INVESTMENT GUIDE

Support
available
Challenges/
Risk and
Mitigation
• Potential for producing, selling and exporting handbags with outer surface of leather,
footwear, outer and uppers of leather soles, garments, articles of apparel of leather, and
furniture;
• Limited completion in Simiyu’s and Tanzania’s leather value chain;
• With growing middle class there is potential for high-end developed market consumers -
with products such as handbags, shoes, coats, and furniture.
• Government support providing training to leather technicians e.g. 2017 offered 1000
positions in Mwanza
• Seasonality: Sometimes here may not be enough quality hides and skins for the leather
industry;
• Quality of leather affected by viboko (rhino) and livestock marking;
• Absence of dedicated guarantee mechanisms to facilitate sector operators’ access to
financial instruments;
• Livestock leather quality affected by selling the livestock when they are old or sick (> 5 years);
• Competition from synthetic leather and synthetic products.
12. Dairy products factories
Overview of the Opportunity
Key features
• Establishing milk processing and dairy products factor(ies);
• Investing in breeding to get cattle (chotara) with high yielding potential and disease
resiliency;
• Investing in mini-and large scale ranches;
• Establishing zero grazing cattle farms.
• Investment location: Maswa, Bariadi, Itilima.
Key investment
rationale
• Simiyu has more than 1.5 million cows;
• Milk production is dominated by smallholders; large scale producers are few;
• Milk is abundant from November to April;
• Market is available within the Districts and Bariadi TC, Lamadi, Mwanza, and hospitality
industry;
• Low farm gate price of milk, TZS 400 per litter, while yoghurt costs more has TZS 4,000/L
(Meatu Milk prices);
• Dairy processing is largely informal at household and village levels involving unregistered
small processing units;
• Increased value addition to enhance food and nutrition security, reduce income poverty,
and improve living standards of pastoralists;
• Substantial supply gap of value added dairy products in Simiyu market;
• Culture and per capita income (USD 250) allowing frequent consumption of milk.
26 | SIMIYU REGION INVESTMENT GUIDE