THE UNITED REPUBLIC OF TANZANIA

PRESIDENT’S OFFICE REGIONAL ADMINISTRATION

AND LOCAL GOVERNMENT

KIGOMA REGION
INVESTMENT GUIDE

The preparation of this guide was supported by

the United Nations Development Programme (UNDP) and
Economic and Social Research Foundation (ESRF)

978 - 9987 - 664 - 03 - 0 E-mail: [email protected]

Website: www.esrftz.or.tz

KIGOMA REGION INVESTMENT GUIDE | i

 TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS..............................................................................................iv

FOREWORD..............................................................................................................................................vii
EXECUTIVE SUMMARY........................................................................................................................ix
DISCLAIMER..............................................................................................................................................xi

PART ONE.................................................................................................1

WHY INVEST IN KIGOMA REGION....................................................................... 1

1.1 Kigoma Region in the Broader Tanzanian Context............................................1
1.2 Investment Climate and Trade Policy in Tanzania..............................................2
1.3 Available Attractive Investment Conditions in Kigoma Region................5
1.4 Suggested Priority Investment Areas in Kigoma Region...............................7
1.4.1 Regional Level Priority Investment Opportunities..............................7
1.4.2 Council Level Priority Investment Opportunities..............................11
1.5 The Guide’s Target groups..............................................................................................13

PART TWO...............................................................................................15

SOCIO-ECONOMIC PROFILE OF KIGOMA REGION........................................15

2.1 Introduction............................................................................................................................15
2.2 Geographical Location, Administrative Structure, Climate and Land.............15
2.2.1 Geographical Location......................................................................................15
2.2.2 Land Area...................................................................................................................16
2.2.3 Administrative Structure...................................................................................17
2.2.4 Climate and Soils...................................................................................................18
2.3 Agro-Ecological Zones (AEZs)......................................................................................19
2.4 Drainage and Topography.............................................................................................20
2.5 Status of the Social Services..........................................................................................20
2.6 The Regional Economy....................................................................................................24
2.7 Productive Sectors..............................................................................................................25
2.7.1 Agriculture Sector.................................................................................................25
2.7.2 Industrial Development....................................................................................30
2.7.3 Energy..........................................................................................................................31
2.74 Wildlife and Tourism............................................................................................32

ii | KIGOMA REGION INVESTMENT GUIDE

PART THREE............................................................................................33

PRIORITY INVESTMENT OPPORTUNITIES IN KIGOMA REGION..................33

3.1 Regional Level Priority Investment Opportunities..........................................33
3.2 Council Level Priority Investment Opportunities............................................47

PART FOUR.............................................................................................54

FACILITATION, PROCESSES, REQUIREMENTS AND INCENTIVES................54

4.1 Supportive Policies and Regulatory Environment..........................................54
4.1.1 Policies, Legal, Institutional and Regulatory Considerations......54
4.1.2 Strategies, Plans, and Programs....................................................................55
4.1.3 Investment Options: Individual, PPP, PPCP, and
Joint ventures..........................................................................................................55
4.2 Facilitation: Processes and Requirements.............................................................57
4.2.1 Lead Institution......................................................................................................57
4.2.1.1 Tanzania Investment Centre Registration.............................58
4.2.1.2 Main institutions dealing with investment in
Tanzania and Kigoma Region.......................................................58
4.2.2 Registration...............................................................................................................59
4.2.3 Taxes..............................................................................................................................59
4.3 Incentives..................................................................................................................................61
4.4 Access to Resources...........................................................................................................62
4.4.1 Land for Investment in Tanzania..................................................................62
4.4.2 Kigoma Special Economic Zone (KiSEZ).................................................62
4.4.3 Banking and Financial Services....................................................................63
4.4.4 Labour..........................................................................................................................64
4.5 Inclusion and Participation of the Private Sector.............................................64

PART FIVE...............................................................................................66

KEY CONTACTS IN KIGOMA REGION................................................................66

5.1 Key Websites...........................................................................................................................66
5.2 Key Contacts...........................................................................................................................66
5.2.1 Regional Commissioner’s Office..................................................................66
5.2.2 Kigoma Ujiji Municipal Council....................................................................67
5.2.3 Kasulu Town Council...........................................................................................67
5.2.4 District Councils.....................................................................................................67

KIGOMA REGION INVESTMENT GUIDE | iii

 ABBREVIATIONS AND ACRONYMS

ASDP Agricultural Sector Development Programme

BRELA Business Registration and Licensing Agency
BSPS Business Sector Programme Support
DC District Council
DR Democratic Republic
DRC Democratic Republic of Congo
EAC East African Community
EPZ Export Processing Zone
ESRF Economic and Social Research Foundation
FAO Food and Agriculture Organisation
FCC Fair Competition Commission
FYDP National Five-Year Development Plan
GDP Gross Domestic Product
GoT Government of Tanzania
ICSD International Centre for Settlement of Investment Disputes
IIDS Integrated Industrial Development Strategy
ISO Industrialization Support Organisation
KiSEZ Kigoma Special Economic Zone
LGAs Local Government Authorities
LIC Local Investment Climate
M&E Monitoring and Evaluation
MA Ministry of Agriculture
MIGA Multilateral Investment Guarantee Agency
MITI Ministry of Industry, Trade and Investment
MLF Ministry of Livestock and Fisheries
MWI Ministry of Water and Irrigation
NBS National Bureau of Statistics
NEEC National Economic Empowerment Council
NGO Non-Government Organisation
PO-RALG President’s Office Regional Administration and Local
Government
PPCP Public-Private Community Partnership
PPD Public-Private Dialogue

iv | KIGOMA REGION INVESTMENT GUIDE

PPP Public-Private Partnership
RS Regional Secretariat
SACCOS Savings and Credit Co-operative Society
SADC Southern Africa Development Community
SAGCOT Southern Agricultural Growth Corridor of Tanzania
SDL Skills and Development Levy
SEZ Special Economic Zone
SIDA Swedish International Development Agency
SIDO Small Industry Development Organisation
SIDP Sustainable Industrial Development Policy
SIFF Small Industrial Facilities Fund
TAFMA Tanzania Animal Feeds Manufacturers Association
TANESCO Tanzania Electric Supply Company
TANTRADE Tanzania Trade Development Authority
TBS Tanzania Bureau of Standards
TC Town Council
TCCIA Tanzania Chamber of Commerce, Industries and Agriculture
THDR Tanzania Human Development Report
TIC Tanzania Investment Centre
TIN Taxpayer Identification Number
TMEA TradeMark East Africa
TMX Tanzania Mercantile Exchange
TPSF Tanzania Private Sector Foundation
TRA Tanzania Revenue Authority
TRIMs Trade-Related Investment Measures
TVETDP Technical and Vocational Education and Training
Development Programme
TZS Tanzanian Shillings
UNDP United Nations Development Programme
UNIDO United Nations Industrial Development Organisation
VAT Value-Added Tax
WTO World Trade Organisation

KIGOMA REGION INVESTMENT GUIDE | v

 “My Government is determined to continue improving the business environment and, in so doing,
provide a wide range of appropriate incentives and support to unleash creativity of private sector and
other stakeholders in harnessing Tanzania’s comparative advantages and thereby boosting productivity,
enhancing innovation and fostering economic integration and deepening participation in the region
and global value chains.”

His Excellency, Dr. John Pombe Joseph Magufuli.

The President of the United Republic of Tanzania, Prefaces
the Tanzania Five Year Development Plan, June, 2016.

“Industrialisation is relevant not only “The 21st Century is going to identify itself with intensifying
because of economic reasons but more competitive business environment in which business to
because it enhances shared prosperity triumph are those with relevant industrial products and
necessary to ensure civil harmony. It services, modern technologies and human resource
does this by increasing employment that is imbued with respective skills, work ethics and
innovativeness. Industrialization is the basic requirement
of our youth, reducing poverty and and core secret of business to survive in the 21st Century.
redressing inequality.” It is in this wisdom that the Fifth Phase Government
of the United Republic of Tanzania has embraced
Her Excellency, Samia Suluhu industrialization as its ultimate goal. The success of this
Hassan. goal calls for the regional administrations to focus on the
The Vice President of the United provision of conducive business environment necessary
Republic of Tanzania remarks during to facilitate business operations and flow of investments.”
the 2nd East African Business and
Entrepreneurship Conference and Hon. Kassim Majaliwa Majaliwa.
Exhibition held on 14th November 2017, The Prime Minister of the United Republic of Tanzania
In his opening remarks at the Business and Investment
at the Dar es Salaam Serena Hotel. Forum, Tabora Region, on 21st November, 2018.

vi | KIGOMA REGION INVESTMENT GUIDE

 FOREWORD

Kigoma Region Investment Guide is

an integral component of the overall
investment policy of Tanzania and
it specifically presents investment
opportunities available in Kigoma Region.
The guide is also a strategy to implement
Tanzania’s long-term Development
Vision whose aspiration is to become an
industrial led middle-income country
by 2025, and is also aligned with other
Government policies and initiatives
including the second National Five-Year
Development Plan 2016-2021 (FYDP II)
and the Sustainable Industrial Development Policy (SIDP) 1996-2020.

The purpose of this Investment Guide is threefold: first, to provide potential

domestic and foreign investors with investment information relating to the
region’s available investment opportunities and, in doing so, attract them to
invest in the region and in accordance with the aspirations of the Regional
Secretariat and the Local Government Authorities (LGAs). Second, the Guide is
a means of enhancing Kigoma Region’s competitiveness and visibility in areas
where it has strengths and emerging economic potentials. Third, to promote
and advertise productive capacities in key primary and industrial sectors and,
in so doing, augment the Gross Domestic Product (GDP) and inclusive and
resilient economic growth needed to accelerate societal development and
wellbeing of Kigoma Region and Tanzania at large.

Through this Guide, the Kigoma Regional Secretariat and its LGAs have resolved
to prioritising all investment initiatives and are committed to provide political
support, attractive initiatives and support services for investors at the time
of setting up businesses and throughout the period of business operations
in the region. In addition, Kigoma Regional Office and its LGAs will provide
a satisfactory conducive policy, regulatory, and business environment, and
are available to provide further details on the selected strategic and viable
opportunities to interested investors.

KIGOMA REGION INVESTMENT GUIDE | vii

I would like to express my sincere gratitude to the United Nations
Development Programme (UNDP) for the financial support and the Economic
and Social Research Foundation (ESRF) for developing this Guide. Likewise,
I wish to express my heartfelt gratitude to Dr Oswald Mashindano and his
team of experts namely, Prof Godwin Mjema, Mrs Margareth Nzuki, Mr Mussa
Martine and Ms Doris Lyimo for their commitment and technical support
that collectively resulted in the completion of this Guide. I am very grateful
for the exemplary support provided by the Kigoma Regional Administrative
Secretary (RAS), Mr Rashid Kassim Mchatta, who efficiently and effectively
coordinated and guided local governments in the region during the
consultative processes of the Guide.

It is difficult to mention everyone who participated in preparation of this

Guide. Nevertheless, my thanks are extended to all council directors in Kigoma
Region, the Regional Secretariat, all council heads of departments and other
senior executives for the support to the team of experts and contributions
towards making this investment Guide possible.

I take this opportunity to welcome you to invest in Kigoma Region, and I

assure you of our continued support to make your investments productive
and grow for our mutual benefit.

Hon. Brig. General (RTD) Emmanuel E. Maganga

Regional Commissioner
Kigoma Region

viii | KIGOMA REGION INVESTMENT GUIDE

 EXECUTIVE SUMMARY

Kigoma Region is located in western part of Tanzania, stretching along

the shores of Lake Tanganyika and borders with Burundi and Democratic
Republic of Congo (DRC). The region encompasses an area of 45,075 sq km,
and is divided into six (6) districts with six (6) district councils (DCs), one (1)
town council and one (1) municipal council. Kigoma Region is an attractive
and welcoming investment destination. The region links the strategic port
of Kigoma with the riparian countries of the Great Lakes to the Indian Ocean
ports via the Central Railway Line.

Kigoma Region is part of Tanzania that benefits from investment policy

and climate, including political stability and development frameworks that
strategise the overall socio-economic and cultural development in the
country. Tanzania, with its large and growing domestic population (about
55 million people and a population growth rate of 2.7%), strategic location,
abundance of natural resources and internal political stability, presents a
uniquely attractive investment opportunity.

Most of the citizens depend on natural resources for income and peoples’
livelihoods. Tanzania is also endowed with regenerative natural resources and
non-regenerative natural resources, including minerals such as gold, diamond,
iron, coal, nickel, Tanzanite, uranium and natural gas. The richness in natural
resources constitutes a major asset and opportunity that is fundamental for
growth and economic development, as well as for poverty reduction.

Kigoma Region has unique geographical and climatic conditions that make
it a favourable investment destination for local as well as foreign investors.
Kigoma’s location at the western part of Tanzania gives it a strategic
importance to neighbouring land locked countries including the Democratic
Republic of Congo (DRC), Rwanda, Burundi and even Uganda. The region has
an airport as well as a port on Lake Tanganyika.

The completion of the Standard Gauge Railway from Dar es Salaam to Kigoma
and Mwanza will further connect Kigoma Region to the neighbouring
countries. The existence of Lake Tanganyika offers fishing activities including
cage fishing. The climatic conditions in Kigoma Region are favourable for the

KIGOMA REGION INVESTMENT GUIDE | ix

cultivation of cash and food crops including oil palm, coffee, ginger, maize,
cassava, beans and sunflower. Kigoma Region has a variety of investment
opportunities and incomparable social services for investors.

The region has identified priority investment opportunities and welcomes

investors to invest at Kigoma Special Economic Zone (KiSEZ); production and
processing of palm oil and other related by-products; invest in a large and
modern market at Tanzania - Burundi border; fish processing industry; paddy
and horticultural products processing industry; sugar industry; processing of
bee products; tourism related activities; surface and marine transport; cement
and chalk industry; production and processing of cassava; building irrigation
infrastructure; fish farming; and bee keeping.

x | KIGOMA REGION INVESTMENT GUIDE

 DISCLAIMER

The publication of the Kigoma Investment Guide is meant to assist potential

investors by availing them with information pertaining to investment
opportunities and, to some extent, provide some pointers to investable areas
in Kigoma Region. The Guide does not in any way claim to give exhaustive
information or detailed practical instructions needed by potential investors in
undertaking actual investments. Rather, the Guide is meant to help potential
investors to find additional sources of information in public and private
sectors, which they can use to engage in successful and profitable investment
undertakings in Tanzania generally and in Kigoma Region specifically.

Investors are aware that actual investment decisions are informed by, among
other things, detailed feasibility studies. The information relating to potential
investment areas in Kigoma Region was sourced through consultations
with various stakeholders at regional and district government levels, private
sector, and other agencies. Thus the information contained in the Kigoma
Investment Guide is useful only to the extent that it assists potential investors
to be aware of the investment opportunities existing in the region and should
not, in any way, be used as a defence in a legal investment dispute or any
other related matter.

KIGOMA REGION INVESTMENT GUIDE | xi

xii | KIGOMA REGION INVESTMENT GUIDE
 PART ONE

WHY INVEST IN KIGOMA REGION

1.1 Kigoma Region in the Broader Tanzanian Context

As part of Tanzania, Kigoma Region benefits from and largely depends on
the country’s investment policy and climate, including political stability and
development frameworks that strategise the overall socio-economic and
cultural development in the country.

Figure 1.1: A Map of Africa and Tanzania

With its large and growing
domestic population, strategic
location, and internal political
stability, Tanzania presents a
uniquely attractive investment
opportunity. Tanzania has a
population of about 55 million
people and a population
growth rate of 2.7% (URT,
2012). Most of the citizens
depend on natural resources
for income and livelihood.
Tanzania has abundant
natural resources, including
agricultural land, water bodies
such as lakes and rivers,
springs, mineral resources
such as gold, diamond, iron,
coal, nickel, Tanzanite, uranium and natural gas, tourist attractions including
biodiversity and unique landscapes such as Mount Kilimanjaro, Ngorongoro
Crater and Serengeti National Park, which attract tourists from all over the
world. In addition, its location on the east coast of Africa gives it a comparative
advantage in providing trade and transport services to neighbouring, land-
locked countries.

KIGOMA REGION INVESTMENT GUIDE | 1

A number of measures have been taken to create an environment conducive
to business so as to encourage local and foreign investment. The country
has, for example, created a stable and attractive macro- and micro-economic
climate with single-digit inflation; there are on-going reforms in fiscal and
monetary policy, and improvements in the business climate through legal
and regulatory reforms aimed at streamlining procedures and freeing
business from unnecessary bureaucracy.

Tanzania has sustained an average rate of 7% economic growth since the

late 1990s due to a relatively stable political environment, reasonable macro-
economic policies, structural reforms, a resiliency from external shocks, and
debt relief. The International Monetary Fund (IMF) recently reported that
Tanzania’s macro-economic performance remains strong. The economy is
growing at an average of 7% per annum, and inflation rate is around 3.1% by
March 2019 (National Bureau of Statistics 2019).

The Government recognises the role of the private sector (both local and
foreign) and other strategic partners as the engine of growth and poverty
reduction, and the drivers of economic transformation. This important role of
the private sector has been further emphasised in the current Second Five-Year
Development Plan (2016/17-2020/21) by recognising that the realisation of the
goals and targets of the Second Five-Year Development Plan (FYDP II) hinges
on among others, the effective participation of the private sector in developing
industries and enterprises that spur economic growth and create jobs.

1.2 Investment Climate and Trade Policy in Tanzania

Generally, the Government of Tanzania (GoT) has a favourable attitude
toward Foreign Direct Investment (FDI) and domestic investment for the last
three decades, and has considerable success in attracting FDI and domestic
investment. There are no laws or regulations that limit or prohibit foreign
investment. The Government also recognises the important role of the local
private sector and enterprises in industrialisation.

This recognition has been emphasised in many policy documents but more
so in the Second Five- Year Development Plan. In that plan the Government
has committed to ensuring that the local investment climate is functional
for local enterprises supporting small and medium sized enterprises,
encouraging new enterprises, and attracting inward investment.

2 | KIGOMA REGION INVESTMENT GUIDE

The Government of Tanzania (GoT) uses the World Trade Organisation’s (WTO)
Trade-related Investment Measures (TRIMs) to encourage investments in line
with national priorities, and to attract and regulate foreign investment.

Trade development instruments that Tanzania has adopted include export

processing zones (EPZs), investment code and rules, export development/
promotion and export facilitation. EPZs were established by the 2002 EPZ
Act and are open to both domestic and foreign investors, in particular the
agribusiness, textiles and electronics sectors.

The Export Processing Zones Authority (EPZA) governs both EPZs and SEZs.
The Government has encouraged both local and foreign investors to take
advantage of the investment opportunities under the Export Processing
Zones Authority (EPZA) for their benefits and for the benefit of the country.
There are three categories of licence issued by the EPZA; these are:

(i) The developer’s licence: for investment in infrastructure development

including the construction of industrial buildings and warehouses,
development of internal roads, landscaping and fencing, and provision
of utilities

(ii) The operator’s licence: for investors who are undertaking manufacturing
operations including manufacturing, processing, repackaging, re-
labelling and trading

(iii) The service provider’s licence: for investors who are providing services and
utilities to EPZ and SEZ investors within the zone, including
banking, insurance and IT

EPZA also oversees incentive packages such as exemptions from corporate

tax and withholding taxes on rent, dividends and interest; remission of
customs duty, value-added tax (VAT) and other taxes on raw materials and
capital goods; and exemption from VAT on utilities and levies imposed by
local authorities. In addition, working permits for foreign staff can be obtained.
More information can be found on EPZA website www.epza.go.tz and email
address is:  [email protected].

The Special Economic Zones Act of 2006 authorised the establishment of

special economic zones (SEZs) to encourage Greenfield investments in light

KIGOMA REGION INVESTMENT GUIDE | 3

industry, agro-processing industry and agriculture.

All of the above factors plus the country’s well formulated development-cum-
strategic frameworks have contributed to over a decade of continuous real
GDP growth of about seven per cent (7%) and is a member of what the World
Bank has dubbed the “7% Club”, a group of countries forecasted to achieve 7%
or more real GDP growth for the next decade.

Investments in Tanzania are guaranteed against nationalisation and

expropriation through Tanzania Investment Act 1997 and various agreements
of protection and promotion of investments, such as the Multilateral
Investment Guarantee Agency (MIGA), of which Tanzania is a member.
Tanzania also offers access to major markets of the world, such as America-
Africa Growth Opportunity Act (AGOA, Everything but Arms (EBA), and various
arrangements with Europe, Asia and the Middle East.

Tanzania is a member of two major regional organisations. One of these is

the Southern African Development Community (SADC), and the other is the
East African Community (EAC), both of which are growing towards stronger
common markets. In terms of markets, investors will access domestic
markets, regional markets in eastern and southern Africa (in both EAC and
SADC markets) and the export markets abroad in the European Union and
the United States, in the growing Asian economies of China and India, and in
the Middle East, to mention only the leading ones.

The domestic market is significant, given Tanzania’s population projected at

nearly 55 million people, growing at a rate of nearly 2.7% per annum as well
as a growing middle class. Then there is a regional market offered by the East
African Community (EAC). As noted above, this is a regional entity with a long
history and deep roots, and it has actually put in place some of the things that
other trading blocs have only talked about, such as a customs union and visa
free travel.

Generally, the following are among the reasons why one should invest in any
region of Tanzania:

 
High degree of investment security because of political stability that is
strife-free without ethnic divisions; democratic rule that respects diversity
of opinion and a tradition of strong Constitution and rule of law

4 | KIGOMA REGION INVESTMENT GUIDE

 Business-friendly macro-economic stability with low inflation (around
3.1%); a stable exchange rate regime supported by unrestricted and
unconditional transfers of profits, loan repayments, emoluments,
royalties, fees and charges

 Simplified bureaucracy, streamlined through the acclaimed services of

the Tanzania Investment Centre, which is a one-stop facilitation agency
of Government serving registered investors and businesses

 Successful economic liberalisation measures commended by both the

World Bank and IMF, with business-supportive legislation continually
being improved through genuine dialogue between Government and
the private sector

 A well balanced package of incentives to investors with additional

negotiated benefits to strategic investors

 Rapidly emerging as the most effective entry point and gateway for
trade into Eastern, Southern and Central Africa

 Lucrative investment opportunities in infrastructure, and value adding

facilities

 
Investments in Tanzania are guaranteed against political risks,
nationalisation and expropriation

 Any foreign business operating in Tanzania may obtain credit from

domestic financial institutions up to the limits established by the Bank
of Tanzania; major banks like Standard Chartered, Barclays, Citibank,
Stanbic, and Exim have invested in Tanzania.

1.3 Available Attractive Investment Conditions in

Kigoma Region
Kigoma Region has enormous investment opportunities emanating from
agricultural, water and mineral resources. Below are some of the reasons for
investors to choose Kigoma Region as their investment destination:

KIGOMA REGION INVESTMENT GUIDE | 5

(a) Kigoma Region (through Lake Tanganyika) is a centuries old inland
trading hub and transportation highway for the Great Lakes Regions
with Ujiji in Kigoma as the trade and logistics hub

(b) Kigoma has sufficient agricultural land suitable for cultivation of cash
and food crops

(c) The region has a trading highway which links the strategic port of
Kigoma to the riparian countries of the Great Lakes and to the Indian
Ocean ports via the Central Railway Line

(d) It is the food basket for its neighbours, namely Mwanza, Shinyanga and
Tabora regions as well as Burundi and Eastern DRC

(e) Kigoma has abundant natural resources – water bodies for fishing,
wildlife, forestry, beekeeping

(f ) The region has the potential to achieve high rates of economic growth
through exploitation of its natural resource endowment, as well as being
a gateway of international trade

(g) Fertile soils, coupled with favourable climatic conditions in Kigoma

Region, are favourable for cultivation of cash and food crops, including
cassava and horticultural products

(h) Tourism potentials of Kigoma Region include cultural heritage, national

parks and aqua tourism on Lake Tanganyika

(i) Like the rest of the country, Kigoma Region enjoys peace and political
stability that offers a safe environment

(j) The region benefits from Local Investment Climate (LIC), which is a sub-
component of the Business Sector Programme Support (BSPS) Phase IV.
LIC focuses on the critical constraints to business growth and economic

6 | KIGOMA REGION INVESTMENT GUIDE

 development at the district level. This sub-component will help Local
Government Authorities (LGAs) and the business community to identify
and prioritise the challenges it faces in the local business environment,
and will facilitate the creation of district-level Public-Private Dialogue
(PPD). In addition, LIC will support practical reform initiatives within
areas as business registration and licensing, as well as local land use
and administration that remove local obstacles to business growth. The
local investment climate will further establish a Small Industrial Facilities
Fund (SIFF), which will facilitate investments in public infrastructure
and private business facilities with public good characteristics to
unlock critical constraints in local markets and value chains, and create
new business opportunities for local business women and men. The
investments will be targeting agribusiness in the region. LIC will provide
a combination of technical assistance and funding for investments.

1.4 Suggested Priority Investment Areas in Kigoma

Region
Investors are welcome to invest in the following suggested priority investment
areas:

1.4.1 Regional Level Priority Investment Opportunities

1) Investment in Kigoma Special Economic Zone (KiSEZ)

Kigoma Region has set aside 691 hectares of land at Businde and Busanda
wards for the establishment of Kigoma Special Economic Zone (KiSEZ). The
region’s target is to have 20,000 hectares of land for this purpose. A total of
401 plots have been surveyed and the process of land compensation has
been completed.

The Government has also outlined a procedure guiding investors wishing

to invest in KiSEZ, whose investment opportunities are in agro-processing
industries, trade investment centre, shopping malls, sports and recreation
centres, education and health facilities as well as housing estates. KiSEZ has
already attracted three investors, and more are likely to be attracted to invest.

KIGOMA REGION INVESTMENT GUIDE | 7

2) Investment in processing of palm oil and other related by-products

Potential investors are invited to explore the opportunities to venture into edible
oil processing industries in order to help Tanzania bridge the supply deficit gap
of 320,000 tonnes and slash the edible oil import bill, which currently stands at
more than $294 million. The annual demand for edible oil is 500,000 tonnes and
annual local supply is only 180,000 tonnes, which leaves the country with no
choice but to import the 320,000 tonnes to meet the demand.

With edible oil demand forecast showing an increase from 500,000 to 700,000
tonnes by 2030, Tanzania guarantees market growth for investors for the
foreseeable future. Since the crop has high participation rate, expansion of
investment in palm oil will benefit the majority in the region as well as the
entire country.

Figure 1.2: A map of Tanzania showing market channels for crude palm oil
(CPO) and kernel palm oil (KPO) by-products

8 | KIGOMA REGION INVESTMENT GUIDE

Investors are invited to invest in small, medium and large-scale oil processing
industries for processing palm oil and palm oil by-products to make oil from
inner seed of oil palm (locally known as mise oil), raw materials for soap making,
animal feeds, charcoal and roofing materials. Kigoma Region has designated
an investment area for processing industries which is readily available for any
investor who is interested in setting up a factory in the region.
Figure 1.3: A box of soap with light Figure 1.4: A box of soap with yellow
blue colour colour

Figure 1.5: A carton containing 20 Figure 1.6: Small bars of soap at

bars of soap selling point of Mwandiga

3) Private investments in large and modern markets at the Tanzania -

Burundi border constructed by the Government

The Government is constructing modern markets at border posts in Kigoma

Region. Investors are therefore invited to invest in service provision in these

KIGOMA REGION INVESTMENT GUIDE | 9

new boarder markets. Investment in these markets is vital for several reasons:

(i) It will facilitate an increased flow of trade with all neighbouring coun-
tries of DRC, Rwanda, Burundi and Uganda
(ii) It will also address the illegal/informal trade existing between Kigoma
Region and the neighbouring countries. It is estimated that there are 21
informal routes compared to 3 formal ones
(iii) The market will increase Government revenue, as respective LGAs will
collect more revenues
(iv) The market will benefit various traders, agricultural and livestock prod-
ucts as well as industrial goods
(v) The market will improve socio-economic relations with neighbouring
states, and it is pro-economic diplomacy

4) Investment in value addition in the fishing industry

Investors are welcome to add value in the fishing industry. This will include
establishment of fish processing plant in the region.

5) Investment in paddy and horticultural products processing industry

Investors are invited to establish processing factories in Kigoma District

Council, targeting paddy and horticultural crops

6) Investment in sugar industry

(i) Kigoma Region produces sugarcane, which is a raw material for sugar
industry
(ii) The industry will create employment for Kigoma residents and Tanzani-
ans at large
(iii) Sugar has ample demand in Kigoma Region, in the country at large
and in the neighbouring countries of DRC, Rwanda, Burundi, Uganda
and South Sudan.

7) Investment in processing of bee products

(i) Bee products include honey, wax, soap, and alcohol (wine)

10 | KIGOMA REGION INVESTMENT GUIDE

(ii) Bee products (honey, wax, etc.) have markets within the country and
abroad

8) Investment in tourism

(i) Kigoma Region has two renowned national parks, namely Gombe and
Mahale popular for Chimpanzee, and one game reserve, namely Kigosi
Moyowosi famous for game hunting
(ii) The presence of Lake Tanganyika offers opportunity for beach tourism.
There is also opportunity for developing historical sites such as the old-
est German-made ship i.e. MV Liemba etc.

9) Investment in surface and marine transport

Kigoma Region’s strategic position with respect to land-locked neighbouring

countries is an investment opportunity in activities such as transportation of
building materials (e.g. cement), and agricultural products.

10) Investment in cement and chalk industry

(i) Kigoma Region has essential raw materials (limestone) for production
of cement and chalk
(ii) There is ample demand for cement within both Kigoma Region and
the neighbouring countries
(iii) This investment will generate employment to youths and boost re-
gional and national GDP.

11) Investment in trade and logistics

Investors are invited to establish logistics companies to manage flow of

goods between Kigoma and up country, as well as between Kigoma and
neighbouring countries.

1.4.2 Council Level Priority Investment Opportunities

1) Investment in Production and Processing of Cassava

In Kigoma Region cassava is a major subsistence crop, which grows well

KIGOMA REGION INVESTMENT GUIDE | 11

in Kasulu, Uvinza, Kibondo and Kakonko districts, and in Kigoma District
Council. Most of the cassava produced in the region is exported in raw form
to neighbouring countries. It is estimated that Kigoma is currently producing
1,015,923 tonnes of raw cassava per year, equivalent to 375,891.5 tonnes
of dried cassava per year. About 90% of farming households in the region
cultivates cassava and so it is a product that has the potential to benefit
majority of residents in the region.

Investment in cassava seedlings: The region is inviting potential investors to

invest in different varieties of cassava species. Currently, the species of cassava
that are mostly cultivated in Kigoma are Dyongo, Girisi, Kongo and Mwanaidi,
but there are other species with higher productive capacity such as Chereko,
Kipusa and Mkombozi. The seedlings produced need to be supplied to
farmers at affordable cost. This investment will potentially increase not only
production of cassava but also the productivity of farms and employment.

Investment in cassava plantation: Kigoma Region is endowed with suitable

land (about 250,000 hectares) for cassava production. Some 171,791 hectares,
which are equivalent to 69% of the potential land available for cassava,
have been utilised by small and medium enterprises. Potential investors are
therefore highly invited to invest in the cassava sub-sector.

Investment in cassava processing plant: Investors are invited to invest in small,

medium and large-scale cassava plant for processing cassava into flour, starch,
ethanol, animal feed, spaghetti, pan-cakes and other related products. Cassava
flour is highly demanded in DRC, Zambia, Rwanda and Burundi. Starch and
other related products have high demand in China, India, U.S.A and Europe. At
the moment, there is no cassava processing plant in Kigoma Region.

2) Investment in the Production of Oil Palm

Investment in oil palm seedlings: The region is inviting potential investors

to invest in new improved oil palm species seedlings. Currently there is one
investor who is supplying seedlings with a capacity of 52,000 seedlings per
year, while the demand for seedlings is estimated to be 2,730,520 seedlings
per year. There is therefore a deficit of ninety-eight per cent (98%), which
is disquieting. The seedlings to be produced need to be supplied at an
affordable cost. This investment will potentially increase not only crop

12 | KIGOMA REGION INVESTMENT GUIDE

productivity, but also value addition through processing of palm oil, soap
and other by products, employment and the rural household incomes.

Investment in oil palm plantation: Kigoma Region is endowed with 114,018

hectares of land suitable for oil palm production. Currently 21,004 hectares
have been utilised by small and medium enterprises, which are equal to 18.4
percent only of the available land. Potential investors are highly invited to
invest in this sub-sector.

3) Fish Farming and related Investments

The presence of Lake Tanganyika in Kigoma Region offers various opportunities,

including lake fish farming and cage fishing opportunities. An investment is
required in fish hatchery for producing fish fingers to support and promote
cage fishing and fish farming in general. The advantages of this investment are:

(i) Fish farming is especially likely to result into increased production of fish
(ii) Fish farming is in line with Government efforts to protect the environ-
ment and marine resources
(iii) Fish farming is also a strategy for controlling illegal fishing
(iv) The increase in fish production will cut down the current fish imports
(v) Fish farming will lead to increased employment among youths and women.

4) Investment in Bee Keeping

(i) Kigoma Region is blessed with abundant natural resources – water bod-
ies for fishing, and wildlife, and natural forest reserves suitable for bee
keeping
(ii) Investment in bee keeping will generate employment and income to
youths as well as to adults, and eventually the regional and national
economies
(iii) Investment in bee keeping is a strategy for forest conservation.

1.5 The Guide’s target groups

The direct targeted beneficiaries of this Guide include investors, business
owners, stakeholders in Kigoma Region and the entire country interested in
ventures such as agricultural crop estates and medium-to-large farms, value

KIGOMA REGION INVESTMENT GUIDE | 13

adding and marketing entities intending to invest in Kigoma designated
industry and business areas; the Ministry of Trade, Industries and Investment;
primary stakeholders across value chains, including individual entrepreneurs,
importers and exporters of input and output factors, and agriculture crops;
livestock keepers and fisher folks; industry organisations/marketing boards or
organisations and exporters.

Other targeted groups include the Government Ministries, agencies, LGAs,

EPZA, and state-owned enterprises (SOEs), for example those responsible for
agriculture, livestock, fisheries, industries, trade, finance, and international
cooperation; other private sector entities; the academia and researchers in
Lake Zone regions and in Tanzania as a whole; umbrella organisations such
as Tanzania National Business Council (TNBC), TCCIA, TPSF, CTI, pension funds
investing in agriculture and industries, and other support institutions.

This Guide is furthermore targeting all institutions overseeing the management

of quality and safety management issues, such as TBS; organisations providing
productive capacities, information and data, monitoring and evaluation
(M&E), and other business support services, such as the Industrialisation
Support Organisation (ISO), Textiles Development Unit, BRELA, TRA, FCC,
NEEC, TANTRADE, and agricultural and industrial extension services providers
etc.; selected civil society organisations (CSOs) and NGOs; and development
partners, such as FAO, UNDP, World Bank, UNCTAD, ITC, EU, UNIDO, TMEA,
TMX, NFRA, CPB, WRRB, NEEC etc.

14 | KIGOMA REGION INVESTMENT GUIDE

 PART T WO

SOCIO-ECONOMIC PROFILE OF
KIGOMA REGION

2.1 Introduction
This chapter is intended to highlight the regional geographic and
demographic characteristics, administrative structure, economy, and the
status of social services in Kigoma.

Kigoma Region and Lake Tanganyika are centuries old inland trading hub and
water transportation route for the Great Lakes Regions. The region is therefore
an attractive and welcoming investment destination. The region links the
strategic port of Kigoma with the riparian countries of the Great Lakes to the
Indian Ocean ports via the Central Railway Line, which will soon become a
Standard Gauge Railway (SGR).

Kigoma Region consists of various tribes including the Wagoma, Warundi,

Wabwarii, Wamanyema, Wabembe and Ujiji people who have originally habited
the region. Others include Waha, Waholoholo, Wavinza, Wanyakaramba,
Watongwe, Wafipa, Wahaya, Wasukuma, Wachagga, Wanyakyusa, Wajita,
Wakurya, and Wanyamwezi. Waha, who originated from the Bantu living
along lakes Tanganyika, Victoria, Kivu and Edward, is the biggest tribe in the
region. According to the information volunteered by elders and historians,
Waha ethnic group entered Buha (Kigoma) from the areas outside Buha, and
they often use names from their clan. Economic activities by Waha tribe used
to be cultivation of food crops such as maize, millet, potatoes, bananas and
beans, iron smelting, salt making, pottery, and fishing.

2.2 Geographical Location, Administrative Structure,

Climate and Land
2.2.1 Geographical Location

Kigoma Region is located in western part of Tanzania between latitudes 3.6

and 6.5 degrees south and longitudes 29.5 and 31.5 degrees east. The region

KIGOMA REGION INVESTMENT GUIDE | 15

stretches along the shores of Lake Tanganyika, the second deepest fresh
water lake in the world. It borders with Burundi and Democratic Republic of
Congo (DRC).

2.2.2 Land Area

The region encompasses an area of 45,075 sq km of which 36,523 sq km is

land and 8,552 sq km is covered by water. The capital municipality, which
draws its name from the regional name Kigoma, is closely linked to Ujiji, one
of the famous historical towns. It has a wonderful natural beauty, nestled
under the hills of the western arm of the Great Rift Valley on the edge of the
lake. In wet seasons the place is especially spectacular, with its emerald green
and clear sparkling water.

Figure 2.1: Map of Kigoma Region

16 | KIGOMA REGION INVESTMENT GUIDE

 Figure 2.2: Map of Tanzania

2.2.3 Administrative Structure

Kigoma Region is divided into six (6) districts, six (6) district councils (DCs),
one (1) town council and one (1) municipal council as follows:

Table 2.1: Districts, Councils and Municipals in Kigoma Region

Districts Councils
Kigoma/Ujiji Municipal Council
Kigoma
Kigoma District Council
Uvinza Uvinza District Council
Buhigwe Buhigwe District Council
Kasulu Town Council
Kasulu
Kasulu District Council
Kibondo Kibondo District Council
Kakonko Kakonko District Council

KIGOMA REGION INVESTMENT GUIDE | 17

According to the region’s official statistics, there are 21 divisions, 139 wards,
307 villages, 1,864 hamlets or sub-villages and 176 streets in the region.
Kasulu and Kigoma districts have the largest number of divisions (5 divisions
each), Kasulu and Kibondo have the largest number of wards (36 and 19
wards respectively) in the region, whereas Uvinza has more sub-villages
(439 hamlets or sub-villages), which is approximately 22.3 percent followed
by Kibondo District (416 hamlets/sub-villages), equivalent to 21.1 percent
and Kakonko District (358 hamlets/sub-villages), which is equivalent to 18.2
percent.

This could be due to geographical coverage and environmental differences

between districts. In all cases, Kasulu Town Council and Kigoma-Ujiji Municipal
Council have the smallest areas but have many streets, obviously due to high
population density.

The population according to the 2012 population census was 2,127,930

whereby men were 1,028,994 and women were 1,098,936. As per the
population projection by NBS, the current (2019) total regional population is
estimated to be 2,706, 831 (1,319,899 men and 1,386,932 women).

2.2.4 Climate and Soils

(a) Climate

The climate of Kigoma Region is characteristically tropical with a distinct long

rainy season beginning from late October to May, with short dry spells of
2-3 weeks in January or February. Annual rainfall is variable ranging from 600
mm to 1,600 mm. There is the heaviest rainfall in highlands, intermediate in
the lower slopes and low in the valley bottom and lake off-shore areas. Mean
daily temperatures range between 20 C in December and January to 30 C in
September. Temperature varies inversely with altitude.

(b) Soils

The soils of Kigoma Region can be generally categorised as follows: along

the lake shore the soils are deep and well drained, comprising dark reddish
brown fine sandy loams, and sandy loams partly stony and severely eroded.
The heavy black soils are found in permanently waterlogged areas with black
clay soils that have a high proportion of sand in swamp fringes subject to

18 | KIGOMA REGION INVESTMENT GUIDE

seasonal water logging.

These are highly fertile areas because of high proportion of sand and silt.
However, these soils are not subject to seasonal wetting and drying like the
cotton soils because the water table is high. In the low relief areas the soils
are dark reddish clay loams with fairly good internal drainage, while black and
brown alluvial soils are found mostly in areas of high relief.

2.3 Agro-Ecological Zones (AEZs)

Kigoma Region can be divided into four (4) Agro-Ecological Zones on the
basis of altitude and the corresponding annual rainfall pattern, which is
described as follows:

(i) AEZ I: The Lake-Shore Zone

This zone lies within an altitude of 800 and 1000 metres with annual rainfall
of 600 - 1000 mm. The lake-shore zone forms a narrow strip of land between
Lake Tanganyika and the mountains, dissected by numerous streams flowing
into the lake, creating in the process, valleys in a few locations which support
paddy farming. Cassava, maize, beans and oil palm are also grown. The main
economic activity in this zone is fishing. Population is sparsely distributed
with more concentration on the shores of the lake.

(ii) AEZ II: The Miombo Zone

The Miombo zone lies within an altitude ranging between 1000 and 1200
metres, and rainfall of 600 - 1000mm. The area is generally covered with
miombo woodland and is sparsely populated due to tsetse fly infestation.
Economic activities include cattle rearing, hunting and honey/bees wax
gathering as well as agriculture.

(iii) AEZ III: The Intermediate Zone

This zone lies between 1200 and 1500 metres above sea level with an
annual rainfall of 850 mm to 1100 mm. The zone is characterised by swampy
areas that provide great potential for irrigation. Population in this zone is
developed from both organised and spontaneous resettlements mainly
from the highlands. Common food crops include cassava, maize, beans

KIGOMA REGION INVESTMENT GUIDE | 19

and sorghum/millet while oil palm, cotton and tobacco constitute the cash
crop package.

(iv) AEZ IV: The Highland Zone

This zone lies within the altitude of 1500 metres to 1750 metres with annual
rainfall of 1000 - 1600 mm. The zone is divided into two main parts, north and
south: in the north the zone is located above the intermediate zone and has
a high population; in the south there is a separate highland area and Mahale
Mountains reaching a maximum altitude of 2373 metres.

This area is uninhabited and most of it has been designated a national park.
Situated north of Kigoma Town is Gombe Stream National Park, a famous
tourist attraction due to the existence of the chimpanzees in the area.
Common food crops include maize, beans and bananas, with coffee in the
higher wetter areas.

2.4 Drainage and Topography

Kigoma Region is a gently inclined plateau with steep hills rising very sharply
from 800 metres at the level of Lake Tanganyika to an altitude of 1,750 metres
to the east, descending from the north and east into gently rolling hills with
three major perennial rivers of Malagarasi, Luiche and Ruchugi. The first two
rivers comprise the major drainage area. The descent leads into river valleys at
1,000 metres, and swampy and flat delta area at 800 metres where the rivers
join the lake.

2.5 Status of Social Services

Social services involve mainly health, education and water. The social services
status is presented briefly using two main indicators, namely the infrastructure
and personnel engaged with available infrastructure.

(a) Education Services

There is room for more investors to invest in primary and secondary private
schools. As indicated in Table 2.2, in February 2019 Kigoma Region had 655
primary schools, out of which 636 (equivalent to 97 percent) were public

20 | KIGOMA REGION INVESTMENT GUIDE

owned and 19 schools (or 3 percent) were privately owned. At secondary school
level, the region had 189 schools out of which 135 schools (91 percent) were
public schools and the rest (equivalent to 9 percent) were privately owned.

Table 2.2: Primary and Secondary Schools Available in Kigoma Region

TOTAL NUMBER OF SCHOOLS
Council Name PRIMARY SCHOOLS SECONDARY SCHOOLS
PUBLIC PRIVATE TOTAL PUBLIC PRIVATE
SCHOOL SCHOOL SCHOOL SCHOOL TOTAL
Buhigwe DC 88 1 89 19 5 24
Kibondo DC 84 1 85 17 7 24
Kasulu DC 77 - 77 18 2 20
Uvinza DC 118 1 119 18 2 20
Kigoma DC 106 3 109 19 8 27
Kasulu TC 59 6 65 14 15 29
Kakonko DC 59 - 59 11 4 15
Kigoma/Ujiji MC 45 7 52 19 11 30
TOTAL 636 19 655 135 54 189
Source: Kigoma Region Secretariat, 2019

(b) Health Services

Table 2.3 presents the number of health facilities available in Kigoma region.
These are hospitals, health centres, and dispensaries per council. As is
portrayed in Table 2.3, the region has 318 heath facilities, which include 5
hospitals, 34 health centres and 279 dispensaries.

Table 2.3: Health Facilities in Kigoma Region

Health
Council Name Hospitals Dispensaries Total
Centres
Buhigwe District Council 0 4 34 38
Kibondo District Council 1 5 45 51
Kasulu District Council 0 7 40 47
Uvinza District Council 0 5 40 45
Kigoma District Council 0 4 43 47
Kasulu Town Council 2 1 25 28
Kakonko District Council 0 4 28 32
Kigoma/Ujiji Municipal Council 2 4 24 30
Total 5 34 279 318

KIGOMA REGION INVESTMENT GUIDE | 21

Kigoma Region has only 5 hospitals while the requirement is 25 hospitals;
there is therefore a gap of about eighty percent (80%) in demand for
hospitals. Similarly, the region has 34 health centres while the demand for
such services is 133. Finally, the demand for dispensaries is 478 but there are
only 279 dispensaries. About eighty-five percent (85%) of health care facilities
in Kigoma Region are owned by the Government and the rest are privately
owned. The table above indicates that Kibondo District Council has the
largest number (51) of health care facilities in the region, followed by Kasulu
District Council (47 facilities) and Kigoma District Council (47 facilities). Kasulu
Town Council has less number (28 facilities) of health facilities.

When the number of health care facilities is compared with the regional
population of 2,512,215 and the existing administrative units (districts, wards
and villages/hamlets), it is obvious that in all councils there is an urgent need
for constructing more health care facilities under the Primary Health Services
Development Programme (PHSDP), in order to ensure that every district
in the region has a district hospital, every ward has a health care centre,
and every village/ hamlet has a dispensary. Kigoma Region continues to
implement PHSDP whenever resources are available. The private sector has
also gradually been involved in provision of health infrastructure in the region.
The 2014 health sector staff requirements and staff establishment reveals that
the region was supposed to have 5,007 health care staff. However, by 2018
the region had only 2,004 staff, which is equivalent to fourty percent (40%) of
the total number of staff requirements.

Figure 2.3: A Health Care Facility in Kigoma Region

22 | KIGOMA REGION INVESTMENT GUIDE

(c) Water Supply and Coverage

The number of rural water schemes in councils in Kigoma Region as of March

2019 is summarised in Table 2.4. As can be depicted from the table, there are
292 spring schemes in the region and out of that, 80.5 percent are working.
Most of the working springs are in Kibondo, Kigoma, Uvinza and Kasulu district
councils. The region had 203 shallow well schemes by 2016. About 75.7 percent
of the region’s total shallow wells (most of them in Kibondo, Kasulu, Buhigwe,
Kigoma and Uvinza district councils), were operating. Table 2.4 further shows
that Kigoma Region has 279 boreholes out of which 79.7 percent are working.
In addition, this region has 125 rainwater harvesting schemes out of which 96.7
percent are working. Other schemes in the region are 75 gravity schemes, out
of which approximately 92.2 percent are operating.

The coverage of rural water supplies in the region is sixty-one percent (61%).
The least coverage is in Uvinza District Council. Kigoma, Buhigwe, Kasulu and
Kibondo district councils are better on coverage compared to Kakonko and
Uvinza district councils.

Table 2.4: Number of Functional Rural Water Schemes in Kigoma Region

by Council: March 2019
Electrical
Council Bore Shallow Gravity Rainwater Pumping Pumping
Springs Powered Dams
Name holes Wells Schemes Harvesting (Diesel) (Solar)
Schemes
Buhigwe DC 5 17 15 108 33 - - - -

Kasulu DC 16 93 19 43 19 - 3 - -
Kasulu TC - - 8 53 12 - 2 - -
Uvinza DC 30 - 4 - 40 3 6 - -
Kibondo DC 179 - 11 - 3 7 - - -
Kakonko DC 10 65 8 74 5 3 - 1 2
Kigoma DC 6 28 10 12 13 1 - 1 -
Kigoma MC 33 - - 2 - - - - -
Total 279 203 75 292 125 14 11 2 2
Source: Kigoma Region Commissioner’s Office, Kigoma, 2019

KIGOMA REGION INVESTMENT GUIDE | 23

Urban water supply shows that the region has 14 water pump powered by
Diesel. A large number of water pump powered by Diesel are in Kibondo
District Council. A total of 11 water pump powered by Solar operate in the
region.

Figure 2.4: Water Schemes in Kigoma Region

Kigoma-Ujiji Municipality relies largely on Lake Tanganyika as the main source

of water supply. There are also three streams/rivers that are also main sources
of water in urban areas, despite the fact that some are not used.

2.6 Regional Economy

In 2017 Kigoma Region had an estimated GDP of TZS 3,251,538 million.
This is an increase from TZS 747,147 million in 2006, TZS 1,124,275 million
in 2009, TZS 1,779,335 in 2012, and TZS 2,295,890 in 2014. The fourth phase
Government initiatives that started in 2005/2006 to improve service delivery
and roads infrastructure linking Kigoma Region and other regions provided
an opportunity for the regional GDP to increase considerably.

24 | KIGOMA REGION INVESTMENT GUIDE

Kigoma Region’s per capita Income in 2006 was TZS 379,118. Following
improvements in various social and economic infrastructure and increased
production of goods and services in the region, per capita income has
increased to TZS 507,909 in 2007, TZS 646,094 in 2009, TZS 836,181 in 2012,
and TZS 1,285,849 (revised statistics) in 2017. Kigoma regional per capita
income is still low when compared to per capita income of other regions
in Tanzania Mainland. Kigoma Region is reported to rank the 20th region in
2015.

2.7 Productive Sectors

The regional economy depends mainly on agriculture. Other sectors that
contribute to regional economy include fisheries, tourism, wildlife, forestry,
beekeeping, trade and industries.

2.7.1 Agriculture Sector

The economy in Kigoma Region is primarily agricultural. Agricultural sector

employs about seventy percent (70%) of the region’s population. The region
is endowed with about 2,668,600 hectares of arable land of which 896,900
hectares (equivalent to 34%) are under crop production. The major food crops
grown include maize, rice, cassava, beans, banana, sweet potatoes and round
potatoes. Cash crops are coffee, oil palm and tobacco.

Agricultural production in Kigoma Region is mainly rain-fed; crops are grown

in accordance with agro-ecological zones. In the highland zone, a wide range
of crops is grown of which maize, beans and bananas are the most important.
Coffee is grown in the wetter areas. This zone covers a greater part of Kasulu and
Kibondo districts. The major crops grown in the intermediate zone are cotton,
maize, cassava, beans, bananas, groundnuts, oil palm and sweet potatoes.
A range of horticultural crops are also grown, namely water melon, tomato,
onion, carrot, pineapple, cucumber, sweet pepper, coco yam etc.

(a) Cash Crops

The main cash crops grown in Kigoma Region include cotton, coffee, tobacco,
cassava, paddy, oil palm, horticulture crops and groundnuts. Cotton growing
in Kigoma Region is concentrated in the Miombo and lake shore zones, which
have favourable soils and climatic condition. Coffee growing is concentrated

KIGOMA REGION INVESTMENT GUIDE | 25

in the wetter areas of the highland zone, and is usually inter-planted with
banana.

Figure 2.5: Coffee Plant in Kigoma

Figure 2.6: Palm Trees Farm in Kigoma

Oil palm crop, which was introduced in Kigoma Region by immigrants from
neighbouring DRC and Burundi some 60 years back, is mostly grown by
smallholder farmers. Oil palm is grown in Kigoma and Kasulu districts, which
have the favourable climatic condition.

26 | KIGOMA REGION INVESTMENT GUIDE

(b) Food Crops

The major food crops grown in the region are maize, beans, paddy, cassava,
sweet potatoes, and bananas. Maize is one of the leading food crops with the
highest per capital consumption in the local diet. Paddy is one of the grains
in the region mostly grown in Kigoma, Kasulu, Uvinza, and part of Kibondo
and Kakonko districts. Areas growing paddy are therefore limited to natural
depressions where soils are usually quite fertile though heavier and relatively
poorly drained.

Figure 2.7: Cassava Demonstration Farm

Cassava is a drought resistant crop grown in all areas in Kigoma Region. It

also forms an important food crop with a substantial per capital consumption
and has been treated as a life saver during food shortages. Banana is also
an important food crop in Kigoma Region, particularly in the highland zone
where it is intercropped with coffee.

(c) Irrigated Agriculture

Irrigation potential in Kigoma Region is fairly high despite the fact that
prospects for irrigation using water reservoirs are still limited. It has been

KIGOMA REGION INVESTMENT GUIDE | 27

confirmed that there is a big irrigation potential in the valleys of Malagarasi,
Luiche and Ruchugi rivers (Field Survey, 2018).

It is possible to irrigate more than 18,700 hectares of various crops in these

valleys but only 1,230 hectare, which is equivalent to 6.6%, are being irrigated
in Titye, Luiche, Bugaga and Mgoboka under the Kigoma Agricultural Irrigation
Programme (Kigoma Region Social Economic Profile, 2014). There is therefore
93.4% underutilisation of land suitable for irrigation in the region. Crops
under the existing irrigation system include paddy, maize, beans, tomatoes,
cabbages, spinach, onions, carrots, pineapples and potatoes.

Figure 2.8: Paddy farm at Rungwempya village in Kasulu District

(d) Livestock

Livestock keeping is one of the main economic activities in Kigoma Region.

The most common livestock are cattle, sheep, and goats. Cattle population
is made up of indigenous breed, majority of which are long horned Ankole
cattle. The short horned Tanzania zebu has recently increased in number,
and there are a few animals of improved breed. Other livestock kept are pigs,
chicken, ducks and pigeons.

28 | KIGOMA REGION INVESTMENT GUIDE

 Figure 2.9: Livestock Keeping in Kigoma Region

(e) Forestry

Kigoma Region is covered with large woodland despite the fact that it
lacks adequate amount of timber. Out of the total forest areas of 2,037,100
hectares, 873,722 hectares are forest reserve and the remaining 1,163,378
hectares fall under open public forests. The forests have various valuable tree
species such as pterocarpus angolensis (mninga), khaya nyasica (mkangazi),
afzelia quanzensis (mkora), milecea-exelsa (mvule), brachystegia spiciformis
(mtundu), and pterocarpus. There are a total of 14 forest reserves in Kigoma
Region covering a total of 873,722 hectares.

(f) Fishery

Kigoma Region has a promising potential for fishing in its waters. There are
plenty of fish in the lake and rivers such as River Malagarasi. Lake Tanganyika is
a vast inland lake stretching about 242 kilometres in length and an average of
20 kilometres in width. Maximum depth of Lake Tanganyika is 1,435 metres. It
is a fresh water lake, which empties some of its water into the Lukunga River
in Congo. It is fed by a number of rivers such as the Malagarasi in Tanzania
and the Ruzizi in Burundi.

KIGOMA REGION INVESTMENT GUIDE | 29

 Figure 2.10: Sardines (dagaa) in Kigoma Region

(g) Beekeeping

The potential for beekeeping in Kigoma Region is also high partly due to the
availability of many nectar-yielding tree species in the miombo woodlands.
Availability of land (68,764.4 hectares) reserved for beekeeping at Kibondo
District is one example of the said potential (Kigoma Region Social Economic
Profile, 2016).

Beekeepers in the region use more traditional beehives than modern ones.
For instance, two thirds of Kibondo District is covered by forests suitable
for beekeeping. There is also a regional campaign to plant more trees and
conserve the environment. Traditional beehives have big disadvantages of
low productivity, and it is very difficult to conduct regular inspections for
determining the amount of honey at any one particular period.

2.7.2 Industrial Development

Industrial development is one of the sources of employment opportunities

for the increasing number of unemployed youths. Kigoma Region has
about 1168 industries, majority of which are micro enterprises, followed
by small enterprises (315) and medium-scale industries (4). There are
ample opportunities for investment in agro-based industries, marine-based
industries and forest-based industries.

30 | KIGOMA REGION INVESTMENT GUIDE

Table 2.5: Small and Medium-scale Industries by Activities in Kigoma Region
Council Total No Processing

Kibondo District
Council and Milling machines (130); welding/carpentry
153
Kakonko District (22); honey processing (1)
Council

Kasulu District Milling machines (442); carpentry/welding

Council and Kasulu 540 (15); charcoal stove (46); black smith (34);
Town Council honey processing (3)

Kigoma District
Council and Uvinza 190 Milling machines (180); carpentry (10)
District Council

Buhigwe District
128 Milling machines (92); carpentry (36)
Council

Oil palm (27); soap manufacturing (46); milling

Kigoma-Ujiji machines (64), carpentry machines (18), water
157
Municipal Council purification and packaging (1); flour milling
and packing (1)

Total 1168
Source: Kigoma Region Commissioner’s Office, 2018

2.7.3 Energy

The supply of electricity in Kigoma Region is currently below the demand. On

other hand, hydro-electricity, petrol/diesel and gas are locally available, with
potential to generate solar and bio-fuel energy. This create an opportunity for
investors to produce electricity in the region in medium term.

Kigoma Region will be connected to the national power grid to address the
region’s long-term energy shortage. Supply by the national grid from Kahama
and Bukombe districts will enable districts of Kibondo, Kasulu and other to
access more electricity.

KIGOMA REGION INVESTMENT GUIDE | 31

2.7.4 Wildlife and Tourism

Kigoma Region has a number of tourist attractions: two national parks,

namely Gombe and Mahale, which are famous for chimpanzee; the wildlife
rich Moyowosi Game Reserve; some beaches along Lake Tanganyika; and the
Livingstone Memorial Monument.

Figure 2.11: Chimpanzee at Gombe National Park in Kigoma

32 | KIGOMA REGION INVESTMENT GUIDE

 PA R T T H R E E

PRIORITY INVESTMENT OPPORTUNITIES

IN KIGOMA REGION

Kigoma Region is blessed with many

investment opportunities that have not
been exploited. The major and most
important investment opportunities
(priorities) are presented in the succeeding
sections.

3.1 Regional Level Priority Investment Opportunities

Kigoma Region has identified eleven (11) key investment opportunities to be
recognised and implemented at region level based on the available raw materials
and the required infrastructure for some of the opportunities. These include to
invest in Kigoma Special Economic Zone (KiSEZ); investment in processing of palm
oil and other related by-products; private investments in large and modern market
at the Tanzania - Burundi border constructed by the Government; investment
in value addition in the fishing industry; investment in paddy and horticultural
products processing industry; investment in sugar industry; processing of bee
products; investment in tourism; investment in surface and marine transport;
cement and chalk industry; and investment in trade and logistics.

The regional level investment opportunities have two main attributes: first,
their scale and scope transcend those of individual LGAs; and they are large
enough to serve all LGAs. Specific details for each opportunity are given below.

1. Investment in Kigoma Special Economic Zone (KiSEZ)

Overview of the Opportunity
Key features
 Kigoma Region has recently established the
Kigoma Special Economic Zone (KiSEZ) in order to
speed up economic development. A total of 691
ha of land have been set aside by the Region.

KIGOMA REGION INVESTMENT GUIDE | 33

  In future, the region plans to expand KiSEZ to 20,000
ha with a view to attracting more investments
 The investment opportunities in KiSEZ include:
warehousing, showrooms, shopping malls,
conference halls, duty free shops, banking,
insurance, freight services; dry port, cargo centre,
bulk storage facilities, (trade and logistics hub);
hotels and restaurants; fish processing for export;
agro processing; information communication park;
and recreational and sport facilities.
 This will attract and maximise the growth of value-
Key investment added, technologically advanced and innovative
rationale businesses in Kigoma as well as formation of an
international business hub.
 Feasibility study for KiSEZ has been done and a
master plan for 691 ha has been prepared
 Environmental and social impact assessment (ESIA)
has been conducted
Support available  Survey for 691 ha has been done and 401 plots
have been demarcated
 The region will develop infrastructures such as
office building, roads, water & electricity supply, and
drainage systems for storm water and sewerage.

2. Investment in processing of palm oil and other related by-products

Overview of the Opportunity
Key features  Kigoma Region is renowned for oil palm
production. It is estimated that the region
produces over 90% of the country’s palm oil.
The leading districts in the production of palm
oil are Kigoma, Buhigwe and Uvinza
 About 31,750 tonnes of palm oil is produced in
the region per year
 Kigoma District Council has set aside 641 ha
of land for industrial development where the
palm oil processing industry can be established
 It is estimated that 40% of “mise” is imported
from Burundi and the rest (60%) is produced in
Kigoma.

34 | KIGOMA REGION INVESTMENT GUIDE

Key investment rationale  The current processing of palm oil uses old
and crude technology (old and inefficient
machines) that has low oil extraction rate.
There is therefore high potential to investing in
modern technology of processing palm oil and
related by-products
 Among the important activities under palm
oil processing include value addition and
processing of palm oil; value addition and
processing of “mise” oil; value addition and
processing of raw materials for soap making;
and making animal and poultry feeds
 Since most of the palm oil is produced in
Kigoma, Buhigwe and Uvinza districts, and the
fact that Kigoma has better infrastructure than
other districts, the processing industry should
be located in Kigoma District
 Investment in palm processing is a worthy
branding strategy for Kigoma Region in
particular and for Tanzania in general, mainly
because the region is prominent in oil palm,
and has plenty of fertile land and favourable
climatic condition for palm oil production
 In year 2018 the Government of Tanzania
officially declared oil palm as one of the national
priority or strategic crops in the country
 Kigoma Region has no reliable palm oil
processing plant, and unorganised trade of
palm oil related by-products is taking place
between Kigoma and the outside world
 The market for palm oil and palm oil products is
growing. Kigoma has a huge domestic market
of the palm oil products such as soap, edible
oil and animal feeds. There is also a growing
external market, especially in the neighbouring
countries of DRC, Burundi, Rwanda, and
Uganda
 The processing of palm oil generates
employment and household incomes
 With agro processing, transport cost will
gradually fall due to proximity of the processing
industries.

KIGOMA REGION INVESTMENT GUIDE | 35

  Strong support from the Government in the
form of a declaration that palm oil production
is one of the strategic and national priority cash
crops, and endorsement of the Comprehensive
Action Plan (CAP) intended to improve the
business environment in the country, including
introduction of an electronic export permit,
facilitation of a one-stop border point etc.
Support available
 There is also strong support from the regional
secretariat and LGAs towards investors,
including an improved security of investors’
properties
 Part of land in Kigoma Region has been
surveyed through the Regional Land Use and
Land Tenure Planning, which is an on-going
project.

3. Private investments in large and modern markets at the Tanzania -

Burundi border constructed by the Government
Overview of the Opportunity
 Investors are welcome to use the markets constructed
at the Tanzania - Burundi border
 The Government has set aside funds for the
construction of a large and modern market at the
border with Burundi. The Government has started
constructing markets at Kagunga, Buhigwe, Muhange
and Mkarazi
 The strategic position of Kigoma Region with respect
Key features to neighbouring countries of DRC, Burundi, Rwanda
and to some extent Uganda and South Sudan requires
investment in a large modern market where goods and
services from these countries can be exchanged
 Kigoma Region has a potential to produce or process a
variety of products that can be sold in the neighbouring
markets of DRC, Burundi, Rwanda, Uganda, and South
Sudan, given its proximity to these markets and the
strategic location of Lake Tanganyika.
 Investing on large border market which will be
Key investment constructed by the Government is the best way to
rationale promote agricultural and industrial production for
export markets

36 | KIGOMA REGION INVESTMENT GUIDE

  It will also be an avenue for promoting production of quality
goods that meet international standards: in the case of
agricultural produce (crops, fishers, and livestock keepers)
farmers will most likely add value and earn higher returns
 Over time, this process will tend to diversify production as a
reflection of the changing demand to be signalled from this
market
 This is also a strategy to promote economic diplomacy that
is advocated by the Government of Tanzania
 This is also another way to address the current problem of
illegal cross-border trade between Kigoma Region and the
neighbouring countries
 This official market will further improve collection of the
Government revenues, thus benefiting more people and
strengthening international relations
 Border market is one of the pressing demands of the people
in Kigoma Region.
 The Government of Tanzania, through its National Trade
Policy and Tanzania National Export Strategy, acknowledges
that export is potentially a very powerful means of raising
incomes, generating employment and reducing poverty.
Thus, there is a significant attention and support from the
Central Government
 Tanzania’s current focus on industrialisation supports and
Support available encourages such investments
 The requisite support is also evident through good
infrastructure: roads networks, communication, electricity
and markets
 More support can be gauged through the EAC Common
Market Protocol, which is meant to promote inter regional
trade, and good economic and political relationships
existing among the countries.

4. Investment in value addition in the fishing industry

Overview of the Opportunity
 Local fish processing technologies are used in Kigoma
Region
 Investors are invited to invest in modern and value
Key features addition fish processing industry in Kigoma Region.
Uvinza is a prominent fishing district and its strategic
geographical location relative to neighbouring
countries and other fish producing regions of Rukwa

KIGOMA REGION INVESTMENT GUIDE | 37

 and Katavi makes it a suitable location for the industry
 The annual fish production in 2016 was 141,120 kgs of
fish worth TZS 370,479,663 and 426,379 kgs of sardines
worth TZS 1,066,955,184
 Kigoma Region has a number of rivers including
the Malagarasi, Ruchugi and Luiche as well as Lake
Tanganyika, all of which can support fish farming
activities through pond and cage fish farming of tilapia
and catfish species as an alternative to overcoming
the decrease of wild catch production
 Investors are also invited to invest in fish hatchery and
fish feed production to meet the high demand for fish
existing in the region and in neighbouring regions
and countries
 There are various types of fish, including 4 main
lattes species and 2 sardine species available in Lake
Tanganyika. The potential for increasing fish catch
efficiency in Kigoma is therefore high
 Lake Tanganyika has also an investment opportunity
in ornamental fish. There are more than 250 species of
cichlids that have been identified and almost all (98%)
of the cichlids are endemic to the lake. Species from
the genera Altolamprologus, Cyprichromis, Eretmodus,
Julidochromis, Lamprologus, Neolamprologus, Tropheus,
and Xenotilapia are popular aquarium fish due to
their bright colours and patterns, and interesting
behaviours.
 There is a growing demand for fish products in Kigoma
and in the neighbouring countries which needs to be
met
 There are 2 major fishing landing sites in Kigoma,
namely Kibirizi and Muyobozi. There are about 32
other landing sites spread from Kigoma in the north
of the region to Uvinza in the south that include
Key investment
Kagunga, Mtanga, Mwangongo, Kiziba, Katonga,
rationale
Shebe, Sunuka, Karago and Kalya. There has been an
increase in the number of fishermen in the area, but
there is shortage of fish processors, and there is no
modern fish processors
 Establishment of a value addition fish processing
industry will stimulate quality fish production and will
raise incomes to fisher folk.

38 | KIGOMA REGION INVESTMENT GUIDE

  In Tanzania, Government policy on fishing promotes
not only fishing, but also value addition, modern fish
processing, and fish farming
Support available
 The fish processing industry is in line with the current
drive towards industrialisation in Tanzania, where
Government support is guaranteed.

5. Investment in paddy and horticultural products processing

industry
Overview of the Opportunity
Key features  Investors are invited to establish processing factories
in Kigoma District Council and Kigoma Municipal
Council, targeting paddy and horticultural crops
 There is land ready for industrial development at
Katosho Industrial area with 15 industrial plots totalling
10 hectares and 205 hectares at KiSEZ in Kigoma
Municipal Council
 Kigoma Region is rich in the production of paddy and
horticultural crops. This is particularly so in Kibondo
District, where production of paddy reached 13,038
tonnes in 2011/12; 20,702 tonnes in 2012/13; 6,489
tonnes in 2013/14; and 3,752 tonnes in 2014/15;
Kasulu District where production record was 4,656
tonnes in 2010/2011; 17,780 tonnes in 2011/12;
13,689 tonnes in 2012/13; 14,373 tonnes in 2013/14;
and 14,504 tonnes in 2014/15; Kigoma Rural District
where production was as follows: 40,280 tonnes in
2010/11; 65,257 tonnes in 2011/12; 102,601 tonnes in
2012/13; 20,454 tonnes in 2013/14; and 3,461 tonnes
in 2014/15. Other areas are Uvinza District Council and
Kigoma-Ujiji Municipality where an average of 5,894
tonnes per annum is produced
 Likewise, average production of horticultural crops
is 31,696 tonnes per year in Kibondo District, 7,313
tonnes in Kasulu District, 24,575 tonnes in Kigoma Rural
District and 12,446 tonnes in Kigoma-Ujiji Municipality.
 There is demand for rice and horticultural products
in Geita Gold Mines (GGM); the local market is
Key investment
therefore growing. There is also a huge market in the
rationale
neighbouring countries of DRC, Burundi, Rwanda,
Uganda, and South Sudan

KIGOMA REGION INVESTMENT GUIDE | 39

  Processing industries will address the challenge of idle
and surplus labour in rural areas, which is growing in
number
 Processing industries will also address the challenge
of post-harvest loss that exists in Kigoma Region.
 Apart from a general support from the Central
Government through the national policy priorities,
namely the National Vision 2025, FYDPII, the National
Industrial Policy and the associated ASDP II, regional
Support available and district governments are also eager to facilitate
or support all the initiatives aimed at expanding
investments in Kigoma Region
 The Regional Government has set aside land for
industrial development.

6. Investment in sugar industry

Overview of the Opportunity
Key features  Investors are invited to construct a sugar factory, build
irrigation infrastructure (schemes) for production of
sugarcane and enter contract farming
 Based on the availability of raw materials, the factory
can be built in Kasulu, Kibondo or Uvinza district
 Kigoma Region is suitable for growing sugarcane
based on availability of vast river valleys and vast plain
land, and conducive climatic conditions for cultivation
of sugarcane
 Kigoma Region grows sugarcane in all of its districts.
The leading sugarcane producers are Kasulu District,
with an average of 20,894 tonnes and Kibondo
District, with an average of 7,040 tonnes per year.
 There is a growing demand for sugar in the region
and in the neighbouring countries of DRC, Rwanda,
Burundi, Uganda and South Sudan
 The proposed project is supported by the current
Key investment
Government industrialisation drive aiming at
rationale
becoming a middle-income country by year 2025
 The factory will reduce sugar shortages in the region
and in the neighbouring regions where the demand
is growing over time

40 | KIGOMA REGION INVESTMENT GUIDE

  The region has set aside land for large-scale irrigation
sugarcane farming. In Kibondo District, the sugar
cane plantation at Malagarasi River Basin has been
allocated 12,595 hectares of land, and in Kakonko
District some 12,243 hectares has been allocated for
sugar cane production at Lumpungu River Basin. In
Kasulu District, the agricultural area at Kigadye has
been allocated some 200,000 hectares for sugarcane
plantations.
 The project is supported by not only the
Central Government through the Government’s
industrialisation drive, but also the Regional Secretariat
Support available
and the local government authorities in the region
 The region has set aside vast land for sugarcane
production.

7. Investment in processing of bee products

Overview of the Opportunity
Key features  All investors with modern technology and sound
capital are invited to construct bee products
processing factories (e.g. honey, wax, soap and wine)
in Kibondo District, where bee keeping is practised
most, and market it within EAC countries and beyond
 Kigoma Region has approximately 2,037,100 hectares
of natural forests areas that provide a conducive
environment for bee keeping and processing of bee
products
 Bee keeping activities are conducted in almost all the
districts of the region. By June 2017 Kigoma Region
had 121,346 beehives and has attracted investors
like Upendo Honey Group, which have started bee
production in the region
 Kibondo, Kakonko, Kasulu and Uvinza district councils
are potential for bee keeping, as there are many
hectares with tree species and flowery agricultural
plants. Kibondo District ranks first in bee keeping and
honey and bee-wax production, while Kasulu District
is the second. Generally, productivity of beekeeping
has been increasing; there are currently 6,521 modern
beehives and 114,825 traditional beehives, and 5,611
beekeepers

KIGOMA REGION INVESTMENT GUIDE | 41

  Honey production has increased from 100 tonnes in
2007 to 472 tonnes in 2015. Also production of bee
wax has increased from 7 tonnes in 2007 to 17 tonnes
in 2015. Deliberate efforts are taken to encourage all
districts to adopt the use of modern beehives in order
to increase production and improve quality of bee
products
 By June 2017 the region produced 500 tonnes of honey
and 17 tonnes of bee wax, all valued at TZS 3 billion
 The current price of honey is TZS 6,000 per litre while a
litre of bee wax costs TZS 7,000.
 There is large natural forest in Kigoma Region that is
suitable for beekeeping
 Demand for honey and other bee related products in
Tanzania and abroad is high and keeps growing
Key investment
 Bee keeping is environmental friendly, especially for
rationale
forest protection and conservation
 Bee keeping and processing of honey will create
employment and thus generate incomes for youths
 Honey and beeswax are highly demanded worldwide.
 The Central Government, Regional Secretariat and
local government authorities (LGAs) support this
initiative
Support available  Environment and forest protection agencies operating
locally and abroad also support this initiative
 Such investments are also supported by national
industrialisation initiatives.

8. Investment in tourism
Overview of the Opportunity
Key features  Investors are invited to invest in tourism operations
and activities especially in tourist attractions with
high potential but yet to be tapped; construction
of accommodation facilities including tourist hotels
and camping sites; transport facilities to Gombe and
Mahale Mountains national parks; eco-tourism and
cultural tourism in villages near conservation areas;
and in beach tourism along Lake Tanganyika
 The abundance and variability of tourist attractions
in the region also offer a number of investment
opportunities in the tourist sector:

42 | KIGOMA REGION INVESTMENT GUIDE

 o The Gombe Stream National Park (famous for the
long and well researched chimpanzee by Jane
Goodall) and Mahale Mountains National Park
(home to a large population of chimpanzees)
o Kigosi/Moyowosi Game Reserve harbours a
variety of big games, hence opportunities for
trophy hunting and photographic safaris
o The Makere Forest Reserve – Uvinza Open Area
Hunting Block, rich in wildlife, wetlands and
about 94 km of River Malagarasi
o The Dr Livingstone Memorial and a number of
old buildings used by Germans have a lot to tell
about our country’s history
o Ujiji Historical Town (part of the 1,200 km of the
slave route to Bagamoyo, slave collection centre,
the oldest buildings and wells used by Arabs
and Germans)
o Mv Liemba (the oldest currently operating ship
known to have been used during the First World
War)
o Lake Tanganyika (the first longest, and second
deepest Lake in the World) and its beautiful
beaches provide suitable areas for camping sites
and a variety of water sports
o The meandering nature and waters of Malagarasi
River with magnificent Igamba 1 & Igamba 2
waterfalls with unique species of frogs
o About 2,000,000 hectares of beautiful indigenous
forests to include Kitwe Forest (located along
Lake Tanganyika and rich in indigenous trees,
wild animals and birds)
o Cultural diversity of the residents (delicious local
food, traditional dances, languages, traditional
wear, etc.), to mention but only a few.
 About 21.043 hectares of land along Lake Tanganyika
beach is available for investment in tourist hotels, in
Kigoma-Ujiji Municipal Council
 About 94 hectares of land for the Kigoma Special
Economic Zone (KiSEZ) is available for investment in
recreational services to include stadiums, clubs, parks
and halls.

KIGOMA REGION INVESTMENT GUIDE | 43

  There is demand for accommodation facilities within
the national parks, especially during the high season.
The current number of tourists received exceeds the
limit of acceptable use. Opportunities for investment
in accommodation facilities are available at nearby
villages (Mwamgongo, Mtanga, Kashagulu, Kalya,
and Sibwesa, to mention a few)
 The national parks can easily be reached through
water transport, thus creating demand for investment
in water transport facilities, especially luxury boats.
These facilities may cater not only for tourists, but
also for the community living along Lake Tanganyika
Key investment
 Government initiatives to improve tourism in Western
rationale
Tourist Circuit (which includes Kigoma Region) by
developing/improving infrastructure: roads, railways
(Standard Gauge Railway) and air transport services
(including expansion of the Kigoma Airport), are
expected to attract more tourists in the region, hence
demand for more investment in tourism operations/
activities
 Investment in eco-tourism and cultural tourism
is expected to increase tour packages, create
employment and generate income to the local
community, and thereby boost the economy of the
local community, region and the country as a whole.
 The 1999 National Tourism Policy emphasised the
need to improving, among others, communication
and accommodation facilities as a means of attracting
tourists; these include hotels and camp sites
 Land has been made available for construction of
hotels, camping sites and air strips
Support available  In some of these investments, PPP arrangements
are envisaged. Some of these investments will be
through joint ventures between private citizens and
potential investor, and to be facilitated by district
councils
 Good infrastructure: roads and communication
networks, electricity supply and markets.

44 | KIGOMA REGION INVESTMENT GUIDE

9. Investment in surface and marine transport
Overview of the Opportunity
Key features  Investors are invited to invest in land transport to
enhance Kigoma connectivity with other regions
in the mainland. The typical investments in marine
transport are on port modernisation, expansion,
cargo operations and freight shipping, dry port cargo
centre, and bulk storage facilities in order to make
Kigoma Region a trade and logistics hub
 Lake Tanganyika connects Kigoma with the
surrounding land-locked countries of DRC, Rwanda
and Burundi, where huge volume of trade between
the two sides takes place. Most of this trade is illegal,
and it is conducted using old and rudimentary, and
hence unsafe means of transport
 Based on the daily traffic of passengers and especially
freight, the demand for transport services between
Kigoma Region and the neighbouring countries is
extremely high
 The most common cargo transported to the
neighbouring countries includes building materials
such as cement, and agricultural products such
as fruits, cassava and palm oil products. The only
dependable means of marine transport is the Liemba
ship that has been used since the Second World War,
and can no longer meet the increasing demand.
 There is demand for reliable and efficient transport
services in Kigoma and in the neighbouring countries
 Development of efficient inland transport within
Key investment
Lake Tanganyika will improve trade between the
rationale
markets and therefore improve Government revenue
collection and stimulate the economy of Kigoma
Region.
 The development of a reliable transport infrastructure
is supported by the Central Government, Regional
Secretariat, local government authorities (LGAs), EAC
Support available
and SADC initiatives
 This project is also a strategy to deepen EA
Cooperation.

KIGOMA REGION INVESTMENT GUIDE | 45

10. Investment in cement and chalk industry
Overview of the Opportunity
Key features  Investors are invited to establish factories for
producing cement and chalk mainly in Kigoma Ujiji
Municipal Council or Kasulu Town Council, owing to
better infrastructure and the fact that lime deposits
are located close to the two districts. Lime deposits
available in Uvinza will be transported to Kigoma Ujiji
Municipality for processing
 Kigoma Region is famous in limestone deposits,
which is the main raw material used to manufacture
cement and chalk. Kumwambu and Kitahana villages
for example, have large natural occurrences of
limestone deposits estimated to occupy an area of
more than 5 hectares. Lime is largely produced at
Makere area in Kasulu District and Ilagala, Mwamila,
and Mazungwe in Uvinza District.
 There is ample demand for cement in Kigoma and
in the neighbouring countries of DRC, Burundi and
Rwanda, which is enough justification for Kigoma to
venture in the manufacturing of the two products
 Kigoma has large deposits of limestone, an
important raw material for cement and chalk
production
Key investment  The project will create employment and generate
rationale income for citizens, LGAs, regional economy as well
as national economy
 The project will transform the economy of Kigoma
Region through employment creation, trade and its
overall contribution to the regional GDP
 The project will improve utilisation of a newly
constructed Central Railway Line (Standard Gauge
Railway).
 There is land ready for industrial development at
Katosho Industrial Area with 15 industrial plots
totalling 10 hectares
Support available  The project is supported by the current drive
towards an industrial led-economy, and the recent
Government move to construct Standard Gauge
Railway line

46 | KIGOMA REGION INVESTMENT GUIDE

  The project is also supported by the national priority
policies such as the National Vision 2025 and the
Second FYDP as well as the Regional Secretariat and
LGAs.

11. Investment in trade and logistics

Overview of the Opportunity
Key features  Investors are invited to establish logistics companies
which manage flow of goods between Kigoma
and up country, as well as between Kigoma
and neighbouring countries, in order to meet
requirements of cross-border trade
 The resources managed in logistics will include
physical items such as food, materials, animals,
equipment, and liquids; as well as intangible items,
such as time and information
 The logistics of physical items will involve the
integration of information flow, materials handling,
production, packaging, inventory, transportation,
warehousing, and security.
 There is demand for reliable and efficient logistics
services in Kigoma and in the neighbouring countries
 Development of cross-border trade will improve
Key investment
movement of goods and services among
rationale
neighbouring countries and therefore improve the
Government’ revenue collection and stimulate the
economy of Kigoma Region.
 Development of reliable trade logistics is supported
by the Central Government, Regional Secretariat,
Support available
local government authorities (LGAs), EAC and SADC
initiatives.

3.2 Council Level Priority Investment Opportunities

At council level, investors are invited to invest in production and processing
of cassava; investment in the production of oil palm; fish farming and related
investments; and investment in bee keeping. Detailed information about
these opportunities is given below.

KIGOMA REGION INVESTMENT GUIDE | 47

3.2.1 Investment in Production and Processing of Cassava

Agriculture is one of the important sectors in all the districts of Kigoma Region.
It is the main stay of Kigoma residents with its activities accounting for about
eighty percent (80%) of all sectors’ economic contribution in the region.

The type of agriculture practised in all the districts is peasantry, involving

mostly smallholders who employ very limited capital in their production
process. Agricultural production in Kigoma Region is mostly dependent on
rains for crop growing. Food crops grown include cassava, maize, legumes,
sweet potatoes and banana. Cash crops include coffee, palm oil, sunflower,
cotton, groundnuts and tobacco.

The region is rich in cassava production, and the crop is produced in large
quantities in almost all the six districts, especially Kibondo, Kasulu and
Kigoma Rural. Cassava is another famous and common food and cash crop
in the region. However, to date there is no single big processing plant for
the product. Raw cassava is consumed locally and some is exported to
neighbouring countries, namely DRC, Rwanda, Uganda and Burundi.

Overview of the Opportunity

Key features Kigoma, Kasulu and Uvinza District Councils
 Investment in production of improved cassava
seedlings:
Investment in modern seedbeds (nurseries) for improved
cassava seedlings and distribution to the needy farming
communities in Kigoma Region; and investment in large-
scale cassava farming. Kigoma District is an appropriate
area owing to its conducive climatic and soil conditions
for cassava production.
 Investment in processing of cassava and cassava
by-products:
The activities and areas of investment under cassava
processing include value addition and
o  Also producing cassava flour and related
products such as starch, alcohol, animal and
poultry feeds
o About 149,585 tonnes of cassava are produced
annually in the council

48 | KIGOMA REGION INVESTMENT GUIDE

 o Kigoma District Council has set aside 641 ha of
land for industrial development where cassava
processing plants can be established
o Kigoma District Council has the necessary
infrastructure, such as electricity supply and
roads for establishing a processing plant.

Kibondo District Council

 An investor is invited to establish cassava-processing
plants
 About 116,309 tonnes of cassava are produced in the
council per year
 Kibondo is also one of the leading producers of
cassava in the region where the climatic and soils
condition are favourable
 The district does not have any cassava processing
plant and, consequently, most of the harvested
cassava is processed locally, which compromises
quality and increases post-harvest losses
 Out of the total arable land of 221,593 ha in Kibondo
District, only 20,349 ha (equivalent to 9 percent land
utilisation) are under cassava production. There
is therefore ample land for expansion of cassava
cultivation in the district
 There is also about 4,220 ha of land suitable for
irrigation farming currently not utilised.
 Kigoma and Kibondo districts have the favourable
climate and soil condition that are required in
producing cassava
 The necessary infrastructure such as electricity
supply, roads and market are in better condition than
Key investment in any other district in Kigoma Region
rationale  On average, total arable land in Kigoma District is
311,880 ha, and only 60,850 ha out of this are utilised
for cassava cultivation. This is equivalent to 19 percent
land utilisation. In other words, there is ample land
for expansion. Vast arable land in Kibondo is also
underutilised.
 The Government has just launched the Second
Agricultural Sector Development Programme
Support available (ASDP II) this year, which, among others focuses on
enhancing agricultural productivity and profitability,
as well as commercialisation and value addition.

KIGOMA REGION INVESTMENT GUIDE | 49

3.2.2 Investment in the Production of Oil Palm

Kigoma Region is renowned for oil palm production. It is estimated that the
region produces over 90% of the country’s oil palm. The leading districts
in the production of oil palm are Kigoma, Kasulu, and Uvinza. Production
and eventual processing of oils and its by-products present the following
investment opportunities:

Overview of the Opportunity

Key features Kigoma, Buhigwe, Kasulu and Uvinza District Councils
 Investors are invited to make seedbeds (nurseries)
for producing improved oil palm seedlings and
distribution of the same to the demanding farming
communities, thus improving productivity and
incomes of farmers
 Reproduction of improved oil palm seedlings takes
about 3 years to fruition/maturity instead of 4-6 years.
 Investment in oil palm production is a worthy
branding strategy for Kigoma Region in particular
and in Tanzania in general, mainly because the region
has plenty of fertile land and a conducive climatic
condition for oil palm production
 In 2018 the Government of Tanzania officially
declared oil palm as one of the priority/strategic
crops in the country
Key investment  Majority of the people in Kigoma, especially in the
rationale four districts of Kigoma, Buhigwe, Kasulu, and Uvinza
grow oil palm as their important cash crop
 The market for oil palm and oil palm products is
growing. Kigoma has a huge domestic market
(Tanzania) of the oil palm products such as soap,
edible oil and animal feeds
 There is also a growing external market, especially
in the neighbouring countries of DRC, Burundi,
Rwanda, and Uganda.
 This investment is in line with Government
industrialisation policy, which, among other things,
Support Available promotes value addition at both primary and
secondary levels, and political support at national,
regional and local government levels is assured

50 | KIGOMA REGION INVESTMENT GUIDE

  The Government has made a statement that oil palm
should be added as one of the priority/strategic
crops in Tanzania
 Land is available for cultivation of oil palm, and the
on-going Regional Land Master Plan also favours
investors
 Good infrastructure: roads and communication
networks, marine transport, electricity supply and
markets.
NB: T otal area potential for palm production is 500 ha; area under cultivation
hitherto 250 ha; and production capacity is 300 tonnes in 2017/18.

3.2.3 Fish Farming and related Investments

Overview of the Opportunity
Key features Kigoma and Uvinza District Councils
 Investors are invited in Kigoma and Uvinza districts to
invest in the followings areas:
o Deep lake fishing
o Post-harvest fish technology
o Supplying modern fishing gears
o Fish farming including cage and pond fishing
o Production of fish feeds and fish fingers.
 One of the main economic activities in Kigoma
Region is fishing. The population in Kigoma is sparsely
distributed with more concentration on the shores
of Lake Tanganyika. Kigoma and Uvinza districts in
Kigoma Region have a promising potential for fishing
in its water bodies. These districts have appropriate
and conducive land as well as Lake Tanganyika,
which can support fishing activities and production
of fish.
 There is demand for fish in Kigoma Region, the rest of
Tanzania and in the neighbouring countries
 Investment in cage and pond fishing is almost absent,
so its promotion will result into not only increased
Key investment
fish output, but also to decreasing the pressure on
rationale
lake and water resources
 Fish farming will feed into fish processing and
therefore create employment and generate incomes
for residents.

KIGOMA REGION INVESTMENT GUIDE | 51

  In an effort to address overfishing and illegal fishing,
the Government has resorted to a number of
interventions, including promotion of cage farming
culture, such as land-based hatchery and production
Support available of fish feeds in the country. Cage fish farming, for
example, is partly intended to release the pressure
exerted on marine resources
 The Government’s policy therefore encourages and
promotes fish farming such as cage and pond fishing.

3.2.4 Investment in Bee Keeping

Overview of the Opportunity
Key features
Kibondo, Kakonko, Kasulu, Kigoma and Uvinza
District Councils
 Bee keeping activities are carried out throughout all
the districts in Kigoma Region but mainly in Kibondo,
Kakonko, Kasulu, Kigoma District Council and Uvinza
 The five districts (Kibondo, Kakonko, Kasulu,
Kigoma and Uvinza) have approximately 2,037,100
hectares of natural forests that provide a conducive
environment for bee keeping
 Kibondo, Kakonko, Kasulu and Uvinza district
councils are potential for bee-keeping, as there
are many nectar yielding tree species and flowery
agricultural plants
 Deliberate efforts are taken to encourage all districts
to adopt the use of modern beehives in order to
increase production and improve quality of bee
products. In any case, given the size of forest reserves
in the four district councils, there is still a huge
unutilised potential in Kibondo, Kakonko, Kasulu and
Uvinza districts
 Investors are therefore invited to produce more
honey and market it within EAC countries and
beyond. Bee keeping will feed into honey processing
industries prioritised by the region.

 There are large natural forests in the five district

Key investment councils that are suitable for bee keeping. Demand
rationale for honey and other bee-related products in Tanzania
and abroad is high

52 | KIGOMA REGION INVESTMENT GUIDE

  Bee keeping is environmentally friendly, especially
for forest protection and conservation
 Bee keeping and processing of honey will create
employment and generate incomes for youths and
women.
 The Central Government, Regional Secretariat and
local government authorities (LGAs) support this
initiative
Support available
 Environment and forest protection agencies
operating locally and abroad also support this
initiative.

KIGOMA REGION INVESTMENT GUIDE | 53

 PART FOUR

FACILITATION, PROCESSES,
REQUIREMENTS AND INCENTIVES

This part presents a summary of facilitation, processes, requirements, and

incentives for investment in Tanzania in general and in Kigoma Region in
particular. The Government of Tanzania is determined to attract investments
in the country by supporting all the efforts and initiatives intended to attract
capital inflow in the country. Government support is from both the Central
Government and local governments.

4.1 Supportive Policies and Regulatory Environment

Key investment policies, laws, strategies, plans and programmes that are
promoting investment in the region are presented below.

4.1.1 Policies, Legal, Institutional and Regulatory Considerations

a) Key policies

Policies to guide investment promotion and interventions in Kigoma Region’s

relevant areas are: National Investment Promotion Policy (1996); National
Agricultural Policy (2013); National Livestock Policy (2006); Sustainable
Industrial Development Policy (SIDP) (1996-2020); National Trade Policy for
Competitive Economy and Export led Growth (2003); National Microfinance
Policy (2000); National Forest Policy (1998); Bee Keeping Policy (1998); Small
and Medium Enterprises Development Policy (2003); National Land Policy
(1995); National Environmental Policy (2017); The Mineral Policy of Tanzania
(2009); Tanzania Mining Industry Investor’s Guide (2015); and Kigoma Regional
Authority Development Plans as well as the political will of the region to
attract investors.

b) Key laws

Major laws and regulations that guide investment promotion and activities in
Kigoma Region are: Tanzania Investment Act (1997); Export Processing Zones

54 | KIGOMA REGION INVESTMENT GUIDE

Authority (EPZA) Act, (2002); Special Economic Zones Act, 2015; Companies
Act, 2002; Business Licensing Act, 1972; Tax Legislations; Land Act (1999);
Village Land Act (1999); Mining Act (1998); Tanzania Bureau of Standards Act
(2009); Tanzania Food and Drugs Act (2003) and Regulations; Plant Protection
Act (1997) and Regulations; The Mining Act (2010); The Mining Regulations
(2012); and other sector Acts and relevant Local Government Authorities by-
laws.

4.1.2 Strategies, Plans, and Programmes

Key strategies, plans and programmes are: Annual Regional Plans and
Annual Reports; PO-RALG Reports; District Development Plans; Second
Five-Year Development Plan (FYDP II); Agricultural Sector Development
Programme II (ASDP II); Livestock Sector Development Programme (2011);
Ministry of Industry Trade and Investment’s Reports; and Integrated Industrial
Development Strategy (IIDS 2025). Others are the National Rice Development
Strategy; Tanzania Agriculture and Food Security Investment Plan; and
Agricultural Growth Corridor in Tanzania.

With the above policies, regulatory frameworks, strategies, plans and

programmes, the investment climate in Kigoma Region is supported by
sound frameworks that offer an appropriate environment, which encourages
investments in the region. The key issue is for the regional leadership to make
sure that the processes and requirements outlined below are interpreted
and adapted earnestly at regional and local levels. The leadership of Kigoma
Region is determined to do that and ensure speedy implementation of
prioritised investment opportunities and put in place a climate conducive to
investment in the region.

4.1.3 Investment Options: Individual, PPP, PPCP, and Joint ventures

Investment options available in Tanzania include individual private sector

investments, Public-Private Partnerships (PPP), Public-Private Community
Partnerships (PPCP) and joint ventures.

a) Public-private partnerships

The Government recognises the role of the private sector in bringing

about socio-economic development through investments. Public-Private

KIGOMA REGION INVESTMENT GUIDE | 55

Partnership (PPP) frameworks provide an important instrument for attracting
investments. Indeed, Public-Private Partnerships (PPPs) have been identified
as viable means to effectively address constraints of financing, management
and maintenance of public goods and services.

The public sector, through public-private partnerships, is encouraged to

maximise synergies between the public and private sectors in mobilising
and deploying resources. The PPP approach has been widely used in other
countries to finance infrastructure and other long-term investment projects.
PPP is a way to amalgamate public and private capital and expertise for
public projects in which the private sector has interest in sharing ownership.
The PPP Act (2010) and PPP Regulations (2011) give areas of collaboration,
which comprise of investment capital, managerial skills and technology.
Additionally, PPPs can enable the Government to fulfil its responsibilities
in efficient delivery of socio-economic goods and services by ensuring
efficiency, effectiveness, accountability, quality and outreach of service.

The concept of PPP entails an arrangement between the public and private
sector entities whereby the private entity renovates, constructs, operates,
maintains, and/or manages a facility in whole or in part, in accordance with
specified output specifications. The private entity assumes the associated
risks for a significant period of time and, in return, receives benefits and
financial remuneration according to agreed terms. PPPs constitute a
cooperative venture built on the synergy of expertise of each partner that
best meets clearly defined public needs through the most appropriate
allocation of resources, risks and rewards. Most PPPs implemented in Tanzania
are concession arrangements for running existing enterprises with limited
provisions for rehabilitation and new investments.

It is worth noting that in the case of services, PPPs have been implemented
successfully by Faith-Based Organisations (FBOs) in education, health and
water sectors for many years. Private sector participation in areas previously
treated as the monopoly of the public sector has made major contributions
to increasing the pace of growth and development in many countries.

b) Public-private community partnerships

This is a variant of PPP in that it includes communities/villages where the

nature of a project requires that community resources (such as land) become

56 | KIGOMA REGION INVESTMENT GUIDE

part of a project in which both the public sector (particularly local government
authorities) and the private sector are interested to invest.

c) Joint ventures

The Tanzanian Government encourages joint ventures between local firms

and foreign investors; this also facilitates access to land, which foreigners
cannot own.  Many foreign firms have recently partnered with the National
Development Corporation (NDC), Tanzania Petroleum Development
Corporation (TPDC), and the National Housing Corporation (NHC), in energy,
bio-fuels, and real estate ventures.

4.2 Facilitation: Processes and Requirements

Kigoma Region and the Central Government have set and are improving
favourable conditions to entice and facilitate investment in the region, and
ensuring speedy decision-making process.

The region has the obligation to interpret and adapt these processes,
requirements and incentives for investment so as to fit the region’s investment
profile and priorities. The main processes that need to be undertaken by
prospective investors in Kigoma Region are listed below. These processes
and requirements are subject to changes towards improvements from time
to time.

4.2.1 Lead Institution

Tanzania Investment Centre (TIC) is a one-stop agency of the Government

of Tanzania established under the Tanzania Investment Act No. 26 of 1997 to
promote, co-ordinate and facilitate investment into Tanzania. The Centre is a
focal point for all investors, and performs all liaison work for the investor from
enquiries right up to project start up.

The Centre deals with all enterprises with capital investment of not less than
US$ 500,000 foreign owned and US$ 100,000 if locally owned. The Centre
also assists all investors to obtain permits, authorisation etc., required by other
laws to set up and operate investment in Tanzania. Currently, expansion of
zone office network aims at moving TIC services closer to the people and
enhancing services delivery through regional secretariats.

KIGOMA REGION INVESTMENT GUIDE | 57

4.2.1.1 Tanzania Investment Centre Registration

Issuance of certificate of incentives is guided by section 17(1-8) of Tanzania

Investment Act, 1997. Registration process and issuance of certificate of
incentives entail submission of the following documents:

 A certified copy of the Certificate of Company Incorporation

 A copy of the company’s Memorandum and Articles of Association
 A copy of Taxpayer Identification Number Certificate
 Dully filled TIC application forms which are issued by the Centre
 Project business plan
 Evidence of sufficient finance capital available to implement the
project
 Evidence of project location
 Company Board Resolution to register the project with TIC
 TIC fee payment receipt of USD 1,100.

The Centre facilitates potential investors who express interest to invest in

Kigoma through Western Zone office located at Lumumba Road, Kigoma
Regional Block, Second Floor, P.O. Box 62, Kigoma. Tel: +255-028 2988223,
Email: [email protected] or TIC Head Office: Executive Director, Tanzania
Investment Centre, Plot no; 9A&B, Shaaban Robert Street, P.O Box No 938,
Dar-es-Salaam, Tanzania, Tel: 255 22 2113365/116328-32 Fax: 255 22 2118253,
Email: [email protected], web: www.tic.go.tz.

4.2.1.2 Main institutions Dealing with investment in Tanzania and

Kigoma Region

The main institutions dealing with investment issues in Kigoma Region and
Tanzania at large are: Tanzania Investment Centre (TIC) (Email: westernzone@
tic.go.tz or [email protected]); Business Registration and Licensing
Agency (BRELA); Tanzania Revenue Authority (TRA); Tanzania Electric Supply
Company (TANESCO); Tanzania Bureau of Standards (TBS); Ministry of Industry,
Trade and Investment (MITI); water supply companies in respective regions,
municipal authorities in respective districts (on land issues); Ministry of Water
and Irrigation (MWI); Ministry of Agriculture (MA), and Ministry of Livestock
and Fisheries (MLF).

58 | KIGOMA REGION INVESTMENT GUIDE

4.2.2 Registration

Registration of an investment can be undertaken at a local BRELA and at district,

regional or national Tanzania Investment Centre (TIC) offices, and requires
the following documentation: (i) Memorandum and Articles of Association;
(ii) Certificate of Registration or Certificate of Incorporation; (iii) Investment
Feasibility Study; (iv) Certificate of Incentives in the case of projects approved
by TIC; (v) Partnership Agreement (deed), in the case of a partnership; (vi) Lease
Agreement; (vii) Business Enquiry Forms; (vii) IT 21 forms for companies and
IT 20 forms for individuals; and (viii) Company and Operators’ Certification of
Registration for Tax Payer Identification Number (TIN).

To register a company in Tanzania is a right of those who wish to associate

and form themselves into a company pursuant to the existing company laws.
For detailed information please visit the link below. https://ors.brela.go.tz/ors/
start?returnUrl=%2fbrela%2fprod%2fors

4.2.3 Taxes

Taxes involved in investment projects in Kigoma Region are various and they
include:

a) Corporate Tax

Corporate tax is charged at the rate of thirty percent (30%) for both resident
and non-residents. In case of newly listed corporate to the Dar Es Salaam Stock
Exchange, with at least thirty percent (30%) of its equity ownership issued to
the public for three consecutive years from the date of listing, corporate tax is
twenty-five percent (25%) for both resident and non-residents. Furthermore,
corporates with perpetual unrelieved losses for three consecutive years
(excluding corporate conducting agricultural business, provision of health or
education), are subjected to corporate tax of 0.3 percent of annual turnover
for resident corporate.

Other incentives under corporate tax include a reduced rate from the normal
thirty percent (30%) to twenty percent (20%) for a new entity dealing in
manufacturing of pharmaceutical and leather products, and ten percent
(10%) rate for corporations investing in a plant for assembling motor vehicles,
tractors and fishing auto boats.

KIGOMA REGION INVESTMENT GUIDE | 59

b) Personal Income Taxes

Residents are subjected to personal income tax where total income exceeds
TZS 2,040,000/- per annual. Income of a non-resident employee of a resident
employer is subject to withholding tax of fifteen percent (15%). The total
income of non-resident individual is chargeable at the rate of twenty
percent (20%); the monthly income includes basic salary, overtime, bonus,
commission and other allowances.

The skills and development levy (SDL) is payable by any employer who
employs four or more persons; the rate is 4.5 percent of the gross wage.
Exempted employers from SDL include diplomatic missions, registered
education institutions, charitable organisations, farm employment, foreign
institutions dealing with technical assistance, as well as the United Nation
Organisation and its agencies/organs.

c) Withholding Tax

Withholding tax on dividends from corporations listed on the Dar es Salaam

Stock Exchange are charged at five percent (5%) for both resident and non-
resident persons. The rate for dividends from other corporations is ten percent
(10%). The rate withheld on interest is ten percent (10%) and on royalties it
is fifteen percent (15%) for resident and non-resident persons. Furthermore,
the rate withheld on management and technical service fees [mining, oil and
gas] the rates are five percent (5%) for residents and fifteen percent (15%) for
non-residents.

d) Value-Added Tax (VAT)

VAT is a consumption tax charged at a single rate of eighteen percent (18%).

Registration is compulsory for any business that has a turnover of more than
TZS 100 million per annum. However, there is an exception to registration
of companies dealing with professional services, as they are required to be
registered for value-added tax regardless of their turnover. Applicants for
VAT registration should complete form Number VAT ITX245.02.E. A registered
taxpayer is required to file a VAT return monthly.

Under VAT, incentives include zero rate for all exports, exemption
of imported machinery by local manufactures and processors of

60 | KIGOMA REGION INVESTMENT GUIDE

vegetable oils, textiles, pharmaceuticals, and skins and leather products
manufactured in Tanzania Mainland. VAT returns are supposed to be filed
at the 20th day of the month after a tax period. However, where the 20th
day falls on a Saturday, Sunday or public holiday, VAT returns shall be
lodged on the first working day following a Saturday, Sunday or holiday.
For imports, VAT is payable at the time the import duty is due and payable
in accordance with East African Community Customs Management Act,
2004. Exports are zero rated under the VAT Act, 2014, which also provides
for VAT exemption. Exempt supplies and imports are provided in the
schedule to the VAT Act, Cap 148 r/w Finance Act 2017.

4.3 Incentives
Investors registered under Tanzania Investment Centre pursuant to Tanzania
Investment Act (TIC, 1997) are accorded tax incentives as per Income Tax Act,
2004, Value Added Tax Act 2014 and any other applicable tax law. Import duty
exemption is granted to the tune of seventy-five percent (75%) of the import
duty payable on the approved deemed capital goods (investor shall pay 25
percent of import duty due).

Deemed capital goods that are eligible for exemption are specified depending
on the project sector. Both local and foreign investors have free access to
various services related to permits, licences and approvals at the Tanzania
Investment Centre (TIC), which is a one-stop facilitation centre. EPZA also
provides incentive packages according to Export Processing Zones Act No.
11 of 2012.

Investments in Tanzania are guaranteed against nationalisation and

expropriation. Tanzania is a member of both the International Centre for
Settlement of Investment Disputes (ICSD) and Multilateral Investment
Guarantee Agency (MIGA).

Please Note: Information on Taxes and Investment incentives explained

above are subject to periodic changes as the government keeps on
improving investment climate in the country. Please contact Tanzania
Revenue Authority (www.tra.go.tz) and Tanzania Investment Centre
(www.tic.go.tz) for current updates.

KIGOMA REGION INVESTMENT GUIDE | 61

4.4 Access to Resources
4.4.1 Land for Investment in Tanzania

The Ministry of Lands, Housing and Human Settlement is mandated with

land management in Tanzania. Land in Tanzania is under three categories,
namely village land, general land and reserve land.

According to the Land Act, the whole land of the United Republic of Tanzania
is owned by the public and the President as a Trustee. This means that land
in Tanzania is vested to the public, and citizens own land under leasehold
tenure. Section 20 of the Land Act No. 4 of 1999 specifically prohibit allocation/
grant of land to non-citizens unless the land is for investment purposes under
the Tanzania Investment Act, 1997. Land for investment purposes shall be
identified, gazetted and allocated to the Tanzania Investment Centre. More
information on acquisition of land for investment is available on www.ardhi.
go.tz.

Kigoma Region has set aside land for investment managed at regional level
and in every district, and it is ready to facilitate its acquisition when needed to
suit special requirements of investors.

4.4.2 Kigoma Special Economic Zone (KiSEZ)

Kigoma Region has developed a special economic zone known as Kigoma

Special Economic Zone (KiSEZ) in order to speed up economic development.
This is one of the region’s most immediate priorities. The area that covers 691
hectares is located in Kigoma Municipality and is expected to be a world-
class business hub and a vehicle for industrial growth and development. A
feasibility study and master plan have been prepared, and over 401 plots
have been surveyed and are now ready for use by investors. So far there are
three investors at different levels of investment.

Competitive Edge/Advantage

KiSEZ is spread across an area of 691 hectares and it is strategically located

close to Kigoma Port, which serves DRC, Burundi and Zambia. It is close
to railway, trunk road and airway link to the seaport of Dar es Salaam and
neighbouring countries. Kigoma has vast natural resources: fertile land,

62 | KIGOMA REGION INVESTMENT GUIDE

various minerals, forests, tourist attractions, Lake Tanganyika and more, which
can be exploited commercially. The stipulated facts give KiSEZ a competitive
edge, plus the fact that it is the first one in the Lake Tanganyika zone.

How to access land at KiSEZ

KiSEZ is an ideal area readily available for potential investor for long-term
lease; the charge is very minimal at US$ 0.15 per square metre. Interested
investors are advised to contact regional authorities directly the through:

Kigoma Special Economic Zone (KiSEZ),

P. O. Box 125,
Kigoma, Tanzania
Tel: +255282803202/3
E-mail: [email protected]

District Land (for investment) Data Base

All districts in Kigoma Region have set aside land for investment, which is
readily accessible on terms and conditions stipulated by LGAs.

4.4.3 Banking and Financial Services

Banking sector in Tanzania has been booming, growing in assets and in

profits. Because of this, new merchant banks, commercial banks, bureaux
de change, insurance companies, a stock exchange and related financial
units have entered the market. There are four categories of banks, oriented
towards different markets and clientèle operating in Tanzania: local private
banks, regional banks, international banks and multinational banks. Overall,
the outlook for the banking industry in Tanzania is very positive and there
are appealing opportunities for new comers to the sector as investors and
borrowers. Banks are found in all districts of Tanzania.

Tanzania’s higher-than-average economic growth rate is fuelling the

emergence of an educated middle class that aspires to achieve a more
affluent lifestyle in which traditional depository, credit, insurance, and
investment products play an important role. The emergence of this middle
class is expanding national demand for financial services from established

KIGOMA REGION INVESTMENT GUIDE | 63

providers and could represent a new opportunity for financial services
companies looking for growth.

There is a positive trend in lending to SMEs that is producing greater

confidence in their growth potential among financial institutions and, more
generally, in the economy as well, which is generating a positive spiral. In
addition, the Government is also introducing new laws that are expected to
enhance lending activities.

4.4.4 Labour

Kigoma Region has surplus labour due to low employment and the use of
migrant labour. While some of the labour is unskilled, there are efforts to
build skilled labour force especially through vocational training institutions.
Investors are welcome to build skills development institutions in every
council in the region.

4.5 Inclusion and Participation of the Private Sector

The region plans to stimulate its industrial and economic development
base through attracting additional private and public-private partnerships
investments in order to increase its value addition in key sectors like
agriculture as well as manufacturing, and to strengthen competitiveness and
raise its GDP. The regional government and district authorities are ready and
committed to provide a series of further support services and incentives to
drive industrial development and growth in the short, medium and long-
term plans.

According to the national policies it is the role of the public sector to provide
basic enablers such as land, utilities, and infrastructure. These are normally
supported and constructed using district, regional and national public
budgets in addition to other resources or development partners’ support. It
is the private sector that is mainly supposed to play a major role in investing
in the region in the production, transportation, storage, processing, and
development of value chains and marketing of the products.

However, for the private sector to play its role effectively, Kigoma Region
authorities will create an enabling environment through provision of pre-
requisite infrastructure, incentives, formulation/review and enforcement

64 | KIGOMA REGION INVESTMENT GUIDE

of investment friendly policies, regulations, and procedures. The regional
authorities will promote public-private partnership (PPP), public-private-
community partnership (PPCP) and also facilitate joint ventures between
potential investors and local private investors.

These arrangements are critical for achieving the objectives of implementation

of capital and technology intensive investments including the build-operate-
and-transfer approach. In addition, the private sector will be facilitated to
improve delivery, and enabled to thrive and be competitive by easing access
to affordable input and output factors nationally and internationally.

KIGOMA REGION INVESTMENT GUIDE | 65

 PART FI VE

KEY CONTACTS IN KIGOMA REGION

This part provides important contacts in Kigoma Region that will help
potential investors in making follow up for the opportunities they want to
invest in.

5.1 Key Websites

Office Website
Kigoma Regional Secretariat http://www.kigoma.go.tz
Kigoma Ujiji Municipal Council http://kigomaujijimc.go.tz
Kigoma District Council http://kigomadc.go.tz
Buhigwe District Council http://buhigwedc.go.tz
Uvinza District Council http://uvinzadc.go.tz
Kasulu Town Council http://kasulutc.go.tz
Kasulu District Council http://kasuludc.go.tz
Kibondo District Council http://kibondodc.go.tz
Kakonko District Council http://kakonkodc.go.tz

5.2 Key Contacts

5.2.1 Regional Commissioner’s Office
Post Office Telephone/
Office E-mail
Box Mobile Phone

Regional [email protected]
125, +255 282 802330
Commissioner [email protected]
Kigoma +255 766 371223
(RC) [email protected]

Regional [email protected]
125, +255 282 802330
Administrative [email protected]
Kigoma +255 766 371223
Secretary (RAS) [email protected]

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5.2.2 Kigoma Ujiji Municipal Council
Municipal Director
Office Post Office Telephone/ E-mail
Box Mobile Phone
Municipal 44, Kigoma-Ujiji +255 282 802535 [email protected]
Director Kigoma +255765 660847 [email protected]
Municipal 44, Kigoma-Ujiji +255 282 802535 [email protected]
Mayor Kigoma +255765 660847 [email protected]
Personal
Mobile:
Personal Email:
Officers 44, Kigoma-Ujiji +255 753
[email protected]
in Charge Kigoma 623600
[email protected]
+255 767
868909

5.2.3 Kasulu Town Council

Town Director
Office Post Office Telephone/ E-mail
Box Mobile Phone
475, Kasulu +255 282 810335
Town Director [email protected]
Kigoma +255 784 997037
475, Kasulu +255 282 810335
Council Chairman [email protected]
Kigoma +255 784 997037
475, Kasulu Personal Mobile: Personal Email:
Officer in Charge
Kigoma +255 755 367460 [email protected]

5.2.4 District Councils

District Executive Director

LGA Post E-mail

Telephone/
Office
Mobile Phone
Box
+255 282 80 271 9
Kigoma
332, +255 767 682 782
District [email protected]
Kigoma Personal Mobile:
Council
+255 767 682782

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 District Executive Director

LGA Post E-mail

Telephone/
Office
Mobile Phone
Box

+255 767 355345 [email protected]

Uvinza 12, +255 757 894484
District Uvinza
Council Kigoma Personal Mobile: Personal Email:
+255 767 355345 [email protected]

+255 282 810339 [email protected]

Kasulu
97, Kasulu
District
Kigoma Personal Mobile: Personal Email:
Council
+255 784 997037 [email protected]

+255 762 967626 [email protected]

Buhigwe 443, +255 717 706 441
District Buhigwe
Council Kigoma Personal Mobile: Personal Email:
+255 762 967626 [email protected]

+255 282 82 0084 [email protected]

Kibondo 43,
District Kibondo
Personal Mobile: Personal Email:
Council Kigoma
+255 766 250924 [email protected]

+255 282 820137 [email protected]

Kakonko 3, +255 762 532323
District Kakonko
Council Kigoma Personal Mobile: Personal Email:
+255 757 470800 [email protected]

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