA Contact : Albert Nkinda Programme Co-ordinator B2B Programme Tel: +255 (22) 2165200 E-mail: Albnki@um.dk THANK YOU

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