Tanzania Business Insight | 12 December 2023
Tanzania unveils world-class investment opportunities in agribusiness
Tanzania is offering more than 60,000 hectares of fertile land to both foreign and domestic companies to invest in large-scale farming and production of livestock.
The Executive Director of the Tanzania Investment Centre (TIC), Gilead Teri, said both foreign and domestic investors are invited to participate in the opportunity separately or in joint venture (JV).
Teri said the government will give priority to Tanzanian-owned companies or JVs between foreign and Tanzanian companies.
In a public call for investment proposals issued by TIC, the government said it has allocated some 60,106 hectares of land at Mkulazi area in Morogoro for agribusiness development.
The prime agricultural land, which is alongside the TAZARA railway line and is just 100km away from the Dar es Salaam port, is being offered for investment in large-scale farming for cultivation of crops and modern livestock keeping.
"The soil in Mkulazi is suitable for cultivating a variety of crops, including sugarcane, rice, maize, sorghum and other crops," the TIC said.
The 60,106 hectares of land with virgin soil will be subdivided and subtitled into 10,000-hectare farms.
Four farms (each with the size of 10,000 hectares) will be set aside for the cultivation of a variety of crops depending on the land suitability, while one 10,000-hectare farm is designated for modern, high-tech livestock keeping and processing.
TIC said the remaining 10,103 hectares will be allocated in the future for development of agro-processing zones and agriculture value addition industries.
"Mkulazi is well-positioned to serve the growing local, regional and global demand-supply gap in both the sugar and rice markerts and products of livestock as well as other agricultural commodities," the TIC said.
The proposed commercial farming projects have the potential of reducing imports of key commodities, while boosting exports from Tanzania's agriculture sector.
In a separate call for investment proposals, TIC also offered over 3,200 hectares of land in Kigoma Region for palm oil plantation, palm oil processing and cultivation of other crops.
Tanzania currently imports around 60% of the country's annual edible oil demand, costing the nation an estimated $250 million each year.
According to the World Bank, only 33% of the arable land in Tanzania is cultivated, compared to over 95% for Malawi and Rwanda.
Similarly, Ghana, Uganda and Ethiopia have used more than 80% of their arable land.
This World Bank data suggests that there is huge, untapped potential for commercial farming in Tanzania.
