Tanzania CCP Magazine

www.ccp-tpsf.org

Improving Tanzania’s

Competitiveness

Globally

Issu

e 1

D

ecem

ber

20

11

—F

eb

ruary

2012

www.ccp-tpsf.org

Improving Tanzania’s competitiveness

today

Greetings to our readers

I welcome everyone to read the first edition of the Tanzania CCP Newsletter. The TPSF Cluster Competitiveness

Program will publish this newsletter in both hard and soft copy editions several times per year.

The focus of the newsletter is on competitiveness – specifically improving Tanzanian competitiveness.

Competitiveness is a term being used a lot these days, something we are very glad to see happening. This

newsletter seeks to take some of the mystery out of the term and provide clarity into what improved competi-

tiveness really means in the Tanzanian context.

…a private and public sector cooperating on improved regulations, improved physical infrastructure, a more

educated and skilled workforce, access to finance at reasonable rates, access to specialized business develop-

ment services, and business owners with the knowledge to compete domestically and internationally – these are

some of the necessary factors for a country to move up the competitiveness scale.

In this edition you will find features on horticulture, tourism and food processing – CCP’s core industries – but

also articles with relevance to the economy in the broader view, which cut across the spectrum of industry clus-

ters.

We hope you benefit from this newsletter and we welcome your feedback.

Hayley Alexander CCP Team Leader

I N T H I S

I S S U E

Karibu to the

Celebration

4

Competitiveness:

Tanzania’s

Framework

6

Tall. Full. Glass of

Milk

9, 13

Matching Grants 9, 16

Shrinking Mar-

kets

9, 18

Competitive

Collaborations

10

Strengthening

Cluster Partner-

ships

21

T A N Z A N I A C C P

M A G A Z I N E

D E C E M B E R 2 0 1 1 — F E B R U A R Y 2 0 1 2

2 0 1 1

I S S U E 1

Compete

Publisher

Tanzania CCP Magazine is designed and published by Barefoot Consulting Limited in collaboration with Rose Thuo, Consultant PR and Media

Specialists.

All articles published in this magazine were written by the employees of the TPSF Cluster Competitiveness Program. Any misrepresentation

should be addressed to the distributors on the following address: TPSF Cluster Competitiveness Program, Plot 1288, Mwaya Road, Msasani

Peninsula, P.O.Box 11313, Dar es Salaam, Tanzania

P A G E 4

Karibu to the Celebration

of 15 years of Cultural Tourism

I t was in Arusha, a day just before the annual Karibu Travel

and tourism fair affectionately known as “KARIBU” (Swahili

for welcome), that the Tanzania cultural tourism fraternity

converged to celebrate 15 years of Cultural Tourism in Tanza-

nia.

The immediate feeling of cultural tourism in Tanzania is a welcome

among the most friendly people in the world to experience real

African life, seeing fascinating areas and enjoying the beautiful scen-

ery of green mountains, inland lakes, wide plains and the dramatic

Rift Valley.

At present, the Tanzania Tourism Board (TTB) runs the Tanzania

Cultural Tourism Program‟s

office, which is based in

Arusha.

15 years ago, SNV, the Dutch

development organization

helped establish the Cultural

Tourism Program in Tanzania.

In 1996, there existed only 3

tourism enterprises that were

definitively cultural tourism

operators. Today there are

34 enterprises that can be

classified as cultural tourism

operators. The TTB together

with SNV have managed the

sustainable growth of this

treasured sector.

The work of SNV and devel-

opment of cultural tourism in

Northern Tanzania is a valu-

able start in diversifying Tan-

zania‟s tourism product from

over dependence on wildlife and safari tourism. Further diversifica-

tion will result in stimulating tourism development over a wider

geographical area in Tanzania and hence the creation of more jobs

and income from tourism.

A look at the definition of cultural tourism and attractions show

that “Cultural tourism is when tourists consume culture (that is

lifestyles including customs and traditions, heritage, museums, visual

and performing arts, industries, traditions and leisure) of the local

population and host community as a form of entertainment and

education.

This sheds light on: dress codes such on the Swahili cost, architec-

ture such as Makumbusho village, Gastronomy such as traditional

food served in local peoples homes, local restaurants and other

catering and Heritage including caves and ancient rock art.

The industrialized world has adopted creative industries as encom-

passing the full concept of

Cultural tourism. Britain

Prime Minister Tony Blair

led this some 10 years

ago.

Man made cultural attrac-

tions

Creating city identity en-

hances urban tourism.

Tanzania cities and Munici-

palities can develop their

identities by developing

unique Stadiums and vari-

ety of sports,

Architecture such as

bridges, monuments, air-

ports or Environment e.g.

botanical gardens, Agricul-

ture e.g. coffee and tea

plantations, events e.g.

expos, trade fairs and

festivals, religion: cathe-

drals and pilgrimage sites.

Such cultural tourism creates higher levels of self employment.

The creative economy is considered to be one of the fastest grow-

ing sectors of the economy in many Western industrialized coun-

tries. It employs around 34 per cent of the working population and

contributes a similar percentage to the annual GDP.

T A N Z A N I A C C P M A G A Z I N E

Creative industries classification, in which, Tanzania has major

players in all three of the functional areas—heritage (cultural);

arts, and the media

P A G E 5 I S S U E 1

Examples that we already have include Zanzibar‟s Sauti za Busara and International film festival (ZIFF) attracting 45,000 foreign visitors

and 123,000 local visitors every year. Mwanza has a variety of sports and the annual East Africa trade Fair. Dar es salaam has the explo-

sion of Bongo Flava and the economic benefits it is generating are considerable.

So how can we do it?

Develop competitiveness in various potential cities and municipalities by addressing underdevelopment of Creative Industries (CI). Use

knowledge based strategies such as CI task force tasked with mapping e.g. music industry clusters, Heritage cluster and make plans to

open the first City or municipal museum.

Develop skills to run the industry such as running an annual festival, Develop the product through investors, investigate the market and

how to coordinate it with the cultural tourism enterprises

Work on addressing better physical and credit infrastructure

Create awareness to policy makers of the correlation of CI with job creation and GDP and the economic multiplier effect

Launch to attract investors and promote marketing for the domestic and the international market.

One of the ways to improve employment potential is for city planners to set aside areas for cultural tourism to operate e.g. craft

shops, cultural performances, camping sites and monuments

This can be along high ways, within or near towns and cities or close to major tourist attractions.

Encourage community to produce inputs such as dancing skirts and other regalia, drums, basket dyes. Take part in trade fairs so they

learn and exchange.

In conclusion there are these probing questions: What can we do differently so that we improve how cultural tourism is done at the national

scale? Tanzania has a rich diversity of cultures. What can be done to take advantage of that diversity? What about Wagogo or Wahaya? What is

the role of Cultural district officers? How can they be better mobilized for cultural tours? How can we better promote a product that highlights

cultural spots around Tanzania? How well are we using tourist guidebooks like the lonely planet to highlight cultural spots along the way for back

packers?

Beyond East Africa, Tanzania can learn from others and the global trend to the creative economy and creative industries this is replac-

ing our definition of cultural tourism, which is only based on heritage and the arts.

By Mrs. Mary Kalikawe. CCP Tourism Cluster Specialist

Mary Khalikawe is an Environmentalist, Tourism development expert, Wild-

life Biologist, Human resource Development Expert and an author. At TPSF

her work involves promoting the competitiveness of tourism clusters around

Tanzania so they can achieve sustainable growth through stronger coopera-

tion while building capacity in private and public sector institutions to oper-

ate strategically in the pursuit of common objectives

T A N Z A N I A C C P M A G A Z I N E

P A G E 6 I S S U E 1

E arlier this year, a CCP short-term consultant

worked closely with the TPSF policy team to com-

plete the Tanzania National Competitiveness Re-

port (TNCR). The TNCR is the first Tanzanian

study of its kind to assess the country’s competitiveness from

a holistic perspective. The report takes into account the key

factors necessary to enable the private sector to improve its

productivity and therefore compete more effectively domes-

tically and internationally.

For perspective

and context, and

as an aid to

understanding

the types of

issues any coun-

try needs to

address while

improving its

competitive

stance, the

TNCR offers

the competitive-

ness framework.

The graphical

illustration of

this framework

is a pyramid

which serves to emphasize that improving competitiveness involves

creating a strong base or foundation from which to build upon. Three

distinct levels are therefore indicated. 1) Foundational elements, which

are big picture items such as physical infrastructure, important to get

right first; 2) Enabling elements such as the presence of an educated

workforce, critical for normalized private sector development and; 3)

Productivity, which is both an outcome and a target for intervention,

most notably within the private sector, e.g., providing access to auto-

mation. The summation of all three levels, when strengthened, should

enable improved competitiveness.

TPSF-CCP is focused on three of the above seven factors in our quest

to increase Tanzania‟s competitiveness: 1) Productivity 2) Legal &

Regulatory and 3) Labor & Workforce. When compared against

CCP‟s three expected outcomes, they line up as shown in the table

(Table: CCP Expected Outcomes).

T A N Z A N I A C C P M A G A Z I N E

Competitiveness: Tanzania’s Framework

By their very nature, improving productivity, developing labor and

workforce skills and effecting legal and regulatory reform require fo-

cused, persistent and sustained efforts. Short term successes are cer-

tainly possible, as CCP is demonstrating; however, sustainability and

indeed continued progress only occurs with significant improvements

in the capacity of public and private sector organizations to act as ser-

vice providers for private sector firms. For this reason, CCP is devot-

ing a substantial portion of resources to strengthening local capacity

(Table: CCP Expected Outcomes).

A few examples:

Supporting ten

associations through

grants to respond to

member needs with

practical training ser-

vices, upgraded indus-

try marketing and im-

proved stakeholder

coordination.

Supporting a fur-

ther four associations

with technical assis-

tance to improve pro-

fessionalism and mem-

ber service provision,

and foster local cluster

development.

Providing grants to three local training institutions to develop and

offer highly practical, training curricula, based on industry identi-

fied needs, for direct use with workforce (continuing professional

development).

Helping develop and offer competitiveness training in ten regions

via CCP partner UD-COET.

Providing grants to four industry cluster groups via lead firms,

famer groups and cooperatives to improve production and cold

chain infrastructure (and knowledge in use thereof) affecting

thousands of individuals.

Helping organize, train, mentor and systematize the running of

public private dialogue groups in tourism and food processing in a

process leading to competitiveness partnerships.

P A G E 7

'Short-term successes

are certainly possible,

as CCP is

demonstrating;

however,

sustainability and

indeed continued

progress only occurs

with significant

improvements in the

capacity of the public

and private sector

organizations to act

as service providers.

The TNCR‟s expansive perspective assists the Tanzanian government, business support organisations (such as

TPSF) and other technical support programs to see the competitiveness puzzle in its entirety, thereby gauging

what needs to be done and by which organizations. As noted above, TPSF-CCP is active in three areas of the

pyramid, whereas numerous other programs are addressing the remaining areas.

When the concept of the TNCR was first presented to Tanzanian stakeholders, there were concerns it

amounted to just another assessment of Tanzania‟s present state and one that would in fact needlessly overlap

Table: CCP Expected Outcomes

with other ongoing initiatives. Most concern centered around potential redundancy vis-à-vis the Roadmap, led

by the Committee established by the President to improve Tanzania‟s World Bank Doing Business rankings.

In reality, the TNCR is neither just another assessment nor is it redundant in light of any ongoing efforts. In

fact, it serves to underscore the importance of all components necessary to improve competitiveness while

OUTCOME INCLUDED COMPETITIVENESS FRAMEWORK ELEMENTS

Strengthened clusters and value

chains

Productivity – adoption of automation & international standards, ex-

panded value chains & market linkages

Labor and workforce – upgraded skills, knowledge and practices for

workforce & management

Upgraded local competitiveness

capacity

All three (Productivity, Labor and workforce, Legal and regulatory) –

capacity building amongst industry, associations and NGOs, training insti-

tutions & government to educate, inform and seek common ground

amongst the public and private sector

Increased pace of regulatory reform Legal and regulatory – evidence based, sector specific issues prioritized

and articulated, PPD groups established

T A N Z A N I A C C P M A G A Z I N E

P A G E 8 I S S U E 1

illuminating their synergies. The Roadmap, for instance, is primarily focused on just one aspect of the competitiveness

framework – the legal and regulatory environment.

Some of the most urgent interventions in support of improved competitiveness must be concentrated on the founda-

tional level of the pyramid. Issues such as improving physical infrastructure, including, electricity, roads and ports, and

upgrading social infrastructure, particularly strengthening the educational system (primary through high school), are

critical. Without the basic functionality afforded to companies via access to electricity and the presence of educated

citizenry, for instance, all other efforts will be insufficient and compromised.

The Tanzanian National Competitiveness Report has been well received by the Prime Minister‟s Office – the Perma-

nent Secretary in particular – and many members of the business community. It is time to proceed with broader dis-

tribution of the TNCR‟s findings, along with its ten primary recommendations, to better align government, business

support organizations, academia and industry toward consensus in competitiveness priorities and subsequent actions.

By: Hayley Alexander

CCP Team Leader

Hayley Alexander is the team leader of the Cluster Competitiveness Program, Tanzania.

He has more than seventeen years outside the US working on economic development

programs in 10 countries with long term project postings in seven including: Russia,

Egypt, Ukraine, Bosnia-Herzegovina, Croatia, Armenia and Tanzania. Experience centered

on private sector development, institutional strengthening and improved competitiveness.

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INVITATION TO THE FIRST HORTICULTURAL SHOW IN TANZANIA -- 1-3RD DECEMBER 2011

Dear Esteemed horticultural stakeholder,

Many Greetings from TAHA!

I feel greatly honored and humbled to provide you with this useful information and invite you to come join us at the planned first horticultural show in

Tanzania.

In commemoration of the 50 years of Tanzania independence, TAHA, with the support of the Tanzania Cluster Competitiveness Program (TCCP), and in

close collaboration with the World Vegetable Centre (AVRDC) has therefore organized for the first local horticultural show in Tanzania to be held from

December 1st to 3rd at the AVRDC grounds in Tengeru - Arusha. The show is expected to bring together farmers, service providers and buyers from differ-

ent parts of Tanzania daily, so as to learn from each other as well as making different business negotiations. It is expected that there will be on farm demon-

strations as well as tented exhibitions most of which will be done by industry service providers who have already confirmed their participation. The gist of

the show is therefore to capacity build farmers and other actors in horticulture on various issues concerning horticultural businesses. There shall also be

trainings on different topics by different service providers.

Jacqueline Mkindi, Executive Director, Tanzania Horticultural Association

Kanisa Road, House No 49, P. O. Box 16520 Arusha, Tanzania. Tel/ Fax +255-27-2544568. Cell +255 754 306878

E-mail: taha@habari.co.tz Web: www.tanzaniahorticulture.com

" DEVOTED TO DEVELOP AND PROMOTE THE HORTICULTURAL INDUSTRY IN TANZANIA"

Determination, Strategy and Vision for the future are our real resources in the quest for excellence and success!

Horticulture kwa afya na mapato zaidi!

Tall. Full. Glass of Milk

P A G E 9 V O L U M E 1 , I S S U E 1

Where there are forests there are no builders

The Swahili saying „Penye miti hakuna wajenzi „reflects

Tanzania‟s situation with potential for natural re-

sources, crops, mines, plenty of water and livestock,

etc. but with few developed agro processing industries.

Arusha region for example is the leading cattle keeper

in Tanzania with a large number of dairy cows, but sur-

prisingly enough, Arusha market is full of dairy products

from Kenya and other countries. Very few dairy prod-

ucts from Arusha dairy industries could be found in

shops, supermarkets and hotels (some from Arusha

dairy and Serengeti fresh dairy) despite the fact that

there are more than 15 dairy processors in Arusha.

It is high time for Tanzanians to unlock our mindset

to explore the potentiality we have.

It seems the poverty is locked in our mind; we need

to open up, be aggressive and highly committed to

work and face the challenges for economic growth.

The reality on the ground is that farmers lack the skills and

resources to identify new markets and the ability to take

advantage of identified markets through value addition ac-

tivities such as grading, cleaning, sorting, packaging, bulking,

and primary processing.

>> continued page 18

A typical marketing paradox is that buyers, such as supermarkets

and processors, complain about inadequate supply while farmers

complain about lack of markets. CCP‟s experience of working

with farmers involved in various horticulture supply chains

(domestic, regional and international) have shown that the outcry

on lack of markets could have contributed to a shift of focus

from the core problem-i.e. inability to supply the market in terms

of the quality required and reliability of supply expected by the

buyer.

Institutional strengthening includes the cluster automation and

all activities that involve the application of ICT. Another area

includes the capacity building in form of organizing trainings in

management, leadership development.

All these supported have enhanced members of the clusters

to conform and acquire local and international standards like

TFDA, Global GAP, TBS, and Tourism Health & Safety Codes.

>> continued page 16

The Tanzania Cluster Competitiveness Programme is among other

things to support the development of clusters by offering grants to

different projects that falls under Food Processing, Tourism and Hor-

ticulture. Supporting the clusters has been in building infrastructure

base, institutional strengthening and capacity building. The priority

areas for most of the grants have been in supporting the pro-

grammes which enhances the clusters in technological innovations,

development and transfer.

Infrastructural activities supported include the construction of build-

ings for shared facilities, and procurement of processing equipments.

CCP Grants

Shrinking Markets

P A G E 1 0 I S S U E 1

By: Justin Stokes

CCP cluster Advisor Su-

pervisor

CCP is supporting activities to increase the competitiveness

of Tanzania’s tourism, horticulture and food processing indus-

tries. Part of CCP’s objective is to foster more productive

relationships among key stakeholders (business, government,

academia and NGO) concentrated in the specific strategic

locations in Tanzania, or industry clusters.

Tanzanian companies don’t just compete against

other Tanzanian companies any more…

Competitive Collaborations

A s Tanzania‟s economy opens to the region and the world,

many economic opportunities are available for Tanzania, its

people and its businesses: New markets into which to sell

Tanzania products, new sources for inputs and raw materi-

als, access to information and expertise that can be used to develop

new products and services demanded locally. However, even as these

new opportunities are presenting themselves, the opening of the Tan-

zania economy is also exposing Tanzania to competition from outside.

Low cost products from Asia, skilled and unskilled workers from

across Africa, companies from Kenya and Uganda are all coming to

Tanzania, bringing with them a relentless drive for higher quality at

lower costs.

The ability of Tanzanian firms to compete is increasingly determined

by how well companies within an industry can work together, and

with government and supporting institutions, to solve problems and

seize opportunities that are beyond the power of any one individual

firm – issues such as the quality of the skilled workforce, the financial

and administrative burden of regulations and fees, or the condition of

common use infrastructure. At the national level and at the regional

level, leadership from private sector, public sector and supporting

institutions must come together in a meaningful way to solve common

problems and pursue collective opportunities.

Industries in other parts of the

world are doing just this. For

example, in tourism, across the

world, business and government

are working together to create

destination management organiza-

tions that collaboratively operate,

market and maintain tourism

attractions.

In its first year of implementation,

alongside industry leadership,

CCP analyzed the competitive-

ness of the three industries and

developed a strategy and action

plan to assist each industry in

raising its competitiveness. CCP

is now supporting the industry

leaders at the national level and

within key geographic clusters to

T A N Z A N I A C C P M A G A Z I N E

P A G E 1 1

“To catch the

reader's attention,

place an

interesting

sentence or quote

from the story

here.”

T A N Z A N I A C C P M A G A Z I N E

implement the action plans.

Greater than the sum of the parts, but

only if the parts are working, and

working together...

Economic leaders in Tanzania often refer to the private

sector as the “engine” of the economy. Even specific

industries, and their geographic clusters can be seen as

engines that are driving Tanzania‟s prosperity. In or-

der for the engines (clusters) to be producing at their

potential, all the parts have to be present, working and

working together.

The horticulture cluster in Arusha is a good example.

Horticulture is a relatively developed cluster for Tan-

zania, with a core concentration of productive firms,

specialized supporting services, and institutions that

support the industry. The cluster map below illus-

trates all the parts of the horticulture engine: various

companies, institutions, associations, organizations, and

projects that are working to support the growth of the

horticulture industry in Arusha. Are all the parts there

and working as they should? Each of them has a spe-

cific role to play and the rest of the cluster depends on

each doing their part.

But, to achieve the true potential of the horticulture

industry for Arusha, the parts need to be working

together. Are the associations meeting consistently

with the local government authorities to discuss and

resolve issues that need government action? Do the

training institutions understand the skills needs of

the horticulture firms? Are they training students

that graduate with those skills? Can the farmers and

exporters access reasonably affordable financing?

Tourism in Tanga is an example of a less developed,

but emerging cluster. The basics of the engine are in

place: a set of attractions, core group of hotels, res-

taurants, and tour operators, and an increasing rec-

ognition by the regional authorities of the potential

for tourism. But training institutions are limited and

not yet producing graduates that meet the need of

the tourism industry.

Local suppliers for the hotels are limited, so even

the basic supplies (food, materials) are brought in

from Arusha, Dar or Nairobi. Transport linkages

are also still underdeveloped, making it hard for

tourists to get to Tanga easily.

P A G E 1 2 I S S U E 1

Recognizing the need to work together to solve common problems

and support the region‟s growth in tourism, tourism stakeholders in

Tanga are organizing themselves and collaborating with government

and training institutions.

Stakeholder meetings and working groups are

only as effective as the industry linkages and col-

laboration that they foster…

Cluster collaboration is hard. It takes boundless energy, bottomless

patience, and bold persistence. It is also a full time job. Formal, sup-

porting institutions such as business associations, training institutions,

and other organizations for collaboration are the key to sustainable

collaboration in the industry.

The ability of any individual business owner to participate in, or lead a

sustained effort of collaboration is unreliable. If business is slow or

there is an urgent cluster related issue to resolve, attention will be

high. But if business is busy, the reason and ability to collaborate disap-

pears and interest in „common‟ industry objectives weakens. Managers

are unwilling to attend long and numerous meetings. The initia-

tive falls apart. That‟s why supporting institutions are so impor-

tant.

Associations, training institutions and other service providers

serve as the mechanisms through which the key players (public

and private sector) can work together, over time, to address sys-

temic constraints to productivity that cannot be resolved by indi-

vidual firms. Recognizing the importance of these institutions to

the long-term competitiveness of the industry, CCP has been

working closely with key institutions to provide support and ad-

vice on strengthening the ability of each organization to deliver on

its mandate. With both technical and financial support to institu-

tional capacity building ongoing across horticulture, tourism and

food processing, CCP is supporting these institutions to become

catalysts for industry collaboration and cluster development.

www.barefoot-consultancy.com | info@barefoot-consultancy.com | +254 722 875979

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P A G E 1 3

Tall. Full. Glass of Milk

By Mrs Rose Maeda

CCP Food Processing Cluster Specialist

I n a recent meeting of the dairy processing cluster in Arusha, it was revealed that raw milk from Arusha is sold to

Kenya (at market price or even less), which in turn they bring the dairy products to Arusha. Dairy processors claim

to get inadequate milk for their factories while milk is flowing to

Kenya. Does this really make any sense? Government and pri-

vate sector should work together to ensure that Arusha processors

can access the raw milk they need at market rates, so as to protect/

promote the country’s economy and enhance competitiveness and

development of the dairy sector.

Livestock technical officers, institutions, service provider‟s, associations, farmers

and key stakeholders should join the effort and commitment to improve milk

production at farm gate level to ensure adequate raw milk. Dairy processors on

the other hand should focus on building the competitiveness of their businesses,

ensuring that they can compete with other companies from East Africa.

The members of the dairy cluster in Arusha emphasized the importance of

working together. However it was realized that the range of quality processed

products supplied is limited and there is very little product development and

innovation going on. CCP is supporting potential clusters, institutions and associations to strengthen

their capacity to improve the food industry for economic competitiveness, growth, employment and

poverty reduction.

It is important to highlight the problems associated with standards that typically hamper market ex-

pansion and exports to international markets. It is more important however to suggest simple solu-

tions to these problems and provide information on the support that small food processor companies can receive to assist them with ex-

panded domestic, regional and export markets, bearing in mind the increasing demand of consumers/importers.

The processing facilities and the technology employed by most of the small food

processors are pathetic. Individual firms/companies thrive to improve through sup-

port from different partners.

CCP plan to support Arusha dairy cluster to enhancing the competitiveness and

growth of the sector by increased productivity, improved quality of the products

and hence increased the dairy sector‟s domestic, regional and international com-

petitiveness through, training, market linkage and provision of production equip-

ment and sourcing of quality packaging materials.

CCP Interventions in Food Processing Industry:

The Tanzania Cluster Competitiveness Program‟s in Value chain and cluster map-

ping identified key constrains to development of Tanzania Food Processing sector

as the ability of high growth small firms to access affordable, hygienic production premises, technical support and entrepreneurship skills. In

collaboration with Institutions, consultants, partner organizations and other stakeholders, CCP is implementing a capacity building program

aimed at increasing competitiveness of food processing, horticulture and tourist industries with the overall goal of enhancing market access,

T A N Z A N I A C C P M A G A Z I N E

Participants for the dairy

cluster meeting in Arusha

admiring the dairy products

P A G E 1 4 V O L U M E 1 , I S S U E 1

increased productivity and improved workforce.

CCP identified the opportunity and need to develop SMEs in food industry to access hygienic production and technical support so

as to improve the quality and competitiveness of their products to reach regional and export markets. Among activities carried

out is training of industry workers on issues of food hygiene, safety and quality, packaging and labeling and dairy technology. CCP

developed strategic plans to assist clusters in food processing through improved production facilities, market linkages and technol-

ogy transfer and strengthening identified potential clusters to increase their competitiveness, implementation process on pro-

gress.

Among the envisaged clusters include; Morogoro cluster, Arusha dairy cluster, Arusha Food processing Cluster, Mwanza fish

processing cluster and Pemba fruits and spices processing cluster. Pemba is an emerging cluster with potential for growth. Mango

farmers and processors cry for support to meeting export market in South Africa and they believe that CCP support will change

their lives by increasing productivity and avails farmers, processors and the entire community with income.

Explore the immediate potential and uniqueness of Tanzania:

Tanzania has a significant opportunity to compete in the global market for processed fruits, vegetables and other food stuffs. For

this to happen, efforts should be directed to enhance production capacity effectively.

The potential that exists within Tanzania to produce its own food products should be fully utilized to process exotic fruits and

food varieties required by domestic, tourists and export market before resorting to food imports. This is mainly the responsibility

of government and private sector to ensure improved quality of production as well as the quality of value added products. There is

a need for integrating and improving the food processing with the needs of tourist industry. External trade remains an important

component of economic activity in Tanzania.

Who says weddings should be expensive, even with simple but appropriate technology could

T A N Z A N I A C C P M A G A Z I N E

P A G E 1 5

A farmer in Pemba

exports 9 tons of

dried mangos to

South Africa in

one harvest season

work.

For instant the potentiality of the Pemba Island as a tourist attraction and rich in varieties of fruits and spices

create encouragement to support the private sectors activities in the sectors. Mango drying activities is one of

the examples which require synergy and linkages between the government, developmental partners and the

private sector being agro processing firms, hotels and tour operators should collaborate to develop the sector.

It only needs to be commitment and dare.

Rose Meade is the CCP Food Processing Specialist and Tourism Specialist Advisor at the

TPSF Cluster Competitiveness Program. She has extensive experience on global tour-

ism and tourism marketing strategies. Titled, Looking beyond East Africa, is a paper

presented on behalf of CCP by Meade at the Symposium that was held to mark the

celebration of 15 years of Cultural tourism in Tanzania. TACTO is one among other

tourism organizations supported by CCP to raise competitiveness in tourism..

T A N Z A N I A C C P M A G A Z I N E

Racks driers technology in

Pemba

Meeting between CCP and

mango drying processes in

Matching Grants

P A G E 1 6 V O L U M E 1 , I S S U E 1

By Mr Gabriel Landa

CCP Grants Manager

T he role of Tanzania Cluster Competitive-

ness Programme is, among other things,

to support the development of clusters

by offering grants to different projects

that falls under Food Processing, Tourism and Hor-

ticulture. Supporting the clusters has been in build-

ing infrastructure base, institutional strengthening

and capacity building.

The priority areas for most of the grants have been in sup-

porting the programmes which enhances the clusters in

technological innovations, development and transfer. Infra-

structural activities supported include the construction of

buildings for shared facilities, and procurement of process-

ing equipments.

Institutional strengthening includes the cluster automation

and all activities that involve the application of ICT. Another

area includes the capacity building in form of organizing

trainings in management, leadership development. All these

supported have enhanced members of the clusters to con-

form and acquire local and international standards like

TFDA, Global GAP, TBS, and Tourism Health & Safety

Codes.

In order to create an even distribution of support to clusters,

we have offered grants to both Tanzania Mainland and Zanzi-

bar. We have supported clusters in Arusha, Tanga, Morogoro,

Dar es Salaam, Coastal region, Pemba and Unguja.

Eligibility Criteria

The programme has set aside a number of criteria which the

clusters need to follow before applying for the grant. These

includes among the following:

a) Applications for registration will be accepted for local

business development organizations, Universities and

training institutions, business associations and National

business groups, Private lead firms amongst a consortium

with a significant impact on entire value chain and business

support services providers.

b) Applicants must have prior experience working with mul-

tiple stakeholders in a particular industry, preferably in a

support or assistance

providing role.

c) Host Institutions must

be Tanzanian entities

legally constituted and

in complete compli-

ance with the laws of

Tanzanian governing

such entities.

d) The organisation must

show evidence of availability of appropriately qualified staff

and expertise to perform work contracted under the

Tanzania cluster competitiveness program.

Eligible Organizations

a) A Grantee organization must be a legally registered and

recognized entity under the laws of the Republic of Tan-

zania.

b) CCP Program cluster grants support will mainly be ex-

tended primarily to Tanzanian non- profit organizations

already participating in the selected/proposed cluster/

value chain, though appropriate for-profit organizations

The priority areas for most of the grants have been

in supporting the programs which enhances the

clusters in technological innovations, development

and transfer

CCP Program cluster grants

support will mainly be ex-

tended primarily to Tanzanian

non- profit organizations al-

ready participating in the

cluster

T A N Z A N I A C C P M A G A Z I N E

P A G E 1 7

will also be supported.

c) In certain circumstances grant support may be extended

to Tanzanian for profit companies, such as Business Ca-

pacity Development organizations (consultancies) or com-

panies in the selected clusters if they have the capacity to

impact multiple companies in a value chain related to CCP

activities. In such circumstances, joint ownership between

consortium members within the clusters will be sought.

d) Individual firms/organizations participating in the cluster/

value chain will be considered if the grants impact multiple

parts of the value chain and if the requested support is

not covered under other TPSF programs (BDG and

Matching Grants)

All applicants must demonstrate that they are eligible for a

grant under CCP.

Applications for grants under CCP must be submitted in a

specific format . Any application submitted in any other format

is not eligible for evaluation under the grants program and will

be returned to the submitting organization. Eligibility criteria

will generally include the following (and require proof thereof):

The Applicant is an eligible organization legally constituted

under Tanzanian law with a legal status;

A management structure which includes appropriate staff-

ing to undertake the activity;;

Managerial commitment, as evidenced by a strategic plan

or other documentation indicating that it will be imple-

T A N Z A N I A C C P M A G A Z I N E

Gabriel Landa is the Business Cluster Development Practitioner. He is responsible for conven-ing and facilitating grant selection committees; to disburse, track and monitor grant funds

according to agreed procedures.

Individual firms/organizations participating in the

cluster/value chain will be considered if the grants

impact multiple parts of the value chain

menting the objectives related to the aims of CCP;

Confirmation that the Applicant has not received any fund-

ing from CCP for the preparation of its Application;

Demonstration /Memorandum stating that the Applicant has

no outstanding written deliverables (older than 90 days) or

disputed advances/grants from any TPSF related program

(including Matching Grants and Business Development Gate-

way), or other Donor projects.

Applicant must confirm or declare that if has any relation-

ship with any TPSF/CCP or sister Donor projects member

staff.

Capability to segregate stakeholder data by gender and geo-

graphic location, and other means as may be required.

Ineligible Organizations

All those organizations that do not meet the requirements men-

tioned above will be considered ineligible to receive a Cluster

grant from CCP.

Eligible Activities

The proposed activities to be funded under CCP must promote

overall objectives of CCP Project, as set forth above.

P A G E 1 8 V O L U M E 1 , I S S U E 1

By Mrs Tertula Swai

CCP Horticulture Cluster Specialist

A typical marketing paradox is that buyers, such

as supermarkets and processors, complain

about inadequate supply while farmers complain

about lack of markets. CCP‟s experience of

working with farmers involved in various horticulture sup-

ply chains (domestic, regional and international) have

shown that the outcry on lack of markets could have con-

tributed to a shift of focus from the core problem-i.e. in-

ability to supply the market in terms of the quality required

and reliability of supply expected by the buyer.

The issue of volumes have also been a major obstacle pre-

venting access to lucrative markets whether domestic or

international.

It is against this background that CCP has embarked on the

cluster development approach, encouraging collaboration

and partnerships between government, private sector and

academia, deliberately facilitating the various chain actors to

work together, individual and farmer groups to collabo-

rate / partner to achieve economies of scale and ultimately

be regarded as reliable suppliers.

The Tanzania Horticultural Association (TAHA ) repre-

sented Tanzania in this year‟s FRUIT LOGISTICA in Berlin.

FRUIT LOGISTICA is the world leading trade fair for fresh

produce, mainly fruits and vegetables, which attract more

than 54,000 visitors from more than 132 countries around

the world. It is an event which brings together trading part-

ners across the globe and key decision makers in the fresh

produce industry.

Tanzania was among the 2,452 exhibitors from 84 coun-

tries. The gist of participating in this show was to explore

market opportunities for fruits and vegetables from Tanza-

nia and to promote investment opportunities available in

the country. Some of the experiences below were encoun-

tered by TAHA during the exhibition, whereby buyers

were unable to get the quantities or varieties they wanted.

Shrinking Markets

The Case of Mangoes

Tanzania is still unable to meet orders of mangoes from vari-

ous international markets due small volumes produced. Fol-

lowing a mango tasting festival that was held in November

2010, a lot of requests were placed or information re-

quested by local traders as well as International buyers on

what varieties and volumes were available for sale.

It became apparent that AMAGRO was not in a position to

meet domestic demand, let alone International markets.

Tanzania is still unable to supply the domestic market due to

low production, lack of post harvest technology and storage

facilities (lack of relevant infrastructure) to increase produc-

tivity, reduce wastage and produce during off season ( by

irrigating, using high yielding varieties, high quality and rec-

ommended fertilizers and pesticides and technical know how

on mango production).

The case of Sweet Potatoes

Sweet potatoes are produced in Tanzania but during the

exhibition, the buyers wanted a different type (orange

fleshed) and specific varieties of this type. For example Ger-

many wanted a 20 ft. container every week. Israel companies

wanted specific varieties of the orange fleshed which could

not be available in the quantities required.

The case of avocadoes

Avocadoes were among the most sought fruits with high

demand in Dubai, Kuwait, Israel, Spain, Germany and the

UK. An Israel company, MTEX Group, indicated an interest

of buying up to 50 tons of avocadoes a week. Other buyers

that were ready to buy the Hass variety were South Africa,

Kenyan company (East Africa growers). Farmers are faced

with the problem of high freight costs, logistics (absence of

relevant infrastructure at our ports ,

Proper packaging material and absence of local processing

T A N Z A N I A C C P M A G A Z I N E

P A G E 1 9

industries. A famer from Njombe who had visited buyers in

Dubai and Europe, was overwhelmed by the orders, but

almost all buyers asked him similar question: i.e. whether he

had a cold room as some wanted to visit his premise and

train him on post harvest technicalities and how to handle

the fruits so they can reach the market in the required state.

He was also asked whether he has a cold truck. He checked

out the freight costs and realized that the margins were very

small. He finally realized that he was not ready for those

markets. He had tried to mobilize other farmers to increase

the volumes, to date they are still relying on him to link

them to the market he had promised.

He tells them until they get a cold room and truck, he can

not take fruits from them.

The avocado growers need to be coordinated so that they

can consolidate their production to be able to meet the or-

ders from Europe and elsewhere.

The case of pineapples

The buyers wanted MD2 and MD4 varieties which are re-

quired in the EU market. Tanzania farmers produce the

smooth cayan variety.

The case of spices.

Although Tanzania had garlic and ginger of good quality

(aroma), the buyers were specific on diameter, (of garlic)

which means our producers need to use a grading machine

to meet the market specifications. Some buyers wanted a 20

ft. container per week, but no one could supply this amount.

Companies processing spices say that they have to import

cardamom, ginger and cumin, from Dubai, Ethiopia and

Uganda as they could not get enough from Tanzania. This

spices are part of the ingredients used in other spices.

T A N Z A N I A C C P M A G A Z I N E

Other companies who had contract with buyers

abroad have had to pay heavy fines for failure to supply

the quantities agreed to in their contracts.

Some of the companies found lucrative markets in the

USA, but on condition that farmers comply to NOP

standards of the USA. Associations like Tanzania Or-

ganic Movement (TOAM) have capacity to provide the

training to the farmers in preparation for inspection

and certification by IMO from Switzerland. These com-

panies are still looking for resources to train the farm-

ers.

The same applies to the Japanese market, they need

essential oils and spices but the exporters must meet

the JAZ standard-this has to do with Internal Control

systems , Quality Management Systems which neither

the farmer groups nor the companies have in place.

The Japan Ministry of agriculture is ready to bring an

expert to conduct the training, but the participants

(farmers, companies) need to be coordinated to re-

ceive such technical assistance.

The examples above point to the need for increased

government role especially on providing infrastructure,

research and development , as well as training. Col-

laboration/ working by the government, private sector

and academia needs to be supported to take the horti-

culture industry to the next level. As such, the coordination of the

private sector , government and Academia should come out clear on

the roles of each actor, accountability mechanisms and sources of

funding.

There is a need to strengthen business support Units be it under

TNBC, TPSF and Industry Associations. More resources are required

to enhance research into new/non traditional crops that are required

in certain niche markets.The Institutionalization of standards compels

all actors to invest incompliance as this is a main market access bar-

rier.

Investment in skilled farmers/workforce and science based businesses

are among the key success factors and Key to competitiveness. This

must go hand in hand with information packages on a variety of crops

to guide investment decisions, plus linkage to sources of finance.

Tertula Swai is a seasoned horticulture expert who has dedicated her life's

work to the finding ways of changing, improving and investing in farming

across Tanzania and the greater East Africa. She is a member of the Tan-

zania Horticulture Association in addition to working with the Cluster Com-

petitiveness Program.

P A G E 2 1 V O L U M E 1 , I S S U E 1

Strengthening Cluster partnerships

T H E C A S E O F Z A N Z I B A R

By: Dr Felician Ifunya

CCP deputy Team leader

T o assist the private sector to achieve sustainable growth through stronger cooperation for public pri-

vate sector development, the Cluster Competitiveness Program (CCP) has developed a holistic sup-

port towards its outcomes of Productive People; Competitive Companies and Stronger Business Envi-

ronment. The Competitiveness Partnership (CP) is a structured mechanism, anchored on the highest

practical level, coordinated by the secretariat and aims at facilitating the discovery processes by involving a bal-

anced range of public and private sector actors in identifying, filtering, accelerating, implementing and measuring

competitiveness actions including policy reforms.

The CP approach allows for more informed discussions (working groups, analysis, and international experience), brings all key par-

ties to the table giving the discussions greater legitimacy and is centered on facilitation support of the Secretariat.

It is a partnership of the private and public in private sector development. Each party has to make a contribution to its success. The

Private sector’s biggest contribution to CP - is their skill at scoping, analyzing, prioritizing, presenting and upgrading strate-

gies/issues. Whereas the Public sector’s biggest contribution to CP is its capacity and willingness to engage with and re-

spond to private sector on the substance of the proposals.

Some of the CP key success factors include

i. a Secretariat as “engine” (analytical, administrative, facilitation and outreach support)

ii. takes on manageable number of targeted, upgrading strategies/

specific reforms.

iii. filtering process used to prioritize issues, iv) right people are in-

volved (“champions”),

iv. Working Groups meet regularly and move discussions forward

and

v. rigor and consistency in defining and resolving issues

The CP has seven operational elements that include:

i. Mandate & institutional alignment,

ii. Participation under what structure,

iii. Individual “champions”,

iv. Facilitation & management (Secretariat),

v. Outputs (“hard”, “soft”),

vi. Outreach and vii) Monitoring & Evaluation (how well are we doing)

P A G E 2 2

Under the CP approach, CCP is implementing the Zanzibar National

Tourism Public Private Partnership Forum (ZNTPPPF). ZNTPPPF is a

partnership between the government of Zanzibar (Public sector) and

tourism related private sector organizations in Zanzibar (Private Sec-

tor). The parties have established the partnership (mandate) under the

Memorandum of Understanding (MoU) that was signed on the 23rd

October 2010 to work together for the achievement of a cluster vision

“ a responsible, sustainable, culturally and environmentally friendly Zanzibar

Tourism Sector aspiring to become one of the top destinations of the Indian

Ocean, offering an up market, high quality product and through that proc-

ess maximize the economic and social development of Zanzibar”.

The Forum is structured with a joint steering committee, a secretariat

supporting all the administrative functions of the steering committee

and the working groups. Based on the value chain assessment that

was conducted by the Cluster Competitive Program four joint work-

ing groups of workforce /service improvement, market and product

development, business and investment environment improvement and institutional development where identified and upgrading strategies

thereof developed.

The ZNTPPF MoU has established collaborative and effective partnership principles that include:

discussion and resolution of constraints impeding

the sector‟s development as well as pursuing oppor-

tunities enhancing its development;

building a foundation of trust and confidence

that encourages both parties to explore best prac-

tice, emerging trends, new ideas and a better under-

standing of the challenges and issues facing the sec-

tor and also the players;

soliciting views and ideas aimed at developing

appropriate policies, legislation and strategies to

enable the creation of a conducive business environ-

ment in which international and domestic tourism

will prosper and which will seek ways to minimise

the costs of compliance to the sector in dealing with

government;

addressing the sector’s competitiveness and in

recognition of the wide variety of factors contribut-

ing to this objective; and allowing avenues for

both the public and private sectors to constantly

communicate, exchange information and ideas for

T A N Z A N I A C C P M A G A Z I N E

18

The CP Structure

Herzberg , 2010

(joint) Steering Committee

Secretariat

(joint) Working Groups

Administrative

Analytical

Facilitation

Outreach

Advocacy

Monitoring

Info Sharing

Attracting Support

Capacity Building

Senior Govt

Re

co

mm

en

da

tio

ns

The Zanzibar National Tourism CP Forum

P A G E 2 3 V O L U M E 1 , I S S U E 1

the betterment of the Sector.

CCP has supported the working groups to conduct a Rapid assessment and each working group developed the following Strategic objec-

tives:

A total of 77 activities were developed to implement the for the 14 strategic objectives and the working groups are soliciting funds to

support the activities.

Working Group Strategic Objectives

i. Institutional Development

For PSO (Private Service Organizations): 1. Demand driven services are adequately managed to attract members/generating

income 2. PSO Leadership and Management is Effective and Efficient 3. The Capacity of PSO and members to effectively engage in the Forums Improved

For MDAs (Ministerial Development Agencies) 4. MDAs are Facilitating Private sector Development through Customer Charters

ii. Business and investment envi-ronment improve-ment

5. Regulations and administrative procedures governing fees relating to tourism re-viewed and reforms proposed

6. PPP Law on utilities (BOT concept) proposed 7. Business community adhere to business ethics and Corruption prevented 8. Laws, regulations and Administrative procedure related to Tourism Compiled and

disseminated

iii. Market and prod-uct development

9. New Products and new Destinations are developed 10. Adequate Marketing strategies are developed and deployed 11. Zanzibar is adequately branded

iv. Workforce /service improve-ment

12. Labor supply is not a constraint to growth in the tourism Sector 13. Skills and personal attributes to deliver quality experiences are developed 14. People with Experience and Expertise are Retained within the Industry because

they have opportunities to grow

Microeconomic Capacity

Sophistication of Company Operations Strategy

Quality of the Microeconomic Business Environment

Corporate Governance Customer Orientation Management & Staff Training Entrepreneurship Training Production process sophistication Supply chain efficiency Delegation of Authority Family firm transitions Breadth of international markets

Efficient government processes Access to skilled labour Efficient financial sector Enforcement of contracts Local business environment Efficient infrastructure Market efficiency Access to technology Advanced research institutions

T A N Z A N I A C C P M A G A Z I N E

P A G E 2 4

The Competitive Partnership has proved itself to build trust among the cluster partners and CCP is replicating the concept to other

clusters, such as: the Tourism mainland with TCT members; the Fishing Industry/Cluster with the collaboration of Tanzania Industrial

Fishing Processors (TIFPA); the Meat Industry/Cluster with the Tanzania Meat Board; and the Food Processing Cluster starting with

building an alliance between the large processors (Confederation of Tanzania Industry (CTI) and small processors (TAFOPA

and SCF are in the lead). It will focus on the public and the private sectors working together to improve the Microeconomic

Capacity

Dr. Felician Ifunya, is the author of 'Improving the Investment Climate of Tanzania', a document he has presented at various conferences and forums across the world. As deputy team leader, of the TPSF Cluster Competitiveness Program, he is key to forging public and private sector partner-ships to enhance the competitive edge of Tanzania's best performing sectors of the economy

.

T A N Z A N I A C C P M A G A Z I N E

TPSF Cluster Competitiveness Program

Plot 1288, Mwaya Road, Msanani Peninsula

P.O.Box 11313, Dar es Salaam, Tanzania

Tel: +255 22 260 2245 / 260 2246

Fax: +255 22 2602237

Email: info@ccp-tpsf.org

www.ccp-tpsf.org