Tanzania plans $100m oil palm project

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East Africa Business Week | 17 may 2015

Tanzania plans $100m oil palm project

By Andrew Zablon

MWANZA, Tanzania - Land acquisition for a $111 million (Tsh.199.8 billion)  to cater for the Integrated Oil Palm Project in Ruvu Basin Coast region near Dar es Salaam Tanzania is being processed..

According to the National Development Corporation (NDC) Public Relations Manager Abel Ngapemba as of now only 6,000 hectare of land has been acquired.

“Even if we have acquired 6,000 hectare of land, there must be a process to transfer its ownership to the investor,” he said last week. The project needs at least 10,000 hectare of land.

The integrated oil palm project in Ruvu river basin in Coast Region is being developed by NDC.

The project would comprise of oil palm farming on a 10,000 hectare of land and production of palm oil at Kimala Misale and Dutumi villages in Kisarawe and Kibaha districts (40km from Dar es Salaam) in the Coast region.

According to NDC the project is expected to produce 7,250 litres/ha/year of palm oil and about 10MW of electricity from biomass of oil palm which will be used in operating the project and the remaining will be sold to the National Grid.

NDC will implement this project in partnership with the private sector and incorporate the out growers in a form of contract farming.

In 2013 NDC of Tanzania inked a deal with Nava Bharat Pte Ltd of Singapore (NBS) to put up an oil palm farm and processing plant. The joint venture agreement was valued at $111 million.

The plant would be located in the Kisarawe District in the Coast Region of            Tanzania.

Oil palm from the village of Kimala Misale in the Kisarawe District would also be processed by the facility.

The terms of the agreement state NBS would hold an 80% share in the joint venture while NDC would hold a 20% stake.

The contract was a result of a MoU by the two firms in 2011. The MoU stipulated that they would work together to establish large-scale projects in the agricultural industry in Tanzania.
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