Dutch agribusiness seminar in Arusha
On 8th November 2021, the agriculture department of the Netherlands Embassy organized a Dutch agribusiness seminar in Arusha. During the seminar the new ambassador, H.E. Mr Wiebe de Boer was introduced to 80 participants and all were updated on agriculture sector developments in the northern region of Tanzania.
Tanzania Horticulture Association (TAHA) and Tanzania Investment Centre (TIC) were invited as guests speakers to give update on the recent developments. In this seminar, H.E Wiebe de Boer; officially introduced the honorary consular Mr. Anthony Rottjers who is based in Arusha as point of contact for consular issues.
Horticulture sector overview
TAHA is an apex private sector member based organization that advocates for the growth and competitiveness of the horticultural industry in Tanzania. The sector includes spices and herbs, roots and tuber, vegetable, floriculture and fruits employing more than 6.5 million people out of 61million. Also, Tanzania is among the top 20 global producers of fresh horticultural products (FAOSTAT data). With only 10% of all produce exported and 90% consumed locally. The country exports horticulture produce to East Africa Community to Uganda 59%, Kenya 24% and Rwanda 19%. This sector is growing at the rate of 7% per year; increasingly contributing to foreign income earned from the sector (38% in 2019). For that reason, TAHA intends to expand their reachability by opening office in Mara (Bunda district) and Mbeya. In his presentations, Mr. Mlay pointed out a few key issues that act as sector barriers. Including unstructured markets with few off takers, inadequate infrastructure, low productivity and unavailable skilled labor with hands on trainings.
Developments in enabling environment
Over the years TAHA has been lobbying for an enabling environment for the horticulture sector, given the huge potential the sector brings. Small steps have been made, however there is a long way to go. On the pipeline, TAHA explained a list of issues to be worked on including VAT refunds, withholding taxes and VAT for modern horticulture input. They are also working on a proposal to change the time limits of work permits beyond 5 years, since long-term investment takes a lot more time. TAHA is working with government to find a mechanism to revive flower companies that are closed and reassigned back to horticulture sectors.
Updates from Tanzania Investment Centre (TIC)
The Netherlands is the second largest country invested in Tanzania with more than 80 companies registered with TIC. Foreign investors with investment capital projections of 500,000 million USD in the next 5 years can benefit from the TIC facilities.
What are future plans set by TIC to support investors?
Since April 2021, the government of Tanzania has assigned a full ministry to specifically look at investment and escalate issues quickly to different ministries to enable the business environment. Services are now digitalized. If all documentations are presented correctly, permits can be obtained in 1 day. Beside that a call center service is installed.
Experience shared by companies and recommendations
“As a researcher, it takes over 10 years to have research results. Time for work permit should be linked to investment results like in other countries. It’s about time
for Tanzania to remove the cap of work permits to attract serious investment” said Dr. Gabriel Rugalema, Regional Director for eastern and Southern Africa from the World Vegetable Center. Other recommendations from the meeting included lowering cost of energy for investors, putting facilities in the EPZA area for investors, considering introducing a single tariff for importation of goods to mitigate the frustrations brought about by the process. Those who had stayed in Tanzania over 40 years, expressed their feeling of belonging to Tanzania and suggested that the Tanzanian government could consider granting a residence permit to those investors who have stayed a long time in the country.
Meet and greet networking reception
Over a meet and greet network reception, Ambassador Wiebe de Boer thanked presenters of TAHA, TIC and exhibitors for their interesting presentations and their openness to dialogue; and the companies for their constructive questions and suggestions. It is clear that the governments’ strategy of opening up the economy is changing the investment and business climate for the better but there are still a lot of hurdles to be taken. The embassy promised to have further discussions and do a systematic follow up of the relevant outstanding points.
For consular issues please reach out to Honorary Consular Mr. Mr. Anthony Rottjers via email nlconsaru@habari.co.tz and for questions on investment environment to Tanzania Investment Centre please send email to revocatus.rasheli@tic.go.tz .
Regular updates on developments in the agriculture sector in Tanzania will be given on this website and on twitter @NLAgriTanzania. If you would like to receive our newsletter full with information about the agribusiness in Tanzania please subscribe by e-mailing us at dar-lnv@minbuza.nl.