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GEITA REGION
INVESTMENT GUIDE
LIST OF TABLES........................................................................................................................................v
LIST OF FIGURES.....................................................................................................................................v
ABREVIATIONS........................................................................................................................................vi
FOREWORD...............................................................................................................................................x
EXECUTIVE SUMMARY.....................................................................................................................xii
DISCLAIMER.......................................................................................................................................... xiv
PART ONE.................................................................................................1
PART TWO...............................................................................................13
PART THREE............................................................................................26
PART FOUR.............................................................................................46
PART FIVE...............................................................................................56
LIST OF FIGURES
Figure 2.1: Potential Irrigated Land and Area under Irrigation (Ha).....................19
“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.
Through this guide, Geita Regional Secretariat and its LGAs have resolved
to prioritising all investment initiatives and commit to providing 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, Geita Regional Office and its LGAs will provide
a satisfactory conducive policy, regulatory, business environment, and
investment climate, and are available to provide further details on the
selected strategic and viable opportunities to interested investors.
Let me once again take this opportunity to welcome you to invest in Geita
Region, while promising to continue providing needed support to make your
investments productive, profitable and prosperous.
Geita Region benefits from the national 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, strategic location,
abundance of natural resources and internal political stability, presents a
uniquely attractive investment opportunity. The country has a population of
about 55 million people and a population growth rate of 2.9 percent.
Most of the citizens depend on natural resources for production, income and
livelihoods. Tanzania is endowed with regenerative natural resources and
non-regenerative natural resources including minerals, i.e. gold, diamond,
iron, coal, nickel, Tanzanite, uranium and natural gas. The abundance in natural
resources constitutes a major asset and opportunity that are fundamental for
growth and economic development, including poverty reduction.
Geita Region is blessed with agricultural, livestock, water and mineral resources
with a potential to a rapid economic growth path matching, if not surpassing,
other regions in Tanzania. The region has vast gold reserves that merit the
region the name “the Golden State” of Tanzania. Geita Region has sufficient
agricultural land suitable for cultivation of crops such as paddy, cotton, maize,
black peas, cassava, horticultural products etc. Lake Victoria and its shores in
Geita offer fishing and tourism opportunities, and transport linkages to other
neighbouring regions and countries.
For that reason, this guide is meant to help potential investors to find
additional sources of information from public and private sectors, which
they can use to make successful and profitable investment undertakings
in Tanzania generally and in Geita Region in particular. The information
relating to potential investment areas in Geita Region was sourced through
consultations with various stakeholders and is therefore 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 related matter.
The Export Processing Zones Authority (EPZA) governs both EPZs and special
economic zones (SEZs). The Government has encouraged both local and
foreign investors to take advantage of the investment opportunities under
EPZA for their benefits and for the benefit of the country. There are three
categories of licence issued by EPZA.
a)
The Developer’s Licence (for investment in infrastructure
development including construction of industrial buildings and
warehouses, development of internal roads, landscaping and
fencing and the provision of utilities)
b)
The Operator’s Licence (for investors who are undertaking
manufacturing operations including manufacturing, processing, re-
packaging, re-labelling and trading)
c)
The Service Provider’s License (for investors who are providing
services and utilities to EPZs and SEZs investors within the zone, including
banking, insurance and information communication technologies
(ICTs)).
Generally, the following are among the reasons why one should invest in any
region of Tanzania:
a)
High degree of investment security, given the political stability that is
strife-free without ethnic division; democratic rule that respects diversity
of opinion, and a strong tradition of constitution and rule of law
b)
Business-friendly macro-economic stability with low inflation (below
5 percent); stable exchange rates supported by unrestricted and
unconditional transferability of profits, loan repayments, emoluments,
royalties, fees and charges
c)
Simplified bureaucracy, streamlined through the acclaimed services of
the Tanzania Investment Centre (TIC), which is a one-stop facilitation
agency of Government serving registered investors and businesses
f )
Rapidly emerging as the most effective entry point and gateway for
trade into eastern, southern and central Africa
g)
Lucrative investment opportunities in infrastructure, and value-adding
facilities
h)
Investment guarantees and settlement of disputes: investments in
Tanzania are guaranteed against political risks, nationalisation and
expropriation
i)
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, ABSA,
Barclays, Citibank, Stanbic,
and Exim have invested in
Tanzania.
Below are some of the reasons for investors to choose Geita Region as an
investment destination:
b) Geita has some agricultural land that has favourable climatic conditions
suitable for cultivation of both cash and food crops such as cotton,
paddy, maize, cassava, black peas, horticulture products etc.
c)
Lake Victoria and its shores in Geita offer fishing and tourism
opportunities, as well as transport linkages to other neighbouring
regions and countries
f ) Like the rest of the country, Geita Region enjoys peace and political
stability that offers a safe business and investment environment.
On the other hand, Geita Region has limited agro-processing industries and
therefore these crops are not processed but sold in raw forms. Since land is
available, investors are invited to invest in the production of these crops and
establish industries for processing agricultural produce.
C:
Investment in the cultivation and marketing of legumes and
horticultural products
Geita is famous for its rich gold reserves and mines engaged in gold
production and processing. Gold is therefore a brand for Geita Region.
Investment opportunities existing in this area include small and medium-
scale production and
value addition. Small
and medium-scale
entrepreneurs lack
technology (machines
and chemicals), skills,
and capital, thus
making their investment
undertaking extremely
risky and inefficient in
terms of productivity.
Small Scale Miners in Geita
The presence of Lake Victoria and other tourist attractions, like national
parks and islands, (e.g. Rubondo) offer various tourism-related activities
Geita Region has set aside about 49 hectares of land for construction of
Geita Commercial Hub (GCH). The project is to be implemented under the
PPP arrangement in collaboration with TanTrade. GCH will be a modern
commercial platform in which the Geita community will use to exhibit
most modern production
technologies and well-
furnished products produced
from a wide range of
productive sectors including
gold mining, agriculture,
livestock, fishing, forestry,
tourism, recreational industry,
service industry, culture and
heritage, wildlife, small and
medium-scale enterprise,
financial institutions, parking
zone, EPZs and SEZs, etc.
e)
Government ministries, agencies, LGAs, EPZA, and state-owned
enterprises (SOEs) [e.g. those responsible for agriculture, industries,
trade, finance, and international cooperation]
h)
Institutions overseeing the management of quality and safety
management issues, such as Tanzania Bureau of Standards (TBS)
j)
Selected civil society organisations (CSOs) and non-government
organisations (NGOs), and development partners (DPs), such as the
Food and Agriculture Organisation (FAO), United Nations Development
Programme (UNDP), World Bank (WB), United Nations Conference
on Trade and Development (UNCTAD), International Trade Centre
(ITC), European Union (EU), United Nations Industrial Development
Organisation (UNIDO), and TradeMark East Africa (TMEA), etc.
SOCIO-ECONOMIC PROFILE OF
GEITA REGION
Geita Region is located in northern west of Tanzania and lies between latitudes
2°8’ and 3°28’ South of the equator and longitude 310 15’ and 320 48’ East of
Greenwich. The region is 1,100 to 1,300 metres above sea level and shares
borders with five regions, namely Kagera Region to the west and north west;
Tabora and Shinyanga regions to the south; Shinyanga Region to the south east;
Kigoma Region to the south and south west; and Mwanza Region to the north
and north east. The region is also bound by Lake Victoria waters in the north.
Geita Region, established in March 2012 from parts of Shinyanga, Kagera and
Mwanza regions, is one of 31 administrative regions of the United Republic of
Tanzania. It comprises of five districts and six councils, one of which (Geita)
is a town council (Table 2.1). The districts are divided into divisions that are
further sub-divided into wards, villages, and sub- villages (hamlets).
Geita Region has moderate temperatures of between 220 C and 300 C with
an average rainfall ranging from 900 mm to 1200 mm per annum. Rainfall
is fairly evenly distributed with short rains from September to December
followed by a dry spell from January to February before long and heavy rains
set in from March till the end of May. From June to September the region is
subjected to dry season. During the hot season humidity is thirty-five percent
(35%), and rises up to sixty percent during the rainy season. Geita Region is
characterised by undulating land spotted with hills and mountains. The land
is also characterised by black cotton soils, loam, sand, sandy loam and clay
The western zone of Geita Region includes Chato District (Bwanga and
Kachwamba divisions) and some parts of Bukombe District (Siloka Division).
This zone is characterised by an average annual rainfall of between 700 mm
and 1000 mm, which is conducive for the cultivation of agricultural crops
including cotton, cassava, paddy, maize, sweet potatoes and sorghum.
This zone is located at 1,300 metres above sea level and receives an average
rainfall of between 700 mm and 1300 mm. The zone includes parts of Chato
District (Buseresere, Bozilayombo and Nyamilembe divisions) and Geita
District (Bugando and Butundwe divisions). Farmers in this zone grow various
crops, notably cotton, cassava, paddy, maize, sweet potatoes, pineapples,
groundnuts, legumes and coffee. Free range and tethering systems are
prominently used for cattle, goats and sheep grazing.
This zone includes Nyang’hwale District and some parts of Geita District
(Kasamwa Division). It is characterised by farming of a wide range of crops,
namely maize, paddy, sunflower, lentils, cassava, cotton, and chickpeas. It
receives an average annual rainfall of between 600 mm and 1000 mm.
This zone includes Mbogwe District and some parts of Bukombe District
(Bukombe and Ushirombo divisions) and Geita District (Busanda Division).
It receives an average annual rainfall of between 750 mm and 900 mm.
The southern zone is famous for production of cotton, paddy, groundnuts,
sorghum, and maize. Livestock keeping (cattle) is also predominant in this
zone.
A. Education Infrastructure
B. Enrolment Ratio1
C. Education Attainment
The 2018 Geita Region database shows that out of 48,503 persons who
attained various levels of education, 24,403 (50.3 percent) were male and
24,100 (49.7 percent) were female. Primary education, with 78.4 percent, was
the most dominant level attained by most residents in the region followed
by secondary education (21.6 percent). The regional database shows further
that more females (51.7 percent) had attained primary education compared
to males (48.3 percent). However, at secondary level and above, the number
of males was larger than that of females. This was a remarkable education
attainment level, especially for secondary schools relative to primary
schools, attributable to the expansion of the number of secondary school
infrastructure and the increase in secondary school enrolment (Geita Regional
Report, 2018).
in assessing access to education among the population. In primary education, net enrolment rate
(NER) is defined as the number of children aged 7-13 years who are attending school divided by the
total number of children in that cohort. The 7-13-year age group is the official primary school age in
Tanzania. On the other hand, gross enrolment rate (GER) is defined as the number of children attending
primary school (regardless of age) divided by the total number of children aged 7-13 years old.
According to the 2018 population and housing census (PHC), more than
6.33 percent of all households in Geita Region had at least one member on
a social security scheme. The National Health Insurance Fund (NHIF) and
Community Health Fund (CHF) are the most popular social security schemes
with 1.8 percent of households reporting to have at least one member of
their household registered into those two schemes. District councils with the
highest proportion of households registered in social security schemes are
Chato (45.3 percent) and Geita (35.4 percent).
Water supply in Geita Region is satisfactory due to its availability from Lake
Victoria. Other sources of
water are rivers, streams,
shallow wells, bore holes,
rain water harvesting and
springs. The demand for
water is driven by human
and livestock population;
in year 2018 demand for
water in Geita Region was
53,149 cubic metres (m³)
against availability of 27,637.5 m³, which was fifty-three percent (53%) of
total demand. Water supply in urban areas (i.e. Geita Town, Chato Town and
Bukombe Town) was forty-one percent (41%).
2.4.2 Fisheries
Fish farming has also been an upcoming activity in recent times. Geita Region
has counted a total of 118 fish ponds, which are all managed by individual
farmers. Although Tilapia breeds freely in ponds, it is important for farmers
2.4.3 Honey
Likewise, the park has trans-planted animals including black rhinos, roan
antelopes, chimpanzees, giraffes, black and white colobus, suni, elephants
and grey parrots. Moyowosi-Kigosi Game Reserve, made up of twin game
reserves of Moyowosi and Kigosi, covers part of Tabora, Shinyanga and
Kigoma regions with a total area of 21,403 square kilometres where precious
animal species including impala, water bucks, buffalos, elephants, zebras,
giraffes, leopards, hippos and crocodiles are found.
Katoro area, which is located on the highway that links Mwanza to the
neighbouring countries of Uganda, Rwanda, Burundi and DRC, has become
a major gold trading centre, attracting small-scale miners from Nyarugusu,
Rwamgasa, and beyond. In these artisanal and small-scale mining sites there
are many on-site brokers who buy small collections of gold and sell to big
brokers in Geita and Mwanza markets.
2.4.6 Industries
Road transport: About 58.1 percent of road network in the region is passable
throughout the year. The road network measures 8,019.57 kilometres, and is
graded into four categories, namely trunk roads (7.3%); regional roads (5.8%);
district roads (45.1%); and feeder roads (41.8%). The road surface type in the region
shows that 4.7 percent is tarmac, 25 percent gravel, and 70.3 percent is earth.
Marine transport: Geita Region has four ports: Nkome, Chato, Nyamirembe
and Muganza. It also has Nungwe Harbour, constructed by colonialists and
recently rehabilitated by the Government of Tanzania. Some fibres and
motorised local vessels ferry people and cargo across Lake Victoria. The
Nungwe Harbour bay, which is about 40 kilometres from Geita Town, has the
ability of docking cargo ships.
2.4.8 Energy
Fossil fuels: Petroleum products are the most important source of lighting
energy not only in rural areas but also in urban areas. Fossil fuels energise
transport, industries and various commercial establishments. The region
is supplied with petroleum products from private companies; there are 53
petroleum filling stations in the region.
3.1 Introduction
Investment opportunities in Geita Region emanate from the following
regional characteristics and strengths:
A. Geographical location
B. Market access
One is the Southern African Development Community (SADC) with its 327.2
million consumers. Another market is the European Union, to which Tanzanian
exporters have access under the EU’s Everything But Arms (EBA) initiative;
and the third is the United States, to which Tanzania has access under the
provisions of the African Growth and Opportunity Act (AGOA).
Tanzania has enjoyed political stability for nearly 57 years since independence.
The country has been free of the coups, civil wars and violence that have
featured in the post-independence history of so many other African
countries. Thus, being part of Tanzania, Geita Region has benefited from the
said peace and harmony. Ethnic tensions have almost been unknown despite
the region’s ethnic diversity. The rule of law is well established and the level
of security is relatively high. The people in Geita are welcoming and friendly.
The regional level investment opportunities have two main attributes: first, it
is their scale and scope, which transcends beyond those of individual LGAs;
and the opportunities are large enough to serve all LGAs. Specific details for
each opportunity are given below:
Key features
Key investment
rationale
There is a growing demand for fish in Geita Region and
in the neighbouring countries of Burundi, DRC, Kenya,
Rwanda, and South Sudan
Investment in fish processing will create employment,
generate incomes for residents and provide foreign
currency through exports.
The initiative is supported by the National Fish Policy
2015
The Government has strongly supported investment
in aquaculture training, with degree programmes
at Sokoine University of Agriculture (SUA) and the
Available support
University of Dar es Salaam, and skills training at
Mbegani Fisheries Development Centre and FETA
The Government policy on fishing promotes fish
farming as a way to contribute to the national food and
nutrition security.
Key investment The meat processing industry will be in line with the
rationale cattle fattening that the region has prioritised
High demand for quality meat in the region by both
domestic consumers and tourists
The meat industry, like all other industries, will generate
employment for the people of the region
It will help to maintain meat quality.
5.
Investment in Small and Medium-scale Mining and Mineral
Processing
Overview of the Opportunity
Key features Geita Town Council
Investors are invited to establish small-scale industries
to process minerals in Geita Town Council
Land on which to build the proposed mineral
processing plants has been set aside at Mtakuja
Ward (214.13 hectares) and Bombambili Ward (97.02
hectares).
FACILITATION, PROCESSES,
REQUIREMENTS AND INCENTIVES
a) Key policies
Major laws and regulations that guide investment promotion and activities
in Geita Region are: Tanzania Investment Act (1997); 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 Geita Region
by-laws.
Key strategies, plans and programmes are: annual regional plans and
annual reports; PO-RALG Reports; district development plans; the Second
Five-Year Development Plan (FYDP II); Agriculture Sector Development
Programme II (ASDP II); Livestock Sector Development Programme
(2011); Ministry of Industry and Trade (MoIT)’s Reports; and the Integrated
Industrial Development Strategy (IIDS 2025). Others are the National Rice
Development Strategy; Tanzania Agriculture and Food Security Investment
Plan; and the Southern Agricultural Growth Corridor of Tanzania (SAGCOT).
The Government recognises the role of private sector in bringing about socio-
economic development through investments. Public-private partnership
(PPP) frameworks provide 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.
c) Joint Ventures
4.2.3 Registration
4.2.4 Taxes
Taxes involved in investment projects in Geita Region are various and include:
a) Corporate Tax
Corporate tax is charged at the rate of 30 percent for both residents and non-
residents. In the case of a newly listed corporate to the Dar es Salaam Stock
Exchange, with at least thirty percent (30%) of its equity ownership issued to
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%) for corporations investing in a plant for assembling motor vehicles,
tractors and fishing auto boats.
Residents are subjected to personal income tax where total annual income
exceeds TZS 2,040,000. Income of a non-resident employee of a resident
employer is subject to withholding tax of fifteen percent (15%). The total
income of a 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, and United Nation and its
organisations/agencies.
c) Withholding Tax
Under VAT, incentives include zero rate for all exports, exemption of imported
machinery by local manufacturers and processors of vegetable oils, textiles,
pharmaceutical and skins and leather goods produced in Tanzania Mainland.
VAT returns are supposed to be filed on the 20th day of the month after a
tax period. However, where the 20th day falls on a Saturday, Sunday or public
holiday, the VAT return shall be lodged on the first working day following
the Saturday, Sunday or public holiday. For imports, VAT is payable at the
time the import duty is due and payable in accordance with the 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. Both local
and foreign investors have free access to various services related to permits,
licences and approvals in the Tanzania Investment Centre (TIC), the one-stop
facilitation centre. So far, TIC has opened four (4) new zone offices in Lake
Zone, one being in Geita Region. Expansion of zone offices network aims at
moving TIC services closer to the people through regional secretariats and at
enhancing service delivery. EPZA also provides incentive packages according
to Export Processing Zones Act No. 11 of 2012.
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
ownership in Tanzania is vested into the public, and citizens own land under
leasehold tenure.
4.4.3 Labour
Geita Region has surplus labour due to low employment. While some of the
labour is unskilled, there are efforts to build a skilled labour force especially
through vocational training. The region has six vocational training institutions,
and investors are welcome to build skills development institutions in every
council.
However, for the private sector to play its role effectively, Geita Region
authorities will create an enabling environment through provision of pre-
requisite infrastructure, incentives, formulation/review and enforcement
of investment friendly policies, regulations, and procedures. Regional
authorities will promote public-private partnerships as well as public-private
community partnerships, and also facilitate joint ventures between potential
investors and local private investors. Such partnerships are critical for
achieving 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 be enabled to
thrive and be competitive by easing access to affordable input and output
factors nationally and internationally.
This part provides important contacts in the region that will help potentioal
investors in making follow up for the opportunities they want to invest in.
Office Website
Geita Regional Secretariat http://www.geita.go.tz
Geita Town Council http://www.geitatc.go.tz
Geita District Council http://www.geitadc.go.tz
Bukombe District Council http://www.bukombedc.go.tz
Chato District Council http://chatodc.go.tz
Mbogwe District Council http://mbogwedc.go.tz
Nyang’hwale Council http://www.nyanghwaledc.go.tz
116 Chato
Chato District Council +255 282 228 007 ded@chatodc.go.tz
Geita