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Tanzania seeks multi-billion investments ahead of AGRF 2022 Summit

By The Citizen Reporter

Dar es Salaam. Tanzania Investment Centre (TIC) wants delegates to the five-day AGRF Summit 2022 – which starts in Kigali tomorrow (September 5, 2022) – to be aware that Tanzania was one of the best and most attractive destinations for agriculture value chain investments, thanks to an enabling environment and the existing incentive structure.

The East African nation seeks to become an industrialised economy and logistics hub for Africa.

To reach semi-industrialised status by 2025, Tanzania was currently implementing the Tanzania Agro-Industries Development Flagship (TAIDF) programme, among other flagships.

Budget Estimates for TAIDF (2021-2026) are $2.989 billion, of which the Government and Development Partners will contribute a total of $320 million.

Investment from the private sector, including farmers, primary processors and agro- industrialists, is expected to top up at $2.669 billion in six years.

According to the Acting Permanent Secretary, Ministry of Investment, Industry and Trade, Mr Ally Gugu, Ministry of Industry, Investment and Trade, Tanzania was promoting competitive, inclusive and sustainable investment in the agriculture sector.

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He addressed Tanzania Agribusiness Investment Summit 2022 on 30th August 2022, in Dar es Salaam, with the theme” “Grow, Nourish, Reward – Bold Actions for Resilient Food Systems in Tanzania”.

He said that the Ministry of Industry, Investment and Trade recognises and appreciates the cooperation and coordination for Tanzania’s preparation for AGRF 2022.

Mr Gugu called for concerted efforts to engage prospective local and international investors and stakeholders involved in agriculture or agribusiness.

According to TIC acting Executive Director Mr John Mnali, investors attending AGRF Summit 2022 should note Tanzania has a wide range of investment opportunities in agriculture that will power the nation to become semi-industrialised by 2025.

“The government, through TIC, offers investors a range of investment incentives. Such incentives include both fiscal and non-fiscal incentives including the 100 percent capital allowance in agriculture, zero import duty on capital goods which may be used in agriculture mechanisation to unlock opportunities in the sector,” he said.

Mr Mnali noted value chains identified include sunflower (edible oil), dairy (livestock), horticulture, and fisheries (blue economy). For sunflower, Tanzania is inviting investments in large-scale farming of oil seeds to address the supply gap and establish oil seed processing facilities and refineries.

For the dairy (livestock)value chain, Tanzania seeks the establishment of dairy farms to increase milk production, establish milk collection centres, construct milk processing plants, including UHT technologies, and manufacture dairy equipment and packaging materials.

For the horticulture value chain, Tanzania seeks investments in Value addition in sorting, packaging and processing of fruits and vegetables; Investing in producing and supplying high-tech farming inputs such as Biological Control Agents, Potting materials and greenhouse spare parts. Tanzania also seeks investment in horticultural products storage facilities, e.g. Cold rooms and refrigerated vehicles.

For the Fishing sector, including Seaweed (Blue economy), Tanzania seeks investors to add value by sorting, packaging and processing fish; invest in producing and supplying farming inputs such as fish feeds and fingerlings.

Investments opportunities are also available in fish storage facilities, e.g. cold rooms; refrigerated vehicles for fishery products transportation; and value-addition investments for sorting, packaging and processing dried seaweed and producing and supplying farming inputs such as ropes and seeds. Other investment opportunities are for seaweed storage facilities and seaweed production technologies.

In the meantime, Tanzania is expected to feature prominently at AGRF SUMMIT 2022, Sep 5th- 9th, 2022, in Kigali, Rwanda. The critical highlights are the government delegation presentation on strategic investment opportunities in Tanzania targeted at private sector investors from diverse countries looking to set up operations or trade with Tanzania. It will also target development finance Institutions supporting the implementation of public projects, financial providers providing debt and equity financing to agribusinesses and institutional investors financing large projects.

In the event programme, President Samia Suluhu Hassan will be a keynote speaker alongside Hailemariam Dessalegn, Chair, AGRF Partners Group and Former Prime Minister, Ethiopia, in a dialogue with African farmers. President Samia is being hailed as an agent of change in food systems transformation, thanks to the increased budget allocation to the sector in Tanzania.

Minister of Agriculture, Hussein Bashe, will lead a panel discussion about whose hands our agriculture data will be in the next 5-10 years. Mr Geoffrey Kirenga, CEO, Sagcot Centre, will contribute to a panel about business models for promoting integrated value chains and value-added processing.