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Strategic Opportunties in Tanzania

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Tanzania has immense resources for development. It is the largest country in East Africa, with a total area of 956,000 km2, making it the 31st largest country in the world. Tanza­nia is home to about 43 million people, of which 1.2 million live on the isles of Zanzibar. There are 44 million hectares of arable land, across varying climatic zones, of which only 24 percent is being utilized. Many parts of the country have good rains, but there are also other vast water resources in rivers, lakes and underground which can be used for irriga­tion. There are ample topographic opportunities for build­ing dams to capture rain water in seasonal rivers and use it for agriculture and livestock. Although about 29.4 mil­lion hectares of land is suitable for irrigation, only 330,000 hectares are under irrigation. The inland water area covers 62,000 km2 while the Exclusive Economic Zone (EEZ) is up to 200 nautical miles covering an area of 223,000 km2.
Power generation resources are also abundant, including natural gas with 45 billion m2 of proven reserves, 1,200 mil­lion tons of coal reserves, uranium, geothermal, hydropow­er potential (4.7 GW), wind, solar, and other renewable re­sources. Tanzania is also endowed with phosphate deposits that can, in combination with natural gas, provide the basis for the production of fertilizers, as well as high quality lime­stone for cement production. Other minerals include gold, diamonds, tanzanite, ruby, nickel, tin, soda ash and iron ore. Tanzania is currently the third largest gold producing coun­try in Africa and stands to rise in rank following discoveries of new deposits in the southern part of the country.
Tanzania has a stock of 19.2 million cattle, 13.7 million goats and 13.6 million sheep. The country is also situated at a strategic geographic location, with 6 landlocked countries around it (Uganda, Rwanda, Burundi, Eastern DRC, Zambia and Malawi), including a 1,424 km coastline with natural and potential harbors (Dar es Salaam, Tanga, Bagamoyo, Lindi, Mtwara) as well as inland lake ports (Musoma, Mwan­za, Bukoba, Kigoma, Kasanga, Itungi). The great lakes re­gion also offers a huge and growing regional market.
Tanzania also boasts of 15 world famous national parks in­cluding Ngorongoro Conservation Area, Serengeti, Mt. Kili­manjaro; 33 game reserves, 43 game controlled areas and abundance of cultural heritage tourist attractions. There are also 35.3 million hectares of forest and woodlands as well as 13.5 million hectares of national forest reserves and local government forest reserves.
The Plan prioritizes to remove the following crucial con­straints to Tanzania’s accelerated economic growth and development:
Lack of reliable and adequate supply of electricity;
Poor quality of infrastructure: especially transport network, and in particular rural feeder roads, railways and sea ports;
Inadequate supply of skilled labour;
Limited access to secure land rights;
Implications of climate change amidst scarce irrigation facilities;
Limited domestic value addition of primary products;
Lack of access to finance, especially for SMEs and in the agriculture sector.                                                                                                                                       
Core Investments in Tanzania
The core investments for the next five years are as follows:
1. Electricity generation to produce 2,780 MW;
2. Expansion of the capacity of the Dar es Salaam port;
3. Rehabilitation of the central railway line and beef-up of the rolling stock;
4. Construction of regional and district roads in the SAG­COT;
5. Country-wide coverage of the ICT backbone infrastruc­ture;
6. Irrigation infrastructure in the SAGCOT;
7. Training students in science, engineering and education;
8. Development of SEZs, especially for electronic goods, farm machinery, and agro- and mineral-processing (inte­grated textile industry);
9. Large scale fertilizer production;
10. Coal and steel industry.
Tanzania today is a land of countless business opportunities. The government has encouraged private sector led growth through restoration of market forces and less interference in commercial activities.
The main sectors in the Tanzanian economy are:
Tanzania has 44 million hectares of land suitable for agricul­ture.
Opportunities exist in the following areas:
  • Development of Irrigation in selected agricultural corridors.
  • Large scale commercial farms for food crops for the local and export market.
  • High value crops for export (horticulture, floriculture, spices, vineyard etc.)
  • Major cash crops include coffee, cotton, tea, tobacco and ca­shew nuts as well as horticultural and floricultural products. The main food crops are maize, rice, pulses and wheat.
Opportunities in the agricultural sector are:
  • Livestock industry
  • Horticultural Products
  • Coffee
  • Poultry industry
  • Fruits
  • Spices
  • Beef
  • Vegetables
  • Sisal
  • Dairy Farming
  • Flowers
  • Sugarcane
  • Piggery, goat and sheep
  • Cotton
  • Tea
  • Tobacco
  • Maize
  • Pyrethrum
  • Cashewnuts
  • Rice
Tanzania has extensive mineral resources, the major ones be­ing gold, diamond, base metals such as nickel, cobalt, copper, and gemstone such as ruby, sapphire & tanzanite; industrial minerals such as soda ash, kaolin and phosphate and iron ore and coal. Tanzania is the world’s only source of tanzanite, a semi-precious stone found in the open mines around Arusha region.
 Why invest in Tanzania‘s mining sector?
The country is a prime destination for mining investment in Af­rica. It has an attractive geological environment because of:
  • a comprehensive geological and geophysical database;
  • availability of topographical and aerial maps for whole country; and
  • non-discriminatory mineral policy.
Opportunities in the mining sector:
  • Tanzania is the third largest producer of Uranium in the world.
  • There are also large quantities of unexploited gas discovered recently.
 Further opportunities in the mining sector are:
  • Gold
  • Diamonds
  • Nickel
  • Cobalt
  • Copper
  • Gem - Stones (Ruby, Sapphire And Tanzanite)
  • Iron Ore
  • Coal
  • Petroleum And Gas
Tanzania’s rich supply of quality raw materials and its fast growing manufacturing base provide exciting opportunities for companies looking to invest and add value on the wide va­riety of agricultural products through our growing agrobased industry.
Tanzania is an economy increasingly oriented towards manu­facturing and export. In 2007, the manufacturing sector grew by 8.7 percent compared to 8.6 percent in 2006, while the contribution of the sector to real GDP grew by 7.8 percent in 2007.
Opportunities in the manufacturing sector:
  • Chemical industry:
  • Phosphorous fertilizers.
  • Agrochemicals using phosphates from arusha and kaolin from kisarawe respectively
  • Manufacturing of chemicals from pyrethrum,Medical and pharmaceutical drugs
  • Veterinary drugs.
  • Manufacturing of perfumes, detergents, soaps, cosmetics,
  • Cigarettes & tobacco,
  • Paints and petroleum products.
  • Manufacturing of tyres and tubes also offers an interesting investment opportunity.
  • Metallic and non-metallic products:
  • Manufacturing Earthenware,
  • Glass Products,
  • Bricks,
  • Tiles,
  • Cement,
  • Concrete & Gypsum
  • Plaster Products.
  • Slabs
  • Bars
  • Metal Sheets
  • Plates
  • Strips
  • Tubes
  • Pipes and Rods
  • Fabricated Metals
  • Machinery and Equipment
  • Furniture & Fixtures
  • Doors
  • Metal Staircases
  • Window Frames
  • Electrical Transformers
  • Electronics e.g. Radios
  • Transport Equipment Such As Bicycles
  • Jewellery
  • Food, beverage, paper and paper products:
  • Catering for both domestic and regional market, investors can establish profitable ventures in packaging:
  • Dairy products
  • Canning
  • Preserving of fruits
  • Vegetables
  • Fish and similar foods
  • Manufacturing of animal and vegetable oils
  • Grain milling
  • Baking
  • Sugar and confectionery
  • Production of wines and spirits
  • Cider and beer, soft drinks
  • Carbonated waters
  • Bottling of natural spring and mineral waters
  • Manufacturing of pulp,
  • Packing materials
  • Stationeries and other paper products
  • Paper
  • Fiberboards from locally produced materials
  • Animal feeds
  • Textile, clothing and leather products
  • Currently, investment opportunities exist in
  • Spinning
  • Weaving, and Textiles
  • Knitting
  • Manufacturing Of Garments
  • Grey Cloth And Fabrics
  • Carpets
  • Rugs
  • Cordage
  • Rope And Twines
  • Cut Make And Trim (Cmt) Units For Export
  • Cotton Ginning
  • Production Of Yarn
  • Establishing Modern Tanneries And Leather Production Units.
Tanzania is the only country in the world to allocate more than 25% of its total area to wildlife parks and game reserves. It has 14 national parks, 17 game reserves, 50 game-controlled areas, a conservation area, two marine parks and two marine reserves.
Opportunities in the Tourism Sector
  • Accommodation, hotels and lodges
  • Man made tourist attractions
  • Conference centers of international standards and eco-tourism
  • Tour operators and Transport.
  • Training services for tour and travel agents, tour and mountain guides, drivers and rangers.
In less than 6 years, the six private operators for mobile tele­communications have about 23 million subscribers in Tanza­nia. Several foreign companies, such as Tigo,Halotel,Zantel, Vodacom, Airtel, Etisalat and Millicom have already invested in Tanzania and at­test to the enormous growth potential of the sector.
The commercial opportunities for investors are very attractive. Tanzania’s current fibre-optic network and access to afford­able telecom services is very limited.
Opportunities include extending the fibre-optic backbone within Tanzania to all regions of the country; building and op­erating a link to the international fibre-optic network as well as establishing fibre-optic links to Tanzania’s land-locked neigh­bours; and enabling their access to the international fibre-optic network. The operator of a nationwide broadband backbone linked to the international fibre-optic network could expect to generate revenues from at least three sources:
i. Service fees from telecommunication operators (and other­communications companies) operating in Tanzania
ii. Service fees for international communications traffic in and out of Tanzania
iii. Tolling charges for providing international broadband ac­cess to neighbouring land-locked countries.
Tanzania’s financial services sector, backed by a sound reg­ulatory and legal framework, is superb, boasting dozens of domestic and foreign institutions providing wide range of ser­vices.
Opportunities in Financial, banking and insurance:
Investment consultations,
Asset valuation
Sales and bank assurance.
Lease finance,
Specialized banks in real estate and mortgage finance,
Industrial and agricultural finance
Micro finance companies.
Property and life insurance.