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Kilimo Kwanza Investment Presentation To Tanzania Diaspora May 2011 Shamte
 

Kilimo Kwanza Investment Presentation To Tanzania Diaspora May 2011 Shamte

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Courtesy of Kilimo Kwanza as presented at Diaspora III Conference In London May 2011 Edition.

Courtesy of Kilimo Kwanza as presented at Diaspora III Conference In London May 2011 Edition.

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  • The concept of Agricultural Growth Corridors was launched at the UN General Assembly meeting in New York In September 2008. Meeting in Oct 2009 (with PMO / MAFC / Min of Water, TIC, Yara, Norwegians, TAP/ACT, Norfund, WB, ADB) in which it was agreed to set up “an informal task force” to prepare a Concept Note. Norwegian Embassy provided funds and ACT/TAP have taken take on the role of preparing the Concept Note The agricultural growth corridor concept looks at ways to bring about the development of the areas of land within the corridor, which brings together agriculture, infrastructure, finance and marketing Through this it establishes a replicable model that concentrates services in high potential areas within reach of the infrastructure “backbone” A Public Private Partnership working with agricultural value chains and bringing in new financial instruments to stimulate commercial growth for large, medium and small scale farmers The programme will be delivered through a combination of public and private sector investments So the ideas of Agricultural Growth Corridors are being developed at a time when Tanzania is looking for viable and practical means of implementing ‘ Kilimo Kwanza’

Kilimo Kwanza Investment Presentation To Tanzania Diaspora May 2011 Shamte Kilimo Kwanza Investment Presentation To Tanzania Diaspora May 2011 Shamte Presentation Transcript

  • INVESTMENT IN AGRICULTURE IN TANZANIA Kilimo Kwanza in Motion
  • INVESTMENT IN AGRICULTURE IN TANZANIA
    • PRESENTATION TO TANZANIA DIASPORA MEETING
    • LONDON - 7 MAY 2011
    • Salum Shamte
    • Chairman – Agricultural Council of Tanzania
  • THE PRESENTATION
    • STRATEGIC POSITION OF AGRICULTURE IN TANZANIA
    • POTENTIAL FOR AGRICULTURE AND KEY CONSTRAINTS
    • RECENT INITIATIVES TO IMPROVE AGRICULTURAL PERFORMANCE
    • SOUTHERN AGRICULTURAL GROWTH CORRIDOR OF TANZANIA (SAGCOT)
    • IMPORTANCE OF TANZANIAN DIASPORA IN INVESTMENT
    • OPPORTUNITIES FOR TANZANIAN DIASPORA TO INVEST IN AGRIBUSINESS
  • IMPORTANCE OF AGRICULTURE IN TANZANIA
    • No country has achieved a significant measure of socio-economic and structural transformation without first modernising its agriculture:
    • No country has significantly reduced the poverty of its population without achieving a high level of productivity in agriculture.
    • The transformation of Tanzania’s agriculture must be the foundation of the country’s socio-economic development, due to the following factors:
      • 80% of Tanzanians depend on agriculture for their livelihood. Cannot eradicate poverty without addressing this large majority.
      • Currently agriculture contributes 95% of the food consumed in the country - the required level for self sufficiency is 120%.
      • Agriculture contributes 26.7% of the Country’s GDP; 30% of total exports; and 65% of raw materials for Tanzanian industries
      • Increased food production will significantly reduce the level of inflation, since food contributes 55.9% of the inflation basket.
      • Agriculture has the highest multiplier effect in the economy. Every 1 Shilling Invested in Agriculture will yield 3.2 Shillings in the Economy
    01/06/12
  • “ For the socio-economic development of Tanzania, Agriculture is almost everything” Dr. Jakaya Mrisho Kikwete President of the United Republic of Tanzania at the launching of KILIMO KWANZA 3 rd August 2009 Dodoma - Tanzania 01/06/12
    • TANZANIA’S UNIQUE AGRICULTURAL POTENTIAL
    • 44 million hectares of good arable land but only 23% is currently under effective utilisation.
    • 62,000 sq. kms of the fresh water resources available for crops, livestock and fish farming which is grossly under utilised. [2 nd highest in Africa after DRC]
    • 29 million hectares of irrigable land BUT only 1% is currently under irrigation
    • 19 million cattle, 17 million sheep and goats, 50 million chicken which are not commercially exploited .
    • 1,424 Kms of coastline and 223,000 Sq. Kms of Tanzania’s Exclusive Economic Zone of the Indian Ocean which is not being effectively exploited.
    01/06/12
    • EXTERNAL FACTORS FAVOURABLE TO AGRICULTURE
    • The Paradigm Shift on World Economy:
      • Increasing Food and Raw Materials Demand and Prices provide Major Opportunities for Agriculture. Population Growth and Urbanisation. [Davos]
    • The African Union Comprehensive Africa Agriculture Development Programme Resolution. Increased Investment in Agriculture is the Best Option for Economic Development of African Countries like Tanzania. [Maputo Resolution – Recommended at least 10% of National Budgets Directed towards Agriculture]
    01/06/12
  • EXTERNAL FACTORS FAVOURABLE TO AGRICULTURE….
    • The 2008 World Bank Report and the G20 countries’ meeting both recommended that countries with agricultural comparative and competitive advantage like Tanzania should strategically invest in agriculture for enhanced economic development.
    • “ What can Agriculture do for Development? Agriculture has features that make it a unique instrument for development” World Bank Statement: The World Development Report 2008: Agriculture for Development (page 2 of The Overview)
    • The G20 of September 2009 called on the World Bank to work with interested Donors to develop a multilateral trust fund to scale-up agricultural assistance to low-income countries
    • Tanzania's Advantageous Geographical Position vis Landlocked Countries; and in the Centre of Africa
    01/06/12
  • RECENT INITIATIVES TO TRANSFORM AGRICULTURE
    • ASDP
    • INPUTS VOUCHERS/ SUBSIDIES
    • WAREHOUSE RECEIPTS
    • CAADP
    • KILIMO KWANZA
    • TADB
    • SAGCOT
    • WHAT IS BEING DONE TO ADDRESS THE CHALLENGES?
    • AGRICULTURE SECTOR DEVELOPMENT PROGRAMME. Comprehensive Programme to Implement the National Agricultural Development Strategy – Implemented from 2005 ; CAADP
    • KILIMO KWANZA – Resolution to rapidly transform Tanzania's Agriculture – Holistic approach to modernize and commercialise our Agriculture – Small, Medium and Large. - Tanzanian Resolve, Developed by Tanzanians (PPP), Implemented by Tanzanians, for the Prosperity of Tanzanians. Launched in 2009 -10 PILLARS OF KILIMO KWANZA
    01/06/12
  • Ten Pillars for Exploiting the World Opportunities
        • National Vision on Kilimo Kwanza
        • Financing Kilimo Kwanza
        • Institutional Reorganisation for Kilimo Kwanza
        • Paradigm Shift for Kilimo Kwanza
        • Land for Kilimo Kwanza
        • Incentives for Kilimo Kwanza
        • Industrialisation for Kilimo Kwanza
        • Science, Technology & Human Resources For Kilimo Kwanza
        • Infrastructure Development for Kilimo Kwanza
        • Mobilising Tanzanians for Kilimo Kwanza
        •  
  • Political Will
    • Cabinet Passed Kilimo Kwanza for adoption in the Government Machinery for implementation.
    • Adoption of the AU Compact for Comprehensive Africa Agriculture Development Programme (CAADP) in July 2010 to take advantage of G20 financial commitments
    •   Formulation and Adoption of Growth Corridor programmes starting with the Southern Agriculture Growth Corridor (SAGCOT)
  • Financing Kilimo Kwanza
    • Agriculture budget has increased to 7.8% in 2010/2011 objective to achieve AU, Maputo Resolution of 10% by 2013.
    • Agriculture as Priority for  MOF budget guidelines for 2010/11 to 2012/13
    • ASDP, CAADP and SAGCOT initiatives enjoy Development Partners ’ and Private Sector support
        • IFAD and ADB allocated USD 24 m to ASDP. 
        • World Bank provided USD 160 m to enhance food security initiatives.
        • World Bank has also allocated USD 30 m to the East Africa agriculture productivity program and has shown interest in PADEP.  
  • Financing Kilimo Kwanza
    • TIB has already opened the Kilimo Kwanza window for concessional financing of Agriculture
    • Government allocated TZS 50 bil. establishing TADB during 2010/11 financial year; negotiations are well ahead with China Development Bank for capitalization of TADB
    • CRDB Bank and NMB increased support to farmer organisations in terms of capacity building and provision of credit through SACCOS.
    • BOT is reviewing the prudential requirements in relation to extension of credit to agriculture
    • BOT in drive to re-establish the Directorate of Rural Finance
    • BOT in drive to re- introduce rural finance fund, capital subsidy and agricultural credit schemes
  • Institutional Reorganization
    • Hon. Mizengo Kayanza Peter Pinda MP, Prime Minister designated as Champion of KILIMO KWANZA implementation activities.
    • Local Government Authorities have strengthened the supervision and distribution of agricultural inputs to the end users/farmers
    • ASDP is actively involving District Councils, Private Sector and Farmers and their Organizations under Participatory Agricultural Development and Empowerment Project – (PADEP)
    • Parliament has enacted Public Private Partnership Act 2010, PPP Policy and Regulations are in place.
  • Paradigm Shift for Strategic Framework
    • Tanzania generated food surplus of 12% in 2010/11
    • Notable progress in the fishing industry registered in Lake Victoria with new fish processing facilities
    • The National Aquaculture Development Strategy – (NADS) and Livestock Sector Development Strategy are in place
    • The MAFC and Ministry of Justice and Constitutional Affairs are working on Contract Farming Act to benefit all parties
  • What Have We Done with Land Matters
    • 8,672 village boundaries out of 10,107 villages have been surveyed
    • 753 villages been issued with Certificates of Village Land (CVL)
    • 14,017 Certificates of Customary Rights of Occupancy (CCRO) have been issued
    • 35 District Land Registries out of over 120 Districts
    • 4 District Land Registries in Mbozi, Iringa Rural, Babati and Handeni have attendant Village Land Registries
  • What Have We Done with Land Matters
    • Lindi Region accomplished identification of land for crop farming, livestock keeping and other activities.
    • 33 regional land tribunals established, aim is to establish the tribunals in every district.
    •   5 zonal offices for processing Land Application Forms for issuing Title Deeds.
    • identified 265,000 ha for the Land Bank to be provided to TIC
  • Incentives for Kilimo Kwanza
    • Agricultural Investment Incentives Review Task Force is in place.
    • The Government has granted VAT exemption on
      • transportation of sugarcane, sisal and tea from plantations to processing centers,
      • machinery in relation to dairy products
      • seed cake, floriculture
      • artificial insemination
      • Tractors and farm implements
    • 73,672 tones of maize purchased by National Strategic Food Reserve Agency in 2009/10 and transferred 126,915 tones from southern highland regions to areas facing droughts
    • Established The Non Traditional Crops, Dairy and Meat Products Boards for regulating quality and standards and marketing
  • Industrialization Initiatives
    • Seeds supply increased from 10,500 in 2005 to 16,150 tones in 2010 against effective demand for 30,000 tonnes representing a 60% increase (potential demand is 120,000 tonnes).
    • A greater part of seed output is from Prisons Department and National Service farms .
    • Agricultural Seed Agency (ASA) has been strengthened to support private sector seed production
    • The National Central Laboratory for vaccines at Kibaha has been rehabilitated and facility is operating
    • The National Fisheries Laboratory based at Nyegezi Mwanza has been provided with modern equipment and backed up with staff.
    • A 10% tax has been imposed on exporting raw cashewnuts to stimulate local processing
    • 8 Agro-industries established at BWM – SEZ and sites identified in 17 regions for EPZ – SEZ mainly for agro-inputs and output processing
  • Science and Technology and Human Resources for Kilimo Kwanza
    • 3,801 Extension Officers were engaged in 2009/10 bringing a total workforce to 7,180. (demand 15,000)
    • Increased enrolment of students in certificate and diploma courses from 1500 to 2500  
    • C onducted 6,000 mashamba darasa ’ and trained 132,000 farmers on modern crop and animal husbandry.
    • Set up evaluation criteria for the performance of the extension officers.
    • The MAFC and PMO-RALG are promoting and training youth groups in animal husbandry and linking them with credit institutions
    • Government is aiming at allocating 1% of GDP for research and development and rewarding innovation.
  • Infrastructure Development for Kilimo Kwanza
    • Area under irrigation has increased from 264,388 hectors in 2005/6 to 326,492 hectors in December 2009.
    • The Government has contracted a Chinese Company to link the existing inland separate fiber optic networks into national network connected to sub-marine cable.
    • A feasibility study has been carried out to upgrade central railway line to standard gauge and and extend it to Rwanda and Burundi.
    • Major roads under construction/rehabilitation:
          • Mtwara to Dar es Salaam.
          • Dar es Salaam to Mwanza
          • Arusha – Babati,
          • Dodoma – Iringa,
          • Mbeya – Sumbawanga
          • Bukoba – Kigoma – Sumbawanga
  • Infrastructure Development for Kilimo Kwanza
    • Dodoma, Arusha, Rukwa, Morogoro, Shinyanga and Mbeya Regions have modern abattoirs, a new abattoir is under construction at Ruvu Ranch by NARCO.
    • Districts are rehabilitating and constructing new abattoirs under DADPs
    •   A 3% service charge is collected by TANESCO for Rural Energy Fund.
    • Ports master plan in various stages of implemetation including:
        • Single Point Mooring
        • Expansion of harbour areas in Dar Es Salaam
        • Modernisation of equipment and facilities
        • New Container terminal
        • D eepening entrance channel and quay depth for larger vessels
        • O pening ICDs and Inland Freight Station
        • Feasibilities for Bagamoyo and Mwambani Ports
  • Mobilising Tanzanians for Kilimo Kwanza
    • Kilimo Kwanza aspects are already being implemented by Agricultural Related Ministries through ASDP and its core components PADEP, DADPs.
    • All Ministries are orienting their budgets towards KILIMO KWANZA implementation.
    • Kilimo Kwanza Green Book is widely available .
    • TNBC has conducted Kilimo Kwanza sensitization and mass communication initiatives ; and colleges such as St. Johns University in Dodoma, Institute of Rural Development Planning (IRDP) – Dodoma are in the process of incorporated Kilimo Kwanza into their curricular.
    • “ SAGCOT IS KILIMO KWANZA IN MOTION ”
  • Agricultural Growth Corridors
    • Concept Launched at The UN General Assembly in 2008/ WEF
    • Involves Building on Existing Infrastructure in Areas of High Agricultural Potential to Create Agricultural “Clusters”
    • A Focus on the Full Value Chain – from Primary Production to Processing and Access to Markets
    • Delivered Through a Combination of Well Coordinated Public and Private Sector Investments
    • Focused, Coordinated and Practical Way to Implement KILIMO KWANZA
    • Proposal to Start by Developing The Southern Agricultural Growth Corridor of Tanzania (SAGCOT). Coast, Morogoro, Iringa, Njombe, Mbeya, Rukwa and Ruvuma Regions - Along Railway, Road, Electricity, Port, Airways, Water Resources, Good Land
  • SOUTHERN AGRICULTURAL CORRIDOR OF TANZANIA (SAGCOT)
  • SAGCOT CLUSTERS
  • There are Opportunities to Develop “CLUSTERS” of Profitable Farming and Processing Businesses AGRICULTURAL CLUSTERS REQUIRE SIMULTANEOUS AND PROPERLY COORDINATED INVESTMENT BY THE PUBLIC AND PRIVATE SECTORS
  • SAGCOT RESULTS INTO MAJOR BENEFITS FOR SMALLHOLDER FARMERS, ENTREPRENEURS AND RURAL COMMUNITIES PUBLIC GRANT FUNDING OF $650 MILLION OVER 20 YEARS IS EQUIVALENT TO ONLY $280 PER BENEFICIARY – ALL OF WHICH SHOULD BE RECOVERED THROUGH INCREASED TAX REVENUES
    • WHAT IS BEING DONE ?....
    • .
    • SOUTHERN AGRICULTURAL GROWTH CORRIDOR OF TANZANIA (SAGCOT) – Focused, Coordinated and Innovative way to transform agriculture. Efforts of farmers, Government, Development partners, Financial institutions, Input suppliers, Equipment suppliers, Processors, Marketers, Researchers, NGOs coordinated; Innovative Financing to unlock the investing power of the Private sector and the Farmers. ACT/TAP Experience.
    • SAGCOT Investment Blueprint Launched in Tanzania by The Prime Minister Hon. M. P. K. Pinda (MP) [Mtoto wa Mkulima] on 13 th January 2011 and Internationally in Davos Switzerland at The World Economic Forum by The President H.E Dr. J. M. Kikwete on 28 th January 2011.
    • International interest is very high to assist and to invest in agribusiness. Implementation has started – Yara. Tanzanians should not be bystanders. Ask Yourself, “What Can I Do to Transform Agriculture in Tanzania?”
    01/06/12
  • ACTIVITIES SINCE JAN. 2011
    • Public Awareness Campaigns – Farmers; Businesses; Government; Parliament ; Diaspora
    • Establishment of the SAGCOT Centre [Secretariat]
    • Establishment of the Catalytic Fund
    • Mobilization of Resources for Implementing SAGCOT activities [$62.5 MILLION]
    •   SAGCOT Investment Activities
    • SAGCOT Partnership Principles
    • Green Growth Corridor Initiative
    • Establishment of Commodity Exchange
    • WEFA Cape Town May 2011 – SAGCOT Model for Africa
  • IMPORTANCE OF DIASPORA
    • 30 MILLION AFRICANS IN DIASPORA
    • 2010 - $ 40 BILLION HOME REMITTANCES
    • TANZANIA DIASPORA OFFICIAL REMITTANCES IN 2010 - $ 400 MILLION COMPARED TO FDI OF $ 700 MILLION [NIGERIA $ 10BN]
    • SKILLS AND EXPERIENCES GATHERED
    • INVESTMENT INTO TANZANIA NECESSARY
    • SAVINGS AND BORROWING
    • FOCUS IN AGRICULTURE
  • INVESTMENT OPPORTUNITIES IN AGRIBUSINESS IN TANZANIA
    • INVESTMENT OPPORTUNITIES IN THE WHOLE AGRICULTURAL VALUE CHAIN
    • INVEST IN PRIORITY CROPS [F AND F]; LIVESTOCK AND FISHERIES
    • FARM CENTRES /TECHNOLOGY TRANSFER
    • FINANCING
    • - Venture Capital Funds; Credit; Lease Financing; Insurance
  • Investment Opportunities…..
    • INPUTS PRODUCTION, SUPPLY AND DISTRIBUTION
    • - Seeds; Chemicals; Equipment
      • INFRASTRUCTURE
      • - Irrigation; Energy; Storage; Packing
    • PROCESSING
    • TRANSPORTATION
    • MARKETING – LINKAGES; COMMODITY EXCHANGES
    • INFORMATION TO OTHER INVESTORS/ MARKETS – www.africacorridors.com
    • WEWE UTAFANYA NINI ?
  • .
    • `KILIMO KWANZA IN MOTION’
    • IT CAN AND SHOULD BE DONE
    • PLAY YOUR PART
    • AHSANTE
    • THANKS