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Commercial relations in partnership between Sweden and Tanzania

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Bus<strong>in</strong>ess on the way<strong>Commercial</strong> <strong>relations</strong><strong>in</strong> <strong>partnership</strong> <strong>between</strong><strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong>Dar es Salaam


ContentsIntroduction ..............................................................3General Facts on <strong>Sweden</strong> ..........................................4Trade <strong>between</strong> <strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong>..........................5Welcome to a Swedish-<strong>Tanzania</strong>n “smörgåsbord”*!A presentation of a few <strong>Sweden</strong>-relatedcompanies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong> ..........................7Swedish Policy <strong>and</strong> Instruments ................................26Embassy of <strong>Sweden</strong> ................................................32Contact Addresses ..................................................33Appendix: Company list............................................35* “Smörgåsbord” is one of the traditional ways of eat<strong>in</strong>g <strong>in</strong> <strong>Sweden</strong>.Great varieties of Swedish specialities are presented <strong>and</strong> served onlong tables encourag<strong>in</strong>g people to help themselves <strong>and</strong> jo<strong>in</strong> <strong>in</strong> onthe festivities.This booklet is a product of the Embassy of <strong>Sweden</strong>,Dar es Salaam <strong>in</strong> co-operation with Sida.Research <strong>and</strong> Edit<strong>in</strong>g:Maria BengtssonGrace LuenaKar<strong>in</strong> Zetterqvistwww.vip<strong>in</strong>go.se/tupoDesign:Castenfors & Co.Pr<strong>in</strong>ter:Novum GrafiskaThis booklet can be ordered from:The Embassy of <strong>Sweden</strong>,Dar es Salaam, <strong>Tanzania</strong>Mirambo St/Garden Ave.PO Box 9274Dar es SalaamPhone: + 255 51 11 12 35Fax: + 255 51 11 34 20E-mail: tan-reception@sida.se


General Facts on <strong>Sweden</strong>General Facts on <strong>Sweden</strong>Traditionally, scale-<strong>in</strong>tensive <strong>in</strong>dustries(e.g. pulp, paper <strong>and</strong> paper products <strong>and</strong>ferrous metal products) have had a largeshare of Swedish exports. However,<strong>Sweden</strong> is also a relatively importantexporter of technically more sophisticatedproducts like telecommunicationsequipment, specialised mach<strong>in</strong>ery <strong>and</strong>motor vehicles. Science-based products(e.g. pharmaceuticals) account for around10% of manufactur<strong>in</strong>g value added.About 460,000 small <strong>and</strong> mediumsized enterprises (SMEs), mostly <strong>in</strong> services<strong>and</strong> oriented towards the home market,employ close to 1.4 million.About 4.3 million people (50% of thepopulation) are <strong>in</strong> the labour force. Thishigh figure is ma<strong>in</strong>ly due to the fact thatmore than 75% of all women aged 16–64are ga<strong>in</strong>fully employed. Health care <strong>and</strong>social welfare are seen as public sectorresponsibilities, <strong>and</strong> are supported by anational social <strong>in</strong>surance system. N<strong>in</strong>eyears of school<strong>in</strong>g are compulsory for allchildren from the age of 6 or 7. About95% go on to the upper secondary school,which offers both vocational <strong>and</strong> academicprogrammes.<strong>Sweden</strong>, situated <strong>in</strong> the northern part ofEurope, covers an area half as big as<strong>Tanzania</strong>. Of the l<strong>and</strong>’s surface half of itis covered with forest. Less than 10% isfarml<strong>and</strong>. About 85% of the population isliv<strong>in</strong>g <strong>in</strong> the southern half of the country.At the beg<strong>in</strong>n<strong>in</strong>g of this century<strong>Sweden</strong> was a largely agrarian economy,<strong>and</strong> one of the poorest nations <strong>in</strong> Europe.However, a rich domestic supply of ironore, timber <strong>and</strong> waterpower, clevereng<strong>in</strong>eers <strong>and</strong> skilled workers enabled arapid <strong>in</strong>dustrialisation that transformed<strong>Sweden</strong> <strong>in</strong>to a modern welfare state.Manufactur<strong>in</strong>g still plays a dom<strong>in</strong>antrole <strong>in</strong> Swedish exports. Large <strong>in</strong>ternationalcompanies such as Ericsson, ABB,Electrolux, Volvo <strong>and</strong> Saab account fornearly 60% of employment <strong>in</strong>manufactur<strong>in</strong>g <strong>and</strong> more than 80% ofexports of manufactured products.(Source: The Swedish Institute FactSheets on <strong>Sweden</strong>)4


Trade <strong>between</strong> <strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong>Trade <strong>between</strong> <strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong>Mutual tradeBilateral trade <strong>between</strong> <strong>Sweden</strong> <strong>and</strong><strong>Tanzania</strong> <strong>in</strong>creased dur<strong>in</strong>g 1998. TotalSwedish exports to <strong>Tanzania</strong> amounted toapproximately 197 million SEK whereasimports from <strong>Tanzania</strong> were substantiallylower, approximately 9.5 million SEK.There should be a great potential <strong>in</strong><strong>in</strong>creas<strong>in</strong>g trade significantly <strong>in</strong> bothdirections, but for this to happen concertedefforts will be required from both sides.Swedish exports to <strong>Tanzania</strong> consisted ofelectrical equipment, telecommunications<strong>and</strong> other mach<strong>in</strong>es <strong>and</strong> equipment, meansof transportation <strong>in</strong>clud<strong>in</strong>g spare parts<strong>and</strong> other manufactured goods. Importsfrom <strong>Tanzania</strong> consisted of agriculturalproducts such as coffee, tea, cocoa <strong>and</strong> spices- but also a certa<strong>in</strong> <strong>in</strong>crease <strong>in</strong> manufacturedgoods (mach<strong>in</strong>es) could be noted.In the near future there should be apotential for <strong>in</strong>creased export revenues to<strong>Tanzania</strong> from Swedish tourists. Also foragriculture-based production there shouldbe good prospects <strong>in</strong> the Swedish <strong>and</strong>other Nordic markets, provided that quality<strong>and</strong> package aspects could be taken dueaccount of. In these respects the SwedishImport Council/Svensk H<strong>and</strong>el <strong>in</strong>co-operation with Sida <strong>and</strong> the regionalChambers of Commerce <strong>in</strong> <strong>Sweden</strong> couldbe <strong>in</strong>struments for a positive development.Investments <strong>and</strong> jo<strong>in</strong>t-venturesAuthority <strong>and</strong> the <strong>Tanzania</strong> Chamber ofCommerce, Industry <strong>and</strong> Agriculture(TCCIA) are sometimes <strong>in</strong>vited - shouldbe mentioned <strong>in</strong> this context. They couldplay a significant role <strong>in</strong> exchang<strong>in</strong>g bus<strong>in</strong>essideas, other essential <strong>in</strong>formation <strong>and</strong> givean impetus to mutual trade <strong>and</strong><strong>in</strong>vestments. The possibilities for hav<strong>in</strong>gsimilar meet<strong>in</strong>gs <strong>in</strong> <strong>Sweden</strong> are be<strong>in</strong>glooked <strong>in</strong>to by the Embassy of <strong>Tanzania</strong><strong>in</strong> Stockholm.Investment agreementThe conclusion of a bilateral agreement onthe protection <strong>and</strong> promotion of <strong>in</strong>vestmentswill most probably help considerably <strong>in</strong>overcom<strong>in</strong>g potential Swedish <strong>in</strong>vestors'hesitation about approach<strong>in</strong>g a new,promis<strong>in</strong>g market but one perceived as“<strong>in</strong>secure” like the <strong>Tanzania</strong>n one. Suchan agreement would be welcomed by theSwedish private sector <strong>and</strong> would stimulatethe creation of jo<strong>in</strong>t ventures <strong>and</strong> direct<strong>in</strong>vestments. Also other measures to reducerisks <strong>and</strong> improve the <strong>in</strong>vestment climateshould be discussed <strong>between</strong> <strong>Tanzania</strong><strong>and</strong> <strong>Sweden</strong>.Bilateral trade <strong>between</strong> <strong>Sweden</strong> <strong>Tanzania</strong>20015010050There have already been quite a few<strong>in</strong>vestments <strong>and</strong> jo<strong>in</strong>t ventures <strong>between</strong><strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong> as illustrated later<strong>in</strong> this booklet. In order to further promotejo<strong>in</strong>t ventures <strong>and</strong> direct <strong>in</strong>vestments on amore partner-like basis, there are several<strong>in</strong>struments available through Sida <strong>and</strong>other governmental or commercial<strong>in</strong>stitutions.The quarterly meet<strong>in</strong>gs <strong>between</strong> theEmbassy of <strong>Sweden</strong>, Swedish <strong>and</strong><strong>Sweden</strong>-related companies <strong>in</strong> <strong>Tanzania</strong> -to which representatives of variousM<strong>in</strong>istries <strong>and</strong> other authorities such asthe Treasury, the <strong>Tanzania</strong> Revenue0MSEK1994 1995 1996 1997 1998Swedish export to <strong>Tanzania</strong><strong>Tanzania</strong>n export to <strong>Sweden</strong>5


Trade <strong>between</strong> <strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong>Welcome to a Swedish-<strong>Tanzania</strong>n“smörgåsbord”*!On the follow<strong>in</strong>g pages a few of the<strong>Sweden</strong>-related companies now operat<strong>in</strong>g<strong>in</strong> <strong>Tanzania</strong> will be presented. As anappendix you will f<strong>in</strong>d all <strong>Sweden</strong>-relatedcompanies <strong>in</strong> <strong>Tanzania</strong> registered at theEmbassy of <strong>Sweden</strong> <strong>in</strong> Dar es Salaam.Swedish policy <strong>and</strong> <strong>in</strong>struments availableto promote further bus<strong>in</strong>ess are also presented.The mixture of companies shows thewide range of possibilities of <strong>partnership</strong><strong>between</strong> the two countries. Hopefully itwill <strong>in</strong>spire other Swedish <strong>and</strong> <strong>Tanzania</strong>nentrepreneurs to take the chance topromote <strong>and</strong> exp<strong>and</strong> their bus<strong>in</strong>ess.*Large table with a mixture of dishesPhoto: SkanskaFacts about <strong>Sweden</strong>Area: 450,000 sq.kmPopulation: 8.8 millionCapital: StockholmLanguage: SwedishReligion: Lutheran State ChurchForm of Government: Constitutional monarchy,parliamentary democracyCurrency: SEK 1 (Swedish krona) = 84 TSHSContribution to GDP by sector:Facts about <strong>Tanzania</strong>Area: 945,000 sq.kmPopulation: 30 million (1998)Capital: DodomaLanguage: SwahiliReligion: Christian, Muslim <strong>and</strong> othersForm of Government: Republic, Union <strong>between</strong>Tanganyika <strong>and</strong> Zanzibar, multi-party democracyCurrency: TSHS 100 (<strong>Tanzania</strong>n shill<strong>in</strong>g) = 1,19 SEKContribution to GDP by sector:Agriculture 2%Manufactur<strong>in</strong>g 31%Trade & Hotels 11%Transport & Communication 13%F<strong>in</strong>ancial & Bus<strong>in</strong>ess Service 24%Others 19%Source: Statistics <strong>Sweden</strong> - “GDP by k<strong>in</strong>d of economicactivity” 1998Agriculture 47%Manufactur<strong>in</strong>g 7%Trade & Hotels 13%Transport & Communication 5%F<strong>in</strong>ancial & Bus<strong>in</strong>ess Service 6%Others 22%Source: Bank of <strong>Tanzania</strong> - Economic Bullet<strong>in</strong>, June 19986


A <strong>Tanzania</strong>n EntrepreneurA <strong>Tanzania</strong>n Entrepreneur“Siasa ni Uchumi - Politics is Economy”,says Mr. Crisp<strong>in</strong> Mwanyika, President of<strong>Tanzania</strong> Chamber of Commerce, Industry<strong>and</strong> Agriculture, Vice Chairman of thePrivate Sector Foundation <strong>and</strong> GeneralManager of Pemacco Ltd. “We have to f<strong>in</strong>dan economically susta<strong>in</strong>able connection totransfer the old friendship <strong>between</strong> <strong>Sweden</strong><strong>and</strong> <strong>Tanzania</strong> <strong>in</strong>to an economic friendship”.Mr. Mwanyika’s l<strong>in</strong>ks with <strong>Sweden</strong>started <strong>in</strong> the seventies, through the SIDAf<strong>in</strong>ancedSister Industry Project, implementedby SIDO. His company at that time, ElectricMotors <strong>in</strong> Mbeya, operated <strong>between</strong> 1973<strong>and</strong> 1983 as a repair workshop, hav<strong>in</strong>g BeviInternational AB, <strong>in</strong> Blomstermåla, <strong>Sweden</strong>,as its partner for the supply of spare parts.At that time Swedes, especially <strong>in</strong> smallplaces, were not very used to foreigners.Mr. Mwanyika remembers that when hecame to <strong>Sweden</strong> to meet his partner, it wasthe first time the old owner of Bevi hadmet a black man.Now that the two countries are enter<strong>in</strong>ga new phase of <strong>partnership</strong>, there are a fewth<strong>in</strong>gs to learn from the past:“The Sister Industry Project was like aforced marriage. The <strong>Tanzania</strong>nentrepreneur was not allowed to choose hispartner himself, this was done by SIDO”.“Swedish entrepreneurs are very riskconscious,<strong>and</strong> sometimes rely too much onSida, which makes them less competitive.Also the bus<strong>in</strong>ess has not always been done<strong>in</strong> the best way. When I, as the <strong>Tanzania</strong>npartner, made suggestions, the Swedishpartner was not <strong>in</strong>terested. Many good ideasfailed because of this mistrust from theSwedish side. There are a lot of seriousbus<strong>in</strong>essmen <strong>in</strong> <strong>Tanzania</strong>, <strong>and</strong> they arediscipl<strong>in</strong>ed”.Of course there are also problems atthe <strong>Tanzania</strong>n side:“Lack of a comprehensive <strong>and</strong> overallpicture of what it means to run a bus<strong>in</strong>ess.No bus<strong>in</strong>ess ethics, all <strong>in</strong>come is taken asdividends. People have not learnt thedifference <strong>between</strong> their private economy<strong>and</strong> that of the company. Another bigproblem is that there are no credit facilities”.Mr. Mwanyika’s owncompany seems to havefaced all these challengesquite well. In 1984 Pemaccostarted as a jo<strong>in</strong>t venture<strong>between</strong> Electric Motors,Bevi International <strong>and</strong>Swedfund, where BeviInternational <strong>and</strong> Swedfundhad 17 % each of the shares.In 1995 negotiations startedwith ABB, <strong>and</strong> <strong>in</strong> 1998 theyreached an agreement where ABB nowowns 70 % <strong>and</strong> Pemacco Ltd. 30 % (seepresentation of ABB on follow<strong>in</strong>g pages).Mr. Mwanyika is also build<strong>in</strong>g up anew company “<strong>Tanzania</strong> HydropowerSystems Ltd.” <strong>and</strong> is now try<strong>in</strong>g to get theChampion Euro Certificate for itsoperations.TCCIAThe <strong>Tanzania</strong> Chamber of Commerce,Industry <strong>and</strong> Agriculture (TCCIA) wasestablished <strong>in</strong> 1988, with the active supportof the <strong>Tanzania</strong>n government, to strengthenthe private sector. It represents the privatebus<strong>in</strong>ess sector throughout <strong>Tanzania</strong>, withautonomous chambers <strong>in</strong> 20 regions of thecountry. The aim is to facilitate bus<strong>in</strong>esswith<strong>in</strong> <strong>and</strong> outside the country, <strong>and</strong> toprotect <strong>and</strong> promote bus<strong>in</strong>ess <strong>in</strong>terestswith<strong>in</strong> the framework of governmentrules, laws <strong>and</strong> regulations. Support hasbeen provided by Sida, through theChamber of Commerce <strong>and</strong> Industry ofSouthern <strong>Sweden</strong>.Mr. Mwanyika describes the economicprofile the Arusha Chamber is work<strong>in</strong>gon, to show potential <strong>in</strong>vestors what theregion can offer. This is planned to bedone for each region.Mr. Mwanyika th<strong>in</strong>ks that there aregood opportunities for co-operation<strong>between</strong> <strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong>. Forexample a Swedish Chamber ofCommerce could be l<strong>in</strong>ked through acommon database to a <strong>Tanzania</strong>nChamber of Commerce.Photo: Kar<strong>in</strong> Zetterqvist, Tupo7


25 years <strong>in</strong> <strong>Tanzania</strong>Photo: Kar<strong>in</strong> Zetterqvist, TupoIn <strong>Tanzania</strong>, Scania is a household word,be<strong>in</strong>g the only Swedish word <strong>in</strong>corporated<strong>in</strong>to the Swahili language. Scania has lentits name to an <strong>in</strong>sect with a head shapedlike a Scania cab. The speed with whichthis <strong>in</strong>sect can ru<strong>in</strong> a sack of maize is alsoequivalent to the high speed of a Scaniatruck. Scania was also the nickname forthe five-shill<strong>in</strong>g co<strong>in</strong>, the biggest <strong>in</strong> size atthat time.Why is Scania so popular <strong>in</strong><strong>Tanzania</strong>?“It is just the right product for theconditions here - our vehicles are veryrobust <strong>and</strong> built for heavy-duty operation”,says the General Manager, Mr. FredrikMors<strong>in</strong>g. But Scania is do<strong>in</strong>g a lot morefor its customers than deliver<strong>in</strong>g a vehicle.Scania also assists with f<strong>in</strong>anc<strong>in</strong>g, tra<strong>in</strong><strong>in</strong>g,service <strong>and</strong> ma<strong>in</strong>tenance.Scania is the fourth largest heavy-truckmanufacturer on the global market. Inaddition Scania buses are the third largestsell<strong>in</strong>g buses <strong>in</strong> the world. Scania'sestablishment <strong>in</strong> <strong>Tanzania</strong> goes back tothe early 1970s when the company deliveredits first 200 tipper-trucks for the constructionof the Tazara railway. S<strong>in</strong>ce then morethan 4,500 Scania vehicles have beendelivered to <strong>Tanzania</strong>.There was a time when Scania almosthad a monopoly <strong>in</strong> <strong>Tanzania</strong>. With thechanges which have taken place over thepast few years, the company now has tocompete with other suppliers such asMercedes <strong>and</strong> Volvo.Mr. Peter Mchau, Sales Manager, hasbeen at Scania for twenty years. Heremembers the good old days when therewere 400 deliveries per year. He comparesit to the 1998 figure, which was 80.Competition has become much heavier,not only for Scania but also for itscustomers. The transport companies havedifficulties to get loans. Often theythemselves are disorganised, with<strong>in</strong>sufficient bookkeep<strong>in</strong>g.“This is where Scania comes <strong>in</strong>. Wecan assist our customers to organise theirbus<strong>in</strong>ess <strong>and</strong> assist with the f<strong>in</strong>anc<strong>in</strong>g”.On the Nyerere Road location <strong>in</strong> Dar esSalaam there is a well-equipped workshopwith specially tra<strong>in</strong>ed eng<strong>in</strong>eers <strong>and</strong>mechanics. The Scania Tra<strong>in</strong><strong>in</strong>g Centre isalso located here. It cont<strong>in</strong>uously provideshigh-quality technical <strong>and</strong> commercialtra<strong>in</strong><strong>in</strong>g for the whole of East Africa.Photo: Kar<strong>in</strong> Zetterqvist, Tupo8


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Tamco at Kibaha is an assembly factoryfor Scania vehicles, jo<strong>in</strong>tly owned by StateMotor Corporation <strong>and</strong> Scania. If therestoration plan of the East AfricanCommunity is successful, there are plansto use the factory for the whole region.What is your contribution to thedevelopment <strong>in</strong> <strong>Tanzania</strong> otherthan supply<strong>in</strong>g the country withhigh-quality vehicles?“The <strong>in</strong>formation <strong>and</strong> tra<strong>in</strong><strong>in</strong>g we offerour customers contribute to a greaterawareness <strong>and</strong> underst<strong>and</strong><strong>in</strong>g ofma<strong>in</strong>tenance, quality, safe driv<strong>in</strong>g <strong>and</strong>environmental impact.”What about the environmentalimpact?“In Europe the laws are becom<strong>in</strong>g verystrict, <strong>and</strong> the same dem<strong>and</strong>s are com<strong>in</strong>ghere even if somewhat later. The ma<strong>in</strong>problem is the bad quality of fuel”.Does the company depend on anyforeign aid?“Not directly, but of course all <strong>in</strong>vestments<strong>in</strong> the <strong>Tanzania</strong>n <strong>in</strong>frastructure by bigdonors like EU, the World Bank etc. areimportant to us. I wish Sida would givemore support to this important sector”,says Mr. Mors<strong>in</strong>g.The future of Scania?“We want to exp<strong>and</strong> our networkthroughout the country so that we will beas well-equipped <strong>and</strong> efficient as <strong>in</strong> Dar.We are work<strong>in</strong>g towards this goal step-bystep,until we can offer our customers24-hour service, as we do <strong>in</strong> Dar, allaround <strong>Tanzania</strong>”.Facts about Scania <strong>Tanzania</strong> Branch (STB)Photo: Kar<strong>in</strong> Zetterqvist, TupoEstablished: 1973Activity: Sales, market<strong>in</strong>g, service <strong>and</strong> other support ofScania products <strong>in</strong> <strong>Tanzania</strong>. Products: heavy trucks <strong>and</strong>buses, spare parts, <strong>in</strong>dustrial <strong>and</strong> mar<strong>in</strong>e eng<strong>in</strong>es.East African regional Scania centre for commercial <strong>and</strong>technical tra<strong>in</strong><strong>in</strong>g.Number of employees: 100, of whom 15 women <strong>and</strong> 5Swedes.Ownership: Scania Group of <strong>Sweden</strong> (100 %)9


A Global Company, but Local“We are a global company, but at thesame time local”.The Act<strong>in</strong>g Manag<strong>in</strong>g Director of AseaBrown Boveri Ltd. <strong>in</strong> Dar es Salaam, Mr.Terry Dickens, has been <strong>in</strong> Africa s<strong>in</strong>ce1997 <strong>and</strong> is well acqua<strong>in</strong>ted with localconditions.ABB is a global eng<strong>in</strong>eer<strong>in</strong>g groupserv<strong>in</strong>g customers <strong>in</strong> power generation,power transmission, power distribution,automation, oil, gas <strong>and</strong> petrochemicals,manufactured products, electricalcontract<strong>in</strong>g, HVAC <strong>and</strong> motor rew<strong>in</strong>ds.The East Africa region office is situated <strong>in</strong>Nairobi. In <strong>Tanzania</strong> the company operates<strong>in</strong> three locations, Dar es Salaam, Arusha<strong>and</strong> of course <strong>in</strong> the “gold rush town” ofMwanza.ABB <strong>in</strong> Dar es Salaam was established<strong>in</strong> 1993 to co-ord<strong>in</strong>ate various developmentprojects <strong>in</strong> conjunction with <strong>Tanzania</strong>Electric Supply Company Ltd. Anexample is the Pangani Falls redevelopmentproject, where a consortium of NordicABB companies supplied <strong>and</strong> <strong>in</strong>stalled theelectrical equipment <strong>in</strong> the 60 MW powerstation.ABB Tanelec <strong>in</strong> Arusha manufacturesdistribution transformers <strong>and</strong> variousmedium-voltage products. Other productsare power factor correction equipment<strong>and</strong> low-voltage switch gear.ABB Berkeley Electrical, Products <strong>and</strong>Contract<strong>in</strong>g is an electrical build<strong>in</strong>gcontractor <strong>and</strong> also deals with HVACsystems.ABB <strong>in</strong> <strong>Tanzania</strong> is grow<strong>in</strong>g faster than<strong>in</strong> any other of the Sub-Saharancountries. ABB Pemacco <strong>in</strong> Dar esSalaam, deal<strong>in</strong>g with motor rew<strong>in</strong>ds <strong>and</strong>generator sets, is the latest acquisition.What about ABB’s environmentalimpact?“Us<strong>in</strong>g natural gas <strong>in</strong>stead of oil is anessential contribution to a betterenvironment. We also <strong>in</strong>stall manyhydroelectric power plants, which are veryclean. We make electricity transmission<strong>and</strong> distribution systems to reduce powerlosses; computer-based network controlsystems to ensure that electricity is deliveredwhere it is needed <strong>in</strong> the most efficientway; we produce equipment to help savepower dem<strong>and</strong>”.Safety measures for youremployees?“There is a big awareness of this issue. Weare follow<strong>in</strong>g European st<strong>and</strong>ards, <strong>and</strong>education of our employees is an importantpart of our operation”.Photo: ABB10


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Tra<strong>in</strong><strong>in</strong>g?“We are very keen on giv<strong>in</strong>g good tra<strong>in</strong><strong>in</strong>gto our employees, with the aim of thelocal employees tak<strong>in</strong>g over from theexpatriates. The “Golden Pheasant”tra<strong>in</strong><strong>in</strong>g programme is performed atdifferent places <strong>in</strong> East Africa”.Does the company depend on anyforeign aid?“The company has <strong>relations</strong> with Swedishaid (Sida) <strong>and</strong> other foreign aid <strong>in</strong> the energysector, for example a rural electrificationproject f<strong>in</strong>anced by the SpanishPhoto: ABBGovernment, <strong>and</strong> a contract f<strong>in</strong>anced bythe Multilateral Development Bank toelectrify towns <strong>in</strong> Northern <strong>Tanzania</strong>”.Any problems?“The Government change of legislation,with 50 % ownership by <strong>Tanzania</strong>nnationals <strong>in</strong> a foreign company”.“Another problem is that you have toimport all material yourself. That needslong plann<strong>in</strong>g, up to six months. All thedifferent taxes make it difficult to compete.The <strong>in</strong>troduction of VAT is a good steptaken by the government”.Facts about ABB <strong>in</strong> <strong>Tanzania</strong>ABB Berkeley Electrical LtdEstablished: 1955Activity: Service, commercial & <strong>in</strong>dustrial <strong>in</strong>stallations,HVAC <strong>in</strong>stallationsNumber of employees: 170 of whom 20 women <strong>and</strong> 4expatriatesOwnership: 100 % ABBTurnover: US$ 5,000,000ABB Tanelec LtdEstablished: 1995Activity: Manufacture of distribution transformers & switchgear panels & power factor correction equipmentNumber of employees: 100 of whom 10 women <strong>and</strong> 4expatriates.Ownership: 70 % ABB, 20 % TANESCO <strong>and</strong> 10 % NDCTurnover: US$ 10,000,000Facts about ABB <strong>in</strong> <strong>Tanzania</strong>ABB Pemacco LtdEstablished: 1998Activity: Motor rew<strong>in</strong>ds, generator setsNumber of employees: 30 of whom 5 women <strong>and</strong> 1expatriateOwnership: 70 % ABB <strong>and</strong> 30 % Pemacco Ltd.Turnover: US $ 2,000,000ABB <strong>Tanzania</strong> LtdEstablished: 1993Activity: Service, sales & market<strong>in</strong>g, transmission &distribution projectsNumber of employees: 30 of whom 7 women <strong>and</strong> 2expatriatesOwnership: 100 % ABBTurnover: US$ 10,000,00011


The ContractorPhoto: SkanskaIn the early 70´s Skanska did its firstHydropower project <strong>in</strong> <strong>Tanzania</strong> atKidatu. Two years later Skanskaestablished a branch office <strong>in</strong> <strong>Tanzania</strong>.From these roots Skanska Africa hasgrown <strong>in</strong>to one of the largest <strong>and</strong> mostreputable locally-based constructioncompanies.“Our vision is to be the lead<strong>in</strong>g providerof construction services <strong>and</strong> projectdeveloper <strong>in</strong> the sub-Saharan Africanmarket”, says Mr. Neil Reynolds,Regional Director of Skanska Africa’s Eastregional office <strong>in</strong> <strong>Tanzania</strong>.Skanska Africa is participat<strong>in</strong>g <strong>in</strong> thegovernment’s objectives to provideimprovements of the conditions of the<strong>Tanzania</strong>n people by carry<strong>in</strong>g out largeconstruction projects such as riceplantations <strong>and</strong> irrigation works <strong>in</strong> therural areas, public <strong>in</strong>frastructure projects,such as school <strong>and</strong> hospital build<strong>in</strong>gs. Theconstruction of a passenger ferry for LakeVictoria <strong>and</strong> a flood prevention project atKilosa-Gulwe are other examples.Skanska Africa also built the SheratonHotel <strong>in</strong> Dar es Salaam. The companywas responsible for the design, plann<strong>in</strong>g<strong>and</strong> execution of the total work, <strong>and</strong> alsocontributed actively to the f<strong>in</strong>anc<strong>in</strong>g of thebuild<strong>in</strong>g. The contribution of share capitalis an expression of their confidence <strong>in</strong> thecommercial viability of the project <strong>and</strong> <strong>in</strong>the <strong>Tanzania</strong>n government’s commitmentto develop a strong private sector.The company has carried out projects<strong>in</strong> <strong>Tanzania</strong> funded by the World Bank,the African Development Bank, theEuropean Union <strong>and</strong> other donororganisations <strong>and</strong> countries. Such projects<strong>in</strong>clude rehabilitation <strong>and</strong> development ofroad, rail <strong>and</strong> port facilities.“The most recent contract <strong>in</strong> this sectoris the road from Dar es Salaam toMal<strong>and</strong>izi, f<strong>in</strong>anced by Danida”, expla<strong>in</strong>sMr. Reynolds. Sida’s country programmedoes not <strong>in</strong>volve these sectors except forenergy, where Sida has recently granted aloan for improvement to the UbungoPower Plant <strong>in</strong> Dar es Salaam.Skanska Africa was also <strong>in</strong>volved <strong>in</strong> theBulyanhulu gold m<strong>in</strong>e, the first large-scalegold m<strong>in</strong><strong>in</strong>g project <strong>in</strong> <strong>Tanzania</strong>.“Gold m<strong>in</strong><strong>in</strong>g is a resurgent <strong>in</strong>dustry <strong>in</strong><strong>Tanzania</strong>”, remarks Mr. Reynolds.Consequently Skanska Africa is also <strong>in</strong>volved<strong>in</strong> the construction of both the GoldenPride <strong>and</strong> Geita gold m<strong>in</strong><strong>in</strong>g projects.Photo: Skanska12


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Photo: Kar<strong>in</strong> Zetterqvist, TupoMr. Ngai, who is the Site Manager <strong>in</strong> thearea of Kuras<strong>in</strong>i, Dar es Salaam, has beenwork<strong>in</strong>g for MMK s<strong>in</strong>ce 1990. He hasbeen <strong>in</strong>volved <strong>in</strong> many of the constructionsconducted by the company. He mentionswork for TIPER Ref<strong>in</strong>ery, Ubungo PowerPlant, Total, Zanzibar Petroleum, TangaCement <strong>and</strong> Sao Hill. The contracts<strong>in</strong>clude construction of petroleum <strong>and</strong>fire-fight<strong>in</strong>g pipel<strong>in</strong>es, petroleum storagetanks, LPG tanks for light petroleum gas<strong>and</strong> pipe work for steam generat<strong>in</strong>g plants.Safety measures for the employees?“Safety measures are very important tothe company. Helmets, overalls, boots <strong>and</strong>protective masks are m<strong>and</strong>atory”.How do you f<strong>in</strong>d it work<strong>in</strong>g withSwedes?“What I appreciate is their will<strong>in</strong>gness totransfer their technical knowledge. Theyare ready to discuss <strong>and</strong> listen to newideas”.Photo: Lars HultströmFacts about Malmö Montagekonsult AB, <strong>Tanzania</strong>Branch (MMK (T) Branch)Established: 1985Activity: Tank erection <strong>and</strong> steel construction,representatives of ESAB weld<strong>in</strong>g equipment,non-destructive test<strong>in</strong>g.Number of employees: 75, of whom 4 women <strong>and</strong> 3Swedes.Ownership: 3 Swedish ownersPhoto: Lars Hultström15


Com<strong>in</strong>g backPhoto: Stig-Göran NilssonTetra Pak Ltd., with its regional office <strong>in</strong>Nairobi, is work<strong>in</strong>g all over East Africa<strong>and</strong> <strong>in</strong> Madagascar, Reunion, theSeychelles <strong>and</strong> Mauritius.Between 1970 <strong>and</strong> 1986 Tetra Pak<strong>Tanzania</strong> Ltd. was operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>,but today Tetra Pak is h<strong>and</strong>l<strong>in</strong>g alloperations <strong>in</strong> <strong>Tanzania</strong> from its regionalhead office <strong>in</strong> Nairobi, Kenya. Mr. R.Mvumba, Country Eng<strong>in</strong>eer is the onlyTetra Pak employee based <strong>in</strong> <strong>Tanzania</strong>,<strong>and</strong> is responsible for provid<strong>in</strong>g technicalsupport to customers (mach<strong>in</strong>e service,tra<strong>in</strong><strong>in</strong>g, spare parts supply co-ord<strong>in</strong>ationetc.). All commercial issues are h<strong>and</strong>ledfrom Nairobi, Kenya by the ExportDepartment headed by Mr. Brian H<strong>in</strong>chliffe:Why did you leave <strong>Tanzania</strong> <strong>and</strong>why do you want to come back?“In the late 1980s the <strong>Tanzania</strong>ngovernment undertook a process ofprivatisation, which <strong>in</strong>volved the state owned<strong>Tanzania</strong> Dairies Limited (TDL). TDLcomprised of many dairies throughout thecountry, the largest of which were <strong>in</strong> Dar esSalaam, Arusha <strong>and</strong> Musoma. It took nearlyten years for the <strong>Tanzania</strong>n government toprivatise these plants, dur<strong>in</strong>g which timevery little production took place. The newowners of the former TDL plants <strong>in</strong> Dar essalaam, Arusha <strong>and</strong> Musoma are RoyalDairy, New Northern Dairy <strong>and</strong> MusomaDairy, of which the Musoma Dairy is notyet <strong>in</strong> operation. Apart from these privatiseddairies, there are a few small private dairyplants which have started operation, suchas New Mara Dairy <strong>in</strong> Musoma <strong>and</strong>Tanga Fresh Dairy <strong>in</strong> Tanga. Tetra Pakalso recently supplied a complete newdairy plant to a customer <strong>in</strong> Mwanza,Victoria Dairy, soon to start production.This re-start of the former TDL dairy plants,along with the new private dairies, br<strong>in</strong>gspromise of growth for the future, <strong>and</strong> TetraPak is ready to support this growth whereverpossible”.What can you offer which othercompanies cannot?“Tetra Pak is able to provide eng<strong>in</strong>eer<strong>in</strong>gdesigns for new plants <strong>and</strong> for plantmodifications or expansions, packag<strong>in</strong>gmaterials supply, technical support for regular<strong>and</strong> breakdown service, spare parts supply<strong>and</strong> market<strong>in</strong>g support. Tetra Pak worksclosely with <strong>and</strong> supports customers <strong>in</strong> allaspects of their bus<strong>in</strong>ess. No other companyis able to offer the same level of support<strong>and</strong> response <strong>in</strong> the region”.What problems are you fac<strong>in</strong>g?“The whole dairy <strong>in</strong>frastructure <strong>and</strong> dairyculture <strong>in</strong> <strong>Tanzania</strong> has broken down.Farmers do not produce milk <strong>in</strong> quantityor quality as they once did , s<strong>in</strong>ce they havenot had a dairy to supply to for many years.Consumers have not been able to f<strong>in</strong>d lowcost,safe, processed <strong>and</strong> packaged milk, <strong>and</strong>have therefore been forced to buy raw milkfrom small holders <strong>and</strong> milk shops. Apartfrom this situation, the purchas<strong>in</strong>g power <strong>in</strong><strong>Tanzania</strong> is very low <strong>and</strong> most <strong>Tanzania</strong>nscannot afford to buy milk. Fortunately, theproblem here is also the opportunity: oncethe new dairy owners manage to conv<strong>in</strong>ceconsumers to buy processed <strong>and</strong> packagedmilk aga<strong>in</strong> (for hygienic <strong>and</strong> safety reasons),there is lots of space for growth”.Facts about Tetra Pak Ltd, Nairobi, KenyaEstablished: 1983 (Factory <strong>in</strong> Nairobi)Activity: Manufacturer of process<strong>in</strong>g <strong>and</strong> packag<strong>in</strong>gmach<strong>in</strong>ery for liquid food products (mostly milk <strong>and</strong>juice), also manufacturer of packag<strong>in</strong>g materials.Number of employees: Nairobi factory 200, <strong>Tanzania</strong> 1Ownership: Tetra Pak International, Lund, <strong>Sweden</strong>16


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>At your serviceHifab International ABJust beh<strong>in</strong>d Karibu Hotel, <strong>in</strong> the OysterBay area of Dar es Salaam, you f<strong>in</strong>d theoffice of Hifab.In the same build<strong>in</strong>g you also f<strong>in</strong>d theonly Swedish restaurant <strong>in</strong> <strong>Tanzania</strong>. Therestaurant is a nice experience forhomesick Swedes, <strong>and</strong> <strong>Tanzania</strong>ns look<strong>in</strong>gfor an exotic cul<strong>in</strong>ary experience.Hifab is a project managementconsult<strong>in</strong>g company specialis<strong>in</strong>g <strong>in</strong>management of development projects.In <strong>Tanzania</strong>, the focus is on water supply<strong>and</strong> sanitation, enterprise development,real estate management <strong>and</strong> hous<strong>in</strong>g, <strong>and</strong>procurement services.S<strong>in</strong>ce 1984, Hifab has beencommissioned by Sida <strong>and</strong> the Governmentof <strong>Tanzania</strong> to provide management <strong>and</strong>plann<strong>in</strong>g support to the local governmentwith<strong>in</strong> the HESAWA -Health throughSanitation <strong>and</strong> Water - programme <strong>in</strong> thethree regions of Mara, Mwanza <strong>and</strong> Kagera.The branch office <strong>in</strong> Dar es Salaamoperates ma<strong>in</strong>ly with general hous<strong>in</strong>gma<strong>in</strong>tenance <strong>and</strong> real estate managementservices to high-profile clients, e.g. theEmbassy of <strong>Sweden</strong> <strong>and</strong> the SwedishInternational Development Co-operationAuthority (Sida). Invariably, there is somedegree of construction project management<strong>in</strong> all the projects.Through its sister company, InDevelopUppsala AB, which among other activitiesruns the Nordic Cl<strong>in</strong>ic, Hifab is also<strong>in</strong>volved <strong>in</strong> the health sector.Photo: Kar<strong>in</strong> Zetterqvist, TupoFacts about Hifab International ABEstablished: 1973Activity: Rural development, <strong>in</strong>frastructure rehabilitation,enterprise development, water supply <strong>and</strong> sanitation,hous<strong>in</strong>g <strong>and</strong> procurement services.Number of employees: 110 of whom 30 are women,70 stationed overseasOwnership: Hifab Group AB, 100 % (staff owned)Turnover: 100 MSEK17


Cam Consult Co. Ltd.In the K<strong>in</strong>ondoni area <strong>in</strong> Dar es Salaam,just after you pass the “TX-market”, thereis a build<strong>in</strong>g where three companies areshar<strong>in</strong>g the premises <strong>and</strong> co-ord<strong>in</strong>at<strong>in</strong>gsome of their activities.One of the companies is Cam ConsultCo. Ltd., which offers project management<strong>and</strong> eng<strong>in</strong>eer<strong>in</strong>g for civil works.ORGUT Consult<strong>in</strong>g <strong>Tanzania</strong> Branchis another of the three companies.ORGUT Consult<strong>in</strong>g AB came to<strong>Tanzania</strong> <strong>in</strong> 1991, under a contract withSida to implement a rural developmentproject <strong>in</strong> the forestry <strong>and</strong> environmentalsectors. It has s<strong>in</strong>ce then exp<strong>and</strong>ed <strong>and</strong>today ORGUT is implement<strong>in</strong>g districtdevelopment programmes <strong>in</strong> four districts(Babati, Kiteto, Simanjiro <strong>and</strong> S<strong>in</strong>gida).This Local Management of NaturalResources Programme focuses on susta<strong>in</strong>ablemanagement of l<strong>and</strong> <strong>and</strong> natural resources,<strong>in</strong>volv<strong>in</strong>g local communities most directly<strong>in</strong> the management of the environment onwhich they depend.Facts about Cam Consult Co. LtdEstablished: 1997L<strong>in</strong>e of activity: Project management <strong>and</strong> eng<strong>in</strong>eer<strong>in</strong>gfor civil worksNumber of employees: 5Photo: Kar<strong>in</strong> Zetterqvist, TupoAn important aspect of this programme isto build capacity with<strong>in</strong> the Districtadm<strong>in</strong>istrations concerned.In early 1998, ORGUT Consult<strong>in</strong>g ABestablished a branch office <strong>in</strong> <strong>Tanzania</strong>,named ORGUT Consult<strong>in</strong>g <strong>Tanzania</strong>Branch, located <strong>in</strong> K<strong>in</strong>ondoni. This officemarkets <strong>and</strong> promotes consult<strong>in</strong>g servicesrelated to the management experiencega<strong>in</strong>ed <strong>in</strong> <strong>Tanzania</strong> over the last few years,with an emphasis on natural resources<strong>and</strong> environmental issues. In <strong>Tanzania</strong>,there has long been a tradition of supportto these two sectors, assistance thatORGUT has been implement<strong>in</strong>g withgood results. One area where ORGUThas been <strong>in</strong>strumental is <strong>in</strong> forestry whereentirely new concepts for village-basedforest management <strong>and</strong> jo<strong>in</strong>t forest managementhave been developed. Theseapproaches have been so successful thatthey have been used <strong>in</strong> formulat<strong>in</strong>g theNew Forest Policy that <strong>Tanzania</strong> recentlyadopted.Facts about ORGUT Consult<strong>in</strong>g <strong>Tanzania</strong> BranchEstablished: 1998L<strong>in</strong>e of activity: Management <strong>and</strong> consult<strong>in</strong>g serviceswith<strong>in</strong> the field of natural resources management, <strong>in</strong>particular forest, environment <strong>and</strong> rural.Number of employees: 3Ownership: ORGUT Consult<strong>in</strong>g AB18


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Computer Accounts Ltd.Mr. Georg Boquist, the Manag<strong>in</strong>gDirector of Computer Accounts Ltd., isan example of a small entrepreneur. Mr.Boquist has spent many years <strong>in</strong> <strong>Tanzania</strong>.Initially, he worked for Swedtel <strong>and</strong><strong>Tanzania</strong> Posts & TelecommunicationsCorporation. After various positionswith<strong>in</strong> other Swedish or Nordic companies,he eventually decided to start his owncompany.Like many small entrepreneurs, Mr.Boquist has several l<strong>in</strong>es of activity: one isto sell account<strong>in</strong>g software <strong>and</strong> consultancyservices, another is to produce identitycards of high quality <strong>and</strong> security.How is bus<strong>in</strong>ess go<strong>in</strong>g?“In the field of accountancy services, thereis a grow<strong>in</strong>g awareness of the importanceof hav<strong>in</strong>g immediate access to updated<strong>and</strong> reliable records, especially s<strong>in</strong>ce V.A.T.was <strong>in</strong>troduced <strong>in</strong> July 1998. We can supplyour customers with simple, <strong>in</strong>expensive <strong>and</strong>comprehensive software. But moreimportant, we adapt <strong>and</strong> customise thesoftware to the customer's needs <strong>and</strong> helpthem organise their work <strong>and</strong> fil<strong>in</strong>g systems.“Throughout the country, we havesupplied all branch offices of the NationalBank of Commerce, NBC (1997) Ltd. withour identity cards. There is a big potentialmarket, but quality <strong>and</strong> security do notalways have the highest priority. However,there is a need to <strong>in</strong>troduce a computerisednational registration system, <strong>in</strong> order toensure the true identification of each <strong>and</strong>every <strong>Tanzania</strong>n. After that, theGovernment or other appo<strong>in</strong>ted providerscan securely issue identification cards”.Be<strong>in</strong>g the owner of a small company,Mr. Boquist has some constra<strong>in</strong>ts, probablyalso faced by many small enterprises <strong>in</strong><strong>Sweden</strong>:“The bureaucracy! Much time is wastedon the monthly preparation for payments ofV.A.T., withhold<strong>in</strong>g tax, corporate taxes,payroll taxes, etc. <strong>and</strong> all of them ondifferent- sized forms <strong>and</strong> with multiplecopies us<strong>in</strong>g carbon paper. The sameapplies to renewal of bus<strong>in</strong>ess licences <strong>and</strong>work permits etc. Almost all payments aremade to the <strong>Tanzania</strong> Revenue Authority(TRA) but all at different offices. Althoughour computerised system helps us to reducemuch of this time, one would like to seethese Government offices moreprofessionally operated”.“Payment Procedures! Most customersare 'late payers' or 'bad payers' or 'neverpayers'. In many companies, the time forissu<strong>in</strong>g payments may take up to 60 days.When a cheque is eventually received, itmay take one week or probably morebefore such a cheque is cleared throughthe bank. Once we haveraised an <strong>in</strong>voice, we areobliged to remit ourV.A.T. not later than onthe last work<strong>in</strong>g day of thefollow<strong>in</strong>g month. Thus wehave to ensure that fundsare available for V.A.T.payments. Therefore wenormally ask our customersto pay <strong>in</strong> advance for largerorders <strong>and</strong> <strong>in</strong> cash forsmaller jobs”.Facts about Computer Accounts LtdPhoto: Kar<strong>in</strong> Zetterqvist, TupoEstablished: 1996L<strong>in</strong>e of activity: Computerised accountancy services,local production of high quality identity cards.Number of employees: 5, of whom 1 woman <strong>and</strong> 1Swede.Ownership: 1 Swede, 1 <strong>Tanzania</strong>n19


Proud tall men of Zanzibar“Carefully chosen <strong>and</strong> well treated, thedense coco wood found just under the barkof the tree, possesses an unmatched tropicaltexture mirrored <strong>in</strong> a chair, office desk,kitchen table or floor”, says Mr. StaffanLundh, a Swedish carpenter <strong>and</strong> one ofthe owners of Sc<strong>and</strong><strong>in</strong>avian/ZanzibarCarpentry Workshop, ScanZa.The palm tree, for most Swedes a symbolof leisure <strong>and</strong> a lush tropical paradise, isthe “tree of life” for Zanzibaris. It supplies adaily health dr<strong>in</strong>k, <strong>and</strong> one can hardlyth<strong>in</strong>k of any local meal which does not<strong>in</strong>clude coconut as an <strong>in</strong>gredient. The <strong>in</strong>nershell of the nut is used for fuel, cups <strong>and</strong>decorations. The outer sk<strong>in</strong>, once peeled, isburied <strong>in</strong> beach s<strong>and</strong> <strong>and</strong> later woven <strong>in</strong>toropes. Its dried leaves provide cover onthe roofs of houses.However, the proud palm (a mixture<strong>between</strong> a grass <strong>and</strong> a tree) has to face therealities of life, <strong>and</strong> after 60 to 70 years, thetree reaches the age of retirement. Its biggreen leaves fall off without be<strong>in</strong>g replaced<strong>and</strong> the energy to bear fruits fades away.“This is when ScanZa becomes<strong>in</strong>volved”, says Mr. Lundh. “From thehigh-density timber of the tree trunk, wemake furniture, floor<strong>in</strong>g <strong>and</strong> householditems. From the softer <strong>in</strong>ner core we get alow-density timber ideal forshutter<strong>in</strong>g/build<strong>in</strong>g material, low-costhous<strong>in</strong>g material, etc.It is an ideal replacement of the importedcypress <strong>and</strong> p<strong>in</strong>ewood found on the marketnow. The high-<strong>and</strong> medium-density cocowoodtimber is turn<strong>in</strong>g <strong>in</strong>to a replacementof the <strong>in</strong>digenous hardwoods cut on thema<strong>in</strong>l<strong>and</strong> of <strong>Tanzania</strong>. It is a 100%ecologically sound timber, be<strong>in</strong>g adisregarded plantation wood”, says Mr. Lundh.Mr. Lundh started the company togetherwith a Zanzibari <strong>and</strong> a Norwegian.Another company, Coco & Co, a sawmill<strong>in</strong>g company, where he is also a jo<strong>in</strong>towner, contributes to make up the wholel<strong>in</strong>e of production, from saw<strong>in</strong>g to f<strong>in</strong>alproduct.Who buys your products?“Private people, companies <strong>and</strong> <strong>in</strong>stitutions.We are serv<strong>in</strong>g an exclusive market, be<strong>in</strong>gable to offer the most beautiful coco wood<strong>in</strong> the world, with a very high f<strong>in</strong>ish. Thereis a grow<strong>in</strong>g <strong>in</strong>terest on the Dar es Salaammarket, <strong>and</strong> there is also an <strong>in</strong>terest <strong>in</strong>Europe for the wood”.What is your impact on Zanzibar?“We are produc<strong>in</strong>g high quality products.I can see how other workshops are try<strong>in</strong>gto reach a higher st<strong>and</strong>ard of their products<strong>in</strong> order to compete with us, <strong>and</strong> that isvery good, <strong>in</strong> particular for the consumers”.Photo: Staffan Lundh20


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Photo: Staffan Lundh“Apart from that, we provide employment<strong>and</strong> tra<strong>in</strong><strong>in</strong>g for young people. If therewere another hundred companies like thisone, it would have a great impact. Thereare many young unemployed people whohave noth<strong>in</strong>g to do. Crime <strong>and</strong> prostitutionare <strong>in</strong>creas<strong>in</strong>g. More emphasis needs to beput on promot<strong>in</strong>g <strong>in</strong>vestment <strong>in</strong> smallcompanies, <strong>in</strong> particular for foreign<strong>in</strong>vestment <strong>and</strong> expertise”.Have you received any foreign aid?“No, but I have approached somevolunteer organisations, discuss<strong>in</strong>g possibleeducation programmes <strong>and</strong> tra<strong>in</strong><strong>in</strong>g <strong>in</strong>carpentry, but with no result so far.I believe the private sector can providevery high quality tra<strong>in</strong><strong>in</strong>g. But with tra<strong>in</strong><strong>in</strong>gbe<strong>in</strong>g so costly, we need f<strong>in</strong>ancial support”.What are the safety measures takenfor your workers <strong>and</strong> facilities?“We are follow<strong>in</strong>g the same safety st<strong>and</strong>ardsas <strong>in</strong> <strong>Sweden</strong>. As one example, we are theonly carpentry workshop on the isl<strong>and</strong>with a sawdust extractor, m<strong>in</strong>imis<strong>in</strong>g thehazardous sawdust <strong>in</strong> the workshop. TheLabour Inspectorate <strong>in</strong>Zanzibar is pleased withthe measures we havetaken <strong>and</strong> we st<strong>and</strong> as anexample here for other<strong>in</strong>dustries”.Facts about Sc<strong>and</strong><strong>in</strong>avian/Zanzibar CarpentryWorkshop, ScanZa.Established: 1994Activity: Manufacture of quality furniture, <strong>in</strong>teriordecoration, hotel <strong>and</strong> restaurant fixtures <strong>and</strong> fitt<strong>in</strong>gs<strong>and</strong> boat repairs. Carpentry work.Number of employees: 25, of whom 2 are women.Workshop Manager is Swedish.21


From one Isl<strong>and</strong> to anotherPhoto: Kar<strong>in</strong> Zetterqvist, Tupo“Welcome to the Sunny Side of Paradise!”say the two sisters Len <strong>and</strong> Katar<strong>in</strong>aHörl<strong>in</strong> at Matemwe Bungalows.Brought up on the small Swedish isl<strong>and</strong>of Gotska S<strong>and</strong>ön, <strong>in</strong> the east archipelagoof <strong>Sweden</strong>, as daughters of a lighthousekeeper,they seem well adjusted onZanzibar.After hav<strong>in</strong>g travelled around theworld work<strong>in</strong>g <strong>in</strong> the tourism sector, theydecided to settle down on Zanzibar. Onthe unexplored north-eastern side ofZanzibar, they saw the possibility ofdevelop<strong>in</strong>g a tourism bus<strong>in</strong>ess based onquality, <strong>and</strong> on environmental <strong>and</strong> culturalawareness.“We have contributed to the open<strong>in</strong>g-upof a market which you could earlier f<strong>in</strong>d<strong>in</strong> <strong>Tanzania</strong>’s National Parks, but not atthe beach. We want the environmentalimpact to be as small as possible, us<strong>in</strong>gsolar cells <strong>in</strong>stead of power generators,compost<strong>in</strong>g waste <strong>and</strong> us<strong>in</strong>g brackishwater for the toilets, the clean<strong>in</strong>g of thefloors etc”.The Matemwe area is one of the leastdeveloped <strong>in</strong> the whole of Zanzibar.Illiteracy is rampant, child mortalityrema<strong>in</strong>s high, average <strong>in</strong>come is very lowetc. Matemwe Bungalows have from thestart been <strong>in</strong>volved <strong>in</strong> small projects <strong>in</strong> thesurround<strong>in</strong>g villages. Guests are encouragedto help the local school with small donationsfor their library, but especially theassistance of the Dutch Embassy via theirso-called “Small Embassy Projects”programme (with close follow up from theMatemwe management) is worthmention<strong>in</strong>g. It proves that private enterprise<strong>and</strong> assistance via development <strong>in</strong>stitutionsare not necessarily <strong>in</strong> contradiction.Small-scale enterprises such as a chickenproject, assistance to fish<strong>in</strong>g co-operatives<strong>and</strong> a duck project have been quitesuccessful. These <strong>in</strong>itiatives stimulatesmall economical activity <strong>in</strong> the villages,enables Matemwe Bungalows <strong>and</strong> otherhotels to buy supplies locally, <strong>and</strong> is agood example how private bus<strong>in</strong>ess as wellas donor assistance can be successfulimplemented to the benefit of all.At Matemwe, tourists f<strong>in</strong>d a placewhere nature is not yet exploited. Insteadof speedboats <strong>and</strong> water ski<strong>in</strong>g, guests areoffered sail<strong>in</strong>g with the local fish<strong>in</strong>g boats,“Ngalawas”, <strong>and</strong> sk<strong>in</strong>- <strong>and</strong> scuba div<strong>in</strong>g atthe unique <strong>and</strong> colourful Mnemba Reef.For the lucky ones, whales, dolph<strong>in</strong>s <strong>and</strong>sea turtles may be spotted at close range.The restaurant menu consists ma<strong>in</strong>lyof seafood. The kitchen has been praisedfor its high quality <strong>and</strong> diversity <strong>in</strong> mix<strong>in</strong>glocal cuis<strong>in</strong>e with European.Photo: Theo van de Ven22


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Photo: Staffan Lundh“Apart from that, we provide employment<strong>and</strong> tra<strong>in</strong><strong>in</strong>g for young people. If therewere another hundred companies like thisone, it would have a great impact. Thereare many young unemployed people whohave noth<strong>in</strong>g to do. Crime <strong>and</strong> prostitutionare <strong>in</strong>creas<strong>in</strong>g. More emphasis needs to beput on promot<strong>in</strong>g <strong>in</strong>vestment <strong>in</strong> smallcompanies, <strong>in</strong> particular for foreign<strong>in</strong>vestment <strong>and</strong> expertise”.Have you received any foreign aid?“No, but I have approached somevolunteer organisations, discuss<strong>in</strong>g possibleeducation programmes <strong>and</strong> tra<strong>in</strong><strong>in</strong>g <strong>in</strong>carpentry, but with no result so far.I believe the private sector can providevery high quality tra<strong>in</strong><strong>in</strong>g. But with tra<strong>in</strong><strong>in</strong>gbe<strong>in</strong>g so costly, we need f<strong>in</strong>ancial support”.What are the safety measures takenfor your workers <strong>and</strong> facilities?“We are follow<strong>in</strong>g the same safety st<strong>and</strong>ardsas <strong>in</strong> <strong>Sweden</strong>. As one example, we are theonly carpentry workshop on the isl<strong>and</strong>with a sawdust extractor, m<strong>in</strong>imis<strong>in</strong>g thehazardous sawdust <strong>in</strong> the workshop. TheLabour Inspectorate <strong>in</strong>Zanzibar is pleased withthe measures we havetaken <strong>and</strong> we st<strong>and</strong> as anexample here for other<strong>in</strong>dustries”.Facts about Sc<strong>and</strong><strong>in</strong>avian/Zanzibar CarpentryWorkshop, ScanZa.Established: 1994Activity: Manufacture of quality furniture, <strong>in</strong>teriordecoration, hotel <strong>and</strong> restaurant fixtures <strong>and</strong> fitt<strong>in</strong>gs<strong>and</strong> boat repairs. Carpentry work.Number of employees: 25, of whom 2 are women.Workshop Manager is Swedish.21


The NewcomersEnterprise Development ProgrammeThe overall objective of the Programme isto encourage <strong>and</strong> facilitate the growth ofsusta<strong>in</strong>able <strong>Tanzania</strong>n private enterprises<strong>in</strong> collaboration with Swedish partnercompanies.Photo: Leif EngströmIn 1995 the Enterprise DevelopmentProgramme (EDP) was <strong>in</strong>troduced bySida. It is directed to the private sector,<strong>and</strong> <strong>in</strong> l<strong>in</strong>e with the new approach “FromAid to Trade”.The programme aims at identify<strong>in</strong>g<strong>and</strong> develop “w<strong>in</strong>ners”, i.e. <strong>Tanzania</strong>nenterprises already <strong>in</strong> bus<strong>in</strong>ess, <strong>and</strong> with apotential to grow. To start with, theProgramme concentrated its activities <strong>in</strong>the regions of Morogoro, Ir<strong>in</strong>ga <strong>and</strong>Mbeya. Lately, EDP has been extended toany part of the country where viable<strong>partnership</strong>s can be identified.Boliden Contech AB are ProjectManagers for the Programme. BolidenContech has been active <strong>in</strong> <strong>Tanzania</strong>s<strong>in</strong>ce 1986 <strong>and</strong>, among other th<strong>in</strong>gs workedas Project Managers for the TazaraRailroad Rehabilitation project <strong>in</strong> 1987-1995.The Enterprise DevelopmentProgramme has already resulted <strong>in</strong> anumber of Jo<strong>in</strong>t Venture companies <strong>and</strong>co-operation agreements <strong>between</strong> Swedish<strong>and</strong> <strong>Tanzania</strong>n companies. Some examplesare the follow<strong>in</strong>g:African Tours <strong>and</strong> Travel BureauLtd., Dar es Salaam, <strong>in</strong> collaborationwith Travel Experience, Stockholm, tooffer tourist packages for Sc<strong>and</strong><strong>in</strong>avians to<strong>Tanzania</strong>.Photo: Staffan Widstr<strong>and</strong>24


Presentation of <strong>Sweden</strong>-related companies operat<strong>in</strong>g <strong>in</strong> <strong>Tanzania</strong>Chani & Gesha Trad<strong>in</strong>g Co. Ltd.,Dar es Salaam, a jo<strong>in</strong>t venture companyfor the market<strong>in</strong>g <strong>and</strong> sell<strong>in</strong>g of IMTtractors <strong>in</strong> <strong>Tanzania</strong>.Colite <strong>Tanzania</strong> Ltd., Dar es Salaam,a Jo<strong>in</strong>t Venture company <strong>between</strong> Swedish<strong>and</strong> <strong>Tanzania</strong>n companies market<strong>in</strong>g <strong>and</strong>sell<strong>in</strong>g lightweight concrete products <strong>in</strong><strong>Tanzania</strong>.Dabaga Vegetable <strong>and</strong> FruitsCann<strong>in</strong>g Co. Ltd., Ir<strong>in</strong>ga, has formed aJo<strong>in</strong>t Venture company together with PTAPlastic, Nyköp<strong>in</strong>g, for the manufactur<strong>in</strong>gof plastic bottles.D D. Ruh<strong>in</strong>da & Co Ltd., Tanga, hasstarted a sisal carpet factory for export tothe European market together with twoSwedish companies.Dynactive Trad<strong>in</strong>g (T) Co. Ltd., Dares Salaam, a <strong>Tanzania</strong>n-registered companywith Swedish partners, for trad<strong>in</strong>gbus<strong>in</strong>ess <strong>in</strong> <strong>Tanzania</strong>.KC <strong>and</strong> Company Ltd., Dar es Salaam,have entered <strong>in</strong>to a long-term agreementwith SCOL AB of Stockholm for exportof various <strong>Tanzania</strong>n commodities to<strong>Sweden</strong> <strong>and</strong> Europe.Photo: Han<strong>in</strong>ge <strong>Tanzania</strong> Ltd.Livalico Multibus<strong>in</strong>ess Co, Mbeya,import pre-mixes for chicken <strong>and</strong> cattlefeed from Lactam<strong>in</strong> AB, Stockholm.UKH Accountants <strong>and</strong> Auditors <strong>and</strong>K Zetterqvist Konsult of Han<strong>in</strong>gehave founded the Jo<strong>in</strong>t Venture Company“Han<strong>in</strong>ge-<strong>Tanzania</strong> Ltd.”. They aredealers <strong>in</strong> computerised account<strong>in</strong>g software,give tra<strong>in</strong><strong>in</strong>g on the job for clients, <strong>and</strong>conduct general tra<strong>in</strong><strong>in</strong>g courses <strong>in</strong>computerised account<strong>in</strong>g.Photo: Birgit Ullhammar25


Swedish Policy <strong>and</strong> Instruments<strong>Sweden</strong>'s bilateral co-operation with<strong>Tanzania</strong> is at present <strong>in</strong> a dynamic phasewhich conta<strong>in</strong>s certa<strong>in</strong> changes of emphasis.The poverty-reduction-orientated assistanceto <strong>Tanzania</strong> will cont<strong>in</strong>ue <strong>and</strong> possiblyeven <strong>in</strong>crease. Simultaneously the SwedishEmbassy is giv<strong>in</strong>g a stronger emphasisthan hitherto <strong>in</strong> its efforts to broaden <strong>and</strong><strong>in</strong>tensify <strong>relations</strong> to <strong>in</strong>clude trade- <strong>and</strong><strong>in</strong>vestment-related areas. For more<strong>in</strong>formation see special sections below.<strong>Sweden</strong> is also prepar<strong>in</strong>g for a reviewof its country strategy for developmentco-operation with <strong>Tanzania</strong>, <strong>and</strong> anamended strategy will come <strong>in</strong>to effect byJune/July 2000. Some new programmesof co-operation are be<strong>in</strong>g worked outconcern<strong>in</strong>g support <strong>in</strong> the urban sector,district development, ecology <strong>and</strong>environment protection, support to thedevelopment of democracy <strong>and</strong> humanrights, protection aga<strong>in</strong>st HIV/AIDS, <strong>and</strong>gender issues. Education <strong>and</strong> researchco-operation, support to civil service reform<strong>and</strong> to improv<strong>in</strong>g the <strong>in</strong>frastructure (<strong>in</strong>particular energy) will cont<strong>in</strong>ue. The privatesector support will cont<strong>in</strong>ue <strong>and</strong> even beexp<strong>and</strong>ed - <strong>in</strong> parallel with <strong>in</strong>creasedefforts to promote commercial <strong>relations</strong> -all this as a means of reduc<strong>in</strong>g a destructiveaid dependency <strong>in</strong> the longer run. In manyof these sectors <strong>and</strong> programmes ofco-operation there is ample room forconstructive utilisation of the qualifiedresource base <strong>in</strong> the Swedish private sector.Concerted efforts will be made fromthe Swedish side to promote further use ofcompetitive equipment, material <strong>and</strong>know-how from the <strong>Sweden</strong>-relatedresource base <strong>in</strong> various developmentprogrammes <strong>in</strong> <strong>Tanzania</strong>, to the mutualbenefit of both countries.Private Sector Development ProgrammeThe objective of the Swedish InternationalDevelopment Co-operation Agency's(Sida's) support is:- to contribute to the creation of aconducive bus<strong>in</strong>ess environment <strong>in</strong> whichviable companies provide quality goods<strong>and</strong> services to the benefit of households,<strong>in</strong>dividuals <strong>and</strong> society at large, <strong>and</strong>- to facilitate the <strong>in</strong>ternationalisation ofcompanies <strong>in</strong> partner countries.Source: The Guardian26


Swedish Policy <strong>and</strong> InstrumentsExamples of support<strong>Tanzania</strong> Chamber of Commerce,Industry <strong>and</strong> Agriculture (TCCIA)A programme aimed at develop<strong>in</strong>g theTCCIA <strong>in</strong>to a susta<strong>in</strong>able <strong>and</strong> memberdrivenChamber network, able to provideappropriate services <strong>and</strong> authorities to thebus<strong>in</strong>ess community. The support isprovided through a Swedish Chamber ofCommerce. Total budget: SEK 10.5 m forthe period May 1997 – April 2000.M<strong>in</strong>istry of Industries <strong>and</strong>CommerceSupport is provided to two sub-projects a)capacity build<strong>in</strong>g of MIC staff <strong>in</strong> relationto the privatisation <strong>and</strong> restructur<strong>in</strong>g of<strong>in</strong>dustrial parastatals; b) re-formation ofthe state-owned Industry SupportOrganisations (ISOs). Total budget: SEK7.2 m for the period June 1995 – May1999.Pride Africa (PA)Collaboration with a non-profit NGOspecialis<strong>in</strong>g <strong>in</strong> micro f<strong>in</strong>ance <strong>in</strong> Africa.The Swedish assistance, which is providedto the PA Headquarters <strong>in</strong> Nairobi, coversresearch <strong>and</strong> development activities tofurther improve on the Pride microf<strong>in</strong>ance model, <strong>and</strong> will thus benefit theon-go<strong>in</strong>g Pride micro f<strong>in</strong>ance programmes<strong>in</strong> <strong>Tanzania</strong> <strong>and</strong> Ug<strong>and</strong>a. Total budget:SEK 4.4 m dur<strong>in</strong>g the period January1999 – December 2000.Bank of <strong>Tanzania</strong> (BoT)Support has been provided to theorganisation of a Micro F<strong>in</strong>ance Workshopfor Parliamentarians, held <strong>in</strong> January1999. The Work-shop forms part of theBoT's preparations for a morecomprehensive Rural <strong>and</strong> Micro F<strong>in</strong>ancialServices Project, to be implemented <strong>in</strong>collaboration with the World Bank. Thepossibilities for <strong>in</strong>creased co-operation<strong>between</strong> the BoT/WB <strong>and</strong> Sida <strong>in</strong> theareas of supervision <strong>and</strong> regulation of themicro f<strong>in</strong>ance sector are under discussion.The support is adm<strong>in</strong>istered at Sida bythe Private Sector Development Division<strong>in</strong> the Department for Infrastructure <strong>and</strong>Economic Co-operation, INEC.StartSouth ProgrammeThe StartSouth Programme promotes <strong>and</strong>supports <strong>in</strong>vestments. The objective is to<strong>in</strong>crease bus<strong>in</strong>ess development opportunities<strong>between</strong> small <strong>and</strong> medium-sizedenterprises (SMEs) <strong>in</strong> order to achievelong-term bus<strong>in</strong>ess co-operation.StartSouth offers f<strong>in</strong>ancial support toSwedish SMEs (maximum 250 employees)at the start<strong>in</strong>g-up phase of a jo<strong>in</strong>t projectwith a local company by provid<strong>in</strong>g loansfor tra<strong>in</strong><strong>in</strong>g activities. The objective is toset productive activities <strong>in</strong> motion asquickly as possible by transferr<strong>in</strong>g knowhowfrom the Swedish companies to developskills <strong>in</strong> the partner companies. Theprogramme shall also stimulate theestablishment of Swedish SMEs <strong>in</strong> thehost countries.Sida works together with ALMIFöretagspartner <strong>and</strong> its 22 regional affiliatedcompanies <strong>in</strong> respect of <strong>in</strong>formationPhoto: Birgit Ullhammar27


on the programme, selection of projects<strong>and</strong> the follow-up of completed projects.From the start of the programme <strong>in</strong> 1996some 70 projects have been approved, ofwhich 9 are related to <strong>Tanzania</strong>.Import guaranteesThis scheme offers a guarantee to Swedishimporters of goods from develop<strong>in</strong>gcountries, through which risk for failure <strong>in</strong>delivery will be shared with Sida. Thescheme is operated by the SwedishChambers of Commerce. The guaranteeis given to two ma<strong>in</strong> fields:the Internet l<strong>in</strong>ked to Sida’s homepage.The Swedish Chambers of Commercehave approximately 50 Market Briefs thatprovide short <strong>in</strong>formation about the marketfor various product groups <strong>in</strong> <strong>Sweden</strong>.When visit<strong>in</strong>g <strong>Sweden</strong>, exporters arewelcome to contact the Swedish Chambersof Commerce for guidance <strong>and</strong> <strong>in</strong>formationabout the Swedish market.The above services are free of chargeto <strong>Tanzania</strong>n exporters <strong>and</strong> are <strong>in</strong>cluded<strong>in</strong> an agreement <strong>between</strong> Sida <strong>and</strong> theChambers.1. Guarantees of delivery. For cases wheregoods are defective <strong>and</strong>/or delayed,which causes economic damage.2. Market <strong>in</strong>troduction to <strong>Sweden</strong> <strong>and</strong> EU.- Product development- Trial order- Test<strong>in</strong>g, control, certification- Market<strong>in</strong>g activities <strong>in</strong>clud<strong>in</strong>g trade fairparticipation.If the project is successful the guaranteeexpires, but if it fails for reasons outsidethe importer's control the guaranteewill be implemented. So far 20 guaranteeshave been granted for <strong>Tanzania</strong>n exporters.Bus<strong>in</strong>ess with <strong>Sweden</strong>The Swedish Chambers of Commerce areresponsible for the bus<strong>in</strong>ess <strong>in</strong>quires from<strong>Tanzania</strong>. A <strong>Tanzania</strong>n company may beregistered after an Exporter's CompanyProfile form is returned to the SwedishChambers of Commerce. A list of theregistered exporters is sent out to themembers of the Chamber.Sida’s Swedish Trade newsletter,“Global Affairs” monitors events <strong>in</strong> develop<strong>in</strong>gcountries, Eastern Europe <strong>and</strong> <strong>in</strong>the trade bullet<strong>in</strong>s of all SwedishChambers. The bus<strong>in</strong>ess offer of a<strong>Tanzania</strong>n company can be published <strong>in</strong>the newsletter <strong>and</strong> on the Internet.“Global Affairs” will also be published onDevelopment of F<strong>in</strong>ancial MarketsAn efficient f<strong>in</strong>ancial system, i.e. a systemwhich mobilises, allocates <strong>and</strong> controls themanagement of a country’s f<strong>in</strong>ancialresources, is a fundamental prerequisitefor production <strong>and</strong> growth <strong>in</strong> all economies.A function<strong>in</strong>g f<strong>in</strong>ancial system is animportant condition for a country to attractforeign <strong>in</strong>vestments <strong>and</strong>, as a result, be<strong>in</strong>volved <strong>in</strong> the cont<strong>in</strong>ued globalisation ofeconomies.The ma<strong>in</strong> responsibility for thedevelopment of the f<strong>in</strong>ancial sector restswith the Government of <strong>Tanzania</strong> <strong>and</strong> theprivate actors <strong>in</strong> the country. The economicreform process, with market-orientedpolicies <strong>and</strong> focus on private sector growth,has provided opportunities for Sida tosupport traditional bank<strong>in</strong>g activities aswell as a series of new activities <strong>in</strong> thef<strong>in</strong>ancial market area.28


Swedish Policy <strong>and</strong> InstrumentsExamples of AssistanceThe Capital Markets & SecuritiesAuthorityC M S AThis government agency is providedsupport to develop its regulatory <strong>and</strong>supervisory capacity, <strong>and</strong> to establish <strong>and</strong>develop the Dar es Salaam StockExchange.The First Adili Bancorp Ltd.Adili Bancorp is a private, <strong>in</strong>digenous,commercial bank focus<strong>in</strong>g on provid<strong>in</strong>gboth traditional <strong>and</strong> <strong>in</strong>vestment-bank<strong>in</strong>gservices. It is receiv<strong>in</strong>g support to help itsestablishment.Source: The East African - April 20-26, 199829


Photo: Kar<strong>in</strong> Zetterqvist, TupoThe <strong>Tanzania</strong> Development F<strong>in</strong>anceCompany Ltd.This development f<strong>in</strong>ance <strong>in</strong>stitutionowned by local <strong>and</strong> <strong>in</strong>ternational f<strong>in</strong>ancial<strong>in</strong>stitutions is provided support <strong>in</strong> theform of a credit facility.The <strong>Tanzania</strong> Venture Capital Fund<strong>Tanzania</strong> Venture Capital Fund is a riskcapital <strong>in</strong>stitution owned by a group of<strong>in</strong>ternational development f<strong>in</strong>ance<strong>in</strong>stitutions, the <strong>Tanzania</strong> National ProvidentFund <strong>and</strong> TDFL. Equity <strong>in</strong>vestment <strong>in</strong>TVCF has been provided with a conditionalloan through Swedfund, which is theowner of the Swedish shares <strong>in</strong> the fund.UDC (<strong>Tanzania</strong> ) Ltd.UDC is a leas<strong>in</strong>g company owned byEDFUND. UDC is provided supportthrough Swedfund. EDFUND is an<strong>in</strong>ternational <strong>in</strong>vestment fund wereSwedfund owns 17.5 per cent.Swedish Export Credits GuaranteeBoard (EKN)EKN is a Government body promot<strong>in</strong>gexports from <strong>Sweden</strong> by issu<strong>in</strong>g guaranteesas <strong>in</strong>surance aga<strong>in</strong>st losses <strong>in</strong> exportventures.EKN is only open to cover short-termcredits up to one year subject to letters ofcredit. However, if special securities canbe arranged (e.g. escrow accounts) EKN iswill<strong>in</strong>g to listen. EKN is probably alsoable to consider cover<strong>in</strong>g pure politicalrisks not <strong>in</strong>volv<strong>in</strong>g the transfer risk offoreign exchange, such as risks <strong>in</strong> connectionwith construction work (damage to <strong>and</strong>refused repatriation of mach<strong>in</strong>es, etc),natural catastrophes (“Acts of God”).EKN <strong>in</strong>vestment guarantees may also bediscussed. Premiums for short term creditsare presently premium class 4 plus 100 %.Swedish Export Credit Corporation(SEK)SEK is owned 50% by the SwedishGovernment <strong>and</strong> 50 % by commercialbanks. It offers services <strong>in</strong> f<strong>in</strong>anc<strong>in</strong>g, lend<strong>in</strong>g<strong>and</strong> consult<strong>in</strong>g to Swedish <strong>and</strong> other<strong>in</strong>ternational companies, banks,municipalities, <strong>and</strong> governments.SEK offers a range of f<strong>in</strong>anc<strong>in</strong>g options,i.e., tailored credits for separate exporttransactions, re-f<strong>in</strong>anc<strong>in</strong>g of exporters'outst<strong>and</strong><strong>in</strong>g export claims <strong>and</strong> re-f<strong>in</strong>anc<strong>in</strong>gof banks' export credits. It also offersdifferent types of development credit.Sida’s work <strong>in</strong> the area of f<strong>in</strong>ancialmarket development is managed by theF<strong>in</strong>anc<strong>in</strong>g <strong>and</strong> Capital Markets Division,which is part of the Department forInfrastructure <strong>and</strong> EconomicCo-operation (INEC).30


Swedish Policy <strong>and</strong> InstrumentsSwedfund International ABSwedfund is a development f<strong>in</strong>ance<strong>in</strong>stitution - DFI- which provides risk capital<strong>and</strong> know-how for long-term <strong>in</strong>vestments<strong>in</strong> emerg<strong>in</strong>g markets, primarily <strong>in</strong><strong>partnership</strong> with Swedish <strong>and</strong> domesticcompanies.Swedfund’s core bus<strong>in</strong>ess is to <strong>in</strong>vestdirectly <strong>in</strong> jo<strong>in</strong>t ventures. However it isalso <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> local <strong>and</strong> regional venturecapital funds.In <strong>Tanzania</strong> Swedfund is directly engaged<strong>in</strong> the follow<strong>in</strong>g activities:Project Investment Activity/Production Swedish Partners Year SEK mArusha Precision Tools <strong>and</strong> Die Precision tools <strong>and</strong> dies (F<strong>in</strong>nveden 1987 5,1Makers Company, (Atomac)Development)Dar es Salaam Airport H<strong>and</strong>l<strong>in</strong>g Ground h<strong>and</strong>l<strong>in</strong>g SAS 1984 3,8Company (Dahaco)services at airportsFedha Fund Venture capital fund 1998 8,0Pemacco Bevi Electric Mach<strong>in</strong>es Service & repair BEVI International 1984 6,7of electric motorsTanscan Bevi Electric Mach<strong>in</strong>es Sawn timber HC Teaterteknik 1990 0,5<strong>Tanzania</strong> Portl<strong>and</strong> Cement Cement factory Scancem 1991 23,0Company, (TPCC)International<strong>Tanzania</strong> Venture Venture capital fund 1993 3,9Capital Fund, (TVCF)First Adili Bancorp Ltd* *through Swedfund F<strong>in</strong>ancial Markets AB, 1998 5,0a wholly owned subsidiary of SwedfundInternational AB56,0ConclusionAs can be seen from the presentationabove there are a whole range of <strong>in</strong>strumentsavailable to be exploited <strong>in</strong> the mutual<strong>in</strong>terest of further promot<strong>in</strong>g economic<strong>relations</strong> <strong>between</strong> <strong>Tanzania</strong> <strong>and</strong> <strong>Sweden</strong>.In addition to what has already beenmentioned, it is also appropriate toemphasise that <strong>Sweden</strong> strives to promote<strong>and</strong> strengthen long-term exchange with<strong>Tanzania</strong> not only <strong>in</strong> trade, <strong>in</strong>vestments<strong>and</strong> other aspects of commercial cooperationbut also <strong>in</strong> scientific <strong>and</strong> culturalexchange, research co-operation, tourism<strong>and</strong> sport activities. Co-operation <strong>between</strong><strong>in</strong>stitutions <strong>and</strong> NGOs <strong>in</strong> both countries isan important aspect which may createsynergy effects for the bilateral <strong>relations</strong><strong>between</strong> the respective governments <strong>and</strong>enterprises.31


Embassy of <strong>Sweden</strong>Embassy of <strong>Sweden</strong>Ms. Jennifer Matafu, Amb. Sten Ryl<strong>and</strong>er <strong>and</strong> Mr. Lennart Mel<strong>in</strong>Photo: Stig-Göran NilssonAs <strong>in</strong>dicated <strong>in</strong> the Introduction, the Embassy of <strong>Sweden</strong> attaches considerable importanceto "promotion" activities, i.e. work related to mutual trade, jo<strong>in</strong>t ventures, direct <strong>in</strong>vestments,procurement, etc where the resource base <strong>in</strong> the Swedish private sector can be utilised, tothe mutual benefit of <strong>Tanzania</strong> <strong>and</strong> <strong>Sweden</strong>. The Embassy s<strong>in</strong>cerely welcomes contacts todiscuss matters related to these prioritised issues. Four contact persons - the Embassy's"commercial team" - are <strong>in</strong>dicated below. Should you be unable to reach them, youcould also contact other staff at the Embassy.Mr. Sten Ryl<strong>and</strong>erAmbassadorMirambo St/Garden Ave.PO Box 9274, Dar es SalaamPhone: (51) 11 12 35Fax: (51) 11 34 20Mobile: 0812 76 62 14E-mail: sten.ryl<strong>and</strong>er@sida.seMr. Lennart Mel<strong>in</strong>Counsellor Political <strong>and</strong> <strong>Commercial</strong> mattersPhone: (51) 11 12 35Fax: (51) 11 34 20Mobile: 0812 76 62 48E-mail: lennart.mel<strong>in</strong>@sida.seMr. Ralph KårhammarProgramme Officer <strong>and</strong> Regional Adviserfor Infrastructure (energy, telecom etc.)Phone: (51) 11 12 35Fax: (51) 11 34 20Mobile: 0812 76 62 41E-mail: ralph.karhammar@sida.seMs. Jennifer MatafuProgramme Officer Culture <strong>and</strong> Media;Private Sector <strong>and</strong> <strong>Commercial</strong> mattersPhone: (51) 11 12 35Fax: (51) 11 34 20E-mail: jennifer.matafu@sida.se32


Contact addressesContact addresses <strong>Sweden</strong>Chamber of Commerce <strong>and</strong>Industry of Southern <strong>Sweden</strong>Skeppsbron 2, S-211 20 Malmö, <strong>Sweden</strong>Phone: + 46 40 690 24 00Fax: + 46 40 690 24 90Internet: www.h<strong>and</strong>elskammaren.com(Here you f<strong>in</strong>d l<strong>in</strong>ks to all SwedishChambers of Commerce)E-mail: <strong>in</strong>fo@h<strong>and</strong>elskammaren.comEmbassy of <strong>Tanzania</strong> <strong>in</strong> <strong>Sweden</strong>Mr. James Kateka, AmbassadorMr. Edward Kadiri, Chargé de AffairesPO Box 7255, S-103 89 Stockholm, <strong>Sweden</strong>Phone: + 46 8 24 48 70Fax: + 46 8 10 98 15Enterprise Development Programme(EDP), Boliden Contech ABPO Box 21024, S-100 31 Stockholm, <strong>Sweden</strong>Phone +46 8 610 15 00Fax +46 8 34 80 97E-mail: contech@con.boliden.seFederation of Swedish FarmersKlara Östra Kyrkogata 12S-105 33 Stockholm, <strong>Sweden</strong>Phone: + 46 8 787 50 00Fax: + 46 8 411 01 98Internet: www.lrf.se, E-mail: lrf@lfr.seFederation of Swedish IndustriesPO Box 5501, S-114 85 Stockholm, <strong>Sweden</strong>Phone: + 46 8 783 80 00Fax: + 46 8 662 35 95Internet: www.<strong>in</strong>dustriforbundet.seE-mail: <strong>in</strong>fo@<strong>in</strong>dustriforbundet.seInvest <strong>in</strong> <strong>Sweden</strong> Agency (ISA)Gustav Adolfs torg 18S-103 38 Stockholm, <strong>Sweden</strong>Phone: + 46 8 676 88 70Fax: + 46 8 676 88 88Internet: www.isa.se, E-mail: isa@isa.seStockholm Chamber of CommercePO Box 16050, S-103 21 Stockholm, <strong>Sweden</strong>Phone: + 46 8 555 100 00Fax: + 46 8 566 316 00Internet: www.chamber.seE-mail: <strong>in</strong>fo@chamber.seSwedfund International ABPO Box 3286, S-103 65 Stockholm, <strong>Sweden</strong>Phone: + 46 8 725 94 00Fax: + 46 8 20 30 93Internet: www.swedfund.seE-mail: <strong>in</strong>fo@swedfund.seSwedish Federation of TradeS-103 29 Stockholm, <strong>Sweden</strong>Phone: + 46 8 762 77 00Fax: + 46 8 762 77 77Internet: www.svenskh<strong>and</strong>elE-mail: sht@sht.seSwedish International DevelopmentCo-operation Agency (Sida)Department for Infrastructure <strong>and</strong>Economic Co-operation, INEC.S-105 25 Stockholm, <strong>Sweden</strong>Phone: + 46 8 689 50 00Fax: + 46 8 24 92 90Internet: www.sida.seE-mail: <strong>in</strong>fo@sida.seSwedish M<strong>in</strong>istry for Foreign AffairsS-103 39 Stockholm, <strong>Sweden</strong>Phone: + 46 8 405 10 00Fax: + 46 8 723 11 76Internet: www.ud.seE-mail: ud@foreign.m<strong>in</strong>istry.seSwedish Office of Science <strong>and</strong>TechnologyPO Box 5282, S-102 46 Stockholm, <strong>Sweden</strong>Phone: + 46 8 787 64 00Fax: + 46 8 787 64 01Internet: www.statt.seE-mail: <strong>in</strong>fo@statt.seSwedish Trade CouncilPO Box 5513, S-114 85 Stockholm, <strong>Sweden</strong>Phone: + 46 8 783 85 00Fax: + 46 8 662 90 93Internet: www.swedishtrade.seE-mail: <strong>in</strong>focenter@swedishtradeThe Swedish Export CreditsGuarantee Board (EKN)Box 3064, S-103 61 Stockholm, <strong>Sweden</strong>Phone: + 46 8 701 00 00Fax: + 46 8 411 81 49Internet: www.ekn.seE-mail: <strong>in</strong>fo@ekn.se33


Contact addressesContact addresses <strong>Tanzania</strong>Board of External TradePO Box 5402Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 77 52, 85 17 06Fax: + 255 51 462 40, 13 45 13Confederation of <strong>Tanzania</strong>IndustriesPO Box 71783, Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 49 54, 12 38 02Fax: + 255 51 11 54 14Enterprise DevelopmentProgramme (EDP)Boliden Contech ABPO Box 4882Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 41 44-7Fax: + 255 51 11 64 41E-mail: Boliden@wilken-dsm.comM<strong>in</strong>istry of Industries <strong>and</strong> CommercePO Box 9503Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 00 49, 18 00 49,18 00 75M<strong>in</strong>istry of Plann<strong>in</strong>g <strong>and</strong> NationalInvestment, ZanzibarPO Box 874 , Zanzibar, <strong>Tanzania</strong>Phone: + 255 54 310 97M<strong>in</strong>istry of Trade, Industries <strong>and</strong>Market<strong>in</strong>g, ZanzibarPO Box 601, Zanzibar, <strong>Tanzania</strong>Phone: + 255 54 311 42-3, 323 05Fax: + 255 54 338 03Private Sector FoundationPO Box 11313Dar es Salaam, <strong>Tanzania</strong>Phone/Fax: + 255 51 11 41 07<strong>Tanzania</strong> Chamber of Commerce,Industry <strong>and</strong> Agriculture, TCCIAPO Box 9713Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 94 36, 12 14 21Fax: + 255 51 11 94 37E-mail: tccia.<strong>in</strong>fo@cats-net.com<strong>Tanzania</strong> Investment Centre (TIC)PO Box 938Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 63 28-32, 11 33 65Fax: + 255 51 11 82 53(TIC publish the newsletter “Investors'guide to <strong>Tanzania</strong> 1998”)<strong>Tanzania</strong> Tourist BoardPO Box 2485Dar es Salaam, <strong>Tanzania</strong>Phone: + 255 51 11 12 44, 11 31 44Fax: + 255 51 11 64 20Zanzibar Chamber of CommercePO Box 1407, Zanzibar, <strong>Tanzania</strong>Phone/Fax: + 255 54 320 02Zanzibar Free Economic ZoneAuthorityPO Box 305, Zanzibar, <strong>Tanzania</strong>Phone: + 255 54 336 97-8Fax: + 255 54 336 99Zanzibar Investment PromotionAgencyPO Box 2286, Zanzibar, <strong>Tanzania</strong>Phone: + 255 54 311 69-74Fax: + 255 54 326 5934


<strong>Sweden</strong> <strong>and</strong> <strong>Tanzania</strong> have co-operated <strong>in</strong> awide range of economic <strong>and</strong> social fields formany decades.<strong>Tanzania</strong> is at present undergo<strong>in</strong>g farreach<strong>in</strong>gchanges <strong>in</strong> the political, economic,social <strong>and</strong> socio-cultural areas. As a result ofthis, bilateral co-operation <strong>between</strong> <strong>Sweden</strong><strong>and</strong> <strong>Tanzania</strong> is enter<strong>in</strong>g a dynamic <strong>and</strong> partlynew phase. This booklet presents the jo<strong>in</strong>tefforts be<strong>in</strong>g made to broaden <strong>and</strong> <strong>in</strong>tensify<strong>relations</strong> <strong>between</strong> the countries <strong>in</strong> areas suchas trade, jo<strong>in</strong>t ventures, direct <strong>in</strong>vestments<strong>and</strong> procurement.Dar es SalaamThe Embassy of <strong>Sweden</strong>, Dar es Salaam, <strong>Tanzania</strong>Postal address: PO Box 9274, Dar es SalaamVisit<strong>in</strong>g address: Mirambo St/Garden AvePhone: + 255 51 11 12 35Fax: + 255 51 11 34 20E-mail: tan-reception@sida.seSWEDISH INTERNATIONAL DEVELOPMENTCOOPERATION AGENCYPostal address: SE - 105 25 Stockholm. <strong>Sweden</strong>Visit<strong>in</strong>g address: Sveavägen 20. StockholmPhone: +46 8 698 50 00. Fax: +46 8 20 88 64E-mail: <strong>in</strong>fo@sida.se www.sida.se

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