1. October 2012

2.  Better coordination of DP’s  To showcase effective programmes  To improve on the ground knowledge  To follow a value chain  To hear directly from entrepreneurs about key issues affecting the private sector

3.  Farmers and growers involved with the following programmes:- ◦ SNV ◦ RLDC ◦ Tuboreshe Chakula  Processors ◦ Songera investments, Rig Investments, Uncle Milo, Three Sisters, Nyemo Investments, Jackma Enterprises  Sector Organisations ◦ CEZOSOPA, TEOSA, TASUPA

4.  SIDO ◦ Micro Manufacturing Enterprise Park ◦ Mini- Refinery ◦ Machinery development ◦ Campaign for improved quality of oil  PMO RALG

5.  Finance Institution ◦ PASS  TTCIA Morogoro  Tanzanian Graduate Farmers Association  Sokoine University Graduate Entrepreneurs Cooperative - SUGECO

6.  Successful small-scale private entrepreneurs both producers and processors who were:- ◦ Ready to expand ◦ Ready to engage and assist local farmers ◦ Equipped with skills ◦ Willing to invest ◦ Open to new ideas ◦ Had a vision for the future

7.  Great progress and successful programmes in improving:- ◦ Accessibility of seeds ◦ Quality of seeds – QDS ◦ Methods of production ◦ Availability of information to farmers ◦ Coordination of the sector

8. Production of seed seems to have increased – (anecdotal information - not verified by DPG ) Production of oil from the seeds has increased Total oil production has increased 2 bags of 65kg Before 1 acre produced 12 bags of 65 kg Now 1 acre produces 12 litres Before 1 bag produced 25 litres Now 1 bag produces 24 litres of oil Before - Total production 300 litres oil Now - Total Production

14.  Potential for Tanzania to become net exporter of sunflower oil is good. ◦ Currently Tanzania is a net importer of sunflower oil ◦ The sector is currently only operating at 30% capacity ◦ Dodoma and the central region produce over 60% of sunflower products.

16.  Medium-scale commercial farming ◦ size of plots, ◦ time taken to complete process. ◦ TGFA example  Fragmented industries in residential areas ◦ SIDO Sunflower oil processing cluster Dodoma. ◦ But legal issues, land tenure, cost of building, ownership – GoT or PPP?

17.  Lack of electricity hampering entrepreneurial development ◦ Songera Investments example – idea, vision, skills, capital but no power  Intermittent power increasing costs and reducing productivity  Expensive  Renewables – still not competitive or readily available

18.  Positive engagement between Government & sector organisations  Good channel for dialogue between government and sector through sector organisations ◦ Re-introduction of 10% levy on palm oil imports ◦ Reducing import duty on spare parts for sunflower processing equipment

19.  BUT still need more coherent sector strategy & ongoing consultation ◦ IIDS is in place ◦ Sectoral strategies to frame interventions (e.g. subsidies, levies? ◦ Concrete Policy frameworks? ◦ Monitoring systems in place to track impact and progress towards results? ◦  Proactive engagement rather than reactive interaction  Palm oil levy example  Regular two way information flow and consultation needed to build trust ◦ Single Refining Standard law introduction example

20.  Good information flow from farmers to processors through sector organisations ◦ Productivity increases  Small scale producers – still too small to compete successfully ◦ consider grouping together for better market access and product quality ◦ Clustering ◦ Contract manufacturing

21.  But this will need:- ◦ Trust between competing SMEs ◦ Possible external facilitation – as happened between RLDC, SNV and the strengthening of sector organisation CEZOSOPA, TASUPA & TEOSA ◦ Cluster development & land allocation by government – eg SIDO

22.  Plethora of regulations - overlapping

23.  One stop shop for SME’s like TIC is for larger investors?  Discrepancy between on the ground reality and central regulations ◦ Tax levied at point of sale vs boundary taxes by local authorities  Paradigm shift from ownership & government control to lighter touch regulation

24.  Difficult access to finance – 20% + interest rates  More credit guarantee schemes for SME’s need to be implemented. ◦ Ideas to open schemes with TIB and NMB planned but not yet implemented

25.  Lack of appropriate skills – ◦ Technical and managerial levels are imported from eg India or Kenya ◦ Mismatch between graduate skills and industry needs ◦ Internships, bridging programmes from formal education to industry ◦ Formal and practical skills  Machinery manufacture & maintenance ◦ Balance between local production of light manufacturing machinery vs import of equipment at the lowest price to remain competitive?

26.  Production is increasing  More lucrative market is there  But need strategic engagement to promote sunflower oil  Coordinated effort from small scale processors to be able to compete  Coordination at District levels to ease cross boundary transportation

27.  Downstream value chain development needed to exploit opportunities ◦ Packaging ◦ Marketing ◦ Business development ◦ Exporting

28. “Sunflowers used to be viewed as a crop for poor women – now they are seen as an important and potentially lucrative cash crop” Monsipile Kajimbwa, SNV Morogoro Produced by DPG PSD Trade Secretariat November 2012