Annex 3: Private Sector Investment IntentionsAs of May 18, 2012, 20 companies have prepared <strong>and</strong> signed “Letters of Intent” that describe<strong>the</strong>ir <strong>in</strong>vestment <strong>in</strong>tentions <strong>in</strong> Tanzania under <strong>the</strong> New Alliance <strong>for</strong> Food Security <strong>and</strong> Nutrition.The private sector <strong>in</strong>vestment plans will support <strong>the</strong> CAADP National Investment Plan <strong>for</strong>Agriculture <strong>and</strong> Food Security (<strong>the</strong> TAFSIP). O<strong>the</strong>r companies are welcome to prepare <strong>and</strong> signLetters of Intent <strong>in</strong> <strong>the</strong> future on <strong>the</strong> same basis.Tanzanian CompaniesAgricultural Council of TanzaniaAgrica/KPLAgro EcoEnergyTanseed International, Ltd.Selous Farm<strong>in</strong>gShambani Graduate EnterpriseTanzania Horticultural AssociationTanzania Seed Trade AssociationTanzania Tea Packers Ltd.International CompaniesAGCOAmarjaro Trad<strong>in</strong>g Ltd.DiageoMonsantoSABMillerSwiss ReSyngentaUnilverUnited Phosphorous Ltd.VodaphoneYara InternationalSummaries of private sector Letter of Intent to date are:Tanzanian CompaniesThe Agricultural Council of Tanzania (ACT) is an apex private sector member-basedorganization represent<strong>in</strong>g <strong>the</strong> <strong>in</strong>terests of Tanzania’s agriculture sector. ACT aims to unitegroups <strong>and</strong> associations of farmers, livestock keepers, suppliers, processors, transporters <strong>and</strong>researchers <strong>in</strong> order to advocate <strong>for</strong> economic <strong>and</strong> organizational improvements <strong>for</strong> <strong>the</strong> sector.ACT <strong>in</strong>tends to progress ef<strong>for</strong>ts to improve <strong>the</strong> bus<strong>in</strong>ess environment <strong>in</strong> Tanzania with<strong>the</strong> collaboration <strong>and</strong> partnership of <strong>the</strong> Government of Tanzania. These ef<strong>for</strong>ts will bedirected at address<strong>in</strong>g crucial policy constra<strong>in</strong>ts that restrict <strong>the</strong> commercialization of<strong>the</strong> agriculture sector, <strong>in</strong>clud<strong>in</strong>g help<strong>in</strong>g to address issues such as taxation.To advance this commitment over <strong>the</strong> next 12 months, ACT will assist <strong>in</strong> <strong>the</strong> preparation<strong>and</strong> dissem<strong>in</strong>ation of policy papers on key constra<strong>in</strong>ts to <strong>the</strong> realization of KilimoKwanza, TAFSIP <strong>and</strong> SAGCOT objectives of <strong>in</strong>creased <strong>in</strong>vestment <strong>in</strong> Tanzania’sagriculture sector. ACT will also play a crucial advocacy, outreach <strong>and</strong> communicationsrole to support policy dialogue, development <strong>and</strong> implementation, <strong>and</strong> will provide aplat<strong>for</strong>m <strong>for</strong> <strong>in</strong><strong>for</strong>mation, analysis <strong>and</strong> dialogue <strong>for</strong> private <strong>and</strong> public stakeholders <strong>in</strong><strong>the</strong> sector.7
Agrica is a British company with American <strong>and</strong> Norwegian <strong>in</strong>vestors <strong>in</strong>volved with large-scalesusta<strong>in</strong>able agribus<strong>in</strong>esses <strong>in</strong> Sub-Saharan Africa. Agrica has <strong>in</strong>vested US$35 million to date <strong>in</strong><strong>the</strong> Kilombero Plantations Limited (KPL) Project <strong>in</strong> Tanzania, which is a 5,000 hectare (ha)greenfield commercial rice producer. In just three years, KPL has become <strong>the</strong> s<strong>in</strong>gle largestcommerical rice producer <strong>in</strong> East Africa, with a trans<strong>for</strong>mative smallholder program that has aproven track record of help<strong>in</strong>g local rice farmers move from subsistence to surplus production.With improvements to <strong>the</strong> road <strong>and</strong> tax regime, Agrica/KPL <strong>in</strong>tends to <strong>in</strong>vest ano<strong>the</strong>rUS$30 million by 2016 <strong>in</strong> order to:a) Complete KPL’s irrigation system to cover more than 3,000 ha, enabl<strong>in</strong>g <strong>the</strong> farmto produce 33,000 metric tons of rice <strong>and</strong> 5,000 metric tons of bean <strong>and</strong> pulserotation crops annually; <strong>and</strong>b) Scale up <strong>the</strong> smallholder program to over 5,000 farmers, with <strong>the</strong> aim of trebl<strong>in</strong>g<strong>the</strong> rice production <strong>and</strong> <strong>in</strong>creas<strong>in</strong>g <strong>the</strong>ir annual <strong>in</strong>come by a multiple of ten.To advance this commitment, over <strong>the</strong> next 12 months, Agrica/KPL will:a) Increase <strong>the</strong> smallholder program from 1,500 to 4,300 farmer families;b) Construct <strong>the</strong> first 500 KW biomass power plant; <strong>and</strong>c) Build a health cl<strong>in</strong>ic to serve a village with a population of over 10,000.Agro EcoEnergy is an African agro-energy company that aims to produce sugar <strong>and</strong> renewableenergy <strong>in</strong> a susta<strong>in</strong>able manner.a) Agro EcoEnergy is currently develop<strong>in</strong>g a US$425 million agro-energy project <strong>in</strong>Tanzania, which will establish of a state-of-<strong>the</strong>-art sugar mill <strong>and</strong> bio-ref<strong>in</strong>ery(crush<strong>in</strong>g one million metric tons of sugarcane per year), a fully irrigatedsugarcane estate of 7,800 ha <strong>and</strong> a fully irrigated 3,000 ha out-grower program.b) The company will produce 125,000 metric tons of sugar, 8,000 – 15,000 m3 ofethanol <strong>and</strong> 100,000 megawatts of renewable electricity provided annually to<strong>the</strong> national grid.c) The project aims <strong>for</strong> <strong>the</strong> highest susta<strong>in</strong>ability st<strong>and</strong>ards, sett<strong>in</strong>g <strong>the</strong> bar <strong>for</strong>future projects.Tanseed International, Ltd. is a private seed company engaged <strong>in</strong> quality seed production <strong>and</strong>market<strong>in</strong>g of crop varieties, provision of agricultural extension services <strong>and</strong> o<strong>the</strong>r marketsupport services <strong>in</strong> Tanzania.Through a new project <strong>and</strong> as part of its core bus<strong>in</strong>ess operations, Tanseed is work<strong>in</strong>g tostabilize <strong>and</strong> <strong>in</strong>crease rice <strong>and</strong> maize productivity <strong>and</strong> profitability among smallholderfarmers <strong>in</strong> Tanzania. They plan to accomplish this goal by improv<strong>in</strong>g <strong>the</strong> availability <strong>and</strong>adoption of af<strong>for</strong>dable high-quality rice <strong>and</strong> maize seed varieties, <strong>and</strong> crop managementpractices that <strong>in</strong>crease yields.Tanseed expects <strong>the</strong> follow<strong>in</strong>g results, among o<strong>the</strong>rs, over <strong>the</strong> next five years:8