A closer look at Tanzanian Farmland
Tanzania is located on the East coast of Africa and has Kenya, Uganda, Rwanda, Burundi, Zambia and Mozambique as neighboring countries. Tanzania’s political stability, sound macroeconomic management, and considerable resources all contribute to its potential for sustained growth.
Tanzania has a staggering 44 million hectares of arable land with a very accommodating climate able to produce a variety of crops, yet only 6 million of this arable land is currently being utilized. Tanzania has the second largest volume of inland fresh water resources in Africa that can be used for irrigation but it is estimated that only one per cent of total irrigable land is currently developed.
The pro investment attitude by Government is clearly demonstrated by the innovative investment legislation, the increasing number of foreign direct investments in the country and economic and structural reforms that have led to substantial progress in establishing a functioning market economy.
Tanzania has a stable fiscal regime with sustainable level of inflation.
Tanzania had been carrying out successful economic and structural reforms, which have improved economic performance and sustained growth.
Tanzania is free of ideological confrontations, ethnic problems and labour disputes. It is a centre of economic and political stability in Sub Saharan Africa. Multi party democracy adopted in 1992 has not disturbed the peaceful political climate of the country. The political scene is characterised by parliamentary democracy and public consensus on key social and economic priorities.
Tanzanian President Jakaya Kikwete says the international community should look to Africa as the "continent that can feed the world." With its vast open land, conducive climate, and available water supply, Kikwete believes that Africa could greatly increase agricultural production with access to the proper technology.
Tanzanian President: Africa Can Feed the World
Some key incentives to investing in Tanzania
1. Six land locked countries depend on Tanzania’s three major ports located along the Indian Ocean
2. There are sizeable domestic and sub regional market of about 34.5 million consumers
3. Abundant and inexpensive skills are available
4. Southern Africa Development Community and the East African Community have some 304 million consumers.
5. Assurance of personal safety as Tanzania is free if ideological confrontations, ethnic problems and labor disputes.
6. Tanzania is an active member of the Multilateral Investment Guarantees Agency (MIGA) and The International Centre for Settlement of Investment Disputes (ICSID).
7. Guarantees against nationalization and expropriation.
8. Tanzania has implemented investor friendly policies with zero-rated VAT on Agriculture imports, goods manufactured for exports and foodstuff.
9. There are also favorable investment allowances and deductions i.e. capital allowance (100%) on agricultural expenditures.
10. Ease of obtaining permits such as Residence/Work Permits, industrial license, trading license, etc.
11. Tanzania offers a well-balanced and competitive package of fiscal incentives in comparison with other African countries.
12. Tanzania’s untapped natural resources offer a wide range of investment opportunities; arable land, minerals and natural tourist attractions are all awaiting potential investors.
Voices of Tanzania - Minister of Agriculture, Food & Cooperatives of Tanzania
Global companies involved in large-scale farming operations in Tanzania currently include Brooke Bond (tea) from the United Kindgom, Ilovo (sugar) from South Africa and Africa Plantations (coffee) from Zimbabwe. Other programmes to promote the agriculture sector include the Agricultural Sector Development Programme (ASDP); the Integrated Road Projects (IRP) to open up transport networks including rural roads in key agricultural areas and Sagcot to develop the southern agricultural corridor of Tanzania.