Fiscal Year 2018
Study on Business Opportunity of High-quality Energy Infrastructure to Overseas
Feasibility Study for Power for Food (P4F) Project:
Development of Agro-Processing Zones equipped with Solar Power
Generation and Battery Systems in the Republic of Tanzania
Final Report
March 2019
Ministry of Economy, Trade and Industry of Japan
Oriental Consultants Global Co., Ltd.
Mitsubishi Corporation Co., Ltd.
Foreword
This report summarizes the outcome of "Fiscal Year 2018, Study on Business Opportunity of
High-quality Energy Infrastructure to Overseas, Feasibility Study for Power for Food (P4F) Project:
Development of Agro-Processing Zones equipped with Solar Power Generation and Battery Systems in
the Republic of Tanzania" entrusted by Ministry of Economy, Trade and Industry to Oriental
Consultants Global Co., Ltd. and Mitsubishi Corporation Co., Ltd. in fiscal year 2018.
The " Feasibility Study for Power for Food (P4F) Project: Development of Agro-Processing Zones
equipped with Solar Power Generation and Battery Systems in the Republic of Tanzania" was
conducted with the aim of forming infrastructure development projects that make use of the excellent
technologies and know-how of Japanese companies, by carrying out integrated "energy" and
"infrastructure development (industrial park)" in Tanzania, making differentiation by creating new
business model in the fields expected to grow in the future which were indicated in the "infrastructure
system strategy" formulated by the Japanese government.
We hope that this report will help to realize the project mentioned above, and also to be helpful for
our stakeholders in Japan and Tanzania.
March 2019
Oriental Consultants Global Co., Ltd.
Mitsubishi Corporation Co., Ltd.
List of Abbreviations
Abbreviation Proper Name
AfDB Africa Development Bank
AIP Agricultural Industrial Park
CDC Colonial Development Cooperation
DAWASA Dar es Salaam Water and Sewerage Authority
EAC East African Community
EOJ Embassy of Japan in Tanzania
EPZ Export Processing Zone
EPZA Export Processing Zones Authorities
EWURA Energy and Water Utilities Regulatory Authority
JICA Japan International Cooperation Agency
MEM Ministry of Energy
MIT Ministry of Industry and Trade
MLFD Ministry of Livestock and Fisheries Development
MOA Ministry of Agriculture
MOFP Ministry of Finance and Planning
NDC National Development Corporation
REA Rural Energy Agency
REB Rural Energy Board
REF Rural Energy Fund
SADC Southern African Development Community
SAGCOT Southern Agricultural Growth Corridor of Tanzania
SEZ Special Economic Zone
SIDO Small Industries Development Organization
TANESCO Tanzania Electric Supply Company
TBS Tanzania Bureau of Standards.
TDC Tanganyika Development Corporations
TDU Textile Development Unit
TFDA Tanzania Food and Drug Authority
TIC Tanzania Investment Centre
TIRDO Tanzania Industrial Research and Development
Organization
TPSF Tanzania Private Sector Foundation
TSB Tanzania Statistics Bureau
VETA The Vocational Educational and Training Authority
WB World Bank
Table of Contents Foreword
List of Abbreviations
Table of Contents
Summary
Tanzania outline and project related sectors ......................................................................... 1 Chapter1.
Economic and financial situation of Tanzania ...................................................................... 1 1.1
Geographical Overview .................................................................................................... 1 (1)
Economic overview .......................................................................................................... 2 (2)
Population / Industry Structure ......................................................................................... 2 (3)
Trade ................................................................................................................................. 5 (4)
Outline of the related sectors for P4F ................................................................................... 5 1.2
Agriculture sector .............................................................................................................. 5 (1)
Electricity sector ............................................................................................................... 6 (2)
Government Policy Trends ................................................................................................... 8 1.3
National Development Plan .............................................................................................. 8 (1)
Policy trends in the agricultural sector .............................................................................. 9 (2)
Policy Trends in the Electric Power Sector ....................................................................... 9 (3)
Investment environment for the project-related business in Tanzania ................................ 10 1.4
SEZ / EPZ development plan in Tanzania ...................................................................... 10 (1)
Development plan of Bagamoyo Port ............................................................................. 11 (2)
The development plan for agricultural product processing zone by AfDB/UNIDO ....... 12 (3)
The Development of Textile Industrial Park by Textile Industry Development Unit (4)
(TDU) .......................................................................................................................... 14
Outline of P4F candidate areas ........................................................................................... 15 1.5
Pwani Region .................................................................................................................. 15 (1)
Morogoro Region ............................................................................................................ 16 (2)
Iringa Region .................................................................................................................. 17 (3)
Dodoma Region .............................................................................................................. 18 (4)
Mwanza Region .............................................................................................................. 19 (5)
Mbeya Region ................................................................................................................. 20 (6)
Mara Region.................................................................................................................... 21 (7)
Survey Summary ................................................................................................................ 22 Chapter2.
Survey method / system ...................................................................................................... 22 2.1
Survey Contents .............................................................................................................. 22 (1)
Survey method ................................................................................................................ 23 (2)
Survey implementation structure .................................................................................... 24 (3)
Survey schedule .................................................................................................................. 25 2.2
Overall Survey Schedule ................................................................................................. 25 (1)
Field Survey Schedule .................................................................................................... 25 (2)
Project contents and technological review ......................................................................... 30 Chapter3.
Background and project needs ............................................................................................ 30 3.1
Review of the project candidate sites .................................................................................. 31 3.2
Method to select the project candidate sites .................................................................... 31 (1)
Current situation of the pilot project candidate sites ....................................................... 33 (2)
Results of consideration of pilot project candidate sites ................................................. 38 (3)
Examination toward the project implementation in Bagamoyo SEZ .................................. 39 3.3
Consideration of the geographical environment in Bagamoyo SEZ for the AIP (1)
development ................................................................................................................ 39
Situation of infrastructure development in Bagamoyo SEZ ........................................... 39 (2)
Confirmation of regulations related to the implementation of the project .......................... 40 3.4
Scheme of the EPZ method and the SEZ method and preferential treatment for investors(1)
.................................................................................................................................... 40
About TFDA Certification Procedure ............................................................................. 43 (2)
About TBS Certification Procedure ................................................................................ 45 (3)
Study on agricultural field with business potential ............................................................. 46 3.5
Overview of agriculture and fishery industry in Tanzania .............................................. 46 (1)
Tanzania’s industrialization priority sectors .................................................................... 51 (2)
The situation of foreign companies of agricultural products processing that are (3)
expanding businesses in Tanzania and its surrounding countries ............................... 59
Consideration for implementation of AIP project ........................................................... 65 (4)
Study on project size and basic design ............................................................................... 66 3.6
Premises of the study of the business scale ..................................................................... 66 (1)
Review of maintenance equipment in AIP ...................................................................... 67 (2)
Consideration of AIP Basic design.................................................................................. 69 (3)
Solar power generation system ....................................................................................... 71 (4)
Environmental and social aspects ....................................................................................... 76 Chapter4.
Policies, laws, and regulations related to environmental and social considerations ........... 76 4.1
Overview of policies, laws, and regulations related to environmental and social (1)
considerations ............................................................................................................. 76
Environmental laws and regulations related to this project in particular ........................ 77 (2)
Practical procedures in environmental impact assessments ................................................ 78 4.2
Environmental management related organizations ......................................................... 78 (1)
Procedures relating to EIA implementation .................................................................... 79 (2)
Procedures relating to SEA implementation ................................................................... 80 (3)
Analysis of current environmental and social conditions ................................................... 81 4.3
Current state of natural environment in the Bagamoyo SEZ studied by this project ...... 81 (1)
Current state of the social environment in the Bagamoyo SEZ studied by this project .. 82 (2)
Expected impact from P4F project implementation ........................................................... 85 4.4
Pollution control measures and impact on the natural environment ............................... 85 (1)
Impact on the social environment ................................................................................... 87 (2)
Environmental Benefit from the project implementation ................................................... 88 4.5
Financial Viability .............................................................................................................. 92 Chapter5.
Project cost estimation ........................................................................................................ 92 5.1
Preliminary financial analysis ............................................................................................. 92 5.2
Initial Conditions ............................................................................................................ 92 (1)
Calculation of financial internal rate of return (FIRR) ................................................... 93 (2)
Results of the financial analysis ...................................................................................... 95 (3)
Sensitive analysis ............................................................................................................ 95 (4)
Project implementation schedule ........................................................................................ 98 Chapter6.
Implementation capacity of the executing agency by Tanzania ....................................... 100 Chapter7.
Outline of the operation agencies in Tanzania .................................................................. 100 7.1
Organizational structure for project implementation in Tanzania ..................................... 103 7.2
Outline of the Organizational Structure ........................................................................ 103 (1)
Industrial management experience of EPZA ................................................................ 104 (2)
Technology advantage of Japanese companies................................................................. 107 Chapter8.
Expected participation of Japanese companies ................................................................. 107 8.1
Advantages of Japanese companies in implementing projects ......................................... 108 8.2
Technological superiority of the solar energy system + storage battery system (1)
manufactured in Japan .............................................................................................. 108
Measures to strengthen cost competitiveness to be taken when Japanese companies (2)
participate in the project ............................................................................................ 112
Measures necessary to promote orders from Japanese companies ................................... 112 8.3
Action Plan and issues toward realizing the project ......................................................... 114 Chapter9.
The current progress toward realizing the project ............................................................ 114 9.1
Continuous consultation with related organizations of Tanzania .................................. 114 (1)
Interview potential companies (Japanese and local companies) ................................... 114 (2)
Status of efforts by related government and implementing agencies in Tanzania for the 9.2
project implementation ..................................................................................................... 115
Envisioned Financial Scheme ........................................................................................... 115 9.3
Possibility of Yen Loan and Japan's ODA Utilization ................................................... 115 (1)
Possibility of cooperative support with other international cooperation agencies ........ 115 (2)
Possibility of utilization of the international fund ......................................................... 116 (3)
Future Initiatives and Issues towards the project implementation .................................... 116 9.4
i
Summary of the Report
(1) Project Background
Tanzania, officially known as the United Republic of Tanzania, is located along the eastern
coast of the African continent. The agriculture sector plays a central role in its economy. Agriculture
employs 67.2% of Tanzania’s labor force but its contribution to the country GDP is of just only 30%.
Due to the tropical climate and fertile geographical environment of Tanzania, various kinds of
agricultural products with positive impact in the economy are produced, such as: tobacco, cashew
nuts, coffee, tea, spices, cotton, sisal hemp, etc. Due to the increasing population in Tanzania,
domestic demand for agricultural products has also augmented, with further growth of the domestic
agricultural market expected to continue in the future. Within Africa’s regional markets, Tanzania is
a member of the East African Community (EAC), a massive market of over 100 million people, and
is also a member of the Southern African Development Community (SADC), comprised of
developing markets of more than 200 million people. These alliances are expected to help drive
further growth of intra-regional trade of processed agricultural products for Tanzania.
The capacity of electric power plants in Tanzania was of 1,516 MW in 2015 and nearly 60% of
Tanzania’s electricity was generated by thermal power. Tanzania depend on electricity imports from
its neighboring countries to meet the demand for electricity in cities along the nation’s borders.
Currently, only 32.8% of all households in mainland Tanzania have access to electricity, but it is
assumed that a rapid increase in electricity demand accompanied by economic growth will be a
major problem for Tanzania in the future. At the moment, Tanzania’s electricity demand is expected
to reach 1,000 MW, but by 2025 it is expected that the maximum demand will increase more than 4
times up to 4,700 MW. In this context, it will become necessary to install large scale of power
generation facilities to satisfy Tanzania’s expanding electricity demand.
Based on the above background, "Tanzania Power for Food (P4F)" project was created. P4F
aims to support the agro-processing industry and electricity generation sector through the
construction of Agro-Industrial Park (AIP). The AIP will have their own power generation systems
consisting of solar panels with a battery system incorporated. AIP will support value addition of
agri-products in Tanzania and will expand sales in domestic and international markets.
In order to evaluate the feasibility of this project, several surveys were conducted on site.
Meetings with Tanzania’s Governmental agencies, with the private sector plus visits to potential sites
for AIP construction allowed us to propose multiple scenarios regarding the AIP size, financial
performance and correspondence with Tanzania’s development policies.
ii
(2) Selection of candidate areas for AIP pilot project implementation
Tanzania is looking for the development of Special Economic Zones (SEZ) and Export
Processing Zones (EPZ). In order to achieve this goal, the Export Processing Zones Authority
(EPZA) was created. EPZA has selected 21 locations around Tanzania as SEZ / EPZ development
candidate sites (Figure 1).
In order to implement the proposed AIPs, the selection of appropriate locations is very
important. Following the advice of local experts in preliminary surveys (before P4F), three regions
were pre-selected, Pwani Region (holding Bagamoyo District), Morogoro Region and Iringa Region.
In addition to this advice, during our field survey we received information that other areas of
Tanzania also have potential to be AIP candidate sites: Dodoma Region, Mwanza Region, Mbeya
Region and Malae Region (holding Bunda Disrict).
The result of our reseach indicates that Bagamoyo SEZ is the most suitable option for the
implementation of a pilot project for AIP introduction.
Figure 1. SEZ / EPZ development candidate sites owned by EPZA
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(3) Project implementation evaluation
① Potential business
In order to implement the AIP pilot project, we evaluated 11 products that Tanzania’s
Government has positioned as a priority for the development of the industrial sector. Within these
selection, food oil and fruit processing were selected as the most viable options.
Table 1: Evaluation of potential economic sectors for the project
Evaluation index
Candidate sector a b c d e
General
evaluation
Cotton and Clothing ㇾ ㇾ
Milk and Dairy Products ㇾ
Cooking Oil ㇾ ㇾ ㇾ ㇾ ◎
Meat processing ㇾ
Fruit Processing ㇾ ㇾ ㇾ ㇾ ◎
Cashew ㇾ ㇾ ㇾ 〇
Sugar ㇾ ㇾ ㇾ
Integrated paddy processing ㇾ ㇾ
Maize processing ㇾ ㇾ
Marine production ㇾ ㇾ ㇾ
Horticulture production ㇾ ㇾ
Where: a makes reference to the products included in Tanzanian government policy. b makes reference to those
products with a stable production and distribution volume. c means Tanzania domestic market is large / this product
is produced in Tanzania but also imported. d makes reference to those products that are expected to expand sales to
Tanzania's foreign markets (including Japan) e. makes reference to those products expected to utilize Japanese
companies' technologies.
Source: Study Team
② Environmental and social aspects
Based on the laws and regulations related to the environmental and social considerations
including the Environmental Management Act in Tanzania, the expected impact from the project
implementation was considered. In Bagamoyo SEZ including the proposed AIP target area,
Tanzanian Government has already conducted the preliminary environmental and social
assessment and strategic environmental assessment (SEA).
The expected negative effects on the environment by the project implementation are air
pollution, noise and vibration, water pollution, soil pollution, etc. These consequences are
caused by the AIP construction, but as the project site is far from existing residential areas, the
impact is limited. It is possible to deal with appropriate construction measures. The project site
iv
does not include designated protected areas, and no endangered species have been reported.
Regarding the social impacts, EPZA has already finished the land acquisition in the AIP
candidate site, and no new resettlement will occur. In addition, new job creation and regional
economic revitalization are expected in connection with AIP construction and operation.
During the implementation of the AIP pilot Project, if the impact from the reduction in
existing green areas at the time of construction is subtracted from the effect of the substitution
of electricity generated from fossil fuels with solar power generation, the reduction in
greenhouse gas emissions will be of around 11,000t CO2/year.
③ Financial Feasibility
The estimated costs for the implementation of this project are shown in the table below. These
costs have been calculated in reference to the “Infrastructure and utility costs” indicated in the
BAGAMOYO SEZ MASTER PLAN. We also considered the cost for the development of 180ha.
For the preliminary financial analysis, initial conditions such as costs for land expropriation or
resettlement, lease/sales price, AIP occupancy rate and discount rate were set based on the MASTER
PLAN mentioned above and analysis was conducted for the 30 years of project period.
Table 2. Project development costs (180ha)
Facility overview Cost
(Million USD)
Critical infrastructure development 51.5
Solar power generation system (25MW) 29.2
Others facilities in the AIP 15.5
Contingency and facility supervision costs 12.5
Total 108.7
Source: survey team
The results of financial analysis for this project show that the IRR and NPV are positive, and
the B/C is at least 1. In addition, the investment recovery period is within 10 years, so the project can
be correctly viewed as a target for investment.
However, taking into consideration the geographical distance from Japan and Tanzania’s country
risk, it is not likely that this project would be considered as a project for private sector investment
based on this financial assessment.
v
Table 3 Results of financial analysis (180ha)
Analysis items Results
IRR 13.1%
NPV USD 25,559,000
B/C 1.2
Year of recovery of
investment
Year 7
Source: survey team
(4) Project implementation schedule
The implementation schedule of this project will differ depending on the scheme used and the
project details, especially because in a large-scale project like this, construction activities are
conducted after the preparations of the detailed design and the selection and procurement of
construction vendors through competitive bidding, and subsequently permanent operations and
management is conducted.
Assuming that this project is conducted using a yen loan, the future action required by Tanzania’s
Government and the assumed time frame for these actions are shown below.
Source: survey team
Figure 2 Project implementation schedule (planned)
vi
Table 4. Overview of assumed activities and time frame
Activity Activity details Time frame
Financing ・Study of different funding sources by local
government institutions such as MoFP
and MIT
・Adjustments with donor countries or international
cooperation agencies, etc.
・Preparation of inspection documents for financing
・Assistance request
Less than 1 year
Design and
construction
・Implementation of F/S
・Selection of consultants
・Creation of bid documents for selection of
construction vendor, implementation of bidding
・Construction
・Establishment of AIP operations structure and
technical cooperation
2 to 3 years
Start of AIP
operations
・Start of operations Semi-permanent
Source: survey team
(5) Implementation capacity of the executing agency by Tanzania
MIT and EPZA play a key role in this AIP project. When this project is implemented with loans
from Japanese government or international organizations, although MOFP will be responsible of
international issues, MIT will oversee the entire project.
Meanwhile, EPZA, which is a subsidiary of MIT, will be responsible for the actual operation of
the project. EPZA owns the land of Bagamoyo SEZ and is responsible for the entire project process,
from financing, development of AIP, operational management, and project maintenance using the
funds acquired for the project. Cooperation between governments will be handled by MoFP and MIT,
but the cooperation with third parties involved in the project, such as engineers and investors
involved in the development and operation of AIP, land acquisition, infrastructure improvement
outside of AIP, etc. will be carried out by EPZA.
Along with attracting tenants and contracts, EPZA will provide a comprehensive service to
domestic and foreign investors so that businesses within AIP can be implemented without problems.
For the parties related to the development and operation of the infrastructure, EPZA will conduct
respectively based on the contract between the commercial operator of EPC and the operator.
Local government agencies related to the AIP project will support EPZA in accordance with the
vii
specialized field of each agency. The expected implementation structure is shown below.
Figure 3 Implementation plan (made according to consultations with the government of Tanzania)
(6) Advantages of Japanese technology and experience
The participation of Japanese companies can be expected for the construction of infrastructure
related to AIP by EPC contracts with EPZA, for the supply of equipment and materials and for
equipment maintenance work under contract with EPZA. In addition, in response to EPZA requests,
it may be possible to support the administration of AIP. Regarding basic infrastructure for the AIP,
such as electricity, gas, roads, water supply, communication, sanitation equipment, etc.
With regard to the power supply, it is proposed to introduce a "solar power generation system +
battery storage system" in consideration with the accessibility to the electrical network and to ensure
a stable power supply. Taking into account the latest market trends, solar panels are in a tendency to
reduce prices worldwide, and the dominance of Japanese technology is decreasing. On the other
hand, the storage batteries, the energy conditioning systems (PCS) and the energy management
systems (EMS) required for the stabilization of the system, are important along with the increase of
the photovoltaic generation capacity. Japanese technology can demonstrate superiority for this items.
viii
(7) Action Plan
After several discussions with related Government agencies of Tanzania regarding the
implementation of the Agricultural Industrial Park (AIP) project, there has been no objection about
the importance of the AIP project in Tanzania and we confirmed the direction towards the project
implementation.
On the other hand, through this survey, issues concerning the selection of pilot project area,
funding and operation ability of EPZA were identified. Based on these issues, the Study Team
requested MIT and EPZA to explain the project to MoFP, which will be in charge of managing the
funding.
As there is much uncertainty about the political decision making process for the implementation
of the project within the Tanzanian government, it is important to lead to the implementation of this
project by continuing discussions with MIT and EPZA.
1
Tanzania outline and project related sectors Chapter1.
Economic and financial situation of Tanzania 1.1
Geographical Overview (1)
Tanzania, officially known as the United Republic of Tanzania, is located along the eastern
coast of the African continent. The country shares its land borders with eight countries, namely
Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, Zambia, Malawi, and
Mozambique. Tanzania’s overall land area is about 2.5 times as large as Japan. Located in the
northeast of Tanzania near the Tanzania/Kenyan border, is Mt. Kilimanjaro, the highest mountain in
the African continent. Furthermore, in the northern area of Tanzania bordering Uganda and Kenya,
lays Lake Victoria, the biggest lake in Africa. Dodoma, located in the central part of Tanzania is the
official capital of the country. However, the largest city and economic center of Tanzania is Dar es
Salaam which functions practically as the nation’s capital.
As an important gateway hub for trade and transportation in Africa, the Port of Dar es Salaam is
a point of cargo discharge for Tanzania’s neighboring inland countries. In addition, Tanzania and its
neighboring inland country Zambia, connected not only by road traffic but also by the
Tanzania-Zambia Railway built between Dar es Salaam and Kapiri Mposhi in central Zambia.
Source: Created by the study team based on Google Map
Figure 1-1 Tanzania location map
2
Economic overview (2)
Tanzania's nominal GDP is of approximately US $52.1 billion, and the country has achieved an
average annual growth rate of nearly 7% from 2010 to 20171. Although Tanzania still belongs to the
list of Least Developed Countries (LDC), as shown in Figure 1-2, its economic scale ranks 2nd
after
Kenya among the six-member countries of the East African Community.
Despite Tanzania’s rapid economic growth, the poverty rate of Tanzania is still high, and 28.2%
of the total population and 33.3% of the rural population are forced to live below the poverty line2.
Source：World Bank Open Data, December 2018.
Figure 1-2 Comparison of nominal GDP of six-member countries of the East African
Community
Population / Industry Structure (3)
According to the results of the National Census conducted in 2012 by the National Bureau of
Statistics of Tanzania, Tanzania’s population is of approximately 50.15 million3, and is steadily
increasing at a rate close to 3% per year. The ratio of youth among the overall population is high,
and the population under the age of 35 accounts for around 78.9% of the total population. The
1 World Bank 2017
2 Household Budget Surveys 2011/12
3 Expected value as of 2016 based on the census of 2012
3
increasing youth working population and expanding market potential are the driving force of
economic development in Tanzania. (See Figure 1-3).
Like other sub-Saharan African countries, Tanzania's core industry is agriculture. Among the
primary industries in Tanzania, agriculture accounts for the highest percentage 67.2% of the total
labor force population, followed by 5.9% in the secondary industry (industrial sector), and 26.9% in
the tertiary industry (service sector)4.
In regards to Tanzania’s GDP, agriculture accounts for the highest percentage of nearly 30%,
followed by 14% in the construction industry, and 11% in wholesale and retail trade, repair work,
and etc. (See Figure 1-4).
Source: Created by the research group based on
Population Distribution by Age and Sex 2013, National Bureau of Statistics of Tanzania
Figure 1-3 Population pyramid diagram
4 International Labor Organization, ILOSTAT database from 2016 data
4
Source: Bank of Tanzania Annual Report 2016/17
Figure 1-4 GDP Breakdown by Industries
5
Trade (4)
According to UN Comtrade (UN Trade Statistics Database), Tanzania's export value in 2017
was of approx. 4.2 billion dollars and its import value was of approx. 7.8 billion dollars, a trade
deficit of approx. 3.6 billion dollars. Tanzania’s trade deficit has been occurring for more than 10
years. (Figure 1-5).
The primary commodity imported into Tanzania is mineral fuel, which accounts for approx.
20% of the total import sector, followed by other industrial products (19%), vehicle-related products
(8%) and chemical products (5%). Vice versa, Tanzania's primary export items are precious metals
such as gold, diamonds, and other minerals, which account for approximately 39% of the total export
value. Besides precious metals, other important exports from Tanzania are garden plants (flowers,
vegetables, fruits, perfumes, etc.), industrial products, coffee, cashew nuts, etc.
Source：UN Comtrade Database
Figure 1-5 Tanzania's Trade Balance
Outline of the related sectors for P4F 1.2
Agriculture sector (1)
As mentioned previously, the agricultural sector is the backbone of Tanzania’s economy and not
only supplies food for its people, but also plays a pivotal role as a source for creating new job
employment and earning foreign currency. Due to the tropical climate and fertile geographical
environment of Tanzania, various kinds of agricultural products such as cereals, vegetables, fruits,
spices, etc., can be cultivated. The major agriculture products in Tanzania are: maize, rice, sorghum,
6
sweet potatoes, beans, peanuts, etc. Major export products are: tobacco, cashew nuts, coffee, tea,
spices, cotton, sisal hemp, etc. (Table 1.2-1). Detailed information about major crop production is
described in Chapter 3, Section 5.
Due to the increasing population in Tanzania, domestic demand for agricultural products has
also increased, with further growth of the domestic agricultural market expected to continue into the
future. Within Africa’s regional markets, Tanzania is a member of the East African Community
(EAC), a massive market of over 100 million people, and is also a member of the Southern African
Development Community (SADC), comprised of developing markets of more than 200 million
people. These alliances are expected to help drive further growth of intra-regional trade of processed
agricultural products for Tanzania. In addition, there are also initiatives being conducted by
developed countries to help promote trade in Africa such as the EU "Everything but Arms" initiative
and the American "African Growth and Opportunity Act (AGOA)" that are encouraging the export
of Tanzania’s products.
Table 1.2-1 Major Tanzanian Agricultural Products
'000' Tons
2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15r 2015/16 2016/17P
Food Crop:
Maize 3,593.7 3,555.8 4,733.1 4,122.6 5,240.0 5,288.4 6,734.5 5,902.8 6,148.7 6,680.0
Rice 896.7 875.1 1,722.6 1,439.1 1,128.3 1,342.1 1,678.1 1,936.9 2,229.1 1,593.0
Wheat 86.4 92.4 62.4 112.7 102.8 102.5 167.0 72.5 76.4 50.0
Pulses 1,111.2 1,125.5 1,298.9 1,684.1 1,824.2 1,871.2 1,697.2 1,745.9 1,958.6 2,317.0
Cash Crops:
Coffee 43.1 68.5 34.6 56.8 33.3 71.2 48.8 42 59.6 48.3
Cotton 67.3 123.6 89.5 54.8 75.7 119.7 82.5 67.8 50.2 40.8
Tea 32.7 31.6 32.1 31.7 31.5 34.9 34.7 35.7 32.6 27
Cashew nuts 99.1 79.1 75.4 121.1 158.4 127.9 130.1 197.9 155.2 264.9
Tobacco 50.8 55.4 60.7 94.2 126.6 74.2 86.3 105.9 87 60.7
Sisal 34.1 23.8 24 35 36.6 34.9 37.8 40.3 41 35.6
Pyrethrum 2.3 3.3 3.3 5 5.7 6.1 6.6 1.8 1.8 n.a
Source：Bank of Tanzania Annual Report 2016/17
Note: p denotes provisional data; and n.a, not available
Electricity sector (2)
Several organizations have ties to Tanzania's electricity sector which include the Ministry of
Energy (MEM), the Tanzania Electric Supply Company (TANESCO), the Rural Energy Board
7
(REB), the Rural Energy Agency (REA), the Rural Energy Fund (REF), and the Energy and Water
Utilities Regulatory Authority (EWURA). Tanzania’s entire electricity supply is under the
jurisdiction of TANESCO which is wholly owned by Tanzanian government. Major operators of
Independent Power Generator (IPP) are: the Independent Power Tanzania Limited (IPTL), Simbion
Power, Aggco Power, Son Gas Tanzania, Mwenga Hydropower Company, Tanzania Wattle Company
(TANWAT) and so forth.
The capacity of electric power plants in Tanzania was of 1,516 MW in 2015 (Table 1.2-2) and
nearly 60% of Tanzania’s electricity was generated by thermal power. Tanzania relies on electricity
imports from its neighboring countries to meet demand for electricity in cities along the nation’s
borders. Currently, only 32.8%5 of all households in mainland Tanzania have access to electricity,
but it is assumed that a rapid increase in electricity demand accompanied by economic growth will
be a major problem for Tanzania in the future.
At the moment, Tanzania’s electricity demand is expected to reach a maximum of around 1,000
MW, but by 2025 it is expected that the maximum demand will increase more than 4 times up to
4,700 MW. As such, it will become necessary in upcoming years to install large amount of power
generation facilities to satisfy Tanzania’s expanding electricity demand. (Table 1.2-2, Figure 1-6).
Table 1.2-2 Power supply situation in Tanzania
Item Category Unit 2011 2012 2013 2014 2015
Installed
Capacity
Grid System MW 1,270.7 1,438.2 1,501.2 1,521.9 1,516.2
Maximum
Demand
Grid System MW 829 851.4 898.7 934.6 988.3
Generation Grid System GWh 5,050.4 5,339.6 5,758.3 6,029.0 6,188.0
Off-grid System GWh 83.6 149.9 178.5 191.8 201
Import from Neighboring
Countries GWh 61.6 60.9 60.2 61.0 70.5
Sales Small Customers (D1) GWh 328.8 320.8 280.6 217.4 148.8
Middle Customers (T1) GWh 1,270.8 1,508.0 1,749.1 1,890.6 2,082.7
Big Customers (T2, T3 &
T8)
GWh 2,151.6 2,301.0 2,570.4 2,595.3 2,721.1
Zanzibar (T5) GWh 277.3 298.6 218.7 348.5 344.6
Source: Tanzania in Figure 2016 (Original data by TENESCO)
5 Energy Access Situation Report 2016, REA
8
Source: Created based on" Renewable Energy in Africa: Tanzania Country Profile” by African Development
Bank, 2015 (predicted value after 2025)
Figure 1-6 Peak Demand of Domestic Electric Power in 2013 – 2035
Government Policy Trends 1.3
National Development Plan (1)
In the year 2000, the Government of Tanzania announced the "Tanzania Development Vision
2025 (TDV)" as a long-term development goal for the country. The main goals of the “Tanzania
Development Vision” (TDV) are to increase GDP per capita to more than $ 3,000 and to become a
member of the middle-income countries from poorest countries by 2025. The development vision
also aims to build a competitive and solid economy with the goal of achieving annual economic
growth of more than 8%, while emphasizing on further infrastructure development and the
conversion of the current agricultural economy to an industrial economy.
Tanzania’s “Development Vision 2025”, is divided into multiple five-year development plans
(FYDP-I, II, III) as concrete goals to achieve the development vision. The theme of the current plan
in progress, FYDP-II (2016/17 - 2020/21), is "Promotion of industrialization for economic reform
and human resources development". By 2020, the planned objectives for FYDP-II are to raise the
growth rate of the manufacturing industry to 10.5% and to increase the share of the manufacturing
industry within the national GDP to 12.5%.
One of the major manufacturing industries is the food processing industry. Examples of
processed food products include sugar, livestock products, edible oils, dairy products, milled flour,
starch, feedstuffs, other food products (bread, chocolate, pasta, coffee, nuts, and spices) and
beverages (juice, beer, wine).
The infrastructure improvement plans include the proper maintenance of stable electric power
sources in both urban and rural areas, and also the logistic services in the Special Economic Zone
(EEZ) / Export Processing Zone (EEZ).
9
Figure 1-7 Image of Tanzania National Goals and Five-Year Development Plan
Policy trends in the agricultural sector (2)
In 2015, the Agricultural Sector Development Strategy was formulated as a comprehensive
strategy to tackle points of growth in the agricultural sector. The goal of the strategy is to increase
the GDP of the agricultural sector by 6% every year to achieve Tanzania’s "Development Vision
2025". One of the goals of this strategy is to promote increasing additional values of agribusiness
and agricultural products.
Concrete action plans include reducing post-harvest loss, promoting the processing of
agricultural crops (threshing, milling, canning, juice processing, etc.) and livestock (dairy food
manufacturing, meat processing, etc.) which can add more value, promoting of investments in
improving product packaging and transportation, implementing the processing of
environment-friendly crops, and securing adequate hygienic environments.
Policy Trends in the Electric Power Sector (3)
In 2003, the Tanzanian government set into motion the "National Energy Policy" aiming to
achieve "Tanzania Development Vision 2025".The policy mandates breaking the dependence on
fossil fuel power generation and a transition to renewable energy, using clear strategies.
Some strategies are: the reduction and elimination of VAT and tariffs on the main components
of solar panels to help to promote the combined energy diversification and increase in electric power
supplies by bringing foreign private investments. Consequently, the Feed-In Tariff (FIT) system was
launched in 2016 for small scaled (1 to 10 MW) solar and wind power generation.
10
Investment environment for the project-related business in Tanzania 1.4
This project aims to examine the possibility of developing Agricultural Industrial Park (AIP) with
an independent energy supply system throughout the land under the jurisdiction of the Export
Processing Zones Authority (EPZA) of Tanzania. The current situations of similar or related projects
that operate in Tanzania are mentioned below.
SEZ / EPZ development plan in Tanzania (1)
Tanzania is aiming for the development of Special Economic Zones (SEZ) and Export
Processing Zones (EPZ). In order to achieve this goal, The Export Processing Zones Authorities
EPZA was created. 21 locations were selected throughout Tanzania as SEZ / EPZ development
candidate sites which are owned by EPZA (Figure 1-8). Although the progress of development varies
from each site, the most developed sites are partially shown as an example in Table 1.4-1.
Figure 1-8 SEZ / EPZ development candidate sites owned by EPZA
11
Table 1.4-1 Development status of major SEZ / EPZ
Name of SEZ Location Developmental status
Benjamin William Mkapa
SEZ
Mabibo Ubungo
(10 km from Dar es
Salaam Port)
Basic infrastructure was developed by
the Tanzanian government. Multiple
companies have already moved in and
products are being manufactured.
BAGAMOYO SEZ
Bagamoyo
(40 km from Dar es
Salaam)
The development master plan was
created by EPZA. Bagamoyo is one of
P4F candidate sites.
KAMAL INDUSTRIAL
ESTATE EPZ
Bagamoyo(40 km from
Dar es Salaam)
Basic infrastructure was developed by
the private sector. Still looking for
tenant companies.
KI SEZ Kigoma
(About 1240 km from
Dar es Salaam)
Owned by Kigoma Municipal and
EPZA.Basic infrastructure was already
constructed.
Source：「Tanzania Special Economic Zones」, EPZA
Development plan of Bagamoyo Port (2)
Mentioned above, Bagamoyo SEZ (Special Economic Zone) is the area selected as one of the
candidate sites of this project. In Bagamoyo SEZ, the development plan of Bagamoyo Port is
planned as a joint investment between China and Oman.
In 2014, the government of Tanzania entered into the Memorandum of Understanding (MOU),
regarding the construction of Bagamoyo Port and its surrounding areas in Bagamoyo SEZ, between
China Merchants Holdings (International) Company Limited (CMHI) and the State General Reserve
Fund of the Sultanate of Oman. It is estimated that the total construction cost of the Bagamoyo Port
project will be around 10 billion dollars. Bagamoyo Port is expected to become the largest port in
Africa after its completion.
Although the construction of the port was originally scheduled to start in 2015 after the MOU
agreement, it has not yet begun. This is due to the change of political administration from President
Kikwete, who promoted the project, to President Magufuli and also underlying issues of securing
funds by the Tanzanian government. However, the master development plans in the area around
Bagamoyo Port, are currently being upgraded by investments from Chinese companies.
12
Figure 1-9 Image of the coast of Bagamoyo SEZ
The development plan for agricultural product processing zone by AfDB/UNIDO (3)
The African Development Bank (AfDB) is making progress with its plan for developing
agricultural product processing zones, called "Staple Crops Processing Zones (SCPZs)", in African
countries including Tanzania. This plan is part of the Feed Africa" initiative, which is one of the first
priorities of AfDB. Its ultimate goal is to build a strong base for the agricultural product processing
industry in Africa in order to save millions of people from poverty.
An SCPZ are agro-based spatial development initiatives designed to concentrate
agro-processing activities within areas of high agricultural potential to boost productivity and
integrate production, processing and marketing of selected commodities. These initiatives may or
may not be granted Special Economic Zones status. They are purposely built shared facilities, to
enable agricultural producers, processors, aggregators and distributors to operate in the same vicinity
to reduce transaction costs and share business development services for increased productivity and
competitiveness. By bringing adequate infrastructure (energy, water, roads, ICT) to rural areas of
high agricultural potential, they attract investments from private agro-industrialists/entrepreneurs to
contribute to the economic and social development of rural areas.
The establishment of SCPZs are expected to play a pivotal role in improving agricultural
productivity of Africa and strengthen the human resources of member countries in these processing
Zones (54 countries in Africa, including Tanzania).Through this initiative, AfDB aims to increase
agriculture related product’s value added, livestock and fishery sectors in Africa. This will be done
by reducing food imports from outside the zones and changing not only the agriculture sector but
also the whole economic structure within the region.
13
Figure 1-10 Introduction image of the SCPZs concept created by AfDB
AfDB is conducting a survey for the site selection aiming to introduce SCPZs concept in
Tanzania. The candidate sites are: Mbeya Region, Lake Victoria, Mwanza Region, Zanzibar Island,
and the survey was completed in Mbeya Region (as of March 2019).
After completion of this survey, the feasibility study survey is supposed to be carried out as the
next step. According to AfDB's agricultural experts, the government of Tanzania has requested $1
million loan to AfDB for the implementation of the SCPZ project.
14
The Development of Textile Industrial Park by Textile Industry Development Unit (4)
(TDU)
TAMCO industrial park is currently under development planning in Kibaha, the capital of
Pwani Region which is located next to Dar es Salaam. The land manager of the industrial park is the
National Development Corporation (NDC), and factories of three manufacturing fields such as
automobile assembling, chemical manufacturing and textile industry are planned to be built in this
industrial park.
Textile Development Unit (TDU) is promoting to develop the textile industry park. TDU is a
government organization established under MIT in 2016 to develop textile industry and is funded by
the Gatsby Africa Foundation and the United Kingdom International Development Agency. The
industrial park is expected to develop approximately 40 hectares of land, which would be large
enough to build 25 manufacturing units and facilities of electricity, water and security measures.
However, this development plan is currently being suspended due to a funding procurement
problem. The original construction of the textile industry park was supposed to cost approx. 88
million dollars and the Tanzanian government planned to contribute its portion of $15 million.
However, the Tanzanian government was able to procure only 6 million dollars, resulting in a
shortage of 9 million dollars. As a result, TDU is attempting to raise funds from public organizations
and private investors.
Figure 1-11 TDU development image
15
Outline of P4F candidate areas 1.5
In order to implement the proposed AIP project, the selection of appropriate locations is very
important.
Following the advice of local experts in the preliminary surveys, three districts such as Pwani
Region (holding Bagamoyo District), Morogoro Region and Iringa Region were pre-selected as
suitable for the project. In addition to this advice, we received information during our field survey
that Dodoma Region, Mwanza Region, Mbeya Region and Malae Region (holding Bunda District)
also have potential as AIP candidate sites. The outline of each region is mentioned as below.
Pwani Region (1)
Puwani Region is located in the eastern side of Tanzania and surroundings of Dar es Salaam. The
capital city Kibaha is located approx. 35 km from Dar es Salaam and is easily accessible from one
another.
Pwani means "coast" in Swahili, and its coast on the eastern side of the state faces the Indian
Ocean. 83.9% of its population is composed of farmers engaged in cultivating grains, such as maize
primarily cultivated on 40% of the farm land6. In addition to maize, fruits such as coconuts, mangos,
bananas, oranges are also cultivated.
6 Expected value as of 2016 based on the census of 2012
16
Table 1.5-1 Basic information of Pwani Region
Source：2016 Tanzania in Figures
Capital city Kibaha
Area 32500Km2
Population 1,098,668
Annual average
maximum
temperature（2016）
31.9℃
Annual average
lowest temperature
（2016）
‐
Annual rainfall（2016） 677.0 ㎜
Figure 1-12 Location map of Pwani Region
Morogoro Region (2)
Morogoro Region is located in the southeast part of Tanzania and Morogoro is the capital city,
located on the center of the main road connecting Dar es Salaam and Dodoma. It is one of the
Region well known for agriculture, of which sugar cane cultivation takes up 50% of farm land and
rice cultivation approx. 30% of farm land. The main cultivated vegetables are tomatoes. In
Morogoro Region, the proportion of irrigated farm land is as high as 8%, and the percentage of
farmers selling crops in local markets are also higher than that in other Regions6.
Table 1.5-2 Basic Information of Morogoro
Region
Source: 2016 Tanzania in Figures
Capital city Morogoro
Area 70,600 ㎢
Population 2,218,492
Annual average
maximum temperature
（2016）
19.5℃
Annual average
lowest temperature
（2016）
23.7℃
Annual rainfall（2016） 854.2 ㎜
ｓFigure 1-13 Location map of Morogoro
Region
Morogoro
Region
Pwani Region
17
Iringa Region (3)
Iringa Region is located in the southern highland of Tanzania with Lake Malawi in the south.
The main industry is agriculture and 98% of the working population is engaged in agriculture and
livestock breeding7. Wheat cultivation is very active in Iringa Region’s and both the number of
farmers and land area for cultivation are the largest in Tanzania6. Agricultural products such as
cabbages, potatoes, peanuts, tea, beans and corn are cultivated here. Dairy farming is also an active
practice in the area.
Table 1.5-3 Basic information of Iringa
Region
Source：2016 Tanzania in Figures
Capital city Iringa
Area 35,500 ㎢
Population（2012） 941,238
Annual average
maximum temperature
（2014‐16）
27.2℃
Annual average
lowest temperature
（2014‐16）
15.3℃
Annual rainfall（2016） 757.6 ㎜
Figure 1-14 Location map of Iringa Region
7 Iringa Regional Profile 2013
Iringa Region
18
Dodoma Region (4)
Dodoma Region is located in the middle part of Tanzania and Dodoma is the National Capital
of Tanzania. In February 1996, the legislative governments moved from Dar es Salaam to Dodoma,
but a substantial portion of capital functions, mainly of administrative agencies, are still located in
Dar es Salaam.
Within agriculture, sunflower cultivation is active in central areas including Dodoma. Livestock
industry is also active because of the large number of livestock in the area.
Table 1.5-4 Basic information of Dodoma
Region
Source：2016 Tanzania in Figures
Capital city Dodoma
Area 41,300 ㎢
Population（2012） 2,083,588
Annual average
maximum temperature
（2014‐16）
29.4℃
Annual average
lowest temperature
（2014‐16）
17.8℃
Annual rainfall（2016） 545.2 ㎜
Figure 1-15 Location map of Dodoma Region
Dodoma
Region
19
Mwanza Region (5)
Mwanza Region is located in the northern part of Tanzania and the capital city of Mwanza faces
Lake Victoria.
On the shores of Lake Victoria, fisheries represented by the Nile perch and seafood processing
industry are popular. In inland areas, agriculture like cotton cultivation are quite popular. Due to the
accumulation of surrounding industries around the region, Mwanza is seeing a steady growth in
development as an industrial city and is the second largest city after Dar es Salaam.
Table 1.5-5 Basic Information of Mwanza
Region
Source：2016 Tanzania in Figures
Capital city Mwanza
Area 9,500 ㎢
Population（2012） 2,772,509
Annual average
maximum temperature
（2014‐16）
28.6 ℃
Annual average
lowest temperature
（2014‐16）
18.7℃
Annual rainfall（2016） 1,039.3 ㎜
Figure 1-16 Location map of Mwanza Region
Mwanza Region
20
Mbeya Region (6)
Mbeya Region is located in the southwestern part of Tanzania and is a trading hub that shares
national borders with both Zambia and Malawi. TAZARA Railway (TAZARA) running through the
state connects Tanzania with Zambia.
Cultivation of maize, rice and banana are popular in the area. The region is also one of the
candidate sites for a grain processing complex (SCPZs) development project by AfDB, as mentioned
above.
Table 1.5-6 Basic information of Mbeya
Region
Source：2016 Tanzania in Figures
Capital city Mbeya
Area 37,700 ㎢
Population（2012） 1,708,548
Annual average
maximum temperature
（2014‐16）
24.6℃
Annual average
lowest temperature
（2014‐16）
13.5℃
Annual rainfall
（2016）
952.6 ㎜
Figure 1-17 Location map of Mbeya Region
Mbeya
Region
21
Mara Region (7)
Mara Region is located in the northern part of Tanzania, bordering Kenya on the north side. The
capital city is Musoma, located on the coast of Lake Victoria. Fisheries such as Nile perch, sardine
and tilapia fishing are thriving around the coast.
Agriculture also thrives in Mara Region, where beans production is of 1.5 t/ha having the
largest portion in Tanzania. EPZA owns 500 hectares of development land in Bunda District within
the state.
Table 1.5-7 Basic Information of Mara Region
Capital city Musoma
Area 21,800 ㎢
Population（2012） 1,743,830
Annual average
maximum
temperature
（2014‐16）
28.8℃
Annual average
lowest temperature
（2014‐16）
18.0℃
Annual rainfall
（2016）
627.2 ㎜
Source：2016 Tanzania in Figures
Figure 1-18 Location map of Mara Region
Mara
Region
22
Survey Summary Chapter2.
Survey method / system 2.1
Survey Contents (1)
The following items were investigated in this survey.
① Benefits for Tanzania
· Estimation of the outcomes of this project in the economy, job creation, reduction of CO2
emissions, etc.
· Explanation of the benefits of P4F to the relevant Ministries and other Governmental/
Private agencies.
② Policy trends of Tanzania’s Government
· Information collection and organization of relevant policies in Tanzania such as "Tanzania
Development Vision 2025”
· Explanation to Tanzania’s Government that this Project is in line with Tanzania’s policies
and development goals
③ Infrastructure basic design
· Identification of the project implementation site and creation of the outline design of the
AIP
· Consideration of several business models in different phases from the construction phase to
operation and maintenance phase
④ Collection, investigation and analysis of information for the AIP construction
· Information collection regarding the Laws and regulations related to AIP construction (civil
works, environmental and social considerations, development applications)
・Information collection regarding the potential AIPs sites (infrastructure situation including
electric power, existing industries, etc)
・Identification and examination of the agricultural sub-sectors which have business potential
for AIP project implementation
⑤Business size estimation
· Business size estimation based on the items collected in point 4
· Consultation with Tanzanian government officials regarding business scale
· Information sharing with the Ministry of Economy, Trade and Industry in Japan
23
⑥ Project implementation structure and business schedule study
· Discussion about the implementation structure with Japanese companies and local
companies
· Preparation of potential schedules including necessary periods for the different application
procedures
⑦ Review and proposal of a financial plan
· Discussion with officers of the Government of Tanzania about the potential of utilizing
ODA loans
· Reporting/consulting this project to JICA and other Japanese ODA implementation
organizations
· Policy support study
⑧ Policy support potential
· Consideration for the utilization of policy support for the implementation of AIP.
Evaluation of ODA
⑨Environmental effects
· Calculation of CO2 emissions reduction based on the project scale
· Summarize laws and regulations related to environmental and social considerations
· Creation of environmental checklists such as JICA's "Environmental and Social
Consideration Guidelines"
⑩Study of the advantages of Japanese companies and survey for business enhancement
· Interviews with Japanese companies in order to clarify Japanese technology advantages.
·Tanzania’s Government requests consideration to develop businesses
·Establishment of countermeasures against problems which were found by this survey.
⑪ AIP dissemination
· Consideration of concrete possibilities for the AIP dissemination in Tanzania.
⑫Measures to strengthen cost competitiveness in case Japanese companies participate in the
project
· Study to strengthen cost competitiveness of Japanese companies
Survey method (2)
The study was done in Japan and Tanzania. For the work done in Japan, information regarding
the survey objects from extensive collection of information through books, internet resources, and
existing statistic materials was done.
In Tanzania, local surveys were carried out 3 times. In Tanzania we visited different public
organizations, international donors and private sector. The schedule and summary of the survey are
24
shown in the tables below. The mission was to organize meetings with many local affiliated
organizations, such as MIT and EPZA, which are important organizations for examining the
implementation of AIP projects.
Survey implementation structure (3)
The survey was conducted by three companies: Oriental Consultants Global Co, Ltd.,
Mitsubishi Corporation and Mitsubishi Corporation Machinery, Inc. The implementation system and
the roles of each company are shown in Figure 2-1.
Figure 2-1 Survey Implementation Structure
【Head Managing company】Oriental Consultants Global Co. Ltd.
Main roles：
General management, AIP Project Design, Policy Information Collection /
Environmental Society, Report Preparation.
Mitsubishi Corporation
Main roles：
Economic / financial analysis, consultation with related companies
Subcontractor
Mitsubishi Corporation Machinery, Inc.
Main roles:
Evaluation of AIP project
Sub-subcontractor
25
Survey schedule 2.2
Overall Survey Schedule (1)
The overall schedule of the survey is shown in Table 2.2-1
Table 2.2-1 Survey Schedule
Field Survey Schedule (2)
In this project, a total of three field surveys were conducted. The schedule and summary of the
survey are shown in the tables below.
Table 2.2-2 Outline of the first survey
Schedule Place to visit Items discussed/ information collected
8/27/2018
(Mon)
Dr. Meru (Former Vice
Minister of MIT, the 1st
President of EPZA)
・ Industrial structure and development issues of
Tanzania
・ Issues of AIP project implementation
Small and Medium
Enterprise Development
Organization (SIDO)
・ Outline of SIDO and main tasks
8/28/2018
(Tue)
Tanzania Investment Center
(TIC)
・ Cooperative measures with TIC
・ Matters to consider for AIP project implementation
The 1st Survey: Collection of data and information
The 2nd Survey: Confirmation of feasibility
The 3rd Survey: Discussion towards the project implementation
Data collection/analysis
Design of AIP project
Meeting and interview with stakeholders in Japan
Preparation meeting for the field survey
Debriefing session of the field survey
3
Field Survey
Survey in Japan
Survey items2018 2019
8 9 10 11 12 1 2
26
African Development Bank
(AfDB)
・ Exchange of opinions on cooperative measures with
AfDB
Ministry of Industry and
Trade (MIT)
・ Confirmation of agreement with the policy of the
Tanzanian government
・ MIT's Industrialization Strategy Priority Areas
8/29/2018
(Wed)
SIDO ・ Visit industrial park owned by SIDO in Dar es
Salaam
8/30/2018
(Thu)
MIT ・ Affiliated ministries to be discussed with for project
implementation
・ Basic design required by MIT for AIP business
Ministry of Livestock and
Fisheries (MLFD)
(Livestock sector)
・ Outline of Tanzania livestock sector
・ Business scope of livestock.
8/31/2018
(Fri)
MLFD ・ Outline of Tanzania Fisheries Sector
・ Major fishery processing method
Ministry of Agriculture
(MOA)
・ Outline of Tanzania agriculture sector
9/3/2018
(Mon)
Tanzania Export Processing
Zone Agency (EPZA)
・ Major preferential treatment of economic special
zone (SEZ)
・ Outline of AIP introduction candidate site
9/4/2018
(Tue)
Japanese Embassy ・ Matters to consider for AIP project implementation
JICA ・ Overview of Tanzania Agriculture Support by JICA
Morogoro Region SEZ
Development Land
・ Progress of SEZ development, future development
plan
9/5/2018
(Wed)
Kamal Industrial Estate
(Tanzania's first private
export processing zone)
・ Facility inspection
Bagamoyo County SEZ
Development Land
・ SEZ development progress situation, geographical
condition
Morogoro Region
Administrative Office
・ Outline of agricultural production in Morogoro
Region
27
9/6/2018
(Thu)
Outline of agricultural
production in Morogoro
Region
・ Outline and issues of Tanzania FVC
・ Adaptability of Japanese technology
9/7/2018
(Fri)
Tanzanian Bureau of
Statistics (TSB)
・ Statistics collection
9/10/2018
(Mon)
SIDO (industrial cluster
expert)
・ Industrial park construction cost unit
・ Related laws and regulations
9/11/2018
(Tue)
Matoborwa Co. Ltd
(Japanese food processing
enterprise)
・ Distribution route of agricultural products · market
price
Table 2.2-3 Outline of the second survey
Schedule Place to visit Items discussed/ information collected
11/22/2018
(Thu)
Dr. Meru（ex-vice minister of
MIT、1st president of EPZA）
・ Matters to consider in selection of AIP
development area
・ Reference case: Textile industrial park
development by TDU
SIDO ・ Participation policy for AIP development
project
Textile Industry Development
Unit (TDU)
・ Acquisition method, etc. Advice for the
development of AIP.
11/23/2018
(Fri)
TIC
・ Discussion on implementation system of AIP
project
・ Related laws and regulations
National Development
Corporation (NDC)
・ Advices on implementation system of AIP
project
11/26/2018
(Mon)
TSB ・ Statistics collection
11/27/2018
(Tue)
MIT ・ Discussion on implementation system and
funding of this project
28
11/28/2018
(Wed)
MOA ・Discussion on implementation system of this
project
MLFD ・Discussion on implementation system of this
project
11/29/2018
(Thu)
EPZA ・Discussion on implementation system and
funding of this project
11/30/2018
(Fri)
Tanzania Food and Drug
Administration (TFDA)
・TFDA license acquisition procedure
・Discussion on implementation system of this
project
Tanzania Standards Office
(TBS)
・Procedure to acquire TBS certification
・Discussion on implementation system of this
project
12/1/2018
(Sat)
Bagamoyo County SEZ
Development Land
・Confirmation of relocation status of residents
・Aerial shooting
12/3/2018
(Mon)
Local consulting companies ・Confirm progress of Bagamoyo SEZ
development plan by Chinese enterprises
Japanese Embassy ・Matters to consider for AIP project
implementation
12/4/2018
(Tue)
Dar es Salaam Water and
Sewerage Corporation
(DAWASA)
・Regarding water supply and sewer facilities in
Bagamoyo SEZ area information
JICA ・Information gathering and consultations on
funding
・Assistance in the future of this project
EPZA ・Discussions on how to proceed with this
project
12/5/2018
(Wed)
Southern Tanzania Agricultural
Growth Corridor (SAGCOT)
・Information on Tanzania Agriculture sector
World Bank ・About the trend of loan projects in Tanzania
information
29
12/6/2018
(Thu)
Bagamoyo County Council ・Agreement acquisition related to project
implementation in Bagamoyo Prefecture
Table 2.2-4 Outline of the third survey
Schedule Place to visit Items discussed/ information collected
2/6/2019
(Wed)
EPZA ・ Discussions on EPZA, MIT, OCG, Mitsubishi
Corporation's future business promotion policy
2/8/2019
(Fri)
African Development Bank
Tanzania Office
・ Information sharing for co-financing with
AfDB
2/11/2019
(Mon)
Tanzania Private Sector
Foundation
Collect information on TPSF's organization
outline
Discussions for future cooperation
African Development Bank
Tanzania Office
Discussions for future cooperation
2/12/2019
(Tue)
JICA Tanzania Office Sharing information with JICA
Advices on how to proceed with this project
Embassy of Japan in Tanzania Advices on how to proceed with this project
30
Project contents and technological review Chapter3.
Background and project needs 3.1
For the sub-Saharan African countries, lack of electricity power access, unstableness of electric
power and low agricultural productivity are factors that stop financial development. According to the
African Development Bank's announcement, 6.4 billion people live in areas with no electric power
supply and 2.3 billion people are under malnutrition condition. In Sustainable Development Goals
(SDGs) adopted by UN, it is stated that “promoting sustainable agriculture as well as ending to
hunger, achievement of stable food supply and improvement of nutritious conditions (Goal 2) and
“securing access to reasonably-priced for everybody, sustainable and modern energy (Goal 7), and
improvement of electric power access and agricultural productivity are urgent issues which should
be solved, with cooperation of international societies.
Tanzania is one of the countries of the sub-Saharan Africa, and as mentioned above, the
electrification rates are still as low as 32.8%. Tanzania’s electricity power demand is expected to
increase according to its population growth in the future. Agriculture is its basic industry, but the
agricultural processing production is little, and the majority of exports are unprocessed agricultural
products.
Based on this background "Tanzania Power for Food (P4F)" was created. This Project aims to
provide solutions to the "food problems" and "energy problems" through construction of the
agricultural product processing park (Agro-Industrial Park, AIP) with dispersed power source (solar
panel + battery system). It is expected to increase additional value of Tanzanian agricultural products
and selling them to both local and foreign markets, through producing agricultural processed
products utilizing electric power generated by solar panels. In addition, in the future, there are
possibilities that AIP projects can be expanded to each country of sub-Sahara Africa, not only
including Tanzania, while expanding AIP projects to each area of Tanzania utilizing the method of
AIP project gained thought this project.
31
Figure 3-1 Development of Agro-Industrial Park (AIP)
Review of the project candidate sites 3.2
Method to select the project candidate sites (1)
The SEZ/EPZ development candidate sites owned by EPZA are expanded all over Tanzania as
is shown in figure 3-2, and its development circumstances are different at each site, but EPZA is
supporting companies investing in sites and the development of industries and their commercial
activities. The companies investing in SEZ/EPZ can take advantages of all kinds of priority
treatment measures including the income tax and customs duties.
EPZA has already reserved the sites for the development of SEZ/EPZ, so it is possible to save
labor and time in the land expropriation.
As mentioned above, SEZ/EPZ are established and managed by EPZA. In order to select pilot
project candidate sites, the field survey visited some of the pre-selected sites and collected
information of the following 3 areas (Puwani Region, Morogoro Region and Iringa Region) with
positive advice received at the preparatory survey, and 4 areas (Dodoma Region, Mbeya Region,
Mwanza Region and Mara Region) named candidate sites by local agencies during the survey.
32
Figure 3-2 Sites owned by the Export Processing Zone of Tanzania (EPZA) / Development
destination area of the Export Processing Zone
In the local field survey, we collected and organized information about each area, regarding
essential matters generally considered in selecting industrial park development candidate sites.
Table 3.2-1 Essential considerable matters in selecting development candidate sites
Category Contents
a. Location
Distance from major cities, distance to harbors, access to
main agricultural production areas
b. Surrounding roads Maintenance condition of surrounded roads
c. Accumulation of labor Labor (productive-age population)
d. Available Land Site areas, development condition
e. Others Others special matters
33
Current situation of the pilot project candidate sites (2)
Pwani Region, Bagamoyo SEZ 1）
① General Outline
Bagamoyo SEZ is a huge economic zone of Bagamoyo District in Pwani Region and is located
50 km north of Dar es Salaam. It is located approx. 12 km from the district capital city Bagamoyo,
and coastal land is reserved as SEZ development site (Figure 3-3).
In SEZ, not only industrial parks, but also IT parks, tourist development zones, residential and
commercial facilities are planned, and the projects of the port development managed by China and
Oman and IT park development by South Korea are currently in progress. The road condition from
Dar es Salaam to Bagamoyo is fair, and it is possible to reach Bagamoyo SEZ in approx. 1 hour and
half by car without traffic jams.
Figure 3-3 Bagamoyo SEZ location
34
Figure 3-4 Development image (created by EPZA)
② Current outline of Bagamoyo SEZ
The result of the survey on Bagamoyo SEZ is described in Table 3.2-2.
Table 3.2-2 Results of Bagamoyo SEZ survey
Category Present condition Evaluation
a. Location Distance to
major cities
Dar es Salaam: Approx.50 km Evaluation: A
Reason: Good access to Dar es
Salaam. Easy transportation for
agri-products and processed
products. Convenient access
for investors
Distance to
ports
Dar es Salaam Port: Approx.
70 km
※The port is planned to be
developed inside the site
Access to major
agricultural
production area
Active fruits production
nearby, although far away
from other major
agri-products production
areas, but no problem of
transportation due to easy
access to Dar es Salaam, the
biggest market where
agri-products are transported
from other areas
35
b. Surrounding
roads
Maintenance
condition of
surrounding
roads
Bagamoyo Road is
constructed between Dar es
Salaam and Bagamoyo Town
(Capital of Bagamoyo
District) along southern
border of Bagamoyo SEZ
candidate site
Evaluation: A
Access road from Dar es
Salaam is already
well-maintained
c.
Accumulation
of labor
Productive-age
population
Approx. 590,2000
※but approx.3.5million
including Dar es Salaam State
Evaluation: B
Productive-age population of
Pwani Region is low, but it has
possibility to secure high
ability labor from Dar es
Salaam
d. Available
Land
Total area 9,000ha Evaluation: A
The residents of the total area
have not moved out yet, but it
is possible to obtain moved-out
places as AIP project candidate
sites
Development
situation
Among the total are, partial
residents have already moved
out, but large areas are still
undeveloped. Some areas are
still occupied by local
residents.
e. Others Maintenance
situation of
infrastructure
Running water: According to
Dar es Salaam Water and
Sewerage Authority
(DAWASA), water pipes of
40mm diameter are installed
along major roads
Evaluation: A
Easy to make detailed project
plans due to established master
plan
Establishment
situation of
development
plan
In 2013 BAGAMOYO SEZ
MASTER PLAN was
formulated. The revised plan
is under development by
EPZA.
Source：National Bureau of Statistics Population Distribution by Age and Sex 2013
36
Photos：Bagamoyo SEZ surrounding area
Morogoro Region・Star City （SEZ） 2）
① General Outline
The development candidate site of Morogoro Region is named Star City, and is managed by
Star Infrastructure Development Limited which is a Tanzanian company. Star city is located along
the major road between an industrial city Dar es Salaam and the national capital city Dodoma, and it
is characterized by the possibility of transporting products to both cities because a railway station
between Dar es Salaam and Dodoma is planned to be built in the neighbourhood. The road condition
from Dar es Salaam to Morogoro is fair, but traffic accidents happen frequently due to large traffic of
big-sized vehicles.
In Star City, joint development plan between Singapore and Tanzania is under progress, and the
Zoning plan (Figure 3-6) was created. The zoning map includes logistic zone, warehouse zone,
commercial zone, education zone and so on. Originally those were planned to be built step by step,
but the development is stopped due to the withdrawal of Singaporean capital.
Condition of Bagamoyo Road
Bagamoyo SEZ land where residents already
move out
BAGAMOYO SEZ MASTER PLAN
Bagamoyo SEZ land where residents already
move out
37
② Current summary of Star City (SEZ)
The results of the survey of Star City (SEZ) are described in Table 3.2 3
Table 3.2-3 Current Situation of Star City （SEZ）
Category Present condition Evaluation
a. Location Distance to
major cities
Dar es Salaam: Approx.180
km. Dodoma: Approx. 265
km
Evaluation: B
Easy to obtain agricultural
products due to easy access to
its production areas. Possible to
transport products to both
Dodoma and Dar es Salaam,
but possible risk of cancelled
logistics due to traffic jams and
accidents. The opening time of
railway is also uncertain.
Distance to
ports
Dar es Salaam Port:
Approximately 190 km
Access to
major
agri-productio
n area
Morogoro State is major
agricultural area and has
easy access to various
agri-products like rice and
plants
b. Surrounding
roads
Maintenance
condition of
surrounding
roads
Maintenance condition of
surrounding roads
Evaluation: A
Access road between Dar es
Salaam and Dodoma has been
constructed
c.
Accumulation
of labor
Productive-ag
e population
Approx.1.2million and 6900
people
Evaluation: B
Large labor population but
anxious about ability of
workers due to rural city
d. Available
Land
Total area Approx. 4300 ha Evaluation: A
Residents already moved out.
Developed
land condition
Almost all residents moved
out and lands are abandoned.
Developed only around Star
City office.
e. Others Formulation
situation of
development
plan
Zoning plan was formulated,
but surveys for development
preparation was not
conducted yet
Evaluation: C
It needs more time for survey
of development preparation
which was not conducted.
38
Picture: Surroundings of Morogoro SEZ
Entrance of Star city site
Planned development land in Star City
( approx. 13 km up to fence)
Large rice plantation of Morogoro Region
Traffic accident at Morogoro Road
Other SEZ development candidate sites 3）
Regarding to Iringa Region, Dodoma Region, Mwanza Region and Mbeya Region, we received
the advices that those areas are hopeful as AIP development candidate sites from the local
government agencies during the survey. However, as the result of meeting with a chairman of EPZA,
it became clear that these 5 SEZ areas are not ready yet to secure AIP development land since the
land expropriation was still under progress.
Also, in SEZ development candidate site of Bunda Region, Mara Region, land expropriation
was completed, but the development plan was not formulated yet, and then it is necessary to wait for
the conduction of the survey for formulating development plan by EPZA, to proceed AIP projects.
Results of consideration of pilot project candidate sites (3)
According to the results of this survey as for the reasons explained above, this survey supports
Bagamoyo as the most appropriate site for the implementation of P4F pilot project. From now on,
concrete information for the development of Bagayomo AIP will be provided.
39
Examination toward the project implementation in Bagamoyo SEZ 3.3
Consideration of the geographical environment in Bagamoyo SEZ for the AIP (1)
development
Using as reference the topographical base map of Bagamoyo SEZ, the construction of the AIP
will be easy due to the flat land. The altitude is 40 m in the highest and the lowest position in the
direction of the overseas line.
Since most of the lands are covered with low density herbs and palm trees are dispersed, soil
levelling is required before construction. Regarding natural disasters, there is no danger of being
affected by earthquakes or volcanic eruptions, but there is a possibility of a tsunami, so if an AIP is
built near the coast, measures against the tsunami should be considered. The coastline lasts about
100 km, but the terrain is hard, making it suitable for building construction
Figure 3-5 Typographical Base Map of Bagamoyo SEZ
Situation of infrastructure development in Bagamoyo SEZ (2)
Roads condition 1）
Bagamoyo SEZ is located along the paved road (Bagamoyo Road) connecting Dar es Salaam to
40
Bagamoyo town. Bagamoyo Road is a one-way lane with a return of 20,000-30,000 vehicles a day
around Dar es Salaam and 1,500 a day around Bagamoyo. On the other hand, the roads of Bagamoyo
SEZ are not paved, their condition needs improvement because there are many steep slopes and
furrows.
Implementing the AIP project, it is necessary to improve the road from the Bagamoyo Road to
the project site.
Water supply 2）
According to the MASTER PLAN BAGAMOYO SEZ created in 2013, the pipe that supplies
the water in the Lub river basin managed by DAWASA to the northern part of Dar es Salaam passes
near the special economic zone of Bagamoyo and also supplies water from the main pipeline part of
the special economic zone. In addition, according to DAWASA in this survey, we got the information
that a 50 mm diameter pipe was updated in Bagamoyo SEZ facilities.
Future plans will combine water and groundwater pipelines and water will be supplied
according to demand within the SEZ. Although it is necessary to improve the water supply from the
existing pipelines to the AIP project implementation site, we consider that the maintenance of the
water supply facilities could be carried out relatively easily.
Electricity and gas 3）
Although the main energy source of this AIP project will be solar energy, the electric power of
the network will be additionally used according to the demand. Electricity in the vicinity of
Bagamoyo is supplied by the Tanzania Electricity Supply Authority (TANESCO), and a 33 kV
transmission line that comes from Dar es Salaam and Murandisi in Bagamoyo town.
Currently, there is no automatic switching system in case of problems in the transmission of
energy, a manual response is required, so it cannot be said that the power supply is stable. However,
since it is assumed that the power supply of the network will only be used part of a time, as peak
energy demand, it is not considered a major problem in this AIP project. Also, since the pipeline is
not ready around Bagamoyo SEZ, it is necessary to examine the maintenance for AIP construction.
Confirmation of regulations related to the implementation of the project 3.4
Scheme of the EPZ method and the SEZ method and preferential treatment for (1)
investors
By implementing this AIP project in Bagamoyo SEZ, investors in AIP projects can receive
various tax incentives, such as exemption from taxes, according to the following regulations:
41
Table 3.4-1 Regulatory list related to export processing zone / economic special district
The Special Economic Zones Act,2006
The Export Processing Zones Act. 2006:
The Special Economic Zones Regulations, 2012
The "Special Economic Zone Law" was enacted in 2006 with the aim of promoting domestic
economic development, increased exports,job creation, domestic and abroad investments. The
competent authority of the Special Economic Zone is EPZA (Export Processing Zone Agency), but
the business area to be developed within the "Special Economic Zone" is broader than the "Export
Processing Zone", the EPZ is for special economic zones, which include the Free Trade Area, the
Park of Information and Communication Technologies (ICT), the Tourism Development Zone, etc.
In addition, as the law that focuses on the SEZ that stipulates provisions relating to its establishment,
development and management of operations, is the "Law of the Export Processing Zone" which was
also enacted in the same year.
The "Regulation on the Special Economic Zone", promulgated in 2012, aims to clarify the roles
and functions of the SEZ and the EPZ of the EPZA. When a company invests in EPZ or SEZ, the
acquisition of a license issued by EPZA is required. Table 3.4-2 shows the requirements for the
acquisition of the license.
Table 3.4-2 Requirement to acquire business license
SEZ Business operator EPZ Business operator
Be a new investment
Foreign-affiliated companies: Capital over
$ 500,000
Domestic enterprises: Capital over 100,000
dollars
To export 80% or more of production
The investment destination must be within the
Special Economic Zone
Foreign companies: export more than
$ 500,000
Domestic companies: export more than
$ 100,000
* Application fee is USD 250 and the annual fee is USD 5,000 for SEZ/EPZ developers. Annual fees for
EPZ/ SEZ operator is USD 1,000
Since the SEZ license issued by EPZA is considered equivalent to the commercial license
granted by local government agencies and other regulatory agencies, the companies that acquired the
SEZ license, with the exception of some important regulations published by the Tanzania Food and
42
Drugs Authority (TFDA), are exempt from the acquisition of other licenses. The licenses that EPZA
issues are the following four types.
① Developer / operator license SEZ
For companies that do business in construction and lease infrastructure, operations
management.
② User license SEZ
For companies that carry out commercial activities focused on the manufacturing and
processing industries for the national market in SEZ
③ EPZ user license
For companies that do business primarily for the manufacturing / processing industries for
foreign markets.
④ SEZ permit. For companies that implement businesses for SEZ / EPZ users. (* These
licensed companies do not have economic incentives provided by the Economic Protection
Law).
Preferential treatment for businesses varies according to the type of license. Typical incentives
for each license are as follows.
① SEZ Developer / Operator license:
・ Tax exemption on capital goods such as machinery, equipment and heavy machinery used
for EPZ / SEZ construction
・ Exemption from corporate tax, withholding tax and property tax (initial 10 years)
・ Exemption from VAT on utility charges
・ Exemption from conformity inspection for imported goods within SEZ.
② SEZ User license:
・ Exemption of customs tax and value added on raw materials and capital goods related to
production in SEZ.
・ Exemption of interest withholding tax on foreign capital loans
・ Exemption of conformity inspection for imported cargo
・ Implement the inspection of rates in SEZ.
③ EPZ user license:
・ Exemption of customs tax and value added tax on raw materials and capital goods related
to production within the EPZ
・ Exemption from income tax and withholding tax (10 years)
43
・ Exemption from taxes of local governments for products produced in EPZ (10 years)
・ Exemption of conformity inspection for imported cargo.· Implementation of tariff
inspection in industrial free zones.
・ Exemption of the value added tax (VAT) for public service and usage fees.
About TFDA Certification Procedure (2)
The certification from Tanzania Food and Drug Administration (TFDA) is required to
manufacture and sell food in Tanzania. TFDA is an institution affiliated with the government that
oversees the safety and quality of food, pharmaceutical products, cosmetics, medical devices, with
the aim of protecting the health and safety of consumers. The TFDA indicates the provisions that
must be followed for each product, and the provisions related to the foods that are listed in the
guidelines referred to in Table 3.4-3. In particular, the complete regulations on food processing
factories are summarized in the "Guidelines for good manufacturing practices for food".
Table 3.4-3 Food-related TFDA certification guidelines list
Guidelines Application for Registration of Pre-packaged Foods in Tanzania
Guidelines for Food Promotion Control
Guidelines for Importation and exportation of Food
Guidelines for Investigation and Control of Food Borne Diseases
Guidelines for Registration and Licensing of Food Premises
Guidelines for Importation and exportation of Food
Guidelines for Good Manufacturing Practices of Food Products
The procedures to acquire the TFDA certification are: 1. Acquisition of factory equipment
certification, 2. Acquisition of product certification itself. First, submit the TFDA certification
application regarding the installation equipment and the commercial license for the food processing
business. At the time of application, the manufacturer pays the application rate stipulated in
accordance with the manufactured article.
Following the guidelines stated above: The developers of the AIP have to fill and submit the
applications for food premises and permit to operate food business to the Director General of the
TFDA. Depending on the type of establishment to be registered the producer will have to pay
different registration fees and charges. After registration, and inspector of the TFDA will conduct an
examination of the facilities and if approved a food premises certification and business permit will
be provided. This certification has to be annually renewed.
44
The “Guidelines for Registration and Licensing of Food Premises” will evaluate the following items:
- Location of the food premises
- Premises design
- Equipment, utensils and food contact surface
- Personnel
- Storage facilities
- Sanitation and Hygiene
- Documentation and record keeping
After the premises are registered, the production will also be subject of inspection by the TFDA.
Guidelines will slightly differ depending on the characteristics of the products. At this stage of the
project the consultant suggest following the “Guidelines for Importation and Exportation of Food”.
If the AIP will export food the TFDA has to provide a health certificate to accompany food for
exports.
The TFDA also provides the interested food producers with “Guidelines for Good
Manufacturing Practices for Food”. These guidelines describe the minimum requirements that the
TFDA consider necessary for the production of food for human consumption. These guidelines
address the requirements for premises, equipment, personnel, quality and process controls,
documentation, storage, validations, and manufacturing processes including packaging and labeling.
Once all TFDA registration has been approved, the producer has to ask for certification to the
TBS. TBS has nine supervisory committees in charge of the evaluation of standards. For food related
industries the committee in charge is the Agriculture & Food Divisional Standards Committee
(AFDC). They will be in charge of the evaluation of the food products and in the approval or
rejection of the license to use the Standards Mark. Once the product gets the standards mark the
producer can start the commercialization of the product.
TFDA classifies foods in the following three categories. 1) High-risk foods (specific nutritional
foods): baby foods, food supplements, etc.Low risk foods: other foods. If there is no particular
problem, the period required to obtain the TFDA certification is approximately 50 days for high-risk
foods and approximately 40 days for low-risk foods.In addition, although the cost required for TFDA
certification differs according to the target product and commercial content, at each stage, are
45
required for example, the costs shown in Table 3.4-4.
Table 3.4-4：TFDA cost of certification (Example)
Acquisition cost of factory equipment
certification
TSZ2500008 （For large-scale facilities）
Renewal fee for factory equipment certification
(annually)
TSZ 150,000（For large-scale facilities）
Health Certificate TSZ 50,000
Food inspection fee (bacteria test) USD130～（Depends on the type of bacteria）
Acquisition cost of product certification USD250（In the case of nuts）
About TBS Certification Procedure (3)
Once TFDA finishes the registration of the premises and approval of the product, the producer
has to register its products to the TBS. Following standards, such as the ISO 17020 and ISO 9000,
the TBS will provide certification of products and will provide a license to use the quality mark. The
Standards Mark of Quality is a symbol which manufacturers may use to promote their products and
consumers seek as prima facie evidence of quality
8 1TSZ ≒ 0.0477Yen （A partir de marzo de 2019）
46
Figure 3-6 TBS Standards Mark of Quality
Figure 3-7 Logo of the TBS in food products
Study on agricultural field with business potential 3.5
Overview of agriculture and fishery industry in Tanzania (1)
As mentioned above, Tanzania's participation in agriculture and fishing in its GDP is high,
representing around 30%. With respect to the active population, primary industry, including
agriculture, represents 67.2% of the total work power
Agricultural production 1）
The main agricultural products produced in Tanzania are corn, rice, sorghum, sweet potatoes,
legumes, peanuts, etc. The main export crops are tobacco, cashew nuts, coffee, tea, spices, cotton,
sisal hemp, etc. Below is the production situation of each agricultural product.
Table 3.5-1 ：Main agricultural products status (area, production）
Category Crop Data 2005/2006 2010/2011 2014/2015
Cereal Crop Maize Area ( '000' ha) 2,570.99 3,287.85 3,787.75
Production ( '000' tons) 3,423.03 4,340.82 5,902.78 Paddy Area ( '000' ha) 633.77 1,119.33 1,154.47 Production ( '000' tons) 1,238.56 2,248.32 2,979.86 Sorghum Area ( '000' ha) 715.87 811.16 755.84
Production ( '000' tons) 711.64 806.57 676.77 Wheat Area ( '000' ha) 53.22 108.284 85.60
Production ( '000' tons) 109.53 112.66 72.48 Barley Area ( '000' ha) 19.52 7.51 6.64
47
Category Crop Data 2005/2006 2010/2011 2014/2015
Production ( '000' tons) 20.59 6.90 14.44 Bulrush Area ( '000' ha) 258.56 215.21 285.50 Millet Production ( '000' tons) 189.87 192.95 249.87 Finger millet Area ( '000' ha) 64.61 137.10 67.09
Production ( '000' tons) 56.79 204.11 80.19 Roots Crop Cassava Area ( '000' ha) 993.171 739.786 1,094.90
Production ( '000' tons) 6,158.30 4,646.52 5,886.44 Sweet Area ( '000' ha) 590.47 699.07 746.60 Potatoes Production ( '000' tons) 2,606.04 3,573.30 3,454.49 Irish potatoes Area ( '000' ha) 177.24 203.09 175.42
Production ( '000' tons) 1,583.02 1,555.52 1,480.72 Other Food Banana Area ( '000' ha) 499.62 532.08 452.56 Crop Production ( '000' tons) 3,507.45 3,143.83 3,584.53 Pulses Beans Area ( '000' ha) 646.09 737.66 1,124.71 Production ( '000' tons) 707.62 675.95 1,201.92 Chick pea Area ( '000' ha) 10.16 74.83 39.73 Production ( '000' tons) 7.00 71.18 33.89 Cow pea Area ( '000' ha) 155.93 218.08 216.93 Production ( '000' tons) 154.77 172.74 180.78 Garden pea Area ( '000' ha) 17.41 45.97 14.52 Production ( '000' tons) 20.84 52.29 29.93 Pigeon pea Area ( '000' ha) 137.49 288.16 253.09 Production ( '000' tons) 140.65 272.61 261.89 Soya Beans Area ( '000' ha) 3.61 2.88 5.87 Production ( '000' tons) 5.00 2.50 6.03
Green gram Area ( '000' ha) 2.94 48.21 8.87 Production ( '000' tons) 2.91 44.43 49.55
Oil seeds Sunflower Area ( '000' ha) 174.14 753.76 1,787.89 nuts crop Production ( '000' tons) 373.39 786.90 2,878.50 Groundnut Area ( '000' ha) 309.43 675.23 1,624.68 Production ( '000' tons) 782.12 651.40 1,835.93 Sesame Area ( '000' ha) 101.60 510.47 978.82
Production ( '000' tons) 221.42 357.16 1,174.59 Bambara nuts Area ( '000' ha) 13.78 65.06 42.21 Production ( '000' tons) 16.12 48.72 43.77 Coconut Area ( '000' ha) 17.45 42.31 32.34 Production ( '000' tons) 26.07 54.93 101.82 Oil Palm Area ( '000' ha) 11.67 14.10 23.86 Production ( '000' tons) 11.36 17.00 41.48 Cash crop Coffee Area ( '000' ha) 226.46 116.51 221.76 Production ( '000' tons) 34.33 60.58 41.67
Cashew nut Area ( '000' ha) 319.97 406.60 483.37 Production ( '000' tons) 90.38 121.07 197.93 Cotton Area ( '000' ha) 319.49 226.51 450.00 (Seed cotton) Production ( '000' tons) 376.59 163.64 203.31 Tea Area ( '000' ha) 19.23 8.55 22.51 Production ( '000' tons) 30.00 32.00 35.75 Tobacco Area ( '000' ha) 61.47 168.49 77.52 Production ( '000' tons) 56.50 130.00 87.74 Sisal Area ( '000' ha) - 56.10 48.85
Production ( '000'
tons) - 24.83 39.20 Pyrethrum Area ( '000' ha) 1.75 7.39 13.09 Production ( '000' tons) 2.50 5.00 6.05
Sugarcane Area ( '000' ha) - 57.07
44.00
Production ( '000' tons) -
3021.31
3,133.07
Source: Statistics Unit-Ministry of Agriculture, Food Security and Cooperatives
48
Fishery industry 2）
According to the Annual Fisheries Statistics Report - 2016, the fishery industry in Tanzania has
seen steep declines between 2005 and 2008, but after that there was a tendency for a steady growth.
Source: Annual Fisheries Statistics Report – 2016
Figure 3-8 Evolution of fishery production in Tanzania
Approximately 85% of Tanzanian fisheries production is due to inland fisheries, and the
proportion of occupied ocean fisheries is around 15%. The center of the interior fishery is Lake
Victoria, and in addition to that, the main fishing grounds are Lake Tanganyika, Lake Nyasa, Lake
Nyumba and Mungu, the Mtera Dam.
Table 3.5-2 ：Status of fishery production in major water bodies in Tanzania
Water bodies
Numbers Numbers
Fishers Fishing
crafts
Catches
(m tons)
Values
(Tsh.s '000)
Lake Victoria 109,397 31,773 238,096.80 984,954,579.99
Lake Tanganyika 26,612 11,506 53,170.61 230,643,255.13
Lake Nyasa 5,550 2,632 10,093.35 38,462,450.40
Lake Rukwa 3,428 1,786 3,240.93 12,240,084.42
Mtera Dam 2,369 1,238 2,609.40 4,152,860.08
Nyumba ya Mungu Dam 783 432 968.2 2,067,013.54
Minor water bodies 879 321 592.30 1,965,160.00
Small scale Marine 54,511 9,650 53,823.30 211,891,899.18
Total 203,529 59,338 362,594.89 1,486,377,302.74
Source: Annual Fisheries Statistics Report – 2016
(m tons)
49
Balance trade of agricultural and fishery products 3）
The status of import and export of agricultural and marine products in Tanzania was established
from the import and export data of each country by UN COMTRADE (2017).As mentioned above,
the largest amount of exports are cashew nuts contained in the fruits and nuts of Class 8 (fruits and
nuts, edible, citrus peel or melons), and then the cigarettes of category 24 and continue 9 categories
of coffee. In addition, exports of fish and crustaceans of the third category, etc., are important. Edible
vegetables of the seventh categories, also the beans contained in the roots and tubers (vegetables and
certain roots and tubers, edible).
On the other hand, it is largely negative in the trade balance, the category 10 of grains,
including wheat and rice, animal or vegetable fats and oils of category 15, including palm oil, sugar
of the category 17.
Table 3.5-3: Status of import and export of agricultural and marine products in Tanzania
HS code＆Category Import Value
(US$) Export Value
(US$) Export-Import
(US$)
1 Animals; live 2,241,961 54,265,771 52,023,810
2 Meat and edible meat offal 6,989,737 13,306,642 6,316,905
3 Fish and crustaceans, mollusks and other aquatic invertebrates
14,553,536 192,766,423 178,212,887
4 Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included
12,749,461 404,715 -12,344,746
5 Animal originated products; not elsewhere specified or included
80,999 2,404,005 2,323,006
6 Trees and other plants, live; bulbs, roots and the like; cut flowers and ornamental foliage
615,413 27,086,268 26,470,855
7 Vegetables and certain roots and tubers; edible
8,652,337 171,273,984 162,621,647
8 Fruit and nuts, edible; peel of citrus fruit or melons
4,651,928 554,778,926 550,126,998
9 Coffee, tea, mate and spices 1,785,811 204,531,058 202,745,247
10
Cereals 204,268,748 27,198,713 -177,070,035
11
Products of the milling industry; malt, starches, inulin, wheat gluten
23,518,338 55,616,290 32,097,952
12
Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit, industrial or medicinal plants; straw and fodder
17,814,315 89,470,755 71,656,440
13
Lac; gums, resins and other vegetable saps and extracts
591,751 165,253 -426,498
14
Vegetable plaiting materials; vegetable products not elsewhere specified or included
5,618 218,588 212,970
50
HS code＆Category Import Value
(US$) Export Value
(US$) Export-Import
(US$)
15
Animal or vegetable fats and oils and their cleavage products; prepared animal fats; animal or vegetable waxes
278,496,797 19,778,578 -258,718,219
16
Meat, fish or crustaceans, mollusks or other aquatic invertebrates; preparations thereof
1,220,759 134,851 -1,085,908
17
Sugars and sugar confectionery 125,452,084 2,109,584 -123,342,500
18
Cocoa and cocoa preparations 2,186,333 16,765,592 14,579,259
19
Preparations of cereals, flour, starch or milk; pastry cooks' products
17,941,633 2,170,712 -15,770,921
20
Preparations of vegetables, fruit, nuts or other parts of plants
5,189,022 3,743,960 -1,445,062
21
Miscellaneous edible preparations 16,367,572 2,197,553 -14,170,019
22
Beverages, spirits and vinegar 47,796,957 17,634,045 -30,162,912
23
Food industries, residues and wastes thereof; prepared animal fodder
12,385,650 39,876,272 27,490,622
24
Tobacco and manufactured tobacco substitutes
5,813,973 216,984,878 211,170,905
30
Pharmaceutical products 425,232,633 863,840 -424,368,793
31
Fertilizers 145,570,011 29,954,460 -115,615,551
41
Raw hides and skins (other than foreskins) and leather
78,724 5,954,088 5,875,364
42
Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)
12,108,147 46,208 -12,061,939
43
Fur skins and artificial fur; manufactures thereof
2,994 2,199,392 2,196,398
44
Wood and articles of wood; wood charcoal 24,475,860 27,530,596 3,054,736
45
Cork and articles of cork 94,165 25,396 -68,769
46
Manufactures of straw, esparto or other plaiting materials; basket ware and wickerwork
54,460 130,202 75,742
47
Pulp of wood or other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard
879,224 708,941 -170,283
48
Paper and paperboard; articles of paper pulp, of paper or paperboard
106,062,513 42,026,015 -64,036,498
49
Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans
20,901,177 1,645,190 -19,255,987
50
Silk 32,086 10 -32,076
51
HS code＆Category Import Value
(US$) Export Value
(US$) Export-Import
(US$)
51
Wool, fine or coarse animal hair; horsehair yarn and woven fabric
15,649 74,830 59,181
52
Cotton 37,673,181 53,744,196 16,071,015
53
Vegetable textile fibers; paper yarn and woven fabrics of paper yarn
1,591,069 24,787,042 23,195,973
54
Man-made filaments; strip and the like of man-made textile materials
11,738,703 200,292 -11,538,411
55
Man-made staple fibers 26,842,206 5,041,021 -21,801,185
56
Wadding, felt and nonwovens, special yarns; twine, cordage, ropes and cables and articles thereof
9,613,387 26,046,888 16,433,501
57
Carpets and other textile floor coverings 2,043,416 95,250 -1,948,166
58
Fabrics; special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, embroidery
1,736,048 67,401 -1,668,647
59
Textile fabrics; impregnated, coated, covered or laminated; textile articles of a kind suitable for industrial use
5,510,163 54,213 -5,455,950
60
Fabrics; knitted or crocheted 7,990,805 4,075,755 -3,915,050
61
Apparel and clothing accessories; knitted or crocheted
23,123,133 17,477,564 -5,645,569
62
Apparel and clothing accessories; not knitted or crocheted
29,028,429 42,107,990 13,079,561
63
Textiles, made up articles; sets; worn clothing and worn textile articles; rags
88,660,885 96,929,328 8,268,443
Source: UN COMTRADE database
Tanzania’s industrialization priority sectors (2)
Priority industrial development field in 'National Integration Execution Program for 1）
Industrialized Economy'
The Government of Tanzania formulated the "National Integration Execution Program for
Industrialized Economy" as one of the strategies for achieving "Tanzania Development Vision 2025"
in 2018 and has positioned the following 11 areas as priority development sectors:
i Cotton and Clothing;
ii Milk and Dairy Products;
iii Fertilizer and Chemical;
iv Leather and Leather Products;
v Cooking Oil;
52
vi Meat processing;
vii Fruit Processing;
viii Cashew;
ix Sugar;
x Industrial Medicine (Pharmaceutical Industries);
xi Soda Ash
Industrial products assumed for BAGAMOYO SEZ MASTER PLAN 2）
In the above-mentioned BAGAMOYO SEZ MASTER PLAN, the following are listed as products
having industrial potential.
Table 3.5-4 ：Target sector of the project in BAGAMOYO SEZ MASTER PLAN
Agro-business,
food and
beverage
Integrated paddy
processing
Rice milling, rice bran oil extraction and refineries,
cattle feed, power production using husks, silica
extraction and units for extraction of specialist
chemicals such as orsinol, lisithinol etc.
Maize processing Maize and tapioca starch, dextrin, modified
starches, liquid glucose, high maltose and fructose
corn syrup, corn gluten, maize germ, corn steep
liquor etc.
Sugar refining Refining of industrial white sugar as input for food
and beverage industries.
Marine production Production of fish feed.
Processing of crustaceans (crab, prawns, and
lobsters), molluscs (squid, cuttlefish, and octopus)
and others that can be frozen, dried, canned or
diced.
Meat and poultry
production
Abattoirs, rendering plants, processed/semi
processed meat/poultry products etc. Specifically
also linked with game meat farming and processing.
Food and beverage
manufacturing
Confectionary, juices, sauces, honey processing,
snack food products, food packaging, spices.
Dairy production Milk/milk products (cheese, butter, milk powder,
milk-based drinks, yoghurt, ice cream etc.)
Horticulture
production
Flower growing, sorting, grading and packaging.
Packaging Packaging supplies
Cartons, aluminium and tin cans, bags, tubes, jars,
bottles, cups, tapes, foils, fasteners.
Chemicals Downstream industries Plastics, textiles, apparels, footwear fibres, building
materials, pharmaceuticals, fertilizers (for instance
blending and packaging) and petrochemicals.
Construction Inputs to construction Doors and window frames.
53
materials of house Insulation materials.
Piping, cement mixing and distribution.
Sheet glass processing, production of iron rods.
Metal and
machinery
Miscellaneous
equipment
Animal fodder milling and pelleting equipment.
Fishing gear equipment.
Source: 'Feasibility Study for the Bagamoyo Special Economic Zone in Pwani Region
(Updated), March 2011', published by EPZA
Overview of the sub-sectors of agriculture, livestock and fisheries is related to the project 3）
Among the subsectors of the agricultural and fisheries industries above mentioned, the outline
of the sub-sectors that seems to be related to the proposed AIP project is as follows.
① Cotton and Clothing
Cotton is of the major cash crop in Tanzania, and according to the 2016/2017 Annual
Agriculture Sample Survey Initial Report, approx. 380,000 farmers are engaged in cotton production.
The main production areas are Simiyu, Shinyanga and Geita.
According to the import and export data of the countries by UN COMTRADE, raw cotton made
in Tanzania is mainly exported to India and Indonesia, and the export amount of 2016 was USD 56.1
million. On the other hand, light pure woven cotton are imported from China, and the import amount
of 2016 was USD 152 million.
According to this situation, it is considered that there are possibilities to get more foreign
currencies, through industrializing pure cotton and promoting clothing industry by controlling the
import of the first processed products from other countries and exporting of processed products, not
only pure cotton.
In Tanzania, the development of textile industrial parks leaded by the government is under
consideration. Studies to build Textile Development Unit (TDU) within MIT are in progress.
However, since it is difficult to raise funds, financing is in the process of being adjusted.
② Milk and Dairy Products
According to 2014/2015 Annual Agriculture Sample Survey Report, the breeding number of
Cows is 7,444,213 in Tanzania mainland and 59,585 in Zanzibar. The major production areas are
Tabora (799,395 heads)、Manyara (657,582 heads)、Mwanza (542,032 heads) and Mbeya (544,144
heads). According to the Annual Report 2016/2017 of Tanzania Bank, the growth rate of livestock
industry was 2.6％ in 2016. Milk production is also increasing year by year (2,058 million litres in
2015 and 2,127 million litres in 2016).
Regarding dairy production, 60% of the production is from traditional livestock industries and
40% from its commercial sectors. In 1995, 7 factories owned by the National Dairy Company
54
(Tanzania Dairies）were privatized, and moreover new processing factories were established in the
center of the regions such as Tanga, Iringa, Dar-es Salaam and Mara. Although the production is
increasing, the rate of factory operation is low and many dairy products depend on importing from
other countries. The import amount in 2016 was approx. US$12 million, combined with fresh milk
and concentrated milk, which were imported from France, Uganda, South Africa, Kenya and others.
According to the local hearing, livestock industries are growing together with its market
infrastructure consolidation, but currently there are many pasture lands and the production control is
still under difficult situation.
③ Cooking Oil
According to the 2016/2017 Annual Agriculture Sample Survey Initial Report, oilseed product
crops of Tanzania are Groundnuts, Sunflower and Sesame. Approx. 660,000 farmers are engaged in
producing sunflower which is largest in production, and the main production areas are Dodoma,
Singida and Tabora. The crops of the second largest production is Groundnuts, and approx. 1.13
million farmers are engaged in production, and the main production areas are Tabora, Dodoma and
Geita.
Approx. 280,000 farmers are engaged in producing sesame, and the main production areas are
Lindi, Pwani and Ruvuma. According to FAO Report (2015), Tanzania is the second producer, after
South Africa, of Sunflower seeds and Sunflower oil in African countries, but most of the production
is consumed within the country and the amount of exports is very limited. According to the Import
and Export Data of countries (2016) by UN COMTRADE, the amount of export of Oil seeds is
US$ 131 million, while the amount of import of Palm oil is US$ 366 million, and the balance of
trade of cooking oils is in negative situation.
Based on these situations, it is considered that there are possibilities to expand gaining foreign
currencies, through controlling the import of palm oil from other countries, expanding consumption
of processed products (such as Sun flower oil) in the domestic market and exporting them to
surrounding countries.
④ Meat processing
According to the 2014/2015 Annual Agriculture Sample Survey Report, the breeding heads of
livestock animals in Tanzania mainland and Zanzibar are as the following chart.
55
Table 3.5-5 ：The head count of breeding livestock animals in Tanzania
Livestock
type Mainland Zanzibar
Tanzania
Total
Cattle 25,654,182 158,021 25,812,203
Goats 18,934,878 85,182 19,020,060
Sheep 5,574,300 328 5,574,628
Pigs 1,745,675 - 1,745,675
Chicken 39,484,082 1,336,276 40,820,358
Ducks 1,504,931 57,980 1,562,911
Guinea Pigs 411,923 - 411,923
Turkey 181,597 1,512 183,109
Rabbits 276,968 4,195 281,163
Donkey 454,067 3,512 457,579
Source: 2014/2015 Annual Agriculture Sample Survey Report
According to the Annual Report 2016/2017 of Tanzania Bank, the production amount of
processed meat products was 579,757 tons in 2015 and 648,810 tons in 2016. The amount of exports
is increasing and the country is exporting the products to Mozambique, Vietnam, Oman, Qatar, UAE
and others.
Although livestock industry is growing, as mentioned about milk and dairy products above, the
production control is still in difficult situation because of the current many pasturing.
⑤ Fruit Processing
According to the 2016/2017 Annual Agriculture Sample Survey Initial Report, approx. 420,000
farmers are engaged in producing vegetable and fruits in Tanzania, and the total production amount
was of 419,006 tons in 2016/17. The production situation of cultivated vegetables and fruits is as
follows;
Mango is the most important cultivated product among fruits, and approx. 200,000 farmers are
engaged in producing mango. The cultivation area is 48,657 ha, and the main production region is
Pwani.
Approx. 80,000 farmers are engaged in producing Oranges, and the cultivation area is 34,085ha.
In Tanzania, Tanga and Pwani region are the main production areas and approx. 80% of the total
cultivation area is in Tanga. Also, the coastal area such as Bagamoyo is famous for production area
of pineapple.
56
Table 3.5-6 Production of fruits and vegetables in Tanzania
Source: 2014/2015 & 2016/2017 Annual Agriculture Sample Survey Report
According to the imports and exports data (2016) by UN COMTRADE, the amount of exports
of fruits was approx. USD 15 million, and processed products (like fruits juice）was USD 20.6
million. On the other hand, the amount of imports of processed products (fruits juice) was USD 4.6
million.
Table 3.5-7 Imports and exports of fruits and vegetables in Tanzania
Code Commodity Net weight
(kg) Trade
Value (US$)
701 Potatoes; fresh or chilled 100377 6957
702 Tomatoes; fresh or chilled 954001 88508
703 Onions, shallots, garlic, leeks and other alliaceous vegetables; fresh or chilled
5134516 2799182
705 Lettuce (lactuca sativa) and chicory (cichorium spp.) fresh or chilled
708 900
Category Crop Data 2014/2015 2016/2017
Fruits and Tomatoes Area ( '000' ha) 44.33 45.60
Vegetables Production ( '000' tons) 217.63 247.14
Cabbage Area ( '000' ha) 5.13 2.01
Production ( '000' tons) 14.77 18.06
Amaranth Area ( '000' ha) 4.91 23.29
Production ( '000' tons) 4.47 51.61
Cucumber Area ( '000' ha) 0.85** 1.59
Production ( '000' tons) 2.92** 5.20
Pumpkins Area ( '000' ha) 6.14 6.68
Production ( '000' tons) 23.10 5.55
Egg plant Area ( '000' ha) 1.46** 3.25
Production ( '000' tons) 3.60** 9.78
Onion Area ( '000' ha) 11.64 -
Production ( '000' tons) 24.34 -
Okra Area ( '000' ha) 12.71 10.94
Production ( '000' tons) 22.48 16.84
Yield (tons/ha)
Chilies Area ( '000' ha) 1.16 -
Production ( '000' tons) 1.61 -
Watermelon Area ( '000' ha) 7.30 14.59
Production ( '000' tons) 41.98 65.10
Rambutan Area ( '000' ha) 0.20 -
Production ( '000' tons) 0.14 -
Orange Area ( '000' ha) 26.83 21.38
Production ( '000' tons) 79.26 9.84
Mango Area ( '000' ha) 17.41 20.66
Production ( '000' tons) 32.56 78.43
57
Code Commodity Net weight
(kg) Trade
Value (US$)
707 Cucumbers and gherkins; fresh or chilled 30 6
708 Leguminous vegetables; shelled or unshelled, fresh or chilled
8063196 6345804
704 Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas; fresh or chilled
15000 5405
710 Vegetables (uncooked or cooked by steaming or boiling in water); frozen
4443488 1119938
709 Vegetables; n.e.c. in chapter 07, fresh or chilled
282301 788616
711 Vegetables provisionally preserved; (e.g. by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption
231 30
712 Vegetables, dried; whole, cut, sliced, broken or in powder, but not further prepared
47478486 65563023
713 Vegetables, leguminous; shelled, whether or not skinned or split, dried
160812673 92772683
714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content; fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith
473471 1782926
803 Bananas, including plantains; fresh or dried 899227 51105
804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens; fresh or dried
4395377 4836130
805 Citrus fruit; fresh or dried 0 1620428
806 Grapes; fresh or dried 600334 158415
807 Melons (including watermelons) and papaws (papayas); fresh
314692 293273
808 Apples, pears and quinces; fresh 17778 17567
811 Fruit and nuts; uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter
20714 6471
810 Fruit, fresh; n.e.c. in chapter 08 83664 89900
813 Fruit, dried, other than that of heading no. 0801 to 0806; mixtures of nuts or dried fruits of this chapter
107187 46207
814 Peel of citrus fruit or melons (including watermelons); fresh, frozen dried or provisionally preserved in brine, in sulphur water or in other preservative solutions
8528 25448
Source: UN COMTRADE database
58
In Tanzania a big percentage of fruits and vegetables lose the product values before being sold
at the markets, due to lack of appropriate storage and processing facilities.
Based on this situation, it is considered that there are possibilities to expand the income of
foreign currencies, though not only expanding consumption in the domestic market, but also
exporting processed products (fruit juice and frozen/dried/ canned vegetable & fruits, etc.）by fruits
and vegetable industrialization.
⑥ Cashew nuts
Cashew nuts are of the main cash crops in Tanzania, and according to the 2016/2017 Annual
Agriculture Sample Survey Initial Report, approx. 670,000 farmers are engaged in its production.
The major production areas are Mtwara, Lindi and Pwani.
Cashew nuts made in Tanzania are exported mainly to India and Vietnam. Tanzania exports
cashew nuts to India for processing. Tanzania lacks of enough facilities for removing shells and
skins. Therefore, India is the largest production and export country of cashew nuts in the world,
using their own methods of removing shells.
⑦ Sugar
According to the 2016/2017 Annual Agriculture Sample Survey Initial Report, approx. 60,000
farmers were engaged in producing sugar cane in Tanzania, and the total production amount is
446,708 tons in 2016/17.
According to the import and export of countries (2016) by UN COMTRADE, the amount of the
import of raw sugar was USD 119 million. Also, according to the Annual Report 2016/2017 of
Tanzania Bank, the production amount of processed sugar was 286,700 tons in 2016. Based on this
situation, there is a high possibility of lack of raw material (sugar cane) to satisfy the domestic
consumption of Tanzania.
It is considered that there are possibilities of gaining foreign currencies, through controlling the
import of raw sugar from other countries, expanding consumption of processed products (white
sugar) at the domestic market and the export to surrounding countries, by promoting sugar-related
industry.
⑧ Marine production
According to the Annual Fisheries Statistics Report 2016, the main marine products caught in
the outside sea are Carangidae, Lethrinidae, Haemulidae, Epinephelidae and Scombridae, and the
inland products are Clupeidae, Cichlidae, Centropomidae, Clariidae, Mochokidae, Cyprinidae and
Bagridae.
The marine products made in Tanzania are exported to European countries as well as consumed
59
domestically, and the total export amount was USD 257 million in 2016. It is considered that there is
a possibility of gaining foreign currencies through selling domestically and exporting to overseas,
due to the improvement of marine product processing technology.
Table 3.5-8 Imports and exports of marine product industry in Tanzania
Category 2012 2013 2014 2015 2016
Imports of fish/fish products for direct
human consumption(tons)
4,886 6,642 6,792 16,744 13,918
National fisheries production(tons)
(capture production)
373,214 375,160 365,974 362,645 362,595
Aquaculture production(tons) (Tilapia
&others)
3,629 2,978 3,809 3,633 5,677
Export of fish/fish production (tons) 41,394 38,574 43,284 41,059 39,691
Aquaculture export (tons) (mainly
prawns)
117 140 71 48 140
National fish consumption (tons) 340,217 346,066 333,221 341,914 342,358
Source: Annual Fisheries Statistics Report - 2016
The situation of foreign companies of agricultural products processing that are (3)
expanding businesses in Tanzania and its surrounding countries
The situation of Japanese companies 1）
According to the survey done by a private company9, there are 448 Japanese companies which
expanded their business into 54 countries in African Continent at the time of June, 2017. The country
with the largest number of Japanese companies is South Africa, followed by Egypt, Kenya, Morocco
and Nigeria. In Tanzania, there are 41 Japanese companies which have their local companies,
branches and expatriate office or local investing places.
Regarding agricultural, forestry and marine products, food and beverage, flowers, restaurants
and logistics, textiles/clothing/leathers as industries related to agricultural product processing,
Japanese companies with their local companies, branches, expatriate offices and local investing
place in eastern and southern African areas including Tanzania, are listed below.
According to the survey by JETRO10
, Tanzania is ranked 6th as a country with big potential in
the future (Top 3 countries have been Kenya Nigeria and South Africa in the last four years.) The
9"List of Japanese Companies in Africa Business 2017 Edition" Africa Business Partners 10“Survey on the current status of Japanese Companies expanding their business into Africa (2017)”, JETRO
60
listed reasons include rich resources like natural gas, stable economic development and the
possibility of growth, expansion of infrastructure demand related to electric power, water
management, mining and logistics, agricultural development and expansion of domestic demand
accompanied by the population increase.
Table 3.5-9 Examples of Japanese companies with businesses in Eastern and Southern African
Countries
Category Company name Location country
Business The East The South
Agriculture,
Forestry,
Marine
SAKATA SEED
CORPORATION
Uganda, Kenya,
Sudan, Tanzania,
Tanzania,
Madagascar,
Mauritius
Zambia, Zimbabwe、Swaziland, Nambia,
South Africa,
Botswana, Malawi,
Mozanbique,Lesotho
Production and sales of
seeds.
Vegetable seedling
company MayFord is
made a wholly-owned
subsidiary, it conducts
research, development and
production of seeds as
well as sales.
Established a
representative office in
Morocco in 2009 and in
2011 in Kenya. Sales by
using distributors in 21
countries in Africa.
Selectea* Uganda, Kenya,
Tanzania, Rwanda
S. Africa, Malawi
Direct import of tea from
all African countries,
selling in Japan
Eight-One Africa Malawi Manufacture and sale of
dried mango
Kanedai Namibia Crab fishery, processing,
import.
Joint venture plant in
Namibia
Nidaf-Japan Kenya,
Tanzania
S. Africa, Malawi Import and process of
cashew nuts and
Macadamia in Japan
Maruha-Nichiro S. Africa,
Namibia Crab and octopus imports.
Subsidiary Taiyo A & F
Co., Ltd. is a subsidiary in
South Africa and Namibia,
a representative office in
South Africa.
Food &
Beverage
Ajinomoto Kenya,
Tanzania
S.Africa,
Angola,Zambia,
Malawi
Production and sales of
“umami” seasonings and
processed foods. 2016
Capital and management
participation in African
food giant Promasidor and
expanded production and
sales base to South Africa,
61
Category Company name Location country
Business The East The South
Angola, Zambia, Malawi,
Kenya, Tanzania, Nigeria,
Ghana, Congolese people,
Algeria and Libya.
Suntory Beverage &
Food
Kenya S. Africa Beverage sales.
By acquiring
GlaxoSmithKline’s
beverage business in 2013,
it acquired a corporation
based in Nigeria, Kenya
and South Africa. Other
sales through bottling in 10
African countries
Nissin Foods
Products
Kenya Sale of instant noodles.
Established a joint venture
with the Jomo Kenyatta
University of Agriculture
and Technology in Kenya
in 2013. It imports and
sells instant noodles from
an Indian subsidiary and
are preparing to
manufacture in Kenya.
JAPAN
TOBACCO.
Ethiopia, Sudan,
Tanzania, South
Sudan
South Africa,
Zambia, Malawi Procurement of tobacco
raw materials, manufacture
of tobacco. It holds
Tanzania's rolled-up
cigarette manufacture
Tanzania Cigarette
company holds 75% stake.
Five factories in four
countries including Sudan,
South Sudan, Egypt.
Flowers
Plant
Classic Japan * Ethiopia, Kenya,
Tanzania
Roses, clematis etc.
imports. Flower import
trading company
Eating out
/Distribution
ZENSHO Holdings Uganda, Kenya,
Tanzania, Rwanda
Malawi Import and sale of fair
trade of coffee and tea.
Imported from Tanzania,
Kenya, Uganda, Rwanda,
Burundi, Congolese
people, Malawi.
Established Representative
Office in Tanzania 2012
Textiles ·
Clothing ·
Leather
IKEUCHI
ORGANIC*
Tanzania Import organic cotton
from Tanzania,
manufacture and sell
towels in Japan
Striped International
*
Ethiopia Production of T-shirts
etc.in t local factories in
Ethiopia to sell in Japan.
62
Category Company name Location country
Business The East The South
Smiley Earth * Uganda Import organic cotton,
cotton yarn from Uganda,
manufacture and sell
towels etc. in Japan
Taisho Boseki * Uganda, Sudan,
Madagascar
Zimbabwe Import organic cotton raw
cotton mainly from Egypt,
Uganda, Sudan,
Madagascar, Zimbabwe
etc., spinning and selling
Hiroki Ethiopia Manufacture and sale of
leather garments, bags, etc.
of Ethiopian sheep skin.
Factory in the country and
imports to Japan. A local
subsidiary was established
in 2013.
United Arrows * Kenya Present "Teget" fashion
brands made by African
artisans. Sale of various
articles from Kenya,
jackets from Burkina Faso
in all stores
Andu Amet Ethiopia Production and sales of
Ethiopian sheepskin bags.
Factory in the country and
it imports to Japan.
Subsidiary established in
2015
Lee Japan Uganda Manufacture and sale of
jeans using organic cotton
from Uganda.
RICCI
EVERYDAY
Uganda Production and sale of
bags with Ugandan fabric.
We have a factory in the
country and import to
Japan. Subsidiary
established in 2016
Source: "List of Japanese Companies in Africa Business 2017 Edition" Africa Business Partners
Note: * indicates the type of business with distributors, importers, and partners.
63
Situation of local and foreign companies 2）
Major companies related to food and agricultural processing in Tanzania are organized by JICA's
survey in 201411
, JETRO 's list of "Africa major companies" in the 2017 Africa partner company
survey and local hearing, shown below.
Table 3.5-10 Examples of food-related companies in Tanzania
Field Company name Location Number
of employees Brands · products etc.
General METL GROUP
(MOHAMED
ENTERPRISES TANZANIA)
100 thousand
people
(goal of2018)
Agricultural / food processing
industry / tractor / textile /
drinking water / edible oil /
soap / bicycle, etc.
AZAM (BAKHRESA
GROUP)
Flour, Maize Bran
Biscuits & Bakery Products
Soft Drinks, Fruit Juices
Ice Cream, Bottled Water
Grains Wella Highland Mbeya N.A Rice
Kimo Super Rice Mills Dodoma 4 名 Rice
Mbeya rice mill cluster Mbeya - Rice
AZANIA Wheat flour, Grains
Muzizima flour mil DSM 120 people Flour
Coast Millers DSM 100 people Flour
Edible oil Nyemo Dodoma 10 people Sunflower oil
Three Sisters Dodoma Dodoma 10 people Sunflower oil
Mt. Meru Millers Moshi 400
people
Sunflower oil
Mbeya sunflower producers
association
Mbeya - Sunflower oil
Murzah Oil DSM 874 people Edible oil
Dairy
products
Shambani Graduates Morogoro 27 people Milk, yogurt
Tan Diaries DSM 26 people Milk, yogurt, cheese
TANGA FRESH Dairy Products
ASAS Dairy Products
Meat Tanzania Meat company Dodoma 120 people Beef, mutton
Tandan DSM 33 people Pork, pork sausage
Sugar TPC Moshi 1,900 people Sugar
11
JICA, Data Collection Survey on Promotion of Agro-industry and Industrial Human Resource
Development in Tanzania, 2014
64
Field Company name Location Number
of employees Brands · products etc.
Other
Beverages
Gardeners Morogoro 14 people Fruit juice
Banana Investment Arusha 181 people Alcohol beverage
Tanzania Distillers DSM 180 people Wine, spirits
SAYONA Tanzania Beverages
Afritea and coffee blenders
(1963) ltd
480 people Afritea(tea),Africafe（ Instant
coffee）Simba tea（tea）Clover
(milk) /Vegeta (seasoning)
DABAGA 200 people Chai Bora/ tea/coffee
/DABAGA/sauce / Chutney /
Ketchup / Jam / Vinegar
Mek One General Traders 24 people
(Group:2,500
名)
Fruit juice (Ceres - South
Africa) / Fuel, lubricant (Shell
Global Gas - Kenya) / others
Source: JICA "Data Collection Survey on Promotion of Agro-industry and Industrial Human
Resource Development in Tanzania" 2014, JETRO "List of Major Companies in Africa - East Africa Edition -
(Uganda, Ethiopia, Tanzania)" Provisioned by EBS Associates in April 2018
65
Consideration for implementation of AIP project (4)
In order to implement the AIP pilot project, we evaluated 11 products that Tanzania’s
Government has positioned as a priority for the development of the industrial sector. Within these
selection, food oil and fruit processing were selected as the most viable options.
In the first field survey, Tanzania requested that the agricultural products in AIP should not be
limited to one. Based on the results of the study, in the second survey, we suggested cooking oil, fruit
processing and cashew nuts. In the 3rd field survey, further consultation with relevant organizations
was carried out and the results of the evaluation are shown below.
Chart 3.5-11 ：Result of the evaluation on potential agriculture and fishery sector for the project
Evaluation index
Candidate sector a b c D e
General
evaluation
Cotton and Clothing; ㇾ ㇾ
Milk and Dairy Products; ㇾ
Cooking Oil; ㇾ ㇾ ㇾ ㇾ ◎
Meat processing; ㇾ
Fruit Processing ㇾ ㇾ ㇾ ㇾ ◎
Cashew; ㇾ ㇾ ㇾ 〇
Sugar; ㇾ ㇾ ㇾ
Integrated paddy processing ㇾ ㇾ
Maize processing ㇾ ㇾ
Marine production ㇾ ㇾ ㇾ
Horticulture production ㇾ ㇾ
Where: a makes reference to the products included in Tanzanian government policy. b makes reference to those
products with a stable production and distribution volume. c means Tanzania domestic market is large / this product
is produced in Tanzania but also imported. d makes reference to those products that are expected to expand sales to
Tanzania's foreign markets (including Japan) e. makes reference to those products expected to utilize Japanese
companies' technologies.
Source: Study Team
Among the seven areas related to food processing which the government of Tanzania has
positioned as a priority industrialization field, fruit and vegetable processing has high potential to be
conducted in Bagamoyo area which is a candidate site for the pilot project. Bagamoyo is a place of
fruit production, including pineapple, which is expected to lead to greater market value domestically
and abroad by adding value of raw materials.
It is considered that there is a high possibility of management with the proposed AIP, given that
66
local companies are also more than 50 companies in scale.
In addition, the amount of sunflower production, as raw material and edible oil is increasing
every year. There is also a local company of a certain size, which, by improving and concentrating
processing technology, reduces palm oil that is currently highly imported and supplies it to the
national market.
As for cashew nuts, it is considered the most important cash crop in Tanzania. Currently raw
materials are exported to India and Vietnam, processed and re-exported here, but it is possible to
further improve the value of export through primary processing in Tanzania.
Study on project size and basic design 3.6
Premises of the study of the business scale (1)
In the above-mentioned BAGAMOYO SEZ MASTER PLAN, Bagamoyo SEZ maintenance
scale is set based on the economic growth rate of Tanzania based on the following three scenarios
(basic case, safety case, ambitious case).
This estimation is based on the economic situation as of 2008, and the economic growth rate is
10%, 8%, 12%, respectively. Is considered that this estimation is reasonable because the real
economic growth rate is stable, around 7% and the population growth rate is 3%.
Therefore, according to this survey, considering the intention of the government of Tanzania,
we will proceed to the examination based on the calculation of the basic case and the security
(corresponding to the fifth year). In other words, it is assumed that the AIP maintenance area is from
100 to 200 ha, the number of companies is from 50 to 100, and the number of workers is from 6,000
to 13,000.
Table 3.6-1： 3 cases of Bagamoyo SEZ maintenance scenario
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Table 3.6-2：Bagamoyo SEZ scenario project scale
Review of maintenance equipment in AIP (2)
Basic Concept 1）
The AIP project consists of developing a set of basic facilities necessary for the manufacture of
processed food products that can be sold not only in Tanzania but also in other countries, including
the neighbouring countries of Tanzania. Its main components are roughly classified into the
agricultural processing complex and the photovoltaic power generation equipment (solar panels and
battery system) that supply the electricity used in the housing complex. In addition, after the
construction of the AIP, the economic activities in the AIP area are assumed by the personnel and the
neighbouring residents employed in the factory. Therefore, with the concept of "creating attractive
AIP gathered by people", we will also consider complex facilities such as restaurants and modern
facilities such as electric buses in the region (Figure 3-10). The scheme of each installation is
organized as follows.
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Figure 3-4 Image of facilities structured for AIP project
General outline of facility maintenance 2）
We will maintain the following facilities related to agricultural product processing park
① General description of facilities development
・ Basic
infrastructure facilities
: Electricity, water, gas, access roads, etc.
・ Waste management
facilities
: Waste disposal facilities from each factory
・ Technology
training center
: Facilities to provide training to improve abilities for tenant
companies
・ Marketing services : Facilities to provide marketing information and ability
improvement for tenant companies
・ Food hygiene
management facilities
: Facilities equipped with food laboratories to support obtaining
authentications of TFDA and TBS
・ Storage facilities : Sharing facilities to store unprocessed agricultural products
and processed products
・ Model food
processing factories
：Food factory with most-advanced Japanese machineries
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② Solar power generation equipment
・ Solar panel : Solar panels to make possible of long-term power generation
with durability
・ Electric accumulator
system
: Electric accumulator system to realize reliable electric power
supply
・ Energy Management
System (EMS)
: System to realize electric power supply with stable quality
through effective control of solar panels and electric
accumulators
③ Other sites facilities
Consideration of AIP Basic design (3)
As mentioned above, based on the project scale that is expected on BAGAMOYO SEZ
MASTER PLAN, as AIP project scale, we considered three scenarios of 140ha、180ha、220ha. The
details of AIP maintenance are described in the following chart.
The facilities related to agricultural processing included in each scenario and other site facilities
share the same contents, but as the area is larger, the scale of solar power generating facility is bigger.
Details of financial review on each scenario are described in Chapter 5.
・ Complex facilities
(Farm Gate Mall)
: Facilities with shopping areas for AIP workers and neighbor
residents, restaurants, exhibition areas of products
manufactured within AIP
・ Others : EV buses for moving within the AIP , electronic money
system capable to use within AIP
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Table 3.6-3 Proposed ideas of maintenance general outline in different scale of AIP projects
Scenario 1 Scenario 2 Scenario 3
Total area 220ha 180ha 140ha
Detailed maintenance contents
①－1
Basic
infrastructure
facilities
Roads including storm water 12km 10km 8km
Water supply 3km 3km 2km
Waste water/sewerage line 3km 3km 2km
Effluent system 155ha 126ha 98ha
Power supply 155ha 126ha 98ha
Street lighting 155ha 126ha 98ha
Telecommunication 155ha 126ha 98ha
Waste treatment plant aprx.3ha aprx.3ha aprx.3ha
①－2
Other
facilities
Administration/Multi-purpose
Hall/ Farm Gage Mall aprx.2,0000m2 aprx.16,000m2 aprx.13,000m2
Labor & Training + Small Office
Complex aprx.5,000m2 aprx.4,000m2 aprx.3,200m2
Advanced Model Factory 3 2 1
②Solar
power
generation
system
Solar Panel 30 MW 25 MW 19 MW
Storage battery system
5 MWh 4 MWh 3 MWh
EMS System Structure
③ Other
site facilities
EV-bus system aprx.5 buses approx. 4 buses approx. 3 buses
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The image of AIP project is shown in Figure 3-5.
Figure 3-5 Image of facilities structured for AIP project
Solar power generation system (4)
The proposed facilities are planned to have a polar power generation system, battery system and
Energy Management System (EMS), as solar power generation plants to connect to the existing
electric wires. Regarding the procured materials and systems, it is planned as below:
System design conditions 1）
① Weather conditions
The following weather conditions for the planning and design of this solar power generation system
are:
・ Temperature
Annual average temperature ： 26℃
Max. temperature in the past ： 32.1℃
Min. temperature in the past ： 18.1℃
Outside design air
temperature
： 0℃～50℃
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・ Relative Humidity: RH 55-100%
② Overall system performance
The performance of the whole system was planned expecting to continue operation for more than 25
years through conducting appropriate maintenance.
The system holds the function that can stop the system safely, in case that ・
serious problems happen during normal operation
The system meets necessary international standards such as IEC standard. ・
Equipment and materials installed outdoors are planned to be anti-salt damage, ・
dust-proof and sand-proof.
System contents 2）
① Solar power generation system
ⅰSolar Battery modules
Types of solar cells constituting the solar cell module are crystal type (single crystal,
polycrystalline), thin film amorphous type silicon, cells using compounds, or composite type.
Each one has a different power generation efficiency, current-voltage characteristics, and
temperature-maximum output characteristics.
In order to ensure long-term performance and operation, the solar cell module adopted in this
project is a product conforming to the international IEC standards, also certified by
international certification body.
ⅱ Supporting frame
There are supporting frames of fixed type and movable type which can track solar light.
However, if we use the movable type, the amount of power generation increases, but the
building cost gets high and the unit cost of power generation increases. Also, since it needs
larger area to install than the fixed type, we are planning to use a fixed-typed frame in this
project.
ⅲ Connection box / current collecting box
The connection box / current collecting box shall consist of input/output terminals,
disconnecting switch, circuit breaker, reverse current preventing diode, lightning arrestor etc.
Considering that the installation site is close to the coastal area and also locates at a savannah
area, the connection box / current collecting box installed outdoors should be made of
salt-tolerant materials just as the gantry, with the carefully made structure which has feature of
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waterproof and prevention of small sand intrusion.
ⅳ Power conditioning system for solar cell module (PCS)
This PCS applies Japan's grid interconnection rules and shall have the following functions
Automatic operation / stop function
Maximum power follow-up control function
Single operation prevention function
Voltage increase suppression function
DC ground fault detection function
Grid interconnection protection function
Operation continuation function (FRT function)
Harmonic current suppression function
Communication with EMS function
Condition monitoring function
As PCS incorporates many electronic components as a control device, it is necessary to
sufficiently consider the management of temperature and humidity. In addition, as for the box
body of PCS installed outdoors, it is made of a material with salt resistance similarly to the cradle,
and it is structured in consideration of countermeasures against ingress of sand to the inside and
waterproof measures
② Electric management system
This solar power plant is planned to be connected to the existing distribution system, and
measures against system voltage and frequency fluctuations (countermeasures for short cycle
variation) and power peak shift countermeasures due to sudden change in generated power due to
change in solar radiation amount (Countermeasure for long cycle fluctuation). This electric
accumulator system consists of rechargeable batteries, PCS, Battery Monitoring Unit (referred to as
"BMU" below), etc.
ⅰRechargeable battery
As a storage battery, in recent years, many kinds (lead battery, lithium ion battery, sodium
sulfate (NAS) battery, redox flow batteries, etc.) have been developed and operated as storage
batteries. Since each storage battery has different characteristics, the type of storage battery is not
specified in this project in particular. However, since disposal of the replaced storage batteries is
accompanied by a large environmental burden, we choose those that have established the disposal
method or can guarantee the take-off disposal by the manufacturer.
74
When installing storage batteries (including PCS for storage battery and BMU), it is necessary
to carefully control the temperature, humidity, dust, etc., so it is installed in the building (or within
the container)
ⅱStorage battery PCS
PCS has a function of charging and discharging the storage battery according to a command
from the EMS and having a response speed sufficient for quickly canceling solar power generation
output and short cycle fluctuation of the system.
ⅲ Battery Monitoring Unit (BMU)
The BMU was planned as an object to monitor the charge / discharge state of the storage battery,
PCS for storage battery, conditions such as voltage, current, temperature, etc, to efficiently operate
the storage battery system and to support maintenance management such as display of abnormal
parts
③ EMS (Energy Management System)
EMS has a communication function with PCS for solar cell module, PCS for storage battery,
and BMU, and has a system design that can realize integrated control of solar power generation
system and storage battery system.
In addition, as a maintenance support function, it was planned to detect failure or abnormality
of each system and to provide a maintenance function of the storage battery based on information
from the BMU.
④ Weather observation equipment
Solar power generation changes its power generation amount depending on weather conditions.
We planned weather observation equipment necessary for collecting weather data necessary for
verifying the correlation between weather conditions and power generation.
⑤ Grid interconnection protection function
If abnormality occurs in this solar power generation system and system side, it must detect this
and stop the operation of the system promptly. In addition, it is necessary to reliably detect
independent operation in any driving situation and immediately stop the operation of the system. For
this reason, the grid interconnection protection device in the photovoltaic power generation system is
to be established according to Japan's "grid interconnection technology requirement guidelines for
ensuring electric power quality" and "grid interconnection rules".
75
⑥ Measures against lightning
Measures against lightening are aimed at protecting facilities and equipment of this solar power
generation plant from lightning surge due to direct lightning strikes
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Environmental and social aspects Chapter4.
Policies, laws, and regulations related to environmental and social 4.1
considerations
Overview of policies, laws, and regulations related to environmental and social (1)
considerations
The policies, laws, and regulations related to environmental and social considerations that are
prescribed in Tanzania are shown in Table 4.1-1. An overview of the particularly important laws and
regulations is described below.
Table 4.1-1 Policies, laws, and regulations related to environmental and social considerations
Category Name Year of establishment
Policy
National Environmental Policy 1997
National Forest Policy 1998
National Water Policy 2002
Wildlife and Wetland Policy 2007
Agriculture and Livestock Policy 1997
National Land Policy 1995 (revised in 1997)
National Tourism Policy 1998
National Human Settlements
Development Policy 2000
Construction Industry Policy 2003
National Gender Policy 2002
Women and Gender Development
Policy 2000
Laws and regulations
Environment Management Act 2004
The Environmental (Registration of
Environmental Experts) Regulations 2005
Strategic Environmental
Assessment Regulations 2008
The Environmental Impact
Assessment and Audit Regulations 2005
National Environmental Standards 2005
77
Category Name Year of establishment
Forestry Act 2002
Wildlife Conservation Act No.5 2009
The Land Act 1999
Village Land Act 1999
The Land Regulations 2001
The Land Use Planning Act 2007
The Land Acquisition Act 2002
The Graves Removal Act 1969
Water Resources Management Act 2009
The Urban Planning Act 2007
The Road Act 2007
The Occupational Health and Safety Act 2003
Fisheries Act 2003
Source: "Tanzania Environmental and Social Consideration Profile" Prepared by JICA Study Team
on 2011
Environmental laws and regulations related to this project in particular (2)
① Environment Management Act
The Environment Management Act was enacted in 2004 as a revision of the National
Environmental Management Act, 1983 as the basic law for environmental conservation in Tanzania.
This law comprehensively prescribes legal systems and implementation systems for purposes
including pollution prevention, waste management, establishment of environmental standards, and
citizen participation in environmental conservation in an aim for sustainable environmental
management.
Environmental impact assessments are prescribed in this law, and all businesses have an
obligation to conduct an environmental impact assessment if they are conducting a development
project before the start of the project.
② The Environmental Impact Assessment and Audit Regulations
This law prescribes the procedures for the implementation of environmental impact assessments
(EIA) as an important policy aimed at appropriate environmental management and the sustainable
use of the natural environment in Tanzania. Specifically, it indicates matters including the procedures
for approval applications, projects that require an EIA, and the assessment items and matters that
78
should be included in an EIA. Note that both the energy and food and beverage industry categories
in this AIP business fall under Type A under this law, so an EIA needs to be conducted for this
project.
③ The Land Act
This is a basic law on land that prescribes matters such as land management and arbitration for
land disputes for land other than village land. This law comprehensively prescribes matters related to
land use and land ownership including land use classifications, land management procedures, land
occupancy rights, and land lease agreements. Although land expropriation has been completed in the
candidate sites for the implementation of this project, it could be necessary to conduct procedures in
accordance with this law in some cases.
Practical procedures in environmental impact assessments 4.2
Environmental management related organizations (1)
The Environment Management Act prescribes the following related organizations that are
responsible for environmental management in Tanzania.
Table 4.2-1 Environmental management related organizations
Name Role
Minister Responsible for
Environment
Responsible for issues related to the environment and policy
guidelines overall that are enacted for sustainable environmental
management in Tanzania.
National Environmental
Advisory Committee
Provides advice related to environmental conservation management
to Minister Responsible for Environment and other related
ministries and institutions. It is formed of experts with experience
in diverse environmental conservation fields in the private and
public sector and civic organizations.
Director of Environment
Makes arrangements for various environment-related activities,
provides advice to the government related to international
agreements, and issues reports related to the environment in
Tanzania.
79
National Environnent
Management Council
(NEMC)
Responsible for the implementation of environmental impact
assessment (EIA) screening and monitoring, promotion of private
sector participation in decision-making related to the environment,
and supervision of and adjustments for environmental related
matters prescribed as the role of the council.
Sector Ministries
Sector Ministries fulfill environment-related functions and
responsibilities in each ministry based on the Environment
Management Act and other related laws through the Sector
Environmental Section established in each ministry.
Regional Secretariat
A Regional Environmental Management Expert assigned by the
Minister Responsible for Environment is assigned to local
governments and provides advice on matters related to the
implementation of the Environment Management Act.
Local Government Authorities
Environment Management Officer is assigned to each prefecture,
city, and town, and provides advice on the environment to the
Environmental Conservation Committee.
Source: Environmental Management Act (2004)
Procedures relating to EIA implementation (2)
It is necessary to take the following 9 steps for the EIA.
Table 4.2-2 Procedures relating to EIA implementation
Contents of
procedures
Details Time required
1. Registration Submit the application for EIA certificate
issuance and the Preliminary Environmental
Assessment Registration Form to NEMC. The
application fee is TZS 70,000 (approximately
USD 35).
‐
2. Screening Submit three copies of the application form and
ten copies of the project brief to NEMC. The
contents of the project brief must comply with the
EIA and Audit Regulations of 2005.
Approved by the Council
within 45 days from the
date of submission.
80
3. Scoping Contract an environmental expert/EIA consultant
to prepare a Scoping Report and Terms of
Reference (TORs) for conducting the
Environmental Impact Assessment (EIA), and
submit them to NEMC for review and approval
before the commencement of the EIA study.
TORs are approved by
the Council within 14
days from the date of
submission.
4. Environmental
assessment
Conduct EIA study (by the consultant) according
to the approved TOR and adhere to the
Environmental Management Act and The
Environmental Impact Assessment and Audit
Regulations.
‐
5. Review Submit an Environmental Impact Statement (EIS)
to NEMC for review by a Cross-sectoral
Technical Advisory Committee (TAC).
The Council shall, within
60 days following
submission of EIS carry
out its review.
6. Recommendations of
the TAC
The consultant will make improvements of the
EIS by incorporating all comments and
recommendations raised by the TAC.
‐
7. Submission to the
Minister for
Environment
The consultant will submit the improved (final)
version of the EIS to NEMC for final scrutiny.
The NEMC will forward recommendations to the
Minister for Environment for final approval.
‐
8. Approval of the EIS Upon approval by the Minister, it will be returned
to NEMC.
The Minister will
approve or disapprove
the EIS within 30 days of
submission.
9. Issuance of EIS
Certificate
The EIS Certificate will be issued with the
general and specific conditions that must be
adhered to.
Source: NEMC, Procedures for Carrying out Environmental Impact Assessment and Environmental Audit
Procedures relating to SEA implementation (3)
In Tanzania, a Strategic Environmental Assessment (SEA) is conducted in advanced of the EIA
as prescribed in Article 104 and 105 of the Environmental Management Act. A SEA is conducted in
the following seven steps according to the SEA Guidelines that were enacted in 2017 by the Director
81
of Environment.
① Screening: Verification of the necessity for a SEA
② Scoping and TOR creation: Verification of the scope covered by SEA, creation of detailed
TOR, submission to and approval by the Director of Environment
③ SEA report draft creation: Assess environmental impact and create an SEA report draft.
④ Public consultation: Gather opinions on the SEA results through a stakeholder’s workshop,
and submit a SEA report draft that has been revised based on these opinions to the Director
of Environment.
⑤ Revision of SEA report draft: Submit the final SEA report that has been revised based on
comments from the Technical Assessment Committee to the Director of Environment.
⑥ Approval of the SEA report: The SEA report is approved by the Minister Responsible for
Environment.
⑦ Monitoring: Conduct monitoring so that there is no major environmental damaged in the
approved policy, plan, project, etc.
Analysis of current environmental and social conditions 4.3
Current state of natural environment in the Bagamoyo SEZ studied by this project (1)
The grounds of the Bagamoyo SEZ are covered with herbaceous plants and a sparse distribution
of shrubs. Tree species that residents find useful include coconut (Cocos nucifera), mango
(Magnifera Indica), cashew nut (Anacardium occidentale), neem (Azadirachta indica), and ebony
(Diospyros crassiflor). In addition, there is a wide variety of vegetation in the valley along the river,
and mangrove forests cover the coastline for 100 km. It is inhabited by animals including birds, deer,
monkeys, dogs, livestock, and snakes Marine organisms can also be seen in coastal areas around the
mangrove forests, where local residents fish for and sell shrimp (Penaeus monodon, P. indicus), crab
(Scylla serrata), and fish.
The Bagamoyo SEZ contains a total of 1,200ha of land that has not been developed because it
is not suitable for building houses, and this land includes swamps, ponds, saltpans, mangrove forests,
lowland, and small rivers. While there is also a small forest reserve, there have been no reports that it
is inhabited by endangered species.
82
Mangrove forests next to the sea
Vegetation in the Bagamoyo SEZ
Current state of the social environment in the Bagamoyo SEZ studied by this (2)
project
The land use conditions (as of 2013) in the Bagamoyo SEZ are displayed in Figure 4-1. There
are five main villages, Zinga and Kiromo that are located along the main road to Bagamoyo Town,
and Pande, Kondo, and Mlingotini that are located along the seaside. Although commercial activities
are not very active in the area, at least 80% of the residents living in area are involved in agriculture.
They grow maize and cassava as subsistence crops and coconuts, cashew nuts, and mango as cash
83
crops. Resettlement from the Bagamoyo SEZ grounds has been gradually underway, and
resettlement is already completed at the AIP project planned site. While there is still land that seems
to be being used as agricultural land, because this is only a very small part of the land scheduled for
development, it is not likely that problems with residents will occur in the future.
Source: BAGAMOYO SEZ MASTER PLAN
Figure 4-1 Land use conditions in the Bagamoyo SEZ (as of 2013)
AIP
project
candidate
site
84
Source: BAGAMOYO SEZ MASTER PLAN
Figure 4-2 Bagamoyo SEZ infrastructure development plan
AIP project planned site
85
Expected impact from P4F project implementation 4.4
The Tanzanian Government already conducted the preliminary environmental and social
assessment and strategic environmental assessment (SEA) when the BAGAMOYO SEZ MASTER
PLAN was created and revised.
In addition, expected impact from project implementation was also considered in light of the
details of the project being proposed. The environmental checklist based on the JICA Guidelines for
Environmental and Social Considerations is shown in the appendix.
Pollution control measures and impact on the natural environment (1)
During the construction of AIP 1）
① Air pollution
There is a possibility of air pollution from the operation of construction machinery and the
conveyance of materials through construction vehicles, etc. at the time of AIP construction. Because
the project site is located away from housing areas, air pollution could mainly have an impact on
construction workers, and sufficient countermeasures are necessary.
② Noises and vibrations
There is a possibility of noises and vibrations from the operation of construction machinery and
the conveyance of materials through construction vehicles, etc. at the time of AIP construction.
Because the project site is located away from housing areas, noises and vibrations could mainly have
an impact on construction workers, and sufficient countermeasures are necessary.
③ Water pollution
There is a possibility that during the excavation of soil, the occurrence of turbid water from
water erosion to embankments, fuel leaks during the operation of construction machinery, etc.
happens at the time of AIP construction causing pollutants to flow out into rivers and coastal areas.
Appropriate treatment of the turbid water that occurs is necessary.
④ Soil degradation
Excavation and soil preparation will be conducted to improve roads and canals, and at that time,
soil degradation could be caused by fuel leaks from construction machinery. In addition, soil
degradation could advance from alterations to the ground surface.
86
⑤ Protected areas
The 9,800 ha covered by BAGAMOYO SEZ MASTER PLAN are located along the coast and
include mangrove forests. In addition, there is a small forest reserve located in Mbegami in the
northeastern part of Bagamoyo SEZ. Although the AIP candidate site in this proposal is located away
from this protected area, it is necessary to take sufficient care while taking into consideration the
impact development of existing green areas can have on the local ecosystem.
⑥ Fauna & flora
The presence of the endangered species in the area covered by this project has not been reported.
However, the removal of shrubs and bushes and alterations to existing vegetation due to soil
preparation could have an impact on fauna & flora.
After implementation of the project 2）
① Air pollution
There is a possibility of air pollution from an increase in transport vehicles from the start of the
AIP project. Because the project site is located away from housing areas, air pollution could mainly
have an impact on AIP workers, and sufficient countermeasures are necessary.
② Noises and vibrations
There is a possibility of noises and vibrations from an increase in transport vehicles and plant
operation from the start of the AIP project. Because the project site is located away from housing
areas, noises and vibrations could mainly have an impact on AIP workers, and sufficient
countermeasures are necessary.
③ Water pollution
Although wastewater will be generated from the operation of plants from the start of the AIP
project, because each plant is obligated to conduct appropriate treatment and centralized treatment
will be conducted by the AIP before discharge to rivers, etc., the impact will be limited.
④ Climate change and transboundary pollution
Greenery that absorbs CO2 will be reduced as a result of AIP construction. In addition, CO2
emissions from fuel consumption will occur when plants are operated as a result of the start of the
AIP project. On the other hand, it is expected that it will be possible to control CO2 emissions from
energy use through the introduction of solar power and battery system, particularly during the day.
The details are described in 4.5.
87
Impact on the social environment (2)
① Resettlement
The AIP site has been acquired by EPZA, so there will be no new resettlement.
② Employment
The employment of construction workers can be expected from AIP construction. The
revitalization of the regional economy can be expected from the start of the AIP project.
③ Land use
The authorization of the Tanzanian Government has already been received for use of the AIP
site as an SEZ site, and the development master plan has also been formulated. The current greenery
and uncultivated land will be converted into land for industrial and commercial use along with AIP
construction.
④ Water resources
A certain amount of industrial water supply will be required along with AIP construction and
the start of the project. In the area surrounding the project site, a pipeline that supplies water from
the Ruvu River basin that is managed by DAWASA to the northern part of Dar Es Salaam has been
developed up to the Bagamoyo SEZ site. The future plan is to use the water from the current pipeline
combined with ground water to supply the water according to demand at the SEZ site, and
appropriate management and use of water resources is necessary.
⑤ Historical and heritage sites
The Bagamoyo SEZ is an area with high historical cultural values including the Kaole
archaeological site in the northeastern part, and use as a tourism resource can be expected.
Meanwhile, differing tribes at towns including Zinga, Kiromo, Pande, Kondo, and Mlingotini in the
SEZ have their own cultures and customers and it is necessary to make efforts to safeguard their
holy sites. Because their holy sites including burial grounds are not clearly displayed, sufficient care
is required at the time of development.
⑥ Gender recognition
As described above, new employment in the region can be expected from the AIP project.
Opportunities for employment and capacity building for women are particularly emphasized in the
BAGAMOYO SEZ MASTER PLAN. Women will be able to work not only at plants in the AIP, but
also at small businesses (restaurants, retail stores, etc.) during the AIP construction project period, as
well as businesses for AIP employees after the start of AIP operations (restaurants, retail stores,
washing, cleaning, etc.), and it is expected that they will be able to increase their income and skills in
88
this manner.
⑦ Infectious diseases, etc. (HIV/AIDS)
With the influx of workers from other regions at the time of AIP construction and the start of
the project, there will be a possibility of the outbreak of infectious diseases. During the construction
period, the appropriate health management of construction workers will be necessary, and after the
start of the AIP project, appropriate pest control activities will be necessary, including encouraging
businesses to implement health management for plant workers.
Environmental Benefit from the project implementation 4.5
Because it is assumed that power generated from a solar power system will be used in this
project as a substitute to grid power from fossil fuels, a reduction in greenhouse gas emissions can be
expected.
On the other hand, it is also necessary to take into consideration the impact from the reduction
in existing green areas from AIP development.
[Calculation of reduction in greenhouse gas emissions]
Baseline annual emissions (BEY) is that amount of greenhouse gas emissions generated from
grid power from fossil fuels in Tanzania.
The scale of the solar power generation system that introduction is being considered for through
the AIP is about 20 to 30MW. Based on the calculation formula for the annual expected
electricity output indicated in the Solar Power Generation System Introduction Guidebook from
the New Energy and Industrial Technology Development Organization (NEDO), electricity
output of approximately 28,000MWh from a 20MW solar power generation system is expected
in Tanzania (reference formula 1). In addition, a reduction of greenhouse gas emissions by
approximately 14,000tCO2/year can be expected from the use of power gained through solar
power generation.
[Reference formula 1]
Ep ＝H×K×P×365÷1
Ep : annual expected electricity output (kWh/year)
H : average amount of solar radiation per day on installed surface
(kwh/m2/day)
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K : loss coefficient (approximately 73%)
P : system capacity (kW)
365 : number of days per year
1 : solar radiation intensity in standard state (kW/m2)
Accordingly, the annual electricity output (Ep) that can be gained from a 20MW solar power
generation system in Tanzania is calculated as follows.
Ep ＝5.22* (kWh/m2/day)×73% ×20,000(kW) ×365 ÷1
≒28,000 (MWh)
*Refer to “Surface Meteorology and Solar Energy” (NASA)
Because power generated from a solar power system will be able to substitute for grid power
from fossil fuels, the amount of reduction in greenhouse gas emissions can be calculated
through [reference formula 2]
[Reference formula 2]
BEEN,y ＝BE elec,y＝EGｙ×EFelec
BE elec,y : baseline annual emissions from power generation
(tCO2/year)
EGy : annual electricity output from solar power generation
(MWh)
EFelec : power emission factor (tCO2/MWh)
BEEN,y ＝BEelec,y
＝28,000(MWh)×0.502※
(tCO2/MWh)
≒14,000(tCO2)
*Refer to “J-MRV Guidelines July 2016” (JBIC)
Meanwhile, the impact from the reduction in existing green areas at the time of construction can
be estimated from the change in the carbon accumulation, and calculated according to [formula
3].
[Reference formula 3]
CLB = BTotal × A × CF × 44/12
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BTotal = BAG + BBG
BBG = BAG × R
CLB : carbon accumulation per unit area for green areas, etc. (tCO2/year)
A : area of green areas, etc. (ha)
CF : carbon content of trees in green areas, etc. (t-C/t-dm)
(Default value: 0.5, from IPCC GPG-LULUCF)
BTotal : total biomass in green areas, etc. (t-dm/ha)
BAG : above-ground biomass in green areas, etc. (t-dm/ha)
BBG : below-ground biomass in green areas, etc. (t-dm/ha)
R : ratio of below-ground biomass to above-ground biomass
(below-ground/above-ground)
CLB = BTotal × A × CF × 44/12
= 6.2(t-dm/ha) × (1+0.5*) × 180(ha) × 0.5* × 44/12
≒3,069 (tCO2/year)
*Refer to "LULUCF Good Practice” (IPCC)
Based on the above, if the impact from the reduction in existing green areas at the time of
construction is subtracted from the effect of the substitution of grid power from fossil fuels with
solar power generation, the reduction in greenhouse gas emissions for the final proposed project
is as follows.
PEEN,y ＝BEEN,y ―CLB
＝10,987 (tCO2/year)
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Parameter Description Value Unit Source
A Land area of organic soils 120 ha Study team
BAG Above ground biomass Tropical moist &
wet
6.2 t-dm/ha Table 3.4.2, IPCC
GPG-LULUCF
R Root-to-shoot ratio Woodland/savanna 0.5 Table 3.4.3, IPCC
GPG-LULUCF
CF Carbon fraction of dry matter Default value 0.5 t-C/t-dm IPCC
GPG-LULUCF
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Financial Viability Chapter5.
Project cost estimation 5.1
The estimated costs for the implementation of this project are shown in the table below. These
costs have been calculated in reference to the “Infrastructure and utility costs” indicated in the
BAGAMOYO SEZ MASTER PLAN. We also considered the cost for the development of 180ha
AIP in Bagamayo SEZ. Please take these amounts as reference only.
Table 5.1-1 Breakdown of project development costs (180ha)
Facility overview Cost
(Million USD)
(1) Critical infrastructure development
(Roads, drainage facilities, water supply and sewerage systems, power
supply, streetlights, communication lines, and sewage treatment
facilities in the AIP)
51.5
(2) Solar power generation system (25MW) 29.2
(3) Others facilities in the AIP
(Model food plant, EV buses, security systems, etc.)
15.5
Contingency - ((1) + (2) + (3) × 5%) and facility supervision costs ((1) + (2)
+ (3) × 8%)
12.5
Total 108.7
Preliminary financial analysis 5.2
Initial Conditions (1)
The financial analysis considered the following conditions:
① Land expropriation/resettlement
Expropriation by the Tanzanian Government is a condition for the AIP development land, and
this project does not include any costs for land expropriation or resettlement.
② Industrial park lease/sales price
The assumed lease/sales price indicated in the BAGAMOYO SEZ MASTER PLAN of USD
115/m2 was used.
③ Power supply from solar power generation system
No power sales will be conducted using the power generated from the solar power generating
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system, and it will be used for in-house consumption in the AIP. Note that while the amount
of power generated is as described above, it has been assumed that power generation
efficiency will decline by 1%.
④ AIP occupancy rate
An occupancy rate of 100% by business tenants is expected by year five.
Calculation of financial internal rate of return (FIRR) (2)
As a preliminary financial analysis, the financial internal rate of return (FIRR) was calculated
for the purpose of assessing the profitability of the project itself, regardless of the business scheme
and funding scheme. It is possible to consider the efficiency of the capital invested in the project
based on the results of FIRR calculation.
The results of FIRR calculation are indicated in the Table below.
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Table 5.2-1 FIRR calculation results (development of 180ha)
FIRR = 13.1%
(mil USD)
Year Costs Benefits Net
Invest O/M Total sale solar Total Cash
Flow
2018
2019 0.0
1 2020 21.8 21.8 -21.8
2 2021 27.2 27.2 0.0 -27.2
3 2022 43.5 43.5 0.0 -43.5
4 2023 16.3 1.1 17.4 42.9 2.8 45.7 28.3
5 2024 1.1 1.1 28.6 2.8 31.4 30.3
6 2025 1.1 1.1 28.6 2.7 31.4 30.3
7 2026 1.1 1.1 28.6 2.7 31.3 30.2
8 2027 1.1 1.1 14.3 2.7 17.0 15.9
9 2028 1.1 1.1 2.7 2.7 1.6
10 2029 1.1 1.1 2.6 2.6 1.6
11 2030 1.1 1.1 2.6 2.6 1.5
12 2031 1.1 1.1 2.6 2.6 1.5
13 2032 1.1 1.1 2.6 2.6 1.5
14 2033 1.1 1.1 2.5 2.5 1.4
15 2034 1.1 1.1 2.5 2.5 1.4
16 2035 1.1 1.1 2.5 2.5 1.4
17 2036 1.1 1.1 2.5 2.5 1.4
18 2037 1.1 1.1 2.4 2.4 1.3
19 2038 1.1 1.1 2.4 2.4 1.3
20 2039 1.1 1.1 2.4 2.4 1.3
21 2040 1.1 1.1 2.4 2.4 1.3
22 2041 1.1 1.1 2.3 2.3 1.3
23 2042 1.1 1.1 2.3 2.3 1.2
24 2043 1.1 1.1 2.3 2.3 1.2
25 2044 1.1 1.1 2.3 2.3 1.2
26 2045 1.1 1.1 2.2 2.2 1.2
27 2046 1.1 1.1 2.2 2.2 1.1
28 2047 1.1 1.1 2.2 2.2 1.1
29 2048 1.1 1.1 2.2 2.2 1.1
30 2049 1.1 1.1 2.2 2.2 1.1
108.8 29.4 138.2 143.0 209.7 71.5
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Results of the financial analysis (3)
An overview of the results of the financial analysis for this project is shown below. Note that
the discount rate of 6% indicated in the BAGAMOYO SEZ MASTER PLAN will be used and future
inflation rates will not be taken into consideration.
Table 5.2-2 Results of financial analysis (180ha)
Analysis items Results
IRR 13.1%
NPV USD 25,559,000
B/C 1.2
Year of recovery of
investment
Year 7
The results of financial analysis for this project show that the IRR and NPV are positive, and
the B/C is at least 1. In addition, because the recovery of investment period is within 10 years, the
project can be correctly eligible as a target for investment.
However, taking into consideration the geographical distance from Japan and Tanzania’s
country risk, it is not likely that this project would be viewed as a project for private sector
investment based on this financial assessment.
Sensitive analysis (4)
As described above, it has been confirmed that the project can be considered as an investment
project based on general conditions (this will be the base case). However, because of the existence of
the risk of an increase in development costs for the project, a sensitivity analysis to fluctuations in
the development cost was conducted. In this analysis multiple scenarios were considered taking into
consideration different development scale and AIP occupancy rate.
① Analysis based on differences in development costs
The FIRR was analyzed for cases in which development costs are decreased by 10%,
increased by 10%, and increased by 20%.
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Table 5.2-3 Analysis based on differences in development costs
Differences in
development costs
FIRR
10% decrease 16.7%
Base case 13.1%
10% increase 10.1%
20% increase 7.6%
As a result of the analysis, it was found that if project development cost increase by 10%,
the FIRR would increase by 10%, but if development costs increase by 20%, the FIRR would
fall below 8%, making it not appropriate as an investment project.
② Analysis based on differences in scale of development
In terms of development scale, FIRR was analyzed for scenarios in which the scale is 40ha
larger (220ha) and 40ha smaller (140ha) than in the base case of 180ha.
Table 5.2-4 Analysis based on differences in scale of development
Differences in scale of
development
FIRR
140ha (-22%) 12.8%
180ha (base case) 13.1%
220ha (+22%) 13.5%
As a result of the analysis, it was found that while the FIRR will increase as the scale of
development is larger, the scale of development does not contribute significantly to the rate of
return.
③ Analysis based on differences in the occupancy timing.
The FIRR was analyzed for scenarios assuming that the occupancy rate would reach 100%
in 5 years (base case), 7 years, and 10 years.
97
Table 5.2-5 Analysis based on differences in the occupancy timing.
Differences in
development timing
FIRR
100% occupancy in year 3 26.8%
100% occupancy in year 5
(Base case) 13.1%
100% occupancy in year 7 10.6%
100% occupancy in year 10 9.2%
As a result of the analysis, it was found that because the impact of the AIP occupancy
timing on profitability is relatively high, promptly improving the AIP occupancy rate is
important for improving the profitability of the project.
98
Project implementation schedule Chapter6.
The implementation schedule of this project will differ depending on the scheme used and the
project details, especially because in a large-scale project like this, construction activities are
conducted after the preparations of the detailed design and the selection and procurement of
construction vendors through competitive bidding, and subsequently permanent operations and
management is conducted.
Assuming that this project is conducted using a yen loan, the future action required by
Tanzania’s Government and the assumed time frame for these actions are shown in Figure 6-1 and
described in Table 6.1-1 below.
Figure 6-1 Project implementation schedule (planned)
99
Table 6.1-1 Overview of assumed activities and time frame
Activity Activity details Time frame
Financing ・ Study of different funding sources by local
government institutions such as MoFP
and MIT
・Adjustments with donor countries or international
cooperation organizations, etc.
・Preparation of inspection documents for financing
・Assistance request
Less than 1 year
Design and
construction
・Implementation of F/S
・Selection of consultants
・ Creation of bid documents for selection of
construction vendor, implementation of bidding
・Construction
・ Establishment of AIP operations structure and
technical cooperation
2 to 3 years
Start of AIP
operations
・Start of operations Semi-permanent
Because the financing phase includes a series of processes from the completion of the survey
project to the start of the project such as consensus building among the relevant agencies,
preparation of documents and assistance request for funding, inspections by International
Cooperation Agencies, Development Bank, etc., and the signing of loan contracts, at least
approximately one year would be necessary.
100
Implementation capacity of the executing agency by Chapter7.
Tanzania
Outline of the operation agencies in Tanzania 7.1
The following 11 Tanzanian organizations have potential to be executing agencies for this
project.
① Ministry of Industry and Trade (MIT)
MIT mission is to promote industrial development and promote commerce and investment.
The agency aims to establish a vision of "creating a strong and competitive industrial base
that contributes to integral and sustainable economic growth". The Export Processing Zone of
Tanzania (EPZA), the Tanzanian Investment Center (TIC), the National Development
Corporation (NDC), the Industrial Research and Development Organization, Tanzania
(TIRDO) and also the Small Industry Development Organization (SIDO) are under MIT
jurisdiction.
② Tanzania Export Processing Zone Agency (EPZA)
EPZA is a government agency established in 2007, under Section 12 of the Export
Processing Areas Act, with the purpose of promoting investment in the Special Economic
Zone (SEZ) and Export Processing Zones (EPZ) in the mainland of Tanzania. Within the SEZ,
investments towards the development of industrial parks, free trade zones, export processing
zones, technology parks, etc. are expected. Around 20 EPZ/SEZ development sites including
Bagamoyo SEZ and Morogoro SEZ are insured throughout Tanzania. In order to attract
monetary investments to the EPZ/SEZ, various incentives are offered to investors, such as
reduction of corporate taxes, taxes on imports and more.
③ Ministry of Agriculture (MoA)
MoA is an administrative agency that provides quality services to the agricultural sector,
strengthening the capacity of local governments and contributes to sustainable agricultural
production by the private sector.
④ Ministry of Livestock and Fishery Development (MLFD)
MLFD is an administrative agency responsible for the general activities of the fisheries and
livestock sector, such as the formulation of policies, the monitoring of livestock and fishing
101
producers, infrastructure development, research activities, etc.
The agency has a vision towards the "Development of jobs, the lives of people, national
income, food security and the sustainable commercialization of the livestock and fisheries
industry". In addition, work is being done to strengthen the capacity of local governments to
use sustainable livestock and fisheries resources.
⑤ Tanzania Investment Center (TIC)
TIC is a Government agency established under the Investment Law of Tanzania in 1997. Its
objective is to improve the regional competitiveness of Tanzania as an investment destination
for foreign and domestic investors interested in Africa.
TIC established a one-stop service in order to assist investors and provide registration
support for companies and assist with the process of obtaining various business permits and
licenses. In addition, promotional activities for investments are being implemented and
carried out by the board of related policies of the government of Tanzania.
⑥ National Development Corporation (NDC)
Founded in 1962, NDC originally called the Tanganyika Development Corporation (TDC),
is an institution established to take over businesses under the jurisdiction of the Colonial
Development Cooperation (CDC) founded in 1950. NCD is the only government-affiliated
organization in the world where Tanzania can establish joint ventures with private companies,
and the mission is to contribute to Tanzanian industrial development through a partnership
with private sectors.
⑦ Tanzania Industrial Research and Development Organization (TIRDO)
TIRDO is an organization affiliated with Tanzanian Government in 1979 with the aim of
strengthening the industrial competitiveness of Tanzania. Under the association of the national
manufacturing industries, research, development and technical training of industrial products
carried out using local materials. In addition, are listed as "previous research topics" such as
agricultural product processing technology and "renewable energy".
⑧ Small Industries Development Organization (SIDO)
SIDO is a Government affiliated organization established in 1973 to promote SMEs. The
organization provides technical training, management guidance and financial services
necessary for business management of small and medium enterprises in Tanzania. In addition,
SIDO has created and is operating industrial parks for small and medium enterprises within
small districts of each region. The organization focuses on improving the business
102
environment using commercial site loans that are cheaper than market price and is also
working on the development of industrial groups.
⑨ Tanzania Food and Drug Administration (TFDA)
TFDA is a Government agency under the jurisdiction of the Ministry of Health, Village
development, Gender, Elderly and Children. Based on the "Tanzania Food, Drugs, and
Cosmetics Act" enacted in 2003, it manages the safety and quality of foods, medicines,
cosmetics and medical equipment.
The agency is tasked with the supervision of food handlers to take appropriate measures to
ensure safe food production and high quality. This also includes ensuring the safety of
facilities used for the manufacturing, storage, and sales distribution of food in order to protect
the safety of consumers.
⑩ Tanzania Bureau of Standards (TBS)
TBS is a Government affiliated organization that reports to the Ministry of Industry and
Commerce (MIT). In accordance with the standard law established in 1975, the agency was
established as one of the Tanzanian government’s efforts to strengthen the economic industry,
trade and industrial sectors in Tanzania.
In particular, the agency’s objective is to control the quality of all industrial products and
promote the standardization of product safety standards.
⑪ Vocational Education and Training Authority (VETA)
VETA is a public agency established in 1994 under the law of education and professional
training. The history of VETA dates back to the learning regulations established in 1940, to
carry out vocational training for industrialization. There are 29 education and vocational
training centers throughout Tanzania, with professional training focused on developing high
quality human resources that can solve industrial technology issues and adapt to the needs of
the demanding labor market.
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Organizational structure for project implementation in Tanzania 7.2
Outline of the Organizational Structure (1)
Figure 7-1 Implementation plan for the AIP project (made according to consultations with the
government of Tanzania)
MIT and EPZA play a key role in this AIP project. When this project is implemented with loans
from Japanese government or international organizations, although MOFP will be responsible of
international issues, MIT will oversee the entire project.
Meanwhile, EPZA, which is a subsidiary of MIT, will be responsible for the actual operation of
the project. EPZA owns the lands of Bagamoyo SEZ and is responsible for the entire project process,
from financing, development of AIP, operational management, and project maintenance using the
funds acquired for the project. Cooperation between governments will be handled by MoFP and MIT,
but the cooperation with third parties involved in the project, such as engineers and investors
involved in the development and operation of AIP, land acquisition, infrastructure improvement
outside of AIP, etc. will be carried out by EPZA.
Along with attracting tenants and contracts, EPZA will provide a comprehensive service to
domestic and foreign investors so that businesses within AIP can be implemented without problems.
For the parties related to the development and operation of the infrastructure, EPZA will conduct
respectively based on the contract between the commercial operator of EPC and the operator.
104
Local government agencies related to the AIP project will support EPZA in accordance with the
specialized field of each agency. MoA and MLFD will provide advice regarding technology on food
processing in AIP as a special agency for agriculture, livestock and fisheries sector. Both agencies
have accumulated information on food processing technology and have established networks with
national processing companies. Based on these experiences, it participates by attracting investors to
AIP, providing information on the products that will be processed in AIP, technical support,
development of human resources, etc.
TFDA and TBS will provide investors with professional guidance and support to obtain licenses
and certifications smoothly without problems including preparation of facilities that can produce
high quality products. VETA will carry out the professional training of workers programmed to work
in accordance with the needs of the companies that invest in AIP and will develop the human
resources responsible for manufacturing high quality products and goods for export.
Based on current research results, TIRDO will provide technical advice and guidance on
agricultural product processing technology, etc. to companies within AIP.
TIC and NDC will support the AIP project by providing support to national and foreign
investors together with EPZA based on experiences acquired abroad. SIDO will provide information
using its network of SMEs that will make up the majority of manufacturing industries in Tanzania,
including information regarding companies related to agricultural processing that have achieved
good results in industrial estates, SIDO properties, companies that will be interested in joining the
AIP, and the methods for the development of human resources in Tanzania
Industrial management experience of EPZA (2)
EPZA is divided into three departments, "Department of Planning and Development,"
"Department of Investment Promotion," "Department of Accounting and Administration." These 3
departments are very important for the present project.
105
Figure 7-2 Organization structure of EPZA
Source: EPZA website
The following table shows six ZPE / ZES whose operations have already started on EPZA
properties.
Table 7.2-1 Operation started by EPZ / SEZ
EPZ/SEZ names Managers
Kamal Industrial Park SEZ Private business operator
Global Industrial Park SEZ Private business operator
Millienium Business Park Uncertain
Hifadhi EPZ Government of Tanzania
Kisongo EPZ Private business operator
Benjamin William Mkapa SEZ Government of Tanzania
106
Among them, Hifadhi EPZ and Benjamin William Mkapa SEZ are developed by the Tanzanian
government, EPZA manages and operates plants such as clothing factories and food processing
factories which are in operation.
Image of management plants
Source：INVESTMENT OPPORTUNITIES IN EPZ AND SEZ – TANZANIA, EPZA
The management of EPZA has completely started in 2008. The results that have been achieved
until 2015 are as follows12
.
Active operating companies in EPZA: 118 companies
Total export value: $ 981 million (7 years total)
Direct employment: 31,923 people
Total investment: 1 trillion 291 billion dollars (7 years total)
12
INVESTMENT OPPORTUNITIES IN EPZ AND SEZ – TANZANIA, EPZA
107
Technology advantage of Japanese companies Chapter8.
Expected participation of Japanese companies 8.1
The proposed Agro-Industrial Park (AIP) project must be implemented by EPZA as the
executing agency of the project, and it will receive ODA loan projects from the Government of
Japan and loans from the AfDB and other international cooperation agencies / development banks,
etc.
In this project, Bagamoyo SEZ was selected as the target area for the pilot project. However, in
addition to Bagamoyo SEZ, Tanzania has designated 20 SEZ / EPZ places where EPZA is
proceeding in the acquisition of land. The development of Special crop processing zones (SCPZ)
with partnership of the AfDB is also expected.
The participation of Japanese companies can be expected for the construction of infrastructure
related to AIP by EPC contracts with EPZA, for the supply of equipment and materials and for
equipment maintenance work under contract with EPZA. In addition, in response to EPZA requests,
it may be possible to support the administration of AIP and new business development by supporting
the supply chain. .
For the infrastructure related to the AIP, it is necessary to prepare basic infrastructure
(electricity, gas, roads, water supply, communication, sanitation equipment). With regard to the
power supply, it is proposed to introduce a "solar power generation system + battery storage system"
in consideration with the accessibility to the electrical network and to ensure a stable power supply.
The superiority of the alleged installation and introduction technology is described in detail in
"8.2 Advantages of Japanese companies in the implementation of the project". As already mentioned
in Chapter 3, 41 Japanese companies are established in Tanzania. In addition to simply moving
Japanese companies with locally proven results to AIP and operating plants, the possibility of
participation in each stage of "AIP construction" and "AIP management" has a big potential.
Table 8.1-1 Companies and organizations belonging to the Tanzania Japanese Association
Commerce and Industry Committee (2018, December)
Company / organization name
Companies and organizations belonging to the Tanzania Japanese
Association Commerce and Industry Committee (December 2018)
JAPAN TANZANIA TOURS LTD
Nishizawa Tanzania Co., Ltd.
Mitsubishi Corporation
East Africa Sales Promotion
Sumitomo Corporation
108
Company / organization name
NIPPO Corporation
Sumitomo Chemical East Africa Company
Toshiba Plant System Co., Ltd.
Mitsui Sumitomo Corporation
Trickster lyd.
WASSHA CORPORATION
Allwan Trust Co. Ltd
RETRUS TANZANIA LIMITED
ITOCHU Corporation
Japan External Trade Organization (JETRO) Nairobi Office
Tone Engineer, Inc.
Toyota Tsusho East Africa Ltd.
Marubeni Corporation Nairobi Branch
Europe Mitsui & Co., Ltd. Nairobi Branch
Angelo Sec Co., Ltd.
Nippon Koei Corporation
Japan International Cooperation Center
ROHTO Pharmaceutical Co., Ltd.
Yachiyo Engineering Co., Ltd.
INTRASPEED ARCPRO (KENYA) LIMITED
Source: Embassy of Japan in Tanzania website
Advantages of Japanese companies in implementing projects 8.2
Technological superiority of the solar energy system + storage battery system (1)
manufactured in Japan
Regarding to the fields related to the use of renewable energies in the proposed project, it will
be used the superior technology that Japanese operators possess. However, taking into account the
latest market trends, solar panels are in a tendency to reduce prices worldwide, and the dominance of
Japanese technology is decreasing. On the other hand, the storage batteries, the energy conditioning
systems (PCS) and the energy management systems (EMS) required for the stabilization of the
system, are important along with the increase of the photovoltaic generation capacity. Japanese
109
technology can demonstrate superiority for this items.
① Storage battery
The size of the global storage battery market was of less than 8 trillion yen from 2016, and it is
expected to grow to about 14 trillion yen by 2025. It is expected to develop a demand for versatile
use in the future. The market growth rate per application is the highest for next-generation cars, but
it is expected to continue growing in electricity storage. The market is expected to expand to 1.2585
billion yen, 6.6 times than 2017 in 2030.
Source: Fuji Economic Press Release (May 7, 2018)
Chart 8-1 The global market for rechargeable batteries for power storage system
In the last years, many battery types were developed and operated (lead batteries, lithium ion
batteries, sodium sulphate batteries (NAS), redox flow batteries, etc.).
In Japan, on August 25 of 2013, "Battery Strategy Project Team" (Department of Economy,
Trade and Industry, Battery Strategy Project Team, July 2012) was formulated and promulgated, as
well as the "Secondary Battery Technology Roadmap 2013 (Battery RM2013) by the New Energy
and Industrial Technology Development Organization (NEDO), and is promoting the expansion of
the participation of Japanese products in the international market as a government. The lithium-ion
batteries were attracting most of the attention in the recent years.
Korean and Chinese manufacturers are increasing but the market prices have decreased
considerably so the adoption rate is increasing according to each application. In particular in the field
of energy storage, the adoption of large-scale projects (from tens to hundreds of MWh), which until
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2016 2017 2018 2019 2020 2025 2030
10
0 M
illi
on
Ja
pan
ese
Yen
Year
Grid Other uses than household Household
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now had not been foreseen, and the long-term performance (approximately 4-5 hours), has
accelerated the diffusion of as lithium ion batteries. The market for lead-acid battery prices is
expected to exceed by 2020 and represents about 70% of the total electricity storage market by 2025.
Table 8.2-1 Main characteristics of storage batteries
Types Energy
density Characteristics
Major Japanese
manufacturers
Lead battery
40Wh/L
10Wh/kg
30W/kg
Low cost
Many results
Since the energy density is low, as it
increases its capacity becomes heavier.
GS Yuasa
Furukawa Battery
Panasonic
Hitachi Group
Lithium ion
battery
200Wh/L
80Wh/kg
100W/kg
The high energy density makes high
capacity possible even in small
quantities and the generating power
is large,
Panasonic
Sony
GS Yuasa
Hitachi Group
Toshiba
NEC Corporation NiMH battery 84Wh/L
20Wh/kg
100W/kg
High safety
Panasonic
Kawasaki Heavy
Industries
FDK
Sodium sulfate
(NAS) battery
160 Wh/L Low cost
Compact and long life
High temperature maintenance (300 ℃)
required for operation
High sodium flammability
NGK Insulators
Tokyo Electric
Power Company
Redox flow
battery
8.5 Wh/L It has low energy density but its structure
is simple and easy to scale up
Sumitomo Electric
Industries Source: Fuji Economy "Future prospect of energy, large secondary batteries and materials of 2017, Section of energy, storage of electricity, household appliances" and others, However、with respect to energy
density, the roadmap of technology development of secondary batteries is from NEDO 2013.
Toshiba manufactures cells of lithium-ion batteries "SCiB" that uses sodium titanate, and
develops mainly as a "container-type portable storage battery system" as network products. It will
also expand in the field of electricity storage, the introduction of NAS batteries, redox flow batteries,
etc., mainly in long-term countermeasure applications that exceed 4 hours of production, due to the
growing need for system stabilization.
NGK has successfully produced unique NAS batteries in the world, and is implementing the
same batteries in the Japanese market, Europe, the United States, the Middle East and others.
Sumitomo Electric Industries is also conducting research and demonstration of redox flow batteries,
and in December 2013 an automatic production line was built.
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② Power conditioning system (PCS)
PCS is required to have the following functions.
Control of generated power (inverter function to convert direct current to alternating current,
control output power according to generated power).
Operation control function (operation start / stop according to power generation situation)
Grid interconnection protection function (stops operation by detecting system abnormality)
The following is an example of a PCS supplier in recent case of installing photovoltaic power
generation system in Japan (10 MW or more)
Place of installation Battery
type Battery
manufacturer SIer PCS
output
（kW）
capacity
(kWh)
Kushiro mega solar LiB GS YUASA OBAYASHI TMEIC 10,000 6,750
Shin- Hidaka Solar Park LiB SDI ABB 14,000 9,000
Shin- Chitose Kashiwadai
Solar Power Station
LiB SDI ABB 17,000 11,400
Hokkaido Tomakomai mega
solar
LiB LG Chemical Fuji
Electric
Fuji
Electric
20,000 10,000
Source: Fuji Economy "Future Perspective of Energy, Large Secondary Batteries, and Materials 2017 Power,
Electricity Storage, Home Appliances Section"
Toshiba Mitsubishi Electric Industrial Systems Co., Ltd.'s (TMEIC) PV-PCS features high
conversion efficiency and high reliability. A lineup of models with a single unit capacity of 100 kW
or more can be widely used, ranging from high-voltage interconnections with power plant capacity
of less than 2000 kW to high-voltage interconnection systems with 2000 kW or more. In 1985, the
world's largest 1195 kW PV-PCS was delivered to the United States, including abundant
achievements in Japan and abroad.
Fuji Electric's PV-PCS also features high efficiency, convenient size, and large capacity. In
August 2018, it developed a multi-PCS equipped with a storage battery that achieved the cost
reduction of photovoltaic power generation facilities. The product is planned to be developed in the
global market, mainly in Southeast Asia, which is promoting the introduction of distributed power
sources utilizing renewable energy. Conventional solar power plants equipped with battery storage
systems require PCS for solar panels and the battery, respectively, but with this product, it became
unnecessary to install multiple PCS by integrating functions. Compared to conventional equipment,
cost reduction of about 20% can be achieved, and the power loss is reduced by 4 to 5% by reducing
the number of power conversion. Other major Japanese companies are Nissin Electric and
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Meidensha.
③ Energy management system (EMS)
This project will introduce EMS for the solar power generation system and battery
storage system. The technology installed in the EMS aims to control the solar power
generation and the storage battery in a timely manner so that the power system status is
grasped in real time (second order) and the index of power quality such as voltage and
frequency is within an acceptable range. Advanced technical know-how is required to
develop EMS. Japan, possesses these advanced technologies and know-how, and we can
utilize these technologies and know-how in this project.
Measures to strengthen cost competitiveness to be taken when Japanese (2)
companies participate in the project
Recently, in large scale solar projects, Korean battery makers have reduced cost. When
Japanese companies participate in this project, they have adjust their costs to be competitive
ensuring the highest quality as possible.
Regarding power equipment such as PV and batteries, local support system is necessary.
However, by remote monitoring of local information from Japan through EMS, in case trouble
occurs, quick understanding of the current situation and initial response will be possible. This will
reduce the influence of damage caused by fault. It is necessary to encourage the Tanzania to consider
these advantages besides the initial cost of the battery.
Measures necessary to promote orders from Japanese companies 8.3
Even when this proposal project becomes a yen loan project, it is not possible to apply the
Japanese technology application conditions (STEP) because Tanzania is part of the Least Developed
Country. The measures to promote participation from Japanese companies in this project are shown
below.
[VIPs invited]
There is no advanced large-scale agricultural processing complex in Tanzania. By observing the
environmentally conscious smart industrial park and individual agricultural processing factory in
Japan and experiencing its high quality and maintenance effect, it is necessary to introduce "solar
power + storage battery system" proposed in this survey and It is possible to deepen the
understanding of the introduction image.
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[Specification decision support and specification in]
EPZA, who is the implementing party of the proposed project, lacks human resources to
prepare bidding documents, etc. for selecting suppliers in order to advance infrastructure
development related to AIP. In the case that the proposed project is established as a yen loan
project, Japanese companies will support the creation of bidding documents and bidding for EPZA's
selection of contractors as consultants, but at such opportunities various specs will be advantageous
for Japanese companies to induce.
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Action Plan and issues toward realizing the project Chapter9.
The current progress toward realizing the project 9.1
This project is a project to supply stable electric power to agricultural product processing
parks in Tanzania, where there are concerns about future shortage of electric power, while
raising added value by processing agricultural products led by the government. The success of
this project can be referred to as a model case in other areas, and therefore it is expected from
the local government.
It is necessary to confirm with the business operators and related organizations about 1) the
continued consultation for the project implementation, and 2) the business invitation. The
structure of cooperation for the project implementation and the efforts for the business invitation
are as follows.
Continuous consultation with related organizations of Tanzania (1)
With regard to the implementation of the agricultural processing complex (AIP) project,
with the consultation with related organizations of Tanzania, there is no objection to the
importance of agricultural processing complex (AIP) in Tanzania, and we could confirm the
direction toward the implementation of the project led by the government. However, issues
relating to the implementation capacity of related organizations, such as the uncertainty of the
decision process towards implementation, are highlighted. Since MIT and EPZA asked us to
share the survey report in order to proceed consultation within the government of Tanzania
using the results of this survey, we will continue consultation toward the implementation using
MIT and EPZA as windows.
Interview potential companies (Japanese and local companies) (2)
[Confidential]
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Status of efforts by related government and implementing agencies in 9.2
Tanzania for the project implementation
This project is supposed to proceed as part of SEZs / EPZs development under the jurisdiction
of EPZA. EPZA considers securing lands important for SEZs / EPZs development, and in examining
pilot project implementation, it is decided to consider the land that is secured. In carrying out
projects including potential spread to more areas in the future, it is necessary to consider cooperation
of concerned ministries and agencies, and to proceed with consultation, while also considering
accumulation of agricultural products and securing of labour power.
Also, as mentioned in Chapter 1, in Tanzania, AfDB is considering the Special Crops
Processing Zones (SCPZ), and the concept of AfDB is being examined mainly by the MOA of
Tanzania.
Envisioned Financial Scheme 9.3
Regarding the fund procurement for the project implementation, it is necessary
to consider the details of the funding plan with a view to taking advantage of loans
of Japanese currency yen, co-financing with other international cooperation
agencies such as AfDB, utilization of international funds, and so forth.
Possibility of Yen Loan and Japan's ODA Utilization (1)
[Confidential]
Possibility of cooperative support with other international cooperation agencies (2)
In Tanzania, AfDB is under consideration of the concept of agricultural processing park
development named "Staple Crops Processing Zones (SCPZs)". In this survey, we visited AfDB and
exchanged opinions. We received suggestion from AfDB about the possibility of cooperative support
with other international cooperation agencies including the expansion of the project scale, for
effective project implementation depending on the content.
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Possibility of utilization of the international fund (3)
Regarding solar power generation + storage battery system, its also possible to utilize
Green Climate Fund, the international fund that supports developing countries to
implement efforts to reduce and absorb (mitigate) of greenhouse gas emissions, and cope
with the effects of climate change (adaptation).
To the Green Climate Fund, developing countries themselves are proposing, implementing
and managing projects that are followed by the priority of development plans and climate
change policies, and this is a scheme that secures project ownership of developing
countries.
Figure 9-1 Overall conceptual diagram of Green Climate Fund
Source: Ministry of the Environment (website on green climate fund)
Future Initiatives and Issues towards the project implementation 9.4
This survey considers that the following issues are important for the realization of this Project.
Selection of pilot project area
Based on the 1st and 2nd field surveys, we considered that the first pilot project should be close
to Dar es Salaam, which is the largest consumption area in Tanzania. Bagamoyo SEZ, is the best
option not only because its geographical location, but also because its master plan has already been
prepared, and there are plans for further developments. The selection of Bagamoyo SEZ was
117
discussed with MIT. However, due to the reduction of cashew nuts price (one of the most important
export crops of Tanzania), there were many changes at the upper level of the MIT ministers and
following President Maafuli influence, we were suggested by MIT than other areas must also be
considered.
The strong influence of Tanzanian government for the selection of the project candidate site should
also be considered in the future.
Funding
If Tanzanian government wants to a request a yen loan, it will be necessary for MIT Ministers
to explain this to the MOFP, which oversees MIT major funding. Furthermore, AfDB needs to be
able to summarize the consensus within the Tanzanian government towards raising funds, as
indicated by the possibility of co-financing with Japan.
Operational ability of EPZA
Although EPZA has experience to operate industrial estates, it is considered that it does not
have enough experience for implementing the management capacity for industrial estates such as
AIP. This is the reason why this project will be implemented utilizing yen loans. In some cases, it
may be possible to dispatch experts from Japan to carry out a capacity development program, etc., in
order to strengthen the capacity of EPZA.
Based on the above issues, the Study Team has requested MIT and EPZA to explain the project
to MOFP, which is in charge of fundraising. This survey report will also be used to advance
discussions within the Tanzanian government. In order to implement this project, it is necessary to
secure a budget for implementation, in which MIT and EPZA need to discuss with MoFP.
It is also required to share this research report with Tanzania in order to continue and expanding
a good relation with Tanzanian government in the future. From this fact as well, it is thought that the
results of this survey will help to realize the AIP. However, there is much uncertainty about the
policy-making process for the implementation of the project within the Tanzanian government, so it
is important to lead to the implementation of this project by continuously discussing with METI and
EPZA.
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