October 2012  Better coordination of DP’s  To showcase effective programmes  To improve on the ground knowledge  To follow a value chain  To hear directly from entrepreneurs about key issues affecting the private sector  Farmers and growers involved with the following programmes:◦ SNV ◦ RLDC ◦ Tuboreshe Chakula  Processors ◦ Songera investments, Rig Investments, Uncle Milo, Three Sisters, Nyemo Investments, Jackma Enterprises  Sector Organisations ◦ CEZOSOPA, TEOSA, TASUPA  SIDO ◦ ◦ ◦ ◦  Micro Manufacturing Enterprise Park Mini- Refinery Machinery development Campaign for improved quality of oil PMO RALG  Finance Institution ◦ PASS  TTCIA Morogoro  Tanzanian Graduate Farmers Association  Sokoine University Graduate Entrepreneurs Cooperative - SUGECO  Successful small-scale private entrepreneurs both producers and processors who were:◦ ◦ ◦ ◦ ◦ ◦ Ready to expand Ready to engage and assist local farmers Equipped with skills Willing to invest Open to new ideas Had a vision for the future  Great progress and successful programmes in improving:◦ ◦ ◦ ◦ ◦ Accessibility of seeds Quality of seeds – QDS Methods of production Availability of information to farmers Coordination of the sector Production of seed seems to have increased – (anecdotal information - not verified by DPG ) Before 1 acre produced Now 1 acre produces •2 bags of 65kg •12 bags of 65 kg Production of oil from the seeds has increased Before 1 bag produced Now 1 bag produces • 12 litres • 25 litres Total oil production has increased Before - Total production Now - Total Production • 24 litres of oil • 300 litres oil  Potential for Tanzania to become net exporter of sunflower oil is good. ◦ Currently Tanzania is a net importer of sunflower oil ◦ The sector is currently only operating at 30% capacity ◦ Dodoma and the central region produce over 60% of sunflower products.  Medium-scale commercial farming ◦ size of plots, ◦ time taken to complete process. ◦ TGFA example  Fragmented industries in residential areas ◦ SIDO Sunflower oil processing cluster Dodoma. ◦ But legal issues, land tenure, cost of building, ownership – GoT or PPP?  Lack of electricity hampering entrepreneurial development ◦ Songera Investments example – idea, vision, skills, capital but no power    Intermittent power increasing costs and reducing productivity Expensive Renewables – still not competitive or readily available   Positive engagement between Government & sector organisations Good channel for dialogue between government and sector through sector organisations ◦ Re-introduction of 10% levy on palm oil imports ◦ Reducing import duty on spare parts for sunflower processing equipment  BUT still need more coherent sector strategy & ongoing consultation ◦ IIDS is in place ◦ Sectoral strategies to frame interventions (e.g. subsidies, levies? ◦ Concrete Policy frameworks? ◦ Monitoring systems in place to track impact and progress towards results? ◦  Proactive engagement rather than reactive interaction   Palm oil levy example Regular two way information flow and consultation needed to build trust ◦ Single Refining Standard law introduction example  Good information flow from farmers to processors through sector organisations ◦ Productivity increases  Small scale producers – still too small to compete successfully ◦ consider grouping together for better market access and product quality ◦ Clustering ◦ Contract manufacturing  But this will need:◦ Trust between competing SMEs ◦ Possible external facilitation – as happened between RLDC, SNV and the strengthening of sector organisation CEZOSOPA, TASUPA & TEOSA ◦ Cluster development & land allocation by government – eg SIDO  Plethora of regulations - overlapping   One stop shop for SME’s like TIC is for larger investors? Discrepancy between on the ground reality and central regulations ◦ Tax levied at point of sale vs boundary taxes by local authorities  Paradigm shift from ownership & government control to lighter touch regulation   Difficult access to finance – 20% + interest rates More credit guarantee schemes for SME’s need to be implemented. ◦ Ideas to open schemes with TIB and NMB planned but not yet implemented  Lack of appropriate skills – ◦ Technical and managerial levels are imported from eg India or Kenya ◦ Mismatch between graduate skills and industry needs ◦ Internships, bridging programmes from formal education to industry ◦ Formal and practical skills  Machinery manufacture & maintenance ◦ Balance between local production of light manufacturing machinery vs import of equipment at the lowest price to remain competitive?      Production is increasing More lucrative market is there But need strategic engagement to promote sunflower oil Coordinated effort from small scale processors to be able to compete Coordination at District levels to ease cross boundary transportation  Downstream value chain development needed to exploit opportunities ◦ ◦ ◦ ◦ Packaging Marketing Business development Exporting “Sunflowers used to be viewed as a crop for poor women – now they are seen as an important and potentially lucrative cash crop” Monsipile Kajimbwa, SNV Morogoro Produced by DPG PSD Trade Secretariat November 2012