agrisol energy tanzania - letter to tanzania

8/6/2019 Agrisol Energy Tanzania - Letter to Tanzania

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67 Kibo Road | Mikocheni A | Dar es Salaam | Tanzania

www.agrisolenergy.com

July 6, 2011

Fellow Tanzanians:

As AgriSol Energy Tanzania Limiteds development activities in Tanzania progress, we want tobe sure that you know and understand how our proposed project is designed to enable andempower Tanzanian farmers to significantly increase the use and productivity of our nationsfarmland for the benefit of our country.

Some recent news accounts and reports have inaccurately portrayed our intentions. Havingbeen involved in the AgriSol Tanzania project from the beginning, I personally know the people,the plans, the politics and the potential of this project for Tanzania. I also know that the newsaccounts are wrong. Our project is about partnering with world-class agricultural experts and

putting Tanzanian farmland to its best and fullest use.

AgriSol is focused on being a major sponsor of significant, long-term and sustainable change inemerging agricultural markets by bringing state-of-the-art farming practices, modern seeds andother inputs, and top-quality farming equipment to such markets.

Our ultimate objective is to create large-scale agriculture zones that:

Help stabilize local food supplies and bring lasting food security to our country;

Create jobs and economic opportunity for local populations;

Spur investment in local infrastructure improvements;

Develop new markets for our agricultural products; and

Attract investment in related businesses.

In developing this project, we have always sought to work only with people and organizationsthat have a demonstrated track record and commitment to sustainable and socially responsibleagriculture, as exemplified by our American partners in AgriSol Energy Tanzania Limited, and toworking with small farmers.

We bring our own significant local expertise to the project, and we have also specifically soughtthe involvement of other local experts and institutions, for example, by partnering with SokoineUniversity of Agriculture, the leading Tanzanian agricultural institution. Our team also includesexperts in commercial agriculture, educational outreach and small landholder programs fromIowa State Universitys College of Agriculture and Life Sciences (one of the leading agriculturaluniversities in the world), and international business development and finance. AgriSol also will

use its relationships with leading global and regional suppliers of seed and fertilizers, farmingequipment and technical expertise for the benefit of our project.

Importantly, our project is consistent with the vision of President Jakaya Kikwete to transformthe countrys economy through significant, long-term investment in agriculture. The ambitiousKilimo Kwanzastrategy is central to AgriSols mission to forge a partnership with thegovernment and with farmers to ensure that Tanzania rises above subsistence farming, lowproductivity and limited access to the best farming practices.


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AgriSol firmly believes that the best way to tackle these issues in Tanzania is to developagricultural enterprises that combine large-scale, profitable commercial farming with significantlocal outreach and outgrower programs for small landholders. This approach will not onlystabilize local and national food supplies and create local jobs and prosperity, it also willsupport:

Organized, efficient and transparent markets for agricultural products, providing smallfarmers with enhanced access to local, national, regional and global farming production,inventory and pricing data;

Increased access to funding for similar and complementary agricultural businesses; and

Greater investment in roads, rail, water and air transportation infrastructure, and cropand value-added product storage, processing and distribution.

Additionally, profits generated from this type of venture will support long-term investments in co-operative organizations and community investment trusts. These trusts will invest in localmedical clinics, schools, water sourcing and treatment systems, power generation and othertypes of infrastructure that will have a profound and positive impact on the quality of life for localpopulations.

Regarding the proposed agriculture zones, our government made AgriSol aware of three tractsof land in western Tanzania that were previously used as camps for refugees, but were, at thetime, either closed or being closed. The decision to close these camps was made well beforeAgriSol became involved and was based on a model program agreed to with the UnitedNations. The government then designated these lands for modern agricultural development, aspart of the Kilimo Kwanzainitiative, in order to restore the land to productivity.

Despite being in fairly remote locations with limited road, power and water infrastructure, AgriSolfound these tracts to have attractive agroclimatic conditions and to be geographically well-positioned to serve growing local, national and regional markets. While these lands represent avery small portion of Tanzanias vast land resources, these factors led AgriSol to conclude that

these lands provide a major opportunity to demonstrate the nations ability to feed its ownpeople and contribute to world food supplies on an accelerated basis.

As part of its feasibility analysis for this project, AgriSol has spent considerable time consultingwith key participants in Tanzania to ensure that we have taken into account local and nationalinterests appropriately, including:

Meeting repeatedly over several months with local and national officials andrepresentatives in Mpanda, Rukwa, with the full knowledge of the central government, todiscuss our vision for agricultural development in their region and the country and toseek their input and guidance;

Hosting our Prime Minister, Hon. Mizengo Kayanza Peter Pinda, and key local and

national government officials on visits to the U.S. to see our partners modern, large-scale commercial farming operations, and to meet with Iowa State University experts insmall landholder outreach;

Attending and presenting at an investment forum held in Mpanda for Rukwa and Kigomaregions at the invitation of the Honorable Prime Minister, who chaired the meeting, andwhich was attended by several members of the cabinet along with senior governmentofficials at the local and national levels;


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Sponsoring a workshop in Dar-es-Salaam with local and national government officials,and including Iowa State University, to discuss and obtain their input into thedevelopment of small landholder and community programs specific to western Tanzania;and

Contracting a leading Tanzanian agricultural consultancy, Diligent Consulting Ltd., toevaluate local, national and regional crop and value-added product markets, local

infrastructure and small landholder activity in western Tanzania.

AgriSol anticipates beginning commercial farming and small landholder and communityprograms in Tanzania in 2012, starting with modest activities in the initial years. In addition tofood security, a key initial focus will be on fighting Tanzanias protein deficiency problem byinvesting in crop cultivation and value-added businesses, including animal feed, cooking oil andlivestock production.

AgriSol is committed to conducting its operations in a socially and environmentally responsiblemanner, and we welcome feedback and questions from all stakeholders. We have a deeprespect for our fellow citizens, and we are realistic about the challenges ahead. We also areunshakably optimistic about Tanzanias future and the contribution that our project can make to

our collective food security and economic prosperity.

Asanteni sana,

Iddi Mohammed Simba, on behalf ofAgriSol Energy Tanzania Limited

About Mr. Simba: Iddi Simba is the founding Chairman of PRIDE Tanzania, was the foundingDirector-General of the East African Development Bank, former Resident Director of the AfricanDevelopment Bank in London, and Member of Parliament and Minister for Trade and Industry inthe Tanzanian government. He continues to maintain meaningful relations with the Governmentof Tanzania, and was recently appointed to the Bomani Commission, which was set up in 2007to investigate and review mining contracts in Tanzania. Mr. Simba sits on the Board of Directorsof several media, manufacturing and financial services firms.

agrisol energy tanzania - letter to tanzania

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