Investment Committee Presentation - DOC

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					      PROCEEDINGS OF MTWARA REGIONAL INVESTMENT
  COMMITTEE CUM REGIONAL BUSINESS COUNCIL MEETING
 HELD ON 20TH SEPTEMBER 2005 AT VETA CONFERENCE HALL.



1.0   ATTENDANCE.
      See attached list as Appendix 1.


2.0   OPENING.


      2.1.   Mr. Y.F. Mbila, Regional Administrative Secretary welcomed all the participants to the
             preparatory meeting for launching the Mtwara Regional Business Council. Furthermore,
             he invited Mr. Isidore Shirima, Regional Commissioner to open the meeting.


      2.2.   Introductory remarks by Isidore Shirima, Regional Commissioner.
            Welcomed all the participants to the preparatory meeting on establishment of Mtwara
             Regional Business Council. In addition he noted the presence of Kate Kamba, Member of
             the East African Legislative Council, Ms. Luena from Tanzania Gatsby Trust and TNBC
             delegation led by Samson Chemponda.
            Noted that groundwork has been laid in the promotion of Mtwara Region as an attractive
             investment destination through the establishment of the Regional Investment Committee
             and the holding of Investors’ Forum in August 2004.
            Following the Investors’ Forum, 31 investors had shown interest in investing in Mtwara
             Region, some have actually invested. Our task is to build on this success by improving the
             investment climate so as to attract more investors into the region.
            The Districts have also to improve the investment climate by removing the remaining
             investment impediments to attract more investments.
            The challenge as a region is to attract both foreign and local investments for income
             generation, employment creation in order to contribute to poverty alleviation.




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3.0.   Presentation on Regional Investment Status Report by S.E. Pangisa – Regional Planning
       Officer.
             Provide investment progress between August 2004 when the Investors’ Forum was held to
              September 2005.
             During the period under review 31 investors had shown interest to invest in the
              manufacturing,     agriculture,   livestock,   energy,    education,   natural   resources,
              telecommunications, tourism and health sectors. Those who have made actual investments
              include:


       3.1.   Energy: Artumas Group Inc who have invested in Mnazi Bay Gas Project which aims at
              converting gas to electricity.


       3.2.   Petrol Station: 4 Investors have established 8 petrol stations in the region.


       3.3.   Agroprocessing: The Government has privatized the following cashewnut processing
              factories which were idle, in an effort to increase output.
                     Agrofocus Ltd: Purchased Newala 1 factory.
                     Micronix System Ltd: Newala 11 and Likombe Mtwara factories.
                     Bucco Ltd: Masasi Factory have purchase 280 tons of cashewnuts to commence
                      production in 2005/06 season.
                     OLAM Ltd: Procured 2 godowns of Likombe Mtwara and converted them to
                      factories. Have employed 2000 women and can produce 26 tons of cashew kernels
                      per day.
                     Prime Timber Ltd: Timber processing and woodworks.
                     Kapsa Ltd: Timber processing and woodworks.
                     E.J. Kijanga: Conversion of cassava to starch.


       3.4.Manufacturing.
                     Mtwara Industries Ltd: Mattresses.
                     Agro focus: Marble Tiles.
                     Bamsa Industrial Investment: Roofing Tiles.




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3.5.Information Technology Communication.
            AFSAT Communication (T) Ltd: Satellite communication Masasi District
             (Ndanda), Mikindani Sisal Estate.
            Makondenet (Internet café in Masasi)
            MTUWETU (Multipurpose Community Telecentre in Mtwara) provides the
             following services: Internet café, Computer training and Telecommunication.
            Newala District Council: In the process of establishing radio and television
             stations.


3.6.   Tourism.
            Masasi Grand Hotel, Equator Bush Hotel – Mtwara, Msemo Holdings Beach Hotel
             – Mtwara.


3.7.   Education.
            Modern primary school established in Mtwara and 4 Secondary schools
             established in the region.


3.8.   Natural Resources.
            ECO2: Marine research and water supports.


3.9.   Agriculture.
            Kitete Water User Association: Irrigating 150 acres with plans to add 200 acres.
            OLAM Ltd: Have applied for 20,000 ha for growing cashewnuts.


3.10. Livestock.
            Livestock Skies Co. Ltd: Cattle ranching at Kitere – 12,000 acres.
            Economy Livestock Arusha: Cattle ranching at Mbawala – 10,000 acres.


3.11. Mtwara Regional Investment Committee.
            Have purchased a building from Air Tanzania Holdings Corporation at a cost of
             Tshs 20.0 million.



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                   Have established District Investment Committees and appointed Desk Officers to
                    take care of their operations.
                   Recommend to survey all the areas designated for Land Bank.
                   The region and districts to identify investment impediments and recommend way
                    and means to eliminate the same.


4.0.   Presentation by TNBC Secretariat on TNBC Experiences in Private Sector Development:
       A case for Mtwara Region.


            Provided background to the establishment of TNBC, that it was established vide the
             Presidential Circular No. 1 of September 2001.
            It is a forum for dialogue between the Government and the private sector with the purpose
             to promote the private sector as the engine of economic growth by way of improving the
             investment climate.


       4.1   Presented the Structure of TNBC and how the different Working Committees are
             functioning.
            The President is the Chairman of TNBC.
            The Council is composed of 40 Members: 20 from the public sector, normally Cabinet
             Ministers and 20 from the private sector covering all the key sectors.
            Executive Committee comprises 10 members: 5 from Government: Permanent Secretaries
             ad 5 from private sector representatives. The Executive Committee is chaired by the Chief
             Secretary and Co-Chaired by the Chairman Tanzania Private Sector Foundation.


       4.2   Working Committees.
             4.2.1. Investors Round Table (Local and International).
                     Composed essentially of Investors. Senior Government officials and development
                     partners are invited as Observers. The basic role is to advise the President and his
                     Government on how to promote a better investment climate for private sector
                     growth.


             4.2.2. Smart Partnership Dialogue.
                           Launched by the President at the 3rd TNBC Meeting in March 2005.

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                     Recognizes that it is not only the Government and the private sector that
                      contribute to economic development.
                     Resolved to establish National and Regional Smart Partnership Committees
                      constituting Public Sector, Private Sector including Labour, Civil Society,
                      Media, and Youth.
                     Dialogues are conducted around a given theme: Empowerment, Good
                      Governance, Environment, HIV/AIDS.
                     The overall objective is to promote “a win win situation” to everybody. No
                      one should seem to be left out in the development process.


       4.2.3. Working Groups.
               The work of IRTs is done through Working Groups composed of Government
               officials, private sector and independent experts in a given field.
                     Manufacturing and Agro – processing, Agriculture, Tourism and Image,
                      Technology and Human Capital Development and Finance.


4.3.   Proposed Mtwara Regional Business Council.
      Recommended to replicate TNBC Structure at regional level in order to draw its legality
       from the Presidential Circular on establishment of TNBC.


       4.3.1. Proposed Structure.
      Regional Commissioner to be the Chairman of Mtwara Regional Business Council.
      The Council to be composed of 30 Members: 15 Government officials and 15 private
       sector representatives.
      Executive Committee to be chaired by the Regional Administrative Secretary and Co
       Chaired by the Chairman of Mtwara Regional TCCIA.
      Mtwara Regional TCCIA should serve as Secretariat.


       4.3.2. Proposed functions:
                   Organizing Investors/Business Round Table meetings to speed up
                      resolutions of the various investment impediments.
                     Prepare Regional Investors’ Road Map by identifying the existing
                      investment opportunities and impediments to investments etc.

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              4.3.3   Mobilization of resources:
                     TNBC should be tasked to mobilize resources.
                     Regional efforts: Budgetary support from the Government, Corporate sponsorship
                      and NGOs.


              4.3.4. Resolved:
              In principle to transform the Regional Investment Committee to Regional Business
              Council.


5.0.   Presentation by Ali Killa, Gas to Electricity Project Report.
5.1.   The project idea was mooted in 2001.The Memorandum of Understanding between the
       Government and Artumas Group Inc was signed in 2002. Furthermore Agreement of Intent was
       signed in August 2003. Production Sharing Agreement between the Government, TPDC and
       Artumas Group Inc was signed in May 2005.


5.2.   Implementation Status.


       Began drilling well at Mnazi Bay in 2004 on initial basis to establish gas bearing rocks. This well
       can produce gas to generate 18 megawatts.


             Drilling second well to start in December 2005.
             The gas to reach Mtwara in December 2005 where electricity generation will occur.
             Discussions with the Government and TANESCO are going on in order to unite the 3
              grids: Mtwara – Tandahimba – 33 kw Mtwara – Mingonyo – 132 kw. Nyangawa, Masasi,
              Luangwa – 32Km.
             3 Agreements are still under discussions.
              -       Implementation Agreement.
              -       Franchise Distribution Agreement.
              -       Facility Transfer.




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6.0.   Discussions by Members.
             Mtwara Region has resolved to establish a community bank in order to improve the
              delivery of financial services to the people. Tanzania Gatsby Trust has contributed Tshs
              20.0 million towards this endeavour; other stakeholders are also requested to contribute
              to improve the bank’s capital base. The bank will be based in Tandahimba.


             Noted that the Districts had a few Land Officers/Surveyors. Thus had to engage the
              private sector as a short term measure to carry out land surveying. It was resolved that the
              region should purchase GIS surveying instrument during 2006/07 financial year in order
              to expedite the provision of land title deeds to the investors.


             In order to raise farmers productivity, they should be adequately compensated for their
              labour, pay better prices for their produce.


             Technoserve and other stakeholders should promote agro processing at district level and
              identify market segment which can pay reasonable prices.


             Expedite the formalization of informal land holdings in an efforts to prepare groundwork
              to attract investors.


             Investors should be encouraged to engage in contract farming to reduce suspicision and
              conflict brought about by land ownership requirements. Contract farming practiced in the
              sugar cane and tea industry could be emulated in Mtwara Region.


             Recommended the establishment of SACCOs to provide financial services to the people.


7.0.   Working Group presentation.
       7.1.   Agriculture Working Group.
       7.1.1. Current situation.
             Cash crops grown in the region cashewnuts, soya beans, simsim.
             Food crops (Maize, rice, sorghum)
             Livestock
              Goats in all the districts, chicken at family level.

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              Cattle ranching promising in Tandahimba District.
             Fishing.
              Along the coast and rivers.


       7.1.2. Investment Promotion.
             Plenty of land in the region. Fertile land in Ruvuma Valley and Lukuledi Valley.
             Expedite the issuing of title deeds.
             Improved infrastructures, roads, water and electricity.
             Improved delivery of financial services.
             Assured market for investors
             Reduced red tape cum bureaucracy.
             Technical assistance from regional, district up to village level.
             Stable and predictable tax regime.
             Good working relationship between the regional and district officials with investors.


       7.1.3. Action Plan (Priority)
             Stop bush fires.
             Agro processing (cashewnuts, cassava etc).
             Livestock keeping/ranching cattle, goats, chicken.
             Horticulture (fruits and vegetables).
             Promote growing of simsim, groundnuts etc.
             Rice production (small irrigation schemes).
             Establish Price Stabilization Fund.


7.2.   Manufacturing Working Group.
       7.2.1. Current situation.
             Agro processing: cashewnuts and cassava.
             Salt works.
             Mining: marble, gemstones, sand.
             Fruit canning.
             Fish canning.
             Honey processing.
             Woodworks.

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       7.2.2. Investment Promotion.
             Good policy and incentives to attract investors.
             Improved technology in agro processing.
             Improved infrastructure – roads, telecommunications, electricity.
             Improved human capital and entrepreneurship.
             Quality of products to be observed.
             Establish data collection and market information system.
             Establish business associations or producer association.
             Support from Regional Government and Local Government is needed.
             Provide bank credit on reasonable terms.
             Encourage investment in packaging material.
             District Councils to provide marketing information and quantities available.
             District Councils to promote producer associations.
             Allocate areas for investment.
             Government to encourage villagers to accept investors.


       7.2.3. Action Plan (Priority).
             Reduce taxes to investors.
             Strengthen infrastructure development.
             Reduce bureaucracy in Government offices.
             Promote community banks.
             Fight corruption in all offices dealing with investments.


7.3.   Tourism, Infrastructure and Social Development Working Group.
       7.3.1. Current situation.
             Tourism attractions include:
              -      Historical places in Mikindani.
              -      Wildlife game reserves.
              -      Water sports.


             Natural harbour – Mtwara.
             Can go around the region in 8 hours.

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             Good communications – telecommunications.
             Good governance.
             Peaceful.


       7.3.2. Investment Promotion.
             Good laws and regulations.
             Stable and predictable tax regime.
             Reliable power and water supply.
             Improved bank services.


       7.3.3. Action Plan (Priority).
             Region to promote itself as an investment destination.
             More improvement in infrastructure development; roads, airports etc.
             Upgrade Mtwara port to handle more ships.
             Survey areas for investment.
             Empowerment of the people.
             Reduce Government bureaucracy at airport.
             Invest in Radio and TC stations.
             Invest in social services; water, health and education.
             People should accept investors.
             Carry out surveys and street naming.
             Establish game sanctuary to promote domestic tourism.


8.0.   Closing remarks by Isidore Shirima: Regional Commissioner.


             Thanked all the participants for coming to attend the meeting. Special thanks for those
              who came outside Mtwara Region.
             Appreciated the exchange of free and honest ideas.
             The region will strengthen the consultative mechanism between the public and private
              sector in order to eliminate investment impediments and attract investors.
             The Region will strive to establish Regional Business Council to take care of investment
              promotion and smart partnership for economic development of the region.



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   With consistent and committed leadership the region will have reasonable economic
    growth rates and contribute to poverty alleviation.




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