Tanzania: Kagera is Potential Investors� Destination

Posted on : Monday , 2nd November 2015

He noted that Ngara was a strategic point, which borders four countries — Rwanda, Burundi, Uganda and DRC – and, therefore, starting nickel mining would greatly help transform its economy.

Addressing hundreds of Ngara residents recently, Mr Mongela noted that the presence of nickel puts the district at a vantage position due to the fact that when investment starts, a number of factories would also be put in place thus creating more employment opportunities. He affirmed that government would base on industrial economy by creating an investment-friendly environment that would attract investors from within and outside the country.

Mr Mongela invited investors, both local and foreign, to invest in Kagera region through construction of five star hotels, dairy farming, irrigation and industries as preparations for execution of Rusumo Falls Hydro power Project, are at an advanced stage. Kagera Region is a hub in the Great Lakes Region where investors could benefit by exploiting abundant resources.

The Region is a hub with abundant but untapped resources. People should exploit and penetrate the East African Common Market. The region is endowed with abundant tourist attractions. However, most of them have not been effectively tapped and developed due to lack of promotion and low investment in the sector,” he said.

The region is endowed with abundant tourist attractions, …..the land of plenty. However, most of them have not been effectively tapped and developed due to lack of promotion and low investment in the sector.

The much-awaited Kabanga Nickel Project will soon start its operations bringing fresh hopes to millions of Tanzanians in terms of labour and employment. The Kabanga Nickel Project is an active mine exploration project 130 kms south west of Lake Victoria in Ngara District, Kagera Region. The project is a joint venture between Barrick Gold and Xstrata Nickel.

The Tanzanian government would buy shares which would later be sold to Wananchi. He appealed to Tanzanians to utilize the opportunity to speed up their development. According to Mr Mongela, implementation of the Kabanga Nickel Project was delayed due to logistical problems, adding that plans had now been finalised.

He did not, however, reveal when the exact drilling work will begin. Kabanga’s 58 million tonne nickel resource is regarded as one of the best undeveloped greenfield nickel sulphide deposits in the world.

Since 2005, there has been continued progress made in the development of the Kabanga Nickel Project with a significant investment to date of over US$205 million in drilling and evaluation studies.

The Rusumo Falls Hydropower Project is a reality. Preparations of the project were in the final stages and it was set to begin soon, adding that the Executive Director has already been appointed.

The World Bank and African Development Bank have provided funds for the project, which is expected to begin with construction of a modern hydroelectric power plant that will generate 80 megawatt to be shared equally among the three countries, this year.

The objective of the Regional Rusumo Falls Hydroelectric Project is to increase power supply to the national grids of the three countries. Another project, a 2.5 MW Orio power project which constitutes construction of power plants at Biharamulo, Ngara and Mpanda towns will begin once necessary preparations are finalised.

The project, a joint venture between the Netherlands and Tanzanian government on 50-50 basis will begin after the on-going procedures of opening of letter of credit are finalised.

The government recently reiterated that Tanzania will continue to promote investor friendly policies and conditions aimed at easing the cost of doing business in the country. The Permanent Secretary in the Prime Minister’s Office, Dr Florence Turuka, told a news conference that government is keen on creating a suitable environment to local and foreign investors.

Tanzania has in the last 10 years successfully pursued investor promotion strategies and the country at present proudly boasts as one major investment capital destination in Eastern and Central Africa.

According to the World Investment Report 2015, Foreign Direct Investment (FDI) inflows into Tanzania was recorded at slightly over US$ 2,142 million, up from US$ 2,131 million in 2013. This amount is significantly higher than the level of US$ 640 million that flowed into the country between 2005-2007. The recent trend is an apparent reflection of the country’s massive discovery of natural gas off the Indian Ocean coast in the Southern parts of the country.

While Tanzania is celebrating its achievements, it is worth noting that globally FDI inflows in 2014 fell by 16 per cent to US$1.2 trillion, mostly because of economic fragility, policy uncertainty for investors and elevated geopolitical risks.

As Dr Turuka rightly told the news conference that Tanzania must pursue the right and consistent policies and practices geared at attracting more investments. These should of course include measures designed to do away with unnecessary redtape and cumbersome procedures in handling investments.

Graft must also be fought with maximum possible force and given zero tolerance. In most cases corruption tends to increase the cost of doing business and at the end of the day render the country’s products and services uncompetitive.

It should also be noted that more work must be done because Tanzania is not alone in search for investment. All nations in the world are chasing investments including the richest like the United States, UK, China and India.