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PUBLIC AND PRIVATE DIALOGUE FOR BUSINESS DEVELOPMENT – DODOMA AND KIGOMA

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), businesses service facilities like One-Stop-Business Centres as well as in public, private and Public-Private-Partnership infrastructures in support of business development.

Based on an initial mapping of business challenges in the two Regions (Kigoma and Dodoma) undertaken in 2014, it was realized that no formal and sound Public – Private Dialogue (PPD) platforms or mechanisms existed at district and regional levels, apart from a presidential decree to establish District Business Councils (DBCS). Based on this, the LIC project initiated a comprehensive support programme for the establishment of DBCs in all 16 districts of Dodoma and Kigoma and the Regional Business Council (RBC) at the two regional levels.

Key objectives of establishing PPD structures such as the DBCs/RDC are to build trust between public and private sector players and formulate and implement policies and programmes in support of business development. Only through PPD can all involved parties come to realise and understand the mutual benefits of a trust-based cooperation between public and private sector, guided by an agreed and shared vision and agenda for local economic and social development. 

The dialogues are also now utilized to identify potential new business opportunities within the districts and regions and for sharing and developing best practices in service delivery (by both public and private sectors entities) including business friendly revenue collection by Local Government Authorities.

DBCs and RBCs structures

According to the PPD guidelines issued by the Tanzania National Business Council (TNBC), the DBC membership is equally shared by public and private sector with 20 members from each. An Executive Committee is responsible for agenda setting and guidance of the DBC. Also the Executive Committee has equal representation. The DBC is chaired by the District Commissioner and the Executive Committee by the District Director both deputized by a representative from the private sector.

Members from the public sector are selected among heads of departments linked directly to business support and development and from business relevant government institutions present at district and regional levels. Private sector members are elected /selected from identified Private Sector Organisations from the respective Districts and Regions.

Major achievements from the PPD processes

  • Establishment of formal PPD dialogue platforms (DBCs) in all districts of Dodoma and Kigoma regions.
  • Establishment of formal PPD dialogue platforms (RBCs) in all regions of Dodoma and Kigoma regions.
  • With substantial input from LIC experiences with PPD, a review and formulation of new national guidelines for PPD has been undertaken - coordinated by the Tanzania National Business Council (TNBC).
  • Engagement of private sector during budget preparations in Local Government Authorities e.g. in Kongwa andMpwapwa.
  • As a result of improved relationships and trust having been established between private and public sectors at district level, several new and innovative investments and initiatives have been identified and realised, e.g. a Local Chicken Hub in Kongwa, One Stop Business Centres in all District of Kigoma and Dodoma Regions, upgrading of Kibirizi Landing Site and Fish Market in Kigoma Region, development of Kibakwe Agricultural Resource Centre in Mpwapwa in Dodoma Region and formulation of new by-laws to reduce/adjust crop-cess in several districts.
  • LIC is supporting Private Sector Organisations in both regions to get better organized and prepared to play an active role in PPD – in particular through active engagement in the DBCs. Through this support, the private sector has become a more constructive and pro-active partner to public sector in the promotion of a better business climate in the two regions to the benefit of both parties.
  • Reduction in the time taken to register a Business from an average of seven Days to two days in Kigoma and Dodoma.
  • The PPD processes have facilitated improvement of the quality of the advice LGA do receive from Private Sector.

Support to public sector engagement in PPD includes strengthening Local Government Authorities capacity to increase revenue collection without hurting business development.

One Stop Business Centre (OSBC)

LIC has supported the construction and equipping of OSBC in all districts and municipal/town councils in the two regions. The OSBC will become the place where the business community has access to marketing and business information, legal services, land registration and legalization, , taxation advise and support and eventually also banking services.
LIC project has invested around TZS 1.4 billion in the construction/renovation of OSBC including supply of furniture and IT equipment and internet connections. This investment is in addition to ongoing support to PPD processes and other private sector development projects in the two regions. For further information please visit www.lic.or.tz

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IMPROVEMENT OF KIBAKWE AGRICULTURE RESOURCE CENTRE - DODOMA

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. 

The Kibakwe Agriculture Resource Centre under the Ministry of Agriculture is located in Kibakwe, Mpwapwa District Council. The Center was established to provide agricultural knowledge - both theoretically and practically - to the communities within Kibakwe Ward. In December 2015, LIC was approached by Mpwapwa District Council tosupport finalisation of  the construction of a hostel at the Center and equip it with necessary educational tools. In support of this investment LIC project proposed the establishment of new management structure through a Special Purpose Vehicle (SPV) which includes contracting a private operator for managing centre activities.

Apart for the completion of the hostel, the LIC support –– included drilling of a water well, purchase and installation of a drip irrigation system, establishment of a nursery for production of  vegetable seeds and improved fruits seedlings, purchase of ICT equipment, installation of internet services, procurement of key agricultural machines and tools for the centre, and last but not least, support to the development of tailor-made training programs for  farmers including young farmers.

Project Highlights and Achievements

The infrastructure and training program improvements at the centre has enabled Mpwapwa District Council to offer better training to both farmers and youths. One case is 30 Ujuzi (Skills) Voucher Youths, a program being run in collaboration with the Loan Board and Visele - a private Agriculture and Livestock Institute in Mpwapwa- have undertaken practical training at the centre. Also seven vegetable farmers around the centre and six extension officers have got their horticulture knowledge upgraded to a level enabling them to attend further training at the horticultural training center SEVIA in Moshi.

Since the completion of the LIC support in March 2018, the centre has hosted a total of 170 farmers and youth including 60 youth undergoing a 6 month intensive horticultural education program. The next phase of the support program will look into ways of supporting the youth to get started as commercial producers of horticultural products including possible support to viable investments in processing.

The LIC support has included focus on attaining financial self-reliance of the centre through the SPV management structure. Income from hostel and workshop utilization together with sales of farm produce have substantially reduced the need for financial support from District Council. It has proven the viability of establishing such training centers through collaborative effort between the District authority and the private sector. This particular centre is focusing on the horticultural sector, but the model applied here can certainly be applied to other value chains in need of cost-effective education and training facilities and opportunities.

LIC has invested around TZS 194 million in the Improvement of Kibakwe Agriculture Resource Center.

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IMPROVEMENT OF BAHI PADDY SCHEMES - DODOMA

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.

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KIBIRIZI LANDING SITE AND FISH MARKET – KIGOMA

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 2016, the Local Investment Climate (LIC) project responding to a request from Kigoma Ujiji Municipal Council (KUMC) initiated an investment to upgrade the Kibirizi landing site and fish market. The infrastructure upgrading included new pavement, drainage, vending stalls, water and sanitation systems, electrical installations, drying area for sardines(dagaa), storage facilities and the first ice block and flakes production in the region. In support of this investment a new management structure has been established through the creation of Special Purpose Vehicle (SPV).

SPV CONCEPT

Recognizing the challenges in managing a complex facility like the Kibirizi landing site and fish market, KUMC together with LIC have resorted to vest the management of the facility in a Public-Private-Partnership company known as SPV under the name of Kibirizi Landing Site Company Limited (KLSCL). The new company is a duly registered entity limited by guarantee and started its operations on 6th August 2018. The company has its own boardd, management and staff. KUMC remains the owner of the properties and receives revenue according to an agreement with the SPV company. The company is responsible for all operational and maintenance tasks and undertakes and manages new investments in Kibirizi as per company board directions. The users (fishermen, business women and men and fishingf companies) of the landing site and the fish market are represented on the Board through their associations together with KUMC and LIC.

Improvement Highlights and Prospects

  • The landing site is expected to service 400 fishing boats and generate a profit of TZS 80 million in its first year of operation. 
  • With access to ice blocks and flakes, cooled storage and improved trading facilities, the fishermen are expected to reduce post-harvest losses from 35% to 10% and increase earnings by 30%. Reduced post-harvest losses will be achieved by using ice on the boats, at the market and during transportation and through training and awareness raising on improved hygiene and fish management. The availability of ice has made it possible to transport the fish even outside the region e.g. Tabora
  • The increased trading of quality fish and sardines is expected to create a minimum of 130 new jobs and the wider impact on transport, trading, input and value additions enterprises are calculated to be TZS 280 million in the first year.
  • The economic turnover can be more than doubled if fish landing is rationalized through closing down small, informal landing sites in the vicinity of Kibirizi. The driving factor for such rationalization will be the improved quality and increased range of services at Kibirizi.
  • Improved facilities and services to exporters is expected to lead to increased export of quality products meeting international sanitary standards.
  • A planned second phase upgrading will improve facilities at the fish market place and increase the drying capacity for sardines (dagaa).
  • In collaboration with representatives for the fishermen,KUMC and LIC will continue to explore opportunities for improving services and marketability of fish and fish products.

New private investors in processing and marketing are expected to take advantage of the improved facilities at Kibirizi Landing Site.

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LOCAL BUSINESS ENVIRONMENT REFORM ACTION PLANS

The LBER Plan aims to improve the business environment of micro, small, medium and large businesses, as a means to achieve higher level goals of job creation, economic growth and poverty reduction.

Below please find LBER plans.

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MAPPING STUDIES AND VALUE CHAIN ANALYSES

Below is the list of different Mapping studies and Value chain analyses condected under LIC.

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CASE STUDIES

Kigoma Case Studies include:

1. Creating new opportunities for the Fishery Cluster in Kigoma
2. Reigniting Kigoma´s palm oil  production 
3. Public‒private dialogue in Kasulu leads to improvement of the business environment
4. Using dialogue to empower female entrepreneurs in Kigoma

Dodoma Case Studies include:

1. Kibaigwa horticulture market
2. Supporting farmer’s access to the organic products market 
3. Conducive business environment  fostered by public private dialogue
4. Private sector engagement in by-laws review, improvement and ammendment
5. Improved sunflower production at zajilwa village, Chamwino district

Below please find the booklets.

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INTRODUCTION TO LIC BOOKLET

The Local Investment Climate (LIC) project works to address the critical constraints to business growth and economic development at the sub-national level in Tanzania. It encourages practical and joint public-private sector responses to the challenges faced by government and business when improving the conditions for private sector development and poverty reduction at the local level − this is where private business, women and men come face to face with barriers that inhibit their business from growth.

Below please find introduction to LIC booklet.

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INVITATION FOR QUOTATIONS

QUOTATION FOR PHASE II: UPGRADING OF KIBIRIZI LANDING SITE AND FISH MARKET AT KIGOMA-UJIJI MUNICIPALITY.

The Local Investment Climate Project (LIC) in collaboration with Kibirizi Landing Site Company Limited has set aside funds for the Phase II: Upgrading of Kibirizi Landing Site and Fish Market.

You are hereby invited to submit your price quotation for upgrading of Kibirizi Landing Site and Fish Market as described in the BoQ.

All electronic quotations must be delivered to the following e-mail addresses; mkumbo@gmail.com and cc’ing mkokokiza@gmail.com and plaizer@lic.or.tz

In case of site visit, you can contact Ms. Desderia Ndunguru; the General Manager for Kibirizi Landing Site Company Limited, through her e-mail address; desderiandunguru@yahoo.com or her mobile phone 0756 799 090.

The prices should be quoted in Tanzania Shilling and the payment will be made in Tanzania Shilling.

Deadline for submission will be on November 6th, 2018 before the close of business at 1700hours.

Late quotations shall not be accepted for evaluation irrespective of the circumstances.

For more information on BoQ for the proposed works and other relevant information, please click the "Invitation for quotation" button below to download the BoQ document.

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LIC ROUNDTABLE DINNER IN KIGOMA, 7th SEPTEMBER 2018

The Local Investment Climate (LIC) Kigoma Office organized a Roundtable Dinner on Friday 7th September 2018. The main purpose of this roundtable meeting was to create a platform to share information on the progress and development in the implementation of project activities in Kigoma region. The meeting was attended by top political and management leadership from Kigoma District, Kigoma Ujiji Municipal Council(KUMC), Kigoma and Uvinza District Councils.

Regional Commissioner (RC), Regional Administrative Secretary (RAS), Kigoma District Commissioner, Kigoma District Council Chairperson, KUMC Director, Kigoma and Uvinza District Council Executive Directors also attended the event as well as the representatives of RBC and DBC from Tanzania National Business Council (TNBC), Tanzania Chamber of Commerce, Industries and Agriculture (TCCIA) and Jumuiya ya Wafanyabiashara Tanzania (JWT).

During the dinner, LIC Team Leader Flemming Winther Olsen presented a brief report on the progress and development of projects that are either currently funded or have been funded by LIC in the LGAs in the region. The Team Leader took the opportunity of the roundtable dinner to highlight challenges that LIC Kigoma is facing such as communication breakdown between RC office, LGAs and LIC which hinder the process of facilitating partnership activities and projects between LGAs and private sector entities.

The RC and the rest of the invited guests used the occasion to ask for information on the status of the implementation of several projects and clarity on a numbers of issues which to their opinion has either hindered the pace of implementing LIC supported projects in the region or have negatively contributed to the attainment of the desired results e.g Kakonko rice mill proposal and four markets rehabilitation proposal at Kigoma District Council. The event ended by closing remarks that emphasized the need to ensure that LIC supported projects are implemented successfully and the need to enhance communication and information sharing among all stakeholders that are involved in the implementation of LIC supported projects in the region.

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HIGHLIGHTS FROM THE REGIONAL BUSINESS COUNCIL MEETING IN KIGOMA, 24th AUGUST 2018

One of key purposes of the RBC is to improve business environment and maximize opportunities for investment in the region. Kigoma region has used this forum as a platform for open and friendly dialogue between the private and the public sector.

Business development stakeholders in Kigoma region held their first Regional Business Council (RBC) for this year on 24th August 2018. The meeting took place at the Regional Administrative Secretary (RAS) office conference hall and was chaired by The Regional Commissioner Retired Brigadier General Emmanuel Maganga. It was attended by delegates 21 from public sector and 16 from private sector and invitee representatives from ENABEL, SEEDCHANGE, TPA, ALAT, LIC, WMA, TIC, OIC, TNBC, NBC, BTC, WEE, UWAKI, NSSF, UN-KJP, WFP-KJP and media representatives from TBC,  ITV, AZAM TV, CHANNEL 10, CLOUDS TV and RADIO JOY.

One of the main agendas discussed during the RBC was the issue of multiple levies and taxes on fishing activities. Fishermen are being charged TSH 91,000 for inspection fee by SUMATRA and TZS 200,000 for fishing license fee by Local Government Authorities (LGAs). Umoja Wa Wavuvi Kigoma (UWAKI) that represents fishermen in Kigoma states that this multiple fees is high and consequently have negative effects in their businesses. The RBC resolved that there should be a meeting before the next RBC in November to discuss on this agenda, that will be chaired by RAS and attended by representative from UWAKI and SUMATRA.

Another key issue that was discussed in the RBC is the use of inappropriate weigh and measuring scales that make farmers sell their crops to traders for less amount of money than the actual prices that they are supposed to be paid. It was agreed that Weight and Measures Agency (WMA) will continue providing education to traders. Traders are responsible for making sure that authorized weighing scales are available in their businesses and that District Councils also put in place by-laws that WMA presented in RBC that will require all traders to use authorized weighing scales and District Councils should facilitate establishment of crop buying centers, Mvugwe buying center at Kasulu District Council will be done by 2020 .

Issuing of permits for transporting agricultural and livestock products to neighboring countries was mentioned to be another constraint that hinders development of trade between Kigoma region and the respective countries. The RBC resolved that RAS office and TCCIA should follow up on the matter so that it is addressed and solved and they will provide the feedback to the next RBC.

Cement and manufacturing of chalk was identified as a new area of potential investment in Kigoma. There was a resolution that a commission between DED Kigoma and NSSF will be created to track the possibilities of establishment of cement industry in Kigoma and all District Commissioners and District Executive Directors should go and identify availability of chalk in their area and provide the feedback in the next RBC.

The next RBC in Kigoma is to be held on the 14th of November.

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