INVESTMENT GUIDE

Support
available
Challenges/
Risk and
Mitigation
• Simiyu has been earmarked for beef industry development in ASDP II in the new national
“One Region One Product Model”;
• Government authorities promoting Public-Private Partnership to improve cattle
management and marketing systems;
• The Livestock Development Fund in place;
• Availability of National Livestock Institute in Mpwapwa;
• The GoT is regulating unfair importation of artificially priced meat and meat products;
• The central government is supporting and promoting research on meat technology to
cope with emerging needs;
• Favorable loans from the Tanzania Investment Bank (TIB), EADB, AfDB, etc.
• Some people own > 2000 cows but not well fed;
• Smallholders have vast lands (20-100 Ha) but do not farm for fodder, prefer grazing,
and even to distant regions, sometimes leading to overgrazing and soil and biodiversity
degradation, and encroachment into game reserves;
• An average cow has low weight 200 kg, leading to pastoralists getting low prices TZS200,
000 to 300,000. A well fed cow fetches TZS 700,000 to 1 million on the auction;
• Weak beef producers and traders associations;
• Zoosanitary quality and safety challenges;
• There is a need to undertake livestock identification, recording and traceability system for
safe and quality meat production;
• Unfair competition from other countries, e.g., Brazil and European Union, especially the
Economic Partnership Agreement (EPA) between EAC and the European Union (EU) is
signed. This will guarantee tariff-free access of EU’s beef products to the Tanzania market;
• Water challenges.
10. Tanneries factory
Overview of the Opportunity
Key features
Key investment
rationale
Establishing tanning factories with environmental friendly technology and chemical and
mechanical processes and quality preservation.
• Access to a large supply of raw materials. Simiyu has more than1.5 million cows, 700,000
goats, and 300,000 sheep;
• Accessible processing technology and facilities;
• Relatively low manpower and labor costs;
• Growing domestic market, as exhibited at Nane Nane and Saba Saba trade fairs;
• Preferential access to EAC, SADC and EU markets;
• Supportive central and district government policies.
24 | SIMIYU REGION INVESTMENT GUIDE