Tanzania Farmland Opportunity
The Tanzanian Farmland Business Opportunity
When all the right ingredients come together at the same time it creates opportunity.
These ingredients are comprised of:
• the availability of fertile arable land in a peaceful country
• a favorable business environment with solid investment incentives
• agricultural support services
• with a direct sales business model to perpetually fund forward business momentum
• bringing a business opportunity to those who normally could not afford it
• along with an experienced management team well versed in direct sales
• with strong Tanzanian business relationships and years of experience in conducting business in the country
In combination they have created an opportunity to invest in a lucrative business opportunity that can also make a difference in this world that is truly meaningful.
Tanzania Economy, Markets and Business - Asia Business Channel
Available Arable Land
Available farmland Tanzania is endowed with an area of approximately 94.5 million hectares of land, out of which 44 million hectares are classified as suitable for agriculture, of which 2.3 million hectares are of high development potential and 4.8 million hectares are of medium development potential. According to National Sample Census for Agriculture of 2002/2003 the area under cultivation is 9.1 million hectares.
Favorable growing climate Tanzania has lush tropical temperatures, rich and fertile soil, plenty of sunshine and rainfall and a number of large river systems. In terms of crops, maize dominates much of the country, particularly the highlands in north and south. The tropical coastal belt is always warm and humid dominated by cassava, with rice also grown in an area spreading westwards from Dar es Salaam. Drought resistant millet and sorghum are grown in the central plateau where temperature and rainfall are highly variable. Aside from these arid plains, rainfall is fairly well spread throughout the year, peaking between March and May, with another, shorter rainy season between November and early January. Having such a diversity of climatic and geographical zones Tanzania's farmers grow a huge variety of fruit, vegetable and spice crops. Coffee is a major export crop, earning 17% of the country's foreign exchange, and cotton, cashew nuts and tobacco are also grown for export.
The benefits of technology The major constraint facing Tanzania’s agriculture is falling labor and land productivity due to the use of poor farming technology. About 70% of Tanzania’s crop area is cultivated by hand hoe, 20% by ox plough and 10% by tractor.
Irrigation potential Tanzania’s agriculture is mostly rain fed. Some 29.4 million hectares are suitable for irrigation. There are many lakes, permanent and seasonal rivers and underground water sources for irrigation and other use. With ample rainfall and generous rivers fed by the high hinterland plateaus, Tanzania has among the best irrigation potential in Sub Sahara Africa.
Favorable Business Environment
Stable government Tanzania is one of the most stable and peaceful countries in Africa, with a vibrant democracy, no internal conflicts and a steady GDP growth of 6 to 7% per annum.
Expropriation and Nationalization The 1997 Tanzania Investment Act provides a guarantee against any expropriation and nationalization of business enterprises by Government. Tanzania is also a member of various multilateral and bilateral agreements such as MIGA and ICSID, which provide investor security.
Investment Laws and Guarantees Tanzania has an independent judiciary, among other organs of the State, and recognizes the right of individuals to acquire and own property.
Strategically located The country is strategically located with six land locked countries depending on Tanzania’s three major ports along the Indian Ocean to provide access to International markets and two major railway networks connecting 14 out of 20 cities.
Labor force The availability of manpower in Tanzania is readily available with skilled, semi-skilled and trainable workers who are ready and available to work at relatively low cost.
Domestic market and access Tanzania is a member of SADC and the EAC, totaling some 300 million potential consumers, as well as the Indian Ocean Rim-Association for Regional Co-operation and WTO. Tanzania also has preferential market access through the US African Growth and Opportunity Act, as well as the EU’s Economic Partnership Agreements (EPA). East Africa rising 4.7% per year and a population of almost 45 million provides a ready domestic market.
Free Repatriation of Funds Transfer of funds is allowed through any authorized bank in freely convertible currency of net profits, repayment of foreign loans, royalties, fees charges in respect of foreign technology, remittance of proceeds and payment of emoluments.
Monetary and Fiscal Systems The monetary policy and the banking sector are well regulated to ensure price stability and balanced, sustainable growth. Financial sector is liberalized and the market for foreign exchange is open.
Investment Incentives for foreign investment
1. Zero-rated duty on capital goods, all farm inputs including fertilizer, pesticides and herbicides.
2. Allowances and deductions on agricultural machinery and implements.
3. 100% capital allowance in the agriculture sector.
4. Deferment of VAT payments on project capital goods.
5. Import duty drawback on raw materials for inputs for export products.
6. Zero-rated VAT on agricultural exports and for domestically produced agricultural inputs.
7. Indefinite carry-over of business losses against future profit for income tax.
8. Reasonable corporate and withholding tax rates on dividends.
9. VAT waived on spare parts.
Tanzania Intro - Asia Business Channel
Rapid Growth Direct selling is a dynamic marketing tool using the power of person to person, social media, the Internet and party plan to promote sales; this enables rapid growth giving direct sales companies strong performance.
Global Markets Internationally many countries have opened their doors to direct selling. This has opened up the ability to market products to a global audience allowing the direct seller to conduct business across borders.
Increased Participation We believe that by using the direct sales business model it will suit our product as it allows the average person to take advantage of the opportunity to engage in the agricultural business, the chance that most people can only dream of having. By thus broadening the audience we market to the success of sales for our product increases dramatically.
Unique Business Tool The direct sales business model is well suited to products not readily available in stores. This business model well suits farmland acquisition and crop cultivation as real estate is most commonly marketed from person to person and through the Internet today.
Strong social and economic appeal This business model is very successful because it has shown strong social and economic relevance when used.
Social Responsibility Direct selling has allowed the business participant to be active in enabling good for millions of people in developing economies when combined with additional social aid programs used by Direct selling companies.
Experienced Management team
Business Experience in Tanzania
The founders of Sprout Tz have conducted different aspects of business in Tanzania since the spring of 2007. This allows the ease and speed of business set-up utilizing, existing business contacts and relationships along with a local cultural awareness; understanding of local banking, payroll; office staff and management; audit and accounting requirements to meet local and international standards; the legalities of land acquisition; recruiting and directing of local and international work crews; knowledge of local labor laws; interfacing with government taxation and regulatory offices and officials; awareness of and relationships with local and other African suppliers; African travel and establishment of remote work camps.
Business Experience in Direct Sales
Strong experience on all levels of Direct sales business, including owning and operating companies using this model of business is held by some on the management team. This allows for the ability to confidently turn to this business model as a successful compliment to use to market Sprout Tz.’s business opportunity.
Growing for Future Generations
By combining all these ingredients you can participate in helping grow for future generations because we promise to deliver to our shareholder the opportunity to grow with sustainable practices, even when nobody is going to know whether we did it or not.
Invest Africa Episode 10 - Tanzania