DPG PSD Trade Delegation to Mbeya Region, 19-22 March 2013

FÖRDELNING PRODUKTIVA TILLGÅNGARGROWTH

MARKETS

FINANCIAL SERVICES

SKILLED HUMAN RESOURCES

RULES AND REGULATIONS

INFRASRUCTURE

VOICE

HEALTH

PEACE AND SECURITY

MACRO ECONOMY

DEMOCRATICGOVERNANCE

EDUCATION

RESEARCH AND INNOVATION

GLOBAL AND REGIONAL TRADE

LAND

FÖRDELNING PRODUKTIVA TILLGÅNGAR

PRIVATESECTOR

IN MBEYA

MARKETS

FINANCIAL SERVICES

SKILLED HUMAN RESOURCES

RULES AND REGULATIONS

INFRASRUCTURE

VOICE

HEALTH

PEACE AND SECURITY

MACRO ECONOMY

DEMOCRATICGOVERNANCE

EDUCATION

RESEARCH AND INNOVATION

GLOBAL AND REGIONAL TRADE

LAND

Mbeya Region - great potential

• Wonderful climate – anything grows• Active agricultural sector• Positive enthusiastic people

• Part of SAGCOT • New airport• New mines opening up• Ripe for private sector development

International & Local Business

• Working together• Promoting the area• Interested in the smallholder• Providing access to new markets• Offering new techniques• Undertaking good advocacy

• Mbeya Business Forum

Rungwe Avocado Company

• 3500 out growers• Provide transport & pickers for the crop• Promoting local growers• Farmers can make Tsh 7 million per hectare• Price per kg of avocadoes has increased from

290 Tsh in 2012 to 345 Tsh in 2013.

Raising quality – inputting new techniques & varieties

• Complying with international standards• Access to international market – 50

tonnes M&S and UK supermarkets

2012 2013 2014?02468

10121416

Number of containers exported

Coffee Farmers Alliance TanzaniaAim: Increased income for 25 000 coffee farmers

• Co-funding – International Coffee Partners (ICP) together with donors

• Knowledge and experience from private sector – ICP provide market information

• Sustainability beyond aid – business interest from private parters

• Not-for-profit implementor – Hanns R. Neumann Stiftung in cooperation with farmer organizations

• Provide a choice for growers

Access to better varieties – a better quality product

Access to training – field farmer schools

Improved milling

Access to international auctions

Sapphire Maize Storage project

• AGRA-funded and now DfID SAGCOT programme through Technoserve

• Local government provided new doors and pallets for storing grain.

• Agronomy training provided• Joint marketing• Assistance in finding markets for local community• Credit through warehouse receipt system• Promoting saving through SACCOS

New methods, techniques & markets introduced to farmers groups

Business Skills training

• Business acumen lacking• Extension workers – not up to date and need

to be re-energised• New techniques needed– TAPP, farmer field

schools• Access to buying inputs – more local

distributors needed.

Government interaction with private sector still needs to improve

• More facilitation – less control• Stable consistent policies• Regular ongoing communication

•ENABLING not DISABLING – over-regulation & duplicate regulation by multiple bodies is cited

More support for SME’s needed

• LGA’s inconsistent in their approach – no cohesion – different fees charged & rules applied

• TCCIA one stop shop for SME’s• NTB system for harassment of SME’s• Farmer associations often politicised and not

representing the farmers• Middle men still taking the lion’s share

Access to Finance

• Still a critical issue• Pride Rural Finance Window• Average loan Tsh 300,000 for 4 - 9 months

@2.5% per month.• 5-6% default rate• More prevention work needed

Infrastructure

• Border post – Tunduma

• Traffic chaos – long queues, congestion, lack of parking

• Traffic has doubled in the last 2 years. • All fuel to Zambia, copper from Zambia & DRC

goods pass through Tunduma • TMEA One Stop Border Post is underway – still

in planning and design stage.

TAZARA – past its sell by date?

..or the way forward?