INVESTMENT GUIDE

Challenges/
Risk and
Mitigation
• Sometimes grading challenges and the resultant poor quality of cotton lint, with mixed
staple length in the baled cotton (average of 28 mm), poses quality problems for efficient
yarn production, resulting in poor quality yarn with excessive levels of waste;
• Inefficient electricity supply; High electricity costs, e.g. a ginner pays TZS 25-30 million for
electricity monthly during peak season;
• Inefficiencies and sometimes market failure in cotton downstream value chain processes;
• Inadequate medium to high technically and business skilled human talent;
• Transportation, power (power stoppages), ICT infrastructure, and water challenges, which
may result in major repercussions on competitiveness;
• Due to being input intensive and with high farm seed cotton budgets, smallholder
cotton producers are fast diversifying to lentils (dengu), cowpeas (choroko), pigeon peas
(mbaazi), and sunflower seeds production affecting seed cotton output (seed cotton farm
gate is TZS 800-1,200, but for lentils it is TZS 2,200 per kg);
• Waste treatment facilities non-existent;
5. Factories for milling and packaging of rice and maize flour
Key features
Overview of the Opportunity
Establishing factories for processing and packaging of rice and maize flour in Lamadi, Bariadi,
Itilima, and Maswa.
Key investment
rationale
Support
available
Challenges/
Risk and
Mitigation
• Consistently increasing production volumes of paddy and maize;
• Growing demand for processed products that are fortified;
• Low produce prices during harvesting season;
• To capture local and export markets with high demand, especially to neighbouring
countries;
• High demand for rice and maize products in the neighbouring countries.
• Strong support from PO - RALG, MALF, MITI, and district authorities;
• Availability of buyers and consumers as Simiyu’s population is increasing at more than 2.8
%annually;
• Subsidised inputs provided by the central government;
• Support from farmer associations, e.g. Rice Council of Tanzania;
• Technical and financial support from ASDP II;
• Support from development partners and Non State actors
• Post harvest losses challenges, ca, 20 - 30%;
• Quality packaging and long term warehousing;
• Under developed supply chains infrastructure;
• Ad hoc political interventions;
18 | SIMIYU REGION INVESTMENT GUIDE