The Local Investment Climate (LIC) project addresses critical constraints to business development and economic growth at district level in the two regions of Dodoma and Kigoma in Tanzania. The project invests in Public-Private Dialogue (PPD), business service facilities like One-Stop-Business Centres as well as in public, private and Public-Private-Partnership infrastructures in support of business development.

In November 2016, LIC project received a proposal from Bahi District Council to invest in improving an irrigation facilities and production technologies for five paddy schemes in Bahi Sokoni, Matajira, Uhelela, Nguvumali and Mtazamo – all in Bahi district in Dodoma Region. The LIC investment further included support to land use planning for titling through use of cost effective satellite technologies and support to the establishment of financial management structures to ensure proper operation and maintenance of the schemes and revenue collection for Local Government Authorities.

Before the rehabilitation of the irrigation infrastructure, the distribution of water in the five irrigation schemes was poor and uneven, resulting in poor yields. The rehabilitation has resulted in a yield increases of 25-100%, the span indicating a wide gap between the most effective farmers and the less effective ones. The wide span is however also is an indication of the potential scope for increasing the yield on poorer performing farms through education to farmers and introduction of improved technologies and farming practices.

The investment undertaken by LIC has not only revolutionized paddy production in the respective schemes in Bahi but has also acted as an eye opener to paddy farmers and other potential investors and business people involved in the paddy value chain.

Project Highlights and Achievements

  • Increased rice production resulting from improved irrigation infrastructures and expansion of the irrigated /farmed land. Employment opportunities created in nursery preparation, plot preparation, transplanting, weeding, winnowing, bag shifting, processing and shipping but also in commerce as the overall increase in rice production and farmer income generates benefits to the wider economy of the local communities.
  • The increased output of rice has driven new private investments in warehouses and processing facilities.
  • Increasing farm incomes and profit margins have made farmers to realize the value of investing further in paddy production and processing. More farmers are now shifting from selling raw paddy to processed rice.
  • The Bahi District Council through an agreement with the producer associations is now realizing increased revenue collection of 8,000 TZS per plot.

LIC project has invested TZS 239 million to improve Bahi paddy schemes in Dodoma.