IRINGA DISTRICT COUNCIL

INDUSTRIAL INVESTMENT OPPORTUNITY PROFILE

District Executive Director, Iringa District Council, P. o. box 108, IRINGA, TANZANIA el+255 (026) 2702585/2702828

Fax: +255 (026) 2701776/2700580/270175

Websites: www.iringadc.go.tz Email: ded@iringadc.go.tz

IRINGA DISTRICT COUNCIL

INDUSTRIAL INVESTMENT OPPORTUNITY PROFILE

Prepared by, The Office of: District Executive Director,

Iringa District Council, P. o. box 108, IRINGA, TANZANIA el+255 (026) 2702585/2702828

Fax: +255 (026) 2701776/2700580/270175

Websites: www.iringadc.go.tz

Email: ded@iringadc.go.tz

TABLE OF CONTENTS

Page

Preamble.................................................................... iv-v

1.0 Introduction.................................................................. 1

2.0 Iringa General Overview and Location ........................... 2

3.0 Small Business and Industrial Sector Development in Iringa 3

3.1 Definition and Elaborations

3.2 Virtual Importance of Small Business and Industries

3.3 Difficulties, Challenges and Problems incubating with

the Development of Business and Industrial Sector

4.0 Major Industrial Investment Opportunity Available in Iringa

District Council

4.1 Industrial Investment Opportunity in Agricultural Sector

4.2 Industrial Investment Opportunity in Livestock Sector

4.3 Investment Opportunity in Tourism Industry

4.4 Industrial Investment Opportunity in Mining Constructions

4.5 Industrial Investment Opportunity in Fishing Industry

4.6 Investment Opportunity in Other Business related Sector

5.0 The Council’s responsibilities in enhancing the development of

Business and Industrial Sector within the District.

PREAMBLE

Recently the World has proven that Industrial sector has got enough and victual chance

in creating jobs to both professional and cheap labor and increasing the Government

revenues in the whole part of the World where the Industrial Sector has given priority.

This sector in Iringa District Council has given a priority too of which contributes to both

on small business projects which can be established and managed easily due to its

minimal capital, mid technology and available markets established within the District.

Meanwhile Large Industrial establishment projects are highly invited in Iringa District as

the availability of different resources such as Raw materials, cheap labor, renewable

resources, infrastructures and fiscal assistance from the Government leading to the

positive development of such establishment is widely open and provided freely.

In Iringa availability of Industrial Sector has not yet effectively utilized due to the fact

that lots of challenges tends to hinder such development whilst the Council has pave

the way to lead the fighting in eradicating such difficulties through different strategies

established by the council will be seen and taken as the core measures in enhancing,

facilitating and leading the way towards the positive achievements granted from

establishment of the Industrial and Business Investment in Iringa District Council. We

all expect the development of Industry and Business Investment Sector to be the work

and job done by both the Government and Private Sector including Financial

Institutions, Private NGO’s Government Agencies and other stakeholders of the

Districts and both local and Foreign Investors are invited in Iringa to plant their Capital

for the benefits of both who Involved. Through joint ventures we can build the

economy of Iringa’s Society. ‘’Halmashauri yangu, Kiwanda changu”

Robert Mgendi Masunya

District Executive Director

IRINGA

Chapter 1.

INTRODUCTION.

Iringa District Council aspires to have a community that enjoys high and sustainable

living standards. And its mission, in collaboration with stakeholders aspires to provide

high quality and sustainable services to its community through participatory and

democratic approaches, good governance and rule of law and proper use of available

resources. To achieve this aspiration, the Council is aiming at facilitating the utilization

of resources so as to be able to generate revenues to finance some of the services. In

essence, the investments will create employment opportunities and income for the

communities around invested areas as well as improving social services.

Therefore, the investment profile document was prepared in order to inform all

investors on direct investment opportunities, joint venture investment and investment

for support.

Despite the fact that, the District has many potential opportunities for Industrial

Development investments and Tourism, but its main focus is on Industrial Development

on Agriculture, Livestock, and Tourism industry, Fishing, Development of Road

Infrastructures and Minor Settlements Development, Tourism Development within and

outside areas of our Ruaha National Park, Wide areas for Petrol Stations Investments,

Cement Industrial Investment Establishment.

Potential areas for investment include: Food and cash crops production, Livestock

Development, Tourism Development, Road Infrastructures development and Small

Town Settlement. There is a reliable market for these products locally in Iringa and

other corners of Tanzania and abroad. The Council has developed an incentive system

which will enable the investors to obtain all necessary information regarding

investment, facilitation in land acquisition as well as procedures for obtaining license

and all initial stages of establishment of the Industrial.

Chapter 2.

IRINGA GENERAL OVERVIEW AND LOCATION

District Council extends between 7’000 and 8.300 latitude south of the equator and 340

and 370 longtudes East of the Greenwich. The District borders Mpwapwa district

(Dodoma Region) to the North, Kilolo District to the North East, Mufindi District to the

South, Chunya District (Mbeya Region) to the West and Manyoni District (Singida

Region) to the North West. The Council has an area of 20,413.9 square kilometres of

which only 9857.5 square Kilometres are habitable and the rest are occupied by

National Parks, Forests, Rock Mountain or water bodies. Administratively, the Council

comprises of 6 divisions namely Kalenga, Idodi, Pawaga, Ismani, Mlolo and Kiponzelo,

with 25 wards, 123 villages, 718 sub villages and 60,484 households (families).

The major ethnic groups residing in Iringa District Council include Wahehe, Wabena and

Wakinga. The Hehe are predominant tribe in the area and are well known for their

bravely in fighting the enemies. They fought and defeated the Germans at Lugalo on

17th August 1891 and maintained their resistance for seven years until their Chief

known as Mkwawa short himself. His grave is found at Mlambalasi and while his skull is

kept at Kalenga Museum.

According to 2012 National Population and Housing Census, the District Council has a

total population of 254,032 people comprising of 123,243 Male and 130,789 Female.

The annual Population growth is projected at 1.3%. The current population estimates

show that Iringa District had a total of 266,444 people by Dec. 2008 with a GDP of

Tshs. 273.8 bil. The per capita income is estimated to be Tshs. 1,031,508 (from the

income approach though keeps on expanding throughout year by year.

The District has a good road network of about 1,580.4 kilometres which are accessible

throughout a year. There is a high way which connects the District and other Regions

such as Morogoro, Dar es Salaam, Mbeya, Rukwa and the Capital City of Dodoma. Also

there is one airport namely Nduli and one Airstrip at Msembe the Head Quarter of the

Largest National Park in Tanzania known as Ruaha National Park where Opportunity for

Tourism Investment is highly available.

Services available in the District include Electricity power supply in Ifunda, Nzihi,

Kidamali, Tanangozi, Mseke, Tosamaganga, Kalenga and Migoli, Idodi, Pawaga villages

and about 85% of the District have reached with the Electricity Supply. Telephone

services are provided by five major companies namely Tanzania Telecommunication

Company Limited (TTCL), Airtel, Tigo, Halotel and Vodacom. Water supply serves a

population of about 173,504 people out of 254,032 which is equivalent to 68.3 percent.

Iringa District Council has 1 hospital, 8 Health centres, 68 Dispensaries and 35

pharmacies. The average coverage of health facilities per population is (i) 1 hospital for

a total 254,032 people, (ii) 1 health centre for 31,754 people, (iii) 1dispensary for 3,736

people. About 85 % of the total population covered by health services are within 5

kilometres walking distance from nearby health facility.

Education facilities found in the district council comprise of 104 day care centres, 135

Pre Schools, 145 primary schools, 32 secondary schools and 4 university colleges

located in Iringa municipality which is a headquarters of the council. The District Council

enjoys the benefits of the four University Colleges located in Iringa Municipality which is

a headquarters of the Council. These include: Mkwawa University College of Education,

Ruaha University College, Tumaini University and The Open University of Tanzania.

Financial institutions which provide services in the district include: the National

Microfinance Bank (NMB), Co-operative and Rural Development Bank (CRDB), National

Bank of Commerce (NBC), Exim Bank, Access Bank, Diamond Trust Bank, Postal Bank

and BACLAYS Bank. A 24 hours Automatic Teller Service is also provided by all

mentioned Banks.

Chapter 3

3.0 SMALL BUSINESS AND INDUSTRIAL SECTOR DEVELOPMENT

In the whole World, Business and Industrial Establishment is known to have large

opportunity of bringing and increasing social and economic development. Of which is

the situations in Iringa where Industries and Small Business contributes a big part of

creating employment opportunity, increasing Income and revenues and fostering social

and Economic development in town and Villages of the District.

3.1 Definitions and Elaborations:

Small Business and Industries according to Small and Medium Industrial Development

Policy of 1996 means that are Small Industries, small business, Medium Industry and

Medium Business or Macro and Micro Industries and Business. Industrial sector

comprise of all activities including Processed Agricultural goods, mineral extractions,

small services providers businesses meanwhile it is understood that there is no official

meaning of SME which is accepted internationally. There are some factors which are

used in categorizing the Business and Industrial sector development which includes

number of Employees/labors, capital investment in planted and revenues generated

from the establishment. Let’s observe in the table below:

Categories of Business and Industries According to the SMEs Policy of 1996

Category of an Industry/ Business

Number of Employees/Labors

Capital Investment (Tshs.)

Very Small Business and

Industry (Micro Enterprises)

1- 4 0- 5 millions

Small Business and

Industry (Small Enterprises)

5- 49 5 Million to 200 Million

Medium Industry and Business (Medium

Enterprises)

50- 99 200 Million to 800 Million

Large Industry and

Business (Large Enterprises)

100 and more More than 800 Million

Note: If Enterprises is termed to be in more than one category, Capital Invested in the

Business should be used as the best way to implement on which category that

Enterprise lie in.

3.2 Virtual Importance of Industrial Sector:

It is approximately almost one third of the Gross Domestic Product (GDP) is generated

from small Industrial and Business Sector. According to the Research conducted by the

informal sector in 1991 Small Enterprises engaged in informal sector are rarely

approximated to generate more than 1.7 projects which employ more than 3 million

people which were estimated to be 20% of the national young generation of Tanzania.

Though current Industrial sector statistics are termed to be just approximation it is yet

shows that Business and Industrial Sector took a victual position in economy according

to the above statistics from informal Sector.

Through joint ventures and partnership contracts and enhancing mutual engagement

between two parties in establishment of Business and Industrial sector shows the best

formulation of production is to depend each other between small and larger Industrial

sector.

Through available resources within the District, the council is to prepare the strategies

of enhancing and facilitating the development and establishment of the Industrial sector

within the District where will bring those Industries to be benefited from the available

resources sited.

Meanwhile Industrial Sector in Iringa will benefit from different opportunity and facilities

provided by the District including throughout and continuous improvement of

Infrastructure surrounding the District boundaries.

3.3 Difficulties, Challenges and Problems incubating with

Development of Business and Industrial Sector

With understanding the problems and challenges facing Industrial Sector, District

council is ready and on alert in working with those difficulties as established strategies

purposely for eradicating those hindrances.

High cost of establishment and engaging in registration of the Industries is one of the

problems where the responsibilities of registration such Enterprises will be the reward

provide by the District Council to the Investor.

Weak services provided in regards with the case of developing an Enterprise is also

among the Problem where the Council is yet established the team which assist in

providing advice, education and training on marketing of the Products, technology and

Information gathering. Frequently congregation and meeting of the stakeholders within

this sector to discuss and share different cases regarding the development of the

concerned sector.

Chapter 4.

MAJOR INDUSTRIAL INVESTMENT OPPORTUNITY AVAILABLE IN IRINGA DISTRICT.

4.1 Industrial Investment Opportunity in Agricultural Sector:

Agriculture is the mainstay of the economy of Iringa District Council with an

approximately over 95% of the rural population practicing mixed farming at subsistence

level. The district has 480,158 hectares of arable land out of which, the cultivated area

is about 163,887 hectares. So to say it is about three quarter of our land is viable for

Industrial Development Investments of which most of agricultural activities in highland

and midland zones depend on rainfall. However, in the lowland areas irrigation is

practiced at small scale, therefore there is a need to invest in irrigation agriculture

especially in drip irrigation system due climatic condition of a large area of the District

with medium rainfall.

Maize is the main staple food crop as well as cash crop where it allows the development

of Maize Processing Industries where the Market of the main Products and by Products

is still available of which supply can be assured within the Region, Country and Outside

nearby States like Uganda, Malawi, Zambia, Congo and Large demand in Kenya,

Current the production level is very low following the land fertility exhaustion and high

cost of Agricultural inputs for the common farmer though generally the Market for the

products is still low due to the fact that the Processing Industries is still locally where

being the fact it provide the room for the new Investors of the Same chain of Products

to be invited to develop the product, market and provide competitive economy within

the Region and Nation as general conduct. Other food crops cultivated include Beans,

Cowpeas, Irish potatoes, Sweet potatoes, Paddy and Sorghum where all these Products

available in Iringa Land Provide the development of the Processing Industries for the

same kind of Product and likely chains. Cash crops grown in the District include

Artemisia, Coffee, and Cotton, Flowers, Cashew nut, Pyrethrum, Paprika Sun flowers

Tobacco and Rice which I grown and provide the opportunity as much as Maize Provide.

Potentially, the district has 43,700 hectares of land suitable for Irrigation. About

15,860 hectares is currently used for irrigation, while the remaining land of 29,840

hectares remains unexploited. About 5,000 to 10,000 hectares of unsurveyed land is

available for investment in surface Irrigation Agriculture in Mlowa, Idodi, Mahuninga

and Itunundu Wards. Yet, the council has about 16 surveyed private farms with title

deeds having a total of 9, 833 acres suitable for agriculture and livestock keeping.

Among them 6 farm owners with 4,241 acres are ready to lent their farms, while the

remaining 10 farm owners are ready to invest in partnership. The farms are found in

highland and midland ecological zones. On the other hand, the council is looking for

support to improve traditional Mkombozi irrigation infrastructures (construction of

intake and irrigation carnal) with a total of 3,000 hectres.

Suitable crops under irrigated area include Paddy, Pepper, Paprika, Passion, Grapes,

Bananas, Orange, Mango fruits and Vegetables where on the other hand the

transformation and processing of those Products grown through Irrigation Schemes is

available for you Investors to Install plants of Processing the Products to add the value

of those Mangoes when you produce Juice from Iringa, Peppers for Chill Sauce and

likely products.

The Industrial opportunity available due to the availability of those variety of crops

include the establishment of Maize Processing Industry where its markets is still widely

and openly in both internally and nearby regions and neighbor countries. Also there is a

room for establishment of Rice processing and packaging Industry in southern parts of

Iringa District Council areas famous for growing paddy known as Pawaga and Idodi

where the Paddy Products is grown in large scale whilst there is no enough utilization of

products in adding value of such crops. Vegetables and other manufacturing Industries

producing of chill sauce, tomato sauce, Butter and lots of products on this chain are

invited as the opportunity for such investment is still available.

Paddy Irrigation Farming at Mapogoro Village in Idodi Ward in Iringa District Council

One of the Rice Processing Industry in Idodi Ward operating locally which provide the room for more

investment with high technology .

4.2 Industrial Investment Opportunity in Livestock Sector

Livestock keeping is another major economic activity, which employs a good number of

people for their livelihood. Livestock keeping is practiced mainly in the lowland zone,

which has plenty of grass for animal feed as well as water since Ruaha River and

several streams passing from the highlands across it. Vegetation cover and soils in

lowland zone is suitable for ranching. Livestock population includes 150,880 cattle,

106,330 goats, 45,625 sheep, 2,743 donkeys, 36,179 pigs and 317,915 poultry. Main

livestock kept in Iringa District are local and some modern breeds which produce

enough milk with quality meat and its products. Although there is a need for

improvement of these local breeds so as to increase quantity and quality of livestock

products within the District meanwhile increasing a number of Milk Processing

Industries which will be suitable to both locally and for external Market demand.

Production of beef in the District is still underdeveloped, although there is potential for

expansion. The council has about 16 surveyed private farms with title deeds having a

total of 9, 833 acres suitable for agriculture and livestock keeping. Among them 6 farm

owners with 4,241 acres are ready to lent their farms, while the remaining 10 farm

owners are ready to invest in partnership. Since, the council has an area for livestock

keeping as well as a good number of livestock there is an Opportunity to invest in

fattening of animals, construction of modern abattoir, cold chain and Leather Industry

The market for beef cattle is reliable due to big demand of meat locally within the

Region and National wise and neighboring countries of East Africa and SADC countries.

Being the fact livestock keeping to be of highest in number provide an opportunity of

establishment for Meat processing industry in which the Market of such products is

available is both locally and to the neighbor regions and nearby Countries. Production

and manufacturing of skin products is also can be implemented for any investor to

invest providing the fact that a number of livestock are kept within the District. Likewise

a room of producing and processing Milk and its byproduct like yoghurt within the

District is also available due to the fact that there is enough land for keeping livestock

and establishing Diary Farm within and number of Cow kept in allow enough provision

of Milk for processing and creating other product resulted from this core Products.

One of the Rings for Abattoir and Butchery preparations in Iringa District

4.3 Investment Opportunity in Tourism Industry Development;

Iringa District is rich in natural and cultural resources which are spread across areas of

different status ranging from National Parks, Game Controlled Areas, Wildlife

Management Area and open areas. Although there is richness in natural and cultural

resources in Iringa District council which attracts tourists but they lack developed

recreational areas and standard accommodation facilities.

The district have plots which are strategically located for investment in accommodation

facilities, conference halls and recreational sites which when developed can enable the

Investor to strengthen their economy, the council to increase its local Revenue

collection, to promote tourism and create Employment within the Community and its

people. Such areas are found in Kalenga ward where the fort of late famous chief

Mkwawa is located; Isimila area close to the natural pillars and where middle age stone

tools are found in which there is a room for Tourist Hotels and Recreational sites;

Mlambalasi where the Grave of the Great fighter leader of Hehe Society is found the

with its beauty and magical bridge formulated so known as Bridge of God (Daraja la

Mungu) is found. Tungamalenga close to Ruaha National Park which is the first largest

national park in Tanzania having square kilometer 20,226 which receives an average of

25,000 tourists per annum.

The Park is famous for its Elephant herds and animals that are rarely seen in the

Northern Parks like Greater Kudu and the Roan Antelope. Other animals that are

common include: Sable Antelope, Lesser Kudu, Lions, Leopard, wild Dogs, Buffalo,

Impala, Water Buck, Warthog, Giraffe and Bushbuck. The Park with its natural variance

available and enough land with the ever attractions in every surrounding allow more

investment of tourism hotels and recreation sites within.

One of the Species found in Ruaha National Park known as Greater Kudu, the Ruaha Ecosystem Emblem,

this animal species is rarely seen in the Northern National Parks

Attractive places and surroundings in Ruaha National Park along great Ruaha River available for Hotels

and Camp sites building Investment for accommodating Tourist visiting the Park.

4.4 Industrial Investment Opportunity in Mining Extractions.

Citation is made from Ifunda Village South West, forty Kilometres from Iringa town the

Head Quarter of District Council and along the main road of Iringa to Mbeya where

there is enough availability of rhymes stones materials ready and available for

processing and manufacturing such Products. In fact enough raw materials available

have not yet utilized due to the fact that the technology used for currently engaged in

extraction is still local thus there is a need for modern Technology investors to take

opportunity of installing their plants for the benefits of both parties involved whilst its

market is there openly as people keep on building within the region and outside

neighboring regions.

Meanwhile the villages of Nyakavangala has entered in the record being among of the

places where Mining extractions took place and whole Malenga Makali Ward informal

researchers told us that the areas is surrounded lots of rocks experienced with Gold

Mines availability. The area is 85 kilometres east north along Iringa to Dodoma main

Road, notably around the area they found victual rocks with characteristics of having

materials for mining extractions of kindly Cement reliable for building and other

constructions issues. Opportunity available is for establishment of Cement extractions

Manufacturing Industries is widely enough and available and the District invites

different Investors to come and utilize the resources available. In accordance with this

area for availability of Mining extraction there are other places within Iringa District

Council where invites both local and foreign investors to Invest their capital in

extractions of minerals available in places such as Kalenga, Mlowa, Ismani, Ngano,

Nyangóro and Ifunda.

4.5 Industrial Investment Opportunity in Fishing Industry.

Iringa District is surrounded by a number of Lakes and Dams where mostly are used for

Fisheries activities of which enable to increase economy of the individuals around those

places. Mtera Dam is a hydroelectric dam located within the boundaries of Iringa

District in Iringa Region, Tanzania. The dam is located midway between Iringa and

Dodoma on the border between the Iringa Region and the Dodoma Region. The travel

time from Dodoma is about three hours on a gravel road.

Mtera Dam is the largest hydroelectric dam in Tanzania. It measures 660 square

kilometres (250 sq. mi) at full capacity. The lake is 56 kilometres (35 mi) long, and 15

kilometres (9.3 mi) wide, and is feed by the Great Ruaha River and the Kisigo River. It

was built from 1975 to 1979 for the purpose of regulating water level at the

downstream at the Ruaha installed Kidatu Hydro-electric Dam. Its capacity is 80

megawatts (110,000 hp)

The lake is considered one of the best places in Tanzania to observe birds, since there

are at the one million dead trees in it and it has many shallow areas. In addition, the

waters are rich in fish. In the early 1990s was a year about 5000 tons of fish caught in

the lake and recently statistics entails more than ten thousand tons of fish in a year

caught in the lake. This rate brings the opportunity for Fishing Processing Industry to

be invited around the lake where the District council is yet prepare the infrastructure for

enabling in establishment of the Industry.

A ready Market for Fishing along the lake which also allows installation of the Fish processing Industry

Partly Vessels used for Fisheries activities in Mtera Dam in Iringa District and the upper front

image shows the highlight of the Dam.

4.6 Investment Opportunity in Other Business related Sector

Investment opportunity in Developing Minor Settlement

Development of minor settlement in Iringa District such as Ugwachanya, Igingilanyi

Kalenga, Ifunda, Migoli, Idodi, Tungamalenga and Itunundu, is another area which

provide an opportunity for investment in Petrol stations, Modern Marketing and Malls.

In Iringa district there are minor settlements which have been declared as planning

areas which need to be improved with necessary services and infrastructures provided

before including water services, roads networks for enough parking sites, electricity

which will enable to drive and run the Industries to be built in accordance with

manipulated investment around the areas, health facilities, play grounds and

communication services. The improvement in development of these minor settlements

will help to increase the reputations within the District and revenues generated will raise

the living standards of the society around on other hand will reduce migration of people

particularly youths from rural areas to urban areas. Areas such as Igingilanyi as cited to

be the Marketing place for different economic activities requires investments which will

provide services along the road such as Petrol Stations, Bus stop, Hotels and Local and

International Markets for livestock’s and other related products.

Igingilanyi local markets for livestock conducted only on Saturday which provide a room for more investment of

Petrol station, Hotels and recreations sites, Bus stop and improved markets for livestock and related services along.

It is 15 kilometres along the main Iringa to Dodoma main road from and to Iringa town, the arable and

enough space for roads hotels investment in both sides of this Igingilanyi site

Chapter 5.

The Council’s responsibilities in enhancing the development of

Business and Industrial Sector within the District

The best way strategy for the District Council policy in Inviting different investors is

through mutual establishment of dividing responsibilities between the parties involved

in the Industry. Being the sector is concerned and involves all government Authorities,

Companies and Agencies, Different private sectors and companies District Council have

prepared a reputable environment which will guide involvement of all this parties in the

establishment and development of the Business and Industrial Sector within the District.

Among of the responsibilities played by the District council includes:

Preparations of the reputable and convincing economic environment which will allow

easily establishment, development and maintaining different Industrial Investment

Projects Established within the District. This is through building and improving

Infrastructure which will pave the way for positive development of the sector.

In financial matters, the District will take measures and act between the parties

involved which will reduce the cost borrowing and lending for the sake of increasing

competition within the financial sector so as to enable small Enterprises to be lifted in

their Investment.

Also the District will implement and help in strengthen and cementing the Markets

demands within the District through the non-Financial Services Sectors.

As way forwards towards Investment in Industrial Sector, the District Council will

increase the cooperation and relationship with Private Sector through ensuring

involvement of the vitual sectorial cases in the District Business Meeting and Industrial

Forums.

With regards to those responsibilities the Private Sector has given the responsibility of

leading in direct Investment of productions. Due to this fact we are hoping that Private

sector will lead in retaining all the Industrial Opportunity Provided within the District in

Small, Medium and Large Industrial Establishment.

We are expecting the Private sector will be responsible in looking for resources,

management and running the Industrial Sector effectively. Notably with provision of

services for the managing and developing Business will be their stake.

Chapter 5