1. Tanzania

1
Investing in Agriculture in TanzaniaOpportunitie
s and ChallengesAndrew E. TemuChairman PASS
Trust
Outline

• 1. Tanzanias Agricultural Potential
• 2. Is FDI in Tanzania Agriculture a
  Possibility?
• 3. Opportunities and Possibilities
• - A cross section of potential Agricultural
  Sub-sectors
• 4. Likely Challenges and Possible Ways Out

2
Tanzanias Agricultural Potential

• Large un-tapped arable land area
• Available High potential irrigable land
• Broad diversity of agro-ecologies 7
• Well placed for international and regional
  markets
• High Comparative and Very Low Competitive
  Advantages

3
Is FDI in Tanzanias Agriculture Possible? Yes,
There are successful examples
COMMODITY INVESTMENT COMPANY
COUNTRY
SUGAR PRODUCTION ILOVO
S/ AFRICA
PYRETHRUM PROCESSING Int.Chem Prod
USA
FLOWERS PROD/EXPORT SEVERAL
E.g. NETHERLANDS
SPICES PROD/PROCESS KIMANGO
GERMANY
COTTON GINNERY
CARGIL/NIPHA KENYA/ASIA
4
Options amongst Opportunities Food, Fiber or
Fuel ?
Recommended Agro-Food Industry
Medium
Medium
Traditional Agriculture
Food Grains Legumes
Traditional exports Coffee, Tea
High
Low
Livestock Beef Dairy
Fishery
5
Recommended Agro-Food Industry
High
High
Horticulture
Agro-processing
Non- Traditional Agriculture
Medium
High
Aquaculture
Low
HVP E.g. SPICES
6
Alternative Nodes A Need to Strike a Good
Balance
Examples
Fertilizer production from natural gas
Tanzania exports raw cotton, cashew nut, tea,
coffee etc
7
Ways to Contend with Possible Challenges
Bureaucracy, By-Laws , Standards, Land Tenure etc

• Opt for
• The Tanzania Investment Centre, EPZs and SEZ
• Joint Ventures with reputable local firms
• A Partner in Development attitude
• Assume Corporate Social Responsibility in
  improving the business environment
• Make use of local professional organisations
• PASS Trust,

8
PASSs Products and Services
Private Agriculture Sector Support (PASS) Trust
A joint GoT and Danida Innovation
Your Potential Partner in Investment Appraisal

• Business Development service
• Financial Services Linking with Banks
• Credit Guarantee
• Farmer organization Contract Farming
• A combination of the above

9
US 17mn
2007
10
Results and Impacts
11
Results and Impacts
12
Results and Impacts
13
Results and Impacts
14
PASS Trust Tanzania
THANK YOU FOR THE ATTENTION