PRESIDENT’S OFFICE
REGIONAL ADMINISTRTION AND LOCAL GOVERNMENT
MOROGORO MUNICIPAL COUNCIL
INVESTMENT PROMOTION STRATEGIES AND ROADMAP 2019 TO 2024
APRIL, 2019
The Municipal Council has and will always strive to create an investment-friendly environment for the prospective investors. The Municipal efforts to promote investment are in line with the national policies, in particular Tanzania investment Act of 1997, the Public Private Partnership Policy of 2010 and the Economic Processing Zones Act of 2006.
In this profile, the overall objective of this report is to identify the investment promotion strategies, including incentives, and investment roadmaps for Morogoro Municipal Council which is among the LGAs within ENGINE’s zone of influence in Mainland Tanzania that align with the Tanzania Government’s industrialization agenda 2025 and investment strategy and policy.
It is on this premise that the Municipality has identified the potential investment opportunities for the purpose of exposing them to encourage local and foreign investors. The potential investment areas in the Municipality include trade, industrial manufacturing, tourism, agriculture, livestock, economic infrastructure and provision of social services. The investment potentials are expected to be exploited by both local and foreign investors, small and large investors; and through Public Private Partnership as may be appropriate.
The identified investment opportunities can be divided into two categories, namely direct investment and investment on market linkages. Direct Investment focus on attracting investors, both local and foreign, to bring in capital for investing in the district by setting up facilities either to process raw materials into finished products or carry out medium and large-scale processing of farm and livestock produces obtained locally in the Council which presently are underutilized.
Market linkages entail connecting smallholder farmers and other producers with companies that are willing to buy their products and access to markets. By so doing, market dealers will be in a position to support smallholder farmer’s, livestock keepers, Streets and Council managing the natural resources and community in the district at large with skills on crop and animal husbandry, post-harvest handling of harvested crops, processing and products control.
The large quantity of food and cash crops, abundance of livestock and the population full of hospitality in Morogoro municipal council provides an opportunity to medium and large-scale producers to invest in farm and livestock product various processing industries. Similarly, the local communities are hard worker and have adequate skills in entrepreneurship and modern farming practices to support the growth of these industries. However, what is missing is for the smallholder enterprises, farmers and producers to be linked with buyers who are ready to invest in the municipality.
This profile, provides prospective investors and interested parties with insightful information about investing in Morogoro Municipality including: A summary of the geographical, political and economic characteristics of the municipality, an introduction to difference policy in favor of investors and, the Tanzania Investment Centre (TIC).
TABLE OF CONTENT
1.0 INTRODUCTION OF MOROGORO MUNICIPALITY.. 1
1.1 Background Morogoro Municipality: 1
1.2 Morogoro Council in a Snapshot 1
1.5 Main Economic Activities. 4
2.1 Strengths and Weaknesses. 5
2.2 Opportunities and Challenges. 6
3.0 REASONS TO INVEST IN MOROGORO MUNICIPALITY.. 9
3.1 Presence of various tourist attractions. 9
3.2 Existing infrastructure. 9
3.3 Presence of Financial Institutions: 9
3.4 Administrative support/attractive regime. 10
3.5 Access to Raw materials or Resources. 10
3.6 Presence of Basic social Utilities. 10
3.7 Other Reasons to invest in Morogoro Municipality. 10
4.0. MOROGORO MUNICIPALITY INVESTMENT OPPORTUNITIES AND PROMOTIONAL STRATEGIES.. 10
4.1 Investment Opportunities. 10
4.2 Morogoro Municipality Investment promotion Strategies. 25
4.2.3 Investment promotion strategies. 26
5.0 MOROGORO MUNICIPAL COUNCIL INVESTMENT PROMOTION ROADMAPS AND FUTURE PLANS.. 26
6.0 MOROGORO MUNICIPAL COUNCIL INVESTMENT POLICY AND INCENTIVES IN PLACE 28
6.2.2 Non-fiscal incentives. 30
6.3 Procedures of Acquiring Land for Investment 31
6.3.1 Procedures for acquiring land for local investors. 31
6.3.2 Procedures for acquiring land for foreign investors. 32
7.0 POLICY AND INSTITUTIONAL ISSUES TO BE WORKED ON.. 33
Table 1:Strength and Weaknesses of Morogoro Municipal Council 5
Table 2:Opportunities and Challenges of Morogoro Municipal council 6
Table 3: Proposed Investment Opportunities on Industry Sector in Morogoro Municipality 10
Table 5: Proposed Investment Opportunities on Trade and Commerce Sector in Morogoro Municipality 17
Table 7: Proposed Investment Opportunities on Environment Sector in Morogoro Municipality 21
Table 8: Proposed Investment Opportunities on agriculture Sector in Morogoro municipality 22
Table 9: Proposed Investment Opportunities on Education in Morogoro Municipality. 22
Table 10: Proposed Investment Opportunities on Energy in Morogoro Municipality. 23
Table 11: Proposed Investment Opportunities on Health Sector in Morogoro Municipality 24
Table 12: Other Proposed Investment Opportunities in Morogoro Municipality. 24
Table 13: Morogoro Municipal Council Investment Promotion Roadmaps. 25
ANC African National Congress
CMT Council Management Team
CRDB Cooperative Rural development Bank
DDC District Development Community
EIA Environment Impact Assessment
ENGINE Enabling Growth Through Investment and Enterprise
EPZA Export Processing Zones Authority
FDI Foreign Direct Investment
GDP Gross Domestic Product
ICT Information Computer Technology
ITA Income Tax Act
KM Kilometers
LGA Local Government Authority
LGAs Local Government Authorities
MKUKUTA MkakatiwaKukuzaUchuminaKupunguzaUmaskini Tanzania
MMC Morogoro Municipal Council
NMB Nation Microfinance Bank
NBC National Bank of Commerce
PO-RALG President Office Regional Administration and Local Government
PPP Public Private Partnership
SGR Standard Gauge Railway
SWOT Strength Weaknesses Opportunities Treats
TALIRI Tanzania Livestock Research Institute
TANZAM Tanzania Zambia Road
TCCIA Tanzania Chamber of Commerce Industry and Agriculture
TIC Tanzania Investment Centre
TPB Tanzania Postal Bank
TTCL Tanzania Telecommunications Company Limited
TZS Tanzanian Shillings
WHT With Holding Tax
Morogoro Municipality is the Regional Headquarter of Morogoro Region. It is one of the oldest towns in the history of Tanzania [by then Tanganyika]. In the 18th century, Arabs used Morogoro as a stopover and route for slave caravans from the hinterland to the coast before shipping them to the far-east through the Indian Ocean.
Its inception as a township is said to have come at the end of the 19th century when it has a population of about 3,000 people. At that time the missionaries developed interest in this little settlement with the aim of getting control of the already spreading slave trade. It was the time where the Germans were busy converting Morogoro into a provincial headquarters of the Eastern province of German East Africa [later Tanganyika]. They built a church and few buildings at Kigurunyembe, only four kilometres from the present town centre.
Morogoro became a township in 1956. In 1992, a year after independence of Tanganyika, Morogoro was lifted to Town Council status. The Town Council was conferred Municipal status on 1st July 1988 and became a Municipality. Morogoro Municipal Council was then established in the year 1988 under the provisions of Section 8 & 9 of the Local Government (Urban Authorities) Act, No.8 of 1982 as amended by [Cap.288 R.E.2002].
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Morogoro Municipality is about 195 kilometres to the west of Dar es Salaam and is situated on the lower slopes of Uluguru Mountains whose peak is about 1,600 feet above sea level. Morogoro Municipality is one of the Nine Councils in Morogoro Region. It lies at the crossings of longitudes 37033’ and 37051’east of the Greenwich Meridian and latitude 6037’ and 6055’ south of Equator.
Figure 1: Morogoro Municipality Map by Ward
The municipality lies is about 1,600 feet above sea level. With exception of very few slopes, the municipality is relatively homogeneous with gently undulating plains intersected by seasonally streams. In the extreme southern-east and western part of the district gives way to mountainous land covered by forest, commonly known as Uluguru Mountains and Mindu mountains respectively. The flat belt located in the central and northern parts.
Despite the variation of climatic conditions throughout the year the weather is attractive because of its high altitude. The Municipality experiences average daily temperature of 30oC degrees centigrade with a daily range of about 5oC degrees centigrade.
The highest temperature occurs in November and December, during which the mean maximum temperature is about 33oC degrees centigrade. The minimum temperature is in June and August when the temperatures go down to about 16oC degrees centigrade. The mean relative humidity is about 66% and drops down to as far as 37%. The total average annual rainfall ranges between 821mm to 1,505mm. Long rains occur between March and May and short rains occur between October and December each year
The major physical features include the famous Uluguru Mountains, which lie in the south-eastern part, and Mindu mountains, which lie in the western part.
There are three main rivers with several tributaries, which form a number of alluvial flood plains. These rivers are the Morogoro, Kilakala, and Bigwa. Other sources of water are the Mindu Dam which was built in the late 1980s to serve for the industrial activities as well as domestic purposes
The Municipal is covered by loam, sand loam and clay soil. The soils vary between red lateritic earth grey sand to silt hardpan and iron crust “mbuga”. Moreover, there are sandy clay loam and reddish coloured soils on inter flute slopes that are saturated with water within 100 cms of the surface during the growing season. The majority of these soils have high nutrient contents and are considered suitable for a wide range of food and cash crops and therefore have the potential for profitable cultivation.
Like other councils in Morogoro region, the population of Morogoro Municipality has experienced a significant increase in growth. The Council’s average annual growth rate of the population during the 1978 to 1988 intercensal period was 4.6 percent, but decreased to 4.2 percent during the 1988 to 2002 intercensal period. According to the 1978, 1988, 2002 and 2012 Population and Housing Censuses the population of the district increased from 74,114 in 1978 to 117,760 in 1988 and reached 315,866 in 2012. It results in a big increase of 205,705 people or an average annual growth rate of 3.86 percent during 1988 to 2012 compared to 4.7 percent during 1988 to 2002 intercensal period. Population projection for year 2019 is 396,481 people.
In Morogoro municipalitythe major economic activities include:
The SWOT analysis was performed to seek and identifying Strength, Weaknesses, of Morogoro Municipal Council’s ability on attracting investment. Furthermore, Opportunities and Threats towards investment were clearly analyzed. The analysis was based on Criteria that will be able to target and win new potential investment such as budget, skilled and knowledge staff, ability to service investors’ needs, Leadership and management experience, stakeholder and community involvement, councils Policies, by-laws etc.
The purpose of the Organizational SWOT Analysis is:
to assess how well current institutional arrangements, meet the need for the Council to carry out proactive investment promotion
to identify whether the budget, skills, staffing levels, procedures, and processes, including Website, are adequate to the mandate and purpose of the investment promotions
Identify potential opportunities to create partnerships and alliances to strengthen investment promotion capacity
Identify any threats to smooth and effective functioning of the council level investment promotion strategies
The following table show the strength and weaknesses identified in Morogoro Municipal Council
Table 1:Strength and Weaknesses of Morogoro Municipal Council
Criteria
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Strengths
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Weaknesses
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Leadership
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Experienced leadership
Presence of strong and committed leaders Conducting of periodic meetings Good governance |
Inadequacy of knowledge and skills on administration and management to some of the leaders
Inadequate working tools (Especially transport) |
Human Resource and management
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Enough personnel
Team work spirit Committed and dedicated human resource Presence of staff training Programme |
Inadequate and spatial working offices
Inadequate and outdated facilities |
Processes to deliver services
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Ability to offer tender and high-quality service
Ability to provide quality service timely Ability to provide guidelines and instruction Accountability and transparency |
Inadequate working tools
Inadequate database management system Inadequate science teachers Inadequate of school and teachers for students with special needs Inadequate of school teachers houses Inadequate water infrastructure |
Policy and strategies
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Presence of District Strategic Plan
Government commitment to plans and budget Presence of by-laws, directives, rules and regulations |
Inability to implement fully the district plans
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Financial Resources
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Presence of strong mechanism for financial management
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1.Unreliable sources of revenue
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Technology
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Presence of data management system
Qualified professional staff to cope with changing technology |
Inadequate infrastructure and working tools
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The community
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Presence of training institutions
Cooperation available from different stakeholders Existing peace and tranquility Presence of agricultural services center Good geographical zone |
1.Low education status
2.Presence of negative cultural traits |
The following table show the identified opportunities and threats in Morogoro Municipal Council
Table 2:Opportunities and Challenges of Morogoro Municipal council
Criteria
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Opportunities
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Challenges
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Leadership
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Government stability
Support from Central Government Availability of training Institutions On-going public service reform |
Willingness of political leaders to support development activities
Political influence on technical issues Delay in decision making Political interference |
Human Resource
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Availability of human capital in the labour market
Government support Availability of training institution to impart knowledge Regular staff meeting The on-going public service reforms Effective use of technical assistance Maintaining gender balance Available training materials and the council’ s needs |
Political influence
Outbreak of communicable and non-communicable diseases Late and inadequate fund disbursement |
Processes to deliver services
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Availability of various process technologies in the market
Availability of arable land with multiple ecological zones Presence of well place of infrastructure Business opportunities Availability of Public Procurement Act and Public Finance Act Support from Banks Support from Central Government Availability of potential donors due to good environment Good cooperation with clients/community |
Limited budget
Low awareness among stakeholders on council payment procedures Inadequate infrastructure Adherence to laws, rules and regulations Inadequate and outdated facilities |
Policy and strategies
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Presence of Local Government Act of 1982
Presence of defined Policies and guidelines from Central Government Presence of MKUKUTA II Presence of Vision 2025 Ruling Party Election Manifesto |
Frequently changes in policies and strategies
Changes in policy priorities Low awareness among council staff on policies, directives, rules and regulations |
Financial Resources
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Support from the Government
Presence of financial institutions Support from Development Partners |
Flow of funds is insufficient and non-continous
High interest rates charged by financial institutions Insufficient incentives and motivation packages |
Technology
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Availability of modern technology in the market
Presence of training institutions to build capacity of staff in changing technology The on-going public sector reform |
Capacity to cope with changing technology
Change of technology frequently |
The following are the tourist attractions in Morogoro municipality; morning site (Old Germany settlement build in 1911), Water falls, bush shrike, three horned chameleon, Uluguru endemic toads, German tower, Lukwangule plateau, grave of Morogoro founder, curves,graves of the warriors from South Africa (ANC) e.t.c. More over the Municipality is nearby Selou game Reserve, Mikumi national Park andUduzungwa national park.
The Municipality has a large internal network of all-weather roads making easy movement of people and goods. The road network makes it easy to conduct business activities. The Municipality is further well connected to the productive hinterland and business hubs of East Africa. Morogoro Municipality is served by a variety of communication facilities capable of servicing the business community within and outside the Municipality. Communication services that are available in the Municipality include postal services, mobile and landline telephones, private carriers and internet. The Municipality has a road network of km 582.03 of which 27.77 km are tarmac, 36.40km are covered with gravel and 517.86 km are earth roads.
They comprise of both formal and informal institutions. Among the financialinstitutions areCommercial bankslike CRDB, NMB, Exim Bank, TPB, NBC, Standard Chartered Bank, Backlays bank Tanzania, Stanbic bank e.t.c, co-operative bank, non-bank financial institutions, financial NGOs, insurance companies, SACCOS and Rotating Savings and Credit Schemes. The wide range of financial institutions makes it easier to meet the diverse financial needs of the business community. This location provides unlimited choices of business opportunities.
Being part of The United Republic of Tanzania (Morogoro municipality in particular) is politically, socially and economically stable. Private investments are constitutionally protected as well as through international conventions. Morogoro municipality dwellers continue to live in peace and with a sense of a common national identity without ethnic or tribal division. Furthermore, good governance that creates good environment for investment both Local and Foreign Investors
In the municipality a variety of raw materials are available for investment. Both human and non-human resources. Both skilled and unskilled labors are available, the resources like fertile land, minerals, fruits and vegetable within municipality and the surrounding areas like avocado, water melon, coconuts, Mangoes, sweet potatoes, cassava, tomatoes, green vegetables, oranges, sugar cane, pineapples etc.; skin
In the municipality the basic social utilities are present in many parts. The utilities like electricity, water supply
Morogoro municipality is among the growing cities in the country attracting investors in social, cultural and economic development areas. Table 3 to 12 bellow highlights the potential areas for investment in various sectors in the municipality
Table 3: Proposed Investment Opportunities on Industry Sector in Morogoro Municipality
Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star city |
Size and owner of land for investment
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-A Plot of 2 acres owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
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The existing ones are not reliable
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Infrastructures, incentives and services available
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-Transport accessibility
-Centered to other district and Regions -Favourable Weather condition - Presence of fish and animals in large number -Availability of raw materials |
Market situation
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-High demand of fish and animal feeds for the in and outside District livestock keepers.
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Type of Investor recommended
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-Local and foreign investors
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star city |
Size and owner of land for investment
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-A Plot of 1 acre owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
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-Exist but production is very low
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Infrastructures, incentives and services available
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-Research centers
-Electricity, -Road accessibility -Availability of research centers -availability of fruits and vegetable within municipality and the surrounding areas |
Market situation
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-Local and international high demand for the products
-A well-established market for the product |
Type of Investor recommended
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-Local and foreign investors
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star city |
Size and owner of land for investment
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-A Plot of 1 acre owned by MMC
- Industrial area of 3200 acres at Star city project |
Current state of investment
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-No investment
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Infrastructures, incentives and services available
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-Transport
-Electricity, -Research centers -Availability of cereal crops within and outside the municipality - Favourable weather |
Market situation
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-Local demand
-International demand for cereal products |
Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of an industry
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star city |
Size and owner of land for investment
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-A Plot of 2 acres owned by MMC
- Industrial area of 3200 acres at Star city project |
Current state of investment
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Exists but only for sunflower at small scale
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Infrastructures, incentives and services available
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-Electricity supply
-Road network -Raw materials availability -Presence of research centers |
Market situation
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-Local and internationally demand for oil seed
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Type of Investor recommended
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Small and Medium scale foreign and Local investors
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Proposed Investment
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Potential target areas
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-Kihonda service industrial
-Star city |
Size and owner of land for investment
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1 acre which is owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
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It will be a new investment
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Infrastructures, incentives and services available
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-Transport and communication
-Electricity supply -Water supply -Availability of skilled and unskilled labors |
Market situation
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- Many farmers demand on agro-chemicals products
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Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of an industry
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Proposed Investment
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Potential target areas
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Kihonda service industrial
-Star city |
Size and owner of land for investment
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-1 acre which is owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
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-Exist but not satisfactory
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Infrastructures, incentives and services available
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-Electricity supply
-Water supply -Road network |
Market situation
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- Presence of potential farmers and dealers
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Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of an industry
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Proposed Investment
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Potential target areas
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-Tangeni and Bigwa
-Star city |
Size and owner of land for investment
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Current state of investment
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Only water supplying agency for domestic use (MORUWASA and Municipal Water Department)
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Infrastructures, incentives and services available
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-Electricity
-Transport and communication networks -Availability of reliable source of water (rivers and underground water) - Availability of skilled and unskilled labors |
Market situation
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Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of an industry
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Proposed Investment
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Potential target areas
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-Kihonda industrial areas
-Star City |
Size and owner of land for investment
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Current state of investment
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No investment
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Infrastructures, incentives and services available
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-Electricity
-Transport and communication networks -Availability of minerals nearby areas -The place is the center of many regions |
Market situation
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-Increasing demand for mineral products
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Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of a centre
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Table 4: Proposed Investment Opportunities on Livestock and Fishing Sector in Morogoro Municipality
Proposed Investment
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Potential target areas
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Mawasiliano street in Mkundi Ward
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Size and owner of land for investment
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35 Acres Which has been surveyed and owned by MMC
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Current state of investment
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An area has not been invested
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Infrastructures, incentives and services available
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-Area is Accessible with tarmac road
-Reliable power source -Availability of financial institutions -A surveyed area which is EIA certified -MMC has 36 professionals |
Market situation
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- High demand of meat within and outside Municipality
-Centered area from other regions. -The present abattoir doesn’t fulfill service provision (Recently only 120 cattle are slaughtered and the target is 500 cattle) |
Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of an industry
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Proposed Investment
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Potential target areas
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Mawasiliano street in Mkundi Ward
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Size and owner of land for investment
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65 Acres which has been surveyed and owned by MMC
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Current state of investment
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- An area has not been invested
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Infrastructures, incentives and services available
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-Area is Accessible with tarmac road
-Reliable power source - MMC has 36 professionals -Favourable weather condition |
Market situation
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-The target of MMC to slaughter 500 cattle and recently only 120 are slaughtered
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Type of Investor recommended
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Medium to large Local Investors are preferred
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star City |
Size and owner of land for investment
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-1 plot each with 4,000 Square meters owned by MMC
-Commercial area of 1000 Acres at Star City project |
Current state of investment
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The present ones are very local; thus, a modern center is needed
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Infrastructures, incentives and services available
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- Electricity
-Roads network |
Market situation
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-A need for modern pork center which adhere to sanitation rules
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Type of Investor recommended
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-Local investors within and outside Municipality
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star City |
Size and owner of land for investment
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-An area of 1 acre owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
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-There is no such service provision
-Poultry slaughtered at very poor environment |
Infrastructures, incentives and services available
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- Road infrastructures
-Electricity |
Market situation
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- A need for modern poultry meet which adhere to sanitation rules
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Type of Investor recommended
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Local investors within and outside municipality
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Proposed Investment
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Potential target areas
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-Kichangani Ward
-Star City |
Size and owner of land for investment
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-Surveyed area with a title deed owned by MMC
-Commercial area of 1000 Acres at Star City project |
Current state of investment
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-There is a building
But Storage and Processing facilities/ machines are not yet installed. |
Infrastructures, incentives and services available
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-Accessibility of the area
-Reliable source of power -Reliable water supply -Building infrastructures -High production of milk (2,321,559 litres) per year |
Market situation
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-High demand of milk and milk products like Butter, ghee e.t.c
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Type of Investor recommended
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Local and foreigner investor
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star City |
Size and owner of land for investment
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-A Plot of 1 Acres owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
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Small scale and unreliable available incubators
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Infrastructures, incentives and services available
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-Transport accessibility
-Centered to other district and Regions - Favourable Weather condition |
Market situation
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-High demand of standard and improved chicks
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Type of Investor recommended
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-Local investors
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Other Proposed Investment
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Table 5: Proposed Investment Opportunities on Trade and Commerce Sector in Morogoro Municipality
Proposed Investment
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Potential target areas
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-DDC Building Kingo Ward
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Size and owner of land for investment
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-An area owned by MMC
- Commercial area of 1000 acres at Star city project |
Current state of investment
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-There is an old building
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Infrastructures, incentives and services available
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-Availability of water
-Electricity -Transport and communication networks -The area is EIA certified |
Market situation
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-Increasing demand for commercial buildings and offices
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Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of a complex commercial building
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Proposed Investment
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Potential target areas
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-Mjimpya market- area,
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Size and owner of land for investment
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-The area owned by MMC
- Commercial area of 1000 acres at Star city project |
Current state of investment
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Exists but it is old
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Infrastructures, incentives and services available
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-Availability of water
-Electricity -Transport and communication networks |
Market situation
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-Increasing population and number of businessmen
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Type of Investor recommended
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Medium to large scale investments company which can mobilize required capital for establishment of a market
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Proposed Investment
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Potential target areas
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Morogoro central Market, around all Keep lefts at
Msamvu bus stand Masika Mjini Kati [Stendi ya Hiace] Posta Tumbaku Municipal and SUA) |
Size and owner of land for investment
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Places owned by MMC
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Current state of investment
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It is a new innovation
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Infrastructures, incentives and services available
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-Presence of already constructed office
-Electricity -Transport and communication networks -Keep lefts -The areas are situated at Municipality Business Centre. |
Market situation
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High demand for advertisement by businessman
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Type of Investor recommended
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Small to medium scale Local Investors who will afford the required capital
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Proposed Investment
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Potential target areas
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-Mawasiliano at Mkundi ward
-Star city |
Size and owner of land for investment
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Current state of investment
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Invested at small scale
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Infrastructures, incentives and services available
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-Electricity
-Transport and communication networks -Raw materials availability -Availability of labor Good weather condition |
Market situation
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Increasing demand for furniture and their products
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Type of Investor recommended
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Small to medium scale Local investors
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Table 6: Proposed Investment Opportunities on Tourism, Culture, arts and sports in Morogoro Municipality
Proposed Investment
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Potential target areas
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-Open spaces
-Star City |
Size and owner of land for investment
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-Areas owned by MMC
-Commercial area of 1000 acres at Star city project |
Current state of investment
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- There are open spaces, but have not been developed
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Infrastructures, incentives and services available
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-Availability of water
-Electricity -Transport and communication networks -Favourable weather -Low operation costs -Presence of open spaces |
Market situation
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-Increasing population in Municipality and increase in demand for refreshment areas
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Type of Investor recommended
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Small, medium to large scale investments company which can mobilize required capital for establishment of a recreation center
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Proposed Investment
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Potential target areas
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-Former abattoir area at Mwembesongo ward
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Size and owner of land for investment
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-3.62 acres Land owned by MMC
-Commercial area of 1000 acres at Star city project |
Current state of investment
|
It will be a new innovation
|
Infrastructures, incentives and services available
|
-Availability of water
-Electricity -Transport and communication networks - Affordable construction costs. -Presence of construction’s tools and equipment |
Market situation
|
-Tourism expansion
-Need for executive places - Municipality is the center of many regions in the country |
Type of Investor recommended
|
Local and foreign investors
|
|
|
Proposed Investment
|
|
Potential target areas
|
-Uluguru Mountain
-MguluwaNdege -Mazimbu |
Size and owner of land for investment
|
The areas owned by MMC
|
Current state of investment
|
-Invested at small scale
|
Infrastructures, incentives and services available
|
Presence of various tourist attractions like:
-Morning site (Old Germany settlement build in 1911), Water falls, bush shrike, three horned chameleon, Uluguru endemic toads, German tower, Lukwangule plateau, grave of Morogoro founder, curves, Graves of the warriors from South Africa (ANC) e.t.c
|
Market situation
|
|
Type of Investor recommended
|
|
Table 7: Proposed Investment Opportunities on Environment Sector in Morogoro Municipality
Proposed Investment
|
|
Potential target areas
|
-Kihonda industrial areas
|
Size and owner of land for investment
|
One acre owned by MMC
|
Current state of investment
|
- It is done but very little
|
Infrastructures, incentives and services available
|
-Accessible road transport
-Water supply - New modern sanitary land fill -Skilled and unskilled labors -5% levies to MMC and 10% levies to Ward of the total collection levy the rest goes to investor |
Market situation
|
Presence of solid waste to the households and industries
|
Type of Investor recommended
|
Small to medium scale investments undertakings
|
|
|
Proposed Investment
|
|
Potential target areas
|
-Mguluwandege forest reserve
-Mkundi ward |
Size and owner of land for investment
|
2614 hactres owned by MMC
|
Current state of investment
|
Exists but at small scale
|
Infrastructures, incentives and services available
|
-Availability of water
-Electricity -Transport and communication networks -The forest covered by beekeeping resources (trees and water) - Availability of beekeeping equipment industries (Producing beekeeping equipment) -Favourable weather |
Market situation
|
-High demand for bee’s products
|
Type of Investor recommended
|
Small to medium local investors
|
Table 8: Proposed Investment Opportunities on agriculture Sector in Morogoro municipality
Proposed Investment
|
|
Potential target areas
|
-Kihonda service industrial
-Star city |
Size and owner of land for investment
|
-1 acre which is owned by MMC
-Industrial area of 3200 acres at Star city project |
Current state of investment
|
- It will be a new innovation
|
Infrastructures, incentives and services available
|
-Research institute
-SGR transport will be nearby the area - Water supply, -Electricity -Road network -Favourable weather - Presence agricultural research institute |
Market situation
|
- No existing flower production farms
|
Type of Investor recommended
|
Small to Medium scale investments undertakings, able to acquire needed capital
|
Table 9: Proposed Investment Opportunities on Education in Morogoro Municipality
Proposed Investment
|
|
Potential target areas
|
-Tungi Ward
-Star city |
Size and owner of land for investment
|
-10 acres owned MMC
- An area of 1200 acres at Star city project |
Current state of investment
|
- There are few schools which does not fulfill the demand
|
Infrastructures, incentives and services available
|
-Availability of electricity,
-Transport and communication network are available, -Water supply -Availability of skilled labors |
Market situation
|
-increase of population rate
-Immigration rate is higher New residential areas |
Type of Investor recommended
|
Medium to large scale Local or foreign investors with adequate capital
|
|
|
Other Proposed Investment
|
|
Table 10: Proposed Investment Opportunities on Energy in Morogoro Municipality
Proposed Investment
|
|
Potential target areas
|
-Mawenzi
-Star city |
Size and owner of land for investment
|
-Half acre owned by MMC
- Industrial area of 3200 acres at Star city project |
Current state of investment
|
Exist but at small scale
|
Infrastructures, incentives and services available
|
-Road network
-Water supply -Electricity supply -Communication network -Presence of raw materials -Presence of skilled and unskilled labors |
Market situation
|
-Demand for bio gas within and outside municipal council
|
Type of Investor recommended
|
Small to medium scale local investors
|
|
|
Proposed Investment
|
|
Potential target areas
|
-Kihonda industrial areas
-Star city |
Size and owner of land for investment
|
-1 acre owned by MMC
- Industrial area of 3200 acres at Star city project |
Current state of investment
|
Exist in small scale
|
Infrastructures, incentives and services available
|
-Road network
-Water supply -Electricity supply -Communication network -Low production cost -Availability of solid waste |
Market situation
|
High demand for charcoal Within and outside municipal council
|
Type of Investor recommended
|
Local investors
|
Table 11: Proposed Investment Opportunities on Health Sector in Morogoro Municipality
Proposed Investment
|
|
Potential target areas
|
-Star city
|
Size and owner of land for investment
|
-100 acres owned by MMC
- Industrial area of 3200 acres at Star city project |
Current state of investment
|
Exist but are insufficient
|
Infrastructures, incentives and services available
|
-Road network
-Water supply -Electricity supply -Communication network -Presence of raw materials -Presence of skilled and unskilled labors |
Market situation
|
-Demand for health care services within and outside municipal council
|
Type of Investor recommended
|
Medium to large scale local and foreign investors who will manage to have a capital for establishment of hospital facility
|
Table 12: Other Proposed Investment Opportunities in Morogoro Municipality
Other Proposed Investment
|
|
In this part the issues that should be done in order to increase the level of investments in the city are discussed.
The vision of MMC is to have “A community with a higher standard of living provided with a sound and quality sustainable socio – economic services by 2025”
The MMC is “To offer ‘adequate’ socio- economic services to people while creating trust by managing its resource base effectively and efficiently for the benefits of the council’s residents and beyond.”
Any council aims at attracting investors at their place by creating conducive and attractive environment for investment. In other to meet the goal, the council has stated some of roadmaps towards investment promotion and development as sown in table 13 below
Table 13: Morogoro Municipal Council Investment Promotion Roadmaps
No
|
Investment Promotion
|
Activities
|
Timeline
|
1
|
Create enabling environment to foster business growth and marketing activities in the Municipal
|
Conducive environment for PPP investment enhanced |
By June, 2021.
|
2
|
Linking Local enterprises to Business development Service Providers
|
|
Ongoing
|
3
|
Facilitation of establishing enterprise consulting services
|
|
On going
|
4
|
Creating updated SMEs and investors database
|
|
ongoing
|
5
|
Proper Utilization of Livestock Resources
|
|
By 2021
|
6
|
Conducting or facilitating feasibility studies for potential investment projects
|
|
ongoing
|
7
|
Utilization of works, transport and Communication facilities for economic development
|
Make the road network safely passable throughout the year and increase Municipal road network
|
By June 2021
|
8
|
Fostering better access to finance
|
|
ongoing
|
9
|
Promote community Based Bee Keeping Agroforestry system
|
Natural forests to be conserved in Morogoro Municipal Council
|
By Year 2021
|
10
|
Organizing investment forums
|
|
ongoing
|
11
|
Sustainable land use as per town plans and land management
|
|
By Year 2021
|
12
|
Environmental and Sanitation Management
|
|
By Year 2021
|
Tanzanian Investment Policy, Tanzania has a body of statutes that govern investment (both local and foreign), foreign trade (imports and exports), customs duties, business licensing, Investment Policy, Performance and Perceptions in Tanzania intellectual property rights, export control, competition policy, and other related matters. Tanzania investment policy was established in 1990 to govern investment in the country through developing clear policy of openness to investment, although a successful investor must still go through some procedures.
The Investment Act of 1997 was enacted to help create an attractive commercial environment, and to provide incentives for inward investment. This act also established the Tanzania Investment Centre (TIC) as the sole investment promotion agency in the country to perform as a one-stop agency to coordinate and facilitate investment within the country
The central government and town council are interested to promote local and foreign investment to stimulate economic growth, reduce poverty and obtain more social and economic benefits especially in rural areas where most people live. This area describes investment incentives that have been adopted and there are policies, management procedures and legal framework to facilitate investors and economic activities in Morogoro municipality
Tanzania recognizes the importance of investment in stimulating economic growth and development in the country and creating a potential for sustainable future revenue generations. A number of investment incentives are granted to both local and foreign investors in a variety of sectors in order to encourage investment. The incentives provided under the law are accessible to investment in areas which are basically considered for economic development. These sectors have included agriculture, agro based industries, mining, health, education, economic infrastructures, telecommunication, banking and insurance. With respect to investment incentives themselves, most date back to the Investment Act of 1993 (Amended in 1996). Investment Incentives and exemptions are categorized into fiscal incentives and non-fiscal incentives.
Are tax measures geared to encourage investors development, these incentives are designed to assist investment opportunities due on qualify criteria outlined in the fiscal incentives. It is also known as tax incentives enhancing capital deduction and tax allowances.
Tax incentives will facilitate various investment policy objectives. Types of incentives under this category include corporate taxes, cooperative society taxes,
Re-investment allowance on capital expenditure , with-holding tax on dividends, royalties and interest, personal income tax, indirect taxes , infrastructure allowance, double dedications of specified approved costs and expenses, accelerated depreciation allowances, specified tax incentives and investment allowances on capital expenditure that include non-designated area, local participation in the equity, export oriented project , project generating significant local employment, project depending on domestic resources , sartorial linkages, new technology and training.
Some of incentives available to the holders of certificates of incentives
This Alert only highlights some changes to the Finance Bill, 2016 as previously reported. Once the Finance Act, 2016has been assented by the President, a comprehensive Alert covering all the changes in tax laws will be issued. The following amendments proposed are;
Income Tax Act, 2004 (ITA, 2004)
Tax Administration Act, 2015
Refers to the services and assistance provided to investors by government departments to facilitate a registered enterprise's operation and entry into the market. The government will provide an assistance in order to improve investment productivity. To facilitate this government will make taxes affordable and provide investment allowances that allow investors to contribute to government revenue.
The assistance provided by government includes
The incentives are broadly standardized to avoid the high administrative costs associated with large number of incentives differentiated by activities and sectors. The MorogoroCouncil LGA has expressed a desire to re-assess incentive policy so as to make it more cost-effective and allow it to benefit a broader spectrum of the LGA’s population. The LGA continues to carry out the Financial Sector Development Plan, which has increased access to financial services through the promotion of microfinance, mobile and rural banking. The government is also committed to spending the percent of the budget on social sectors and infrastructure, financing this through increased domestic revenues. It also offers a well-balanced and competitive package of fiscal incentives in comparison with other Tanzania regions
In terms of legal framework, the Tanzanian Government has a favorable attitude towards foreign direct investment (FDI) and has made significant efforts to encourage foreign investment. Generally, foreign investors use the social services available as local investors does, for instance in MorogoroCouncil the service available are transport and communication system, buildings, water tapes, electricity power.
The Tanzania Investment Centre (TIC) is the focal point for all investors’ inquiries and facilitates project startups. It further provides joint venture opportunities between local and foreign investors and disseminates investment information.
The legal framework underlying the investment policy in MorogoroCouncil is provided by the investment facilitation Act of 1996 with its amendments of 2010 and the new code designed to facilitate the promotion of all forms of investment activities in Tanzania to both local and foreign investors.
Under Section 19 (1) of the Land Act, 1999 citizen investors or group of them may acquire land by a granted right of occupancy or a derivative right or by obtaining a sub – lease from private sector.
The procedures to be followed by local investors when applying for farm land:
The procedures to be followed by local investors when applying for urban land
The procedure to be followed by both local and foreign investors when applying for Tanzania Investment Centre (TIC) Derivative Rights. It applies to both urban and farm land:
Occupation of land by non-citizens is restricted to lands for investment purposes under the Tanzania Investment Act, 1997. Under the Land Act, 1999 a foreign investor may occupy land through:
Land designated for investment purposes shall be identified, gazzetted and allocated to TIC, which shall create derivative rights to investors. Instances of grant of right of occupancy to a non-citizen are recognized under section 19(2) of Land Act, 1999. Section 22(1) (ii) allows the granted right of occupancy to be capable of being a subject of disposition.
In this later case a right of occupancy can be disposed off from one holder to another provided the land will be sold to and acquired by a non-citizen if it is for investment purposes endorsed by TIC. Another way in which non-citizen investors can acquire land is by obtaining sub-leases from the private sector or through Government Licenses.
The procedures to be followed by foreign investors when applying for grant of right of occupancy. It applies to both urban and farm land
Note: The acquired land either for farm land or urban land is subject to payment of stamp duty, survey fee, registration fee, preparation fee and land rent charges. These fees are subject to changes with time and location.
Discussions with CMT, TIC and TCCIA representatives and other investment stakeholders raised some of the policy and institutional issues. The issues that were raised were seen as challenges to investment promotion in Morogoro municipality at local government level and central government at large. The issues are
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