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Tanzania CCP Magazine www.ccp-tpsf.org
Improving Tanzania’s
Competitiveness
Globally
Issue 1
December 2011—February 2012
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
IN TH IS
I S SUE
Karibu to the
Celebration
4
Tall. Full. Glass of
Milk
9, 13
Matching Grants 9, 16
Shrinking Mar-
kets
9, 18
Competitiveness:
Tanzania’s
Framework
6
Competitive
Collaborations
10
Strengthening
Cluster Partner-
ships
21
T A N Z A N I A C C P T A N Z A N I A C C P T A N Z A N I A C C P T A N Z A N I A C C P
M A G A Z I N EM A G A Z I N EM A G A Z I N EM 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 By Mrs. Mary Kalikawe
CCP Tourism Cluster Specialist
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 con-
verged to celebrate 15 years of Cultural Tourism in Tanzania.
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 classi-
fied as cultural tourism opera-
tors. The TTB together with
SNV have managed the sus-
tainable growth of this treas-
ured sector.
The work of SNV and devel-
opment of cultural tourism in Northern Tanzania is a valuable start
in diversifying Tanzania’s tourism product from over dependence
on wildlife and safari tourism. Further diversification 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 ca-
tering and Heritage including caves and ancient rock art.
The industrialized world
has adopted creative in-
dustries as encompassing
the full concept of Cul-
tural 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: cathedrals and pilgrimage
sites. Such cultural tourism creates higher levels of self employment.
The creative economy is considered to be one of the fastest growing
sectors of the economy in many Western industrialized countries. It
employs around 34 per cent of the working population and contrib-
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
utes a similar percentage to the annual GDP.
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 cul-
tural 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 replacing
our definition of cultural tourism, which is only based on heritage and the arts.
Mary Khalikawe is an Environmentalist, Tourism development expert, Wildlife Biologist, Human resource Develop-
ment 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 cooperation while building capacity in private
and public sector institutions to operate strategically in the pursuit of common objectives
P A G E 6 I S S U E 1
By: Hayley Alexander
CCP Team Leader
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 country needs to address while improving its competitive
stance, the TNCR offers the competitiveness framework. The graphi-
cal illustration of this framework is a pyramid which serves to empha-
size that improving competitiveness involves creating a strong base or
foundation from which to build upon. Three distinct levels are there-
fore 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 automation. The summa-
tion of all three levels, when strengthened, should enable improved
Competitiveness: Tanzania’s Framework 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).
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 services,
upgraded industry marketing and im-
proved stakeholder coordination.
• Supporting a further four associa-
tions with technical assistance to im-
prove professionalism and member
service provision, and foster local clus-
ter development.
• Providing grants to three local
training institutions to develop and offer
highly practical, training curricula, based
on industry identified needs, for direct
use with workforce (continuing profes-
sional 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 thou-
sands of individuals.
• Helping organize, train, mentor and systematize the running of
public private dialogue groups in tourism and food processing in a
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.
T A N Z A N I A C C P M A G A Z I N E
process leading to competitiveness partnerships.
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
Table: CCP Expected Outcomes
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
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.
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
P A G E 8 I S S U E 1
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 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.
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: [email protected] 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 Tanza-
nia’s situation with potential for natural resources, crops,
mines, plenty of water and livestock, etc. but with few devel-
oped agro processing industries.
Arusha region for example is the leading cattle keeper in
Tanzania with a large number of dairy cows, but surprisingly
enough, Arusha market is full of dairy products from Kenya
and other countries. Very few dairy products 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 proc-
essors 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.
>> continued page 13
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
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 | [email protected] | +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
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
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
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 THE CASE OF ZANZ IBAR
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
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: [email protected]
www.ccp-tpsf.org