Nine Tanzanian firms to get Sh22.4 billion in US grants

Dar es Salaam. The United States Government, through the US Agency for International Development (USAID), has said it will issue an investment of Sh22.4 billion ($8.3 million ) to several Tanzanian firms to boost trade, improve food security, and strengthen Tanzania's competitiveness in the export arena through the African Growth and Opportunity Act (Agoa)

USAID Tanzania Mission Director Craig Hart said the nine local firms will receive grants under the USAID Africa Trade and Investment Project.

He named some of them as BioBuu, Biotan Limited, Central Park Beew, Minjingu Mines and Fertiliser Limited, Mount Meru Millers, and Red Earth Limited, among others.

“The partnerships demonstrate what is possible when the private and public sectors work together," he said.

"We are celebrating USAID partnerships with nine companies across key sectors, including honey, cashews, and garments, that are expected to generate 2000 jobs, drive Sh114.8 billion ($42.5 million) in new exports, and boost Tanzania's status as a regional economic hub," he added.

According to him, they are paving the way for Tanzania to become a regional breadbasket, an energy exporter, and a youth-driven innovation hub. 

Read:US promises more support for Tanzania’s development

He said that through Agoa, they are helping Tanzanian firms find markets in America.

"Agoa is a key part of US economic policy with Africa, offering eligible sub-Saharan countries duty-free access to the US market for over 1800 products," he said.

Meanwhile, minister for Industry and Trade, Selemani Jafo, said the achievements through the USAID Africa Trade and Investment (ATI) Project, which is highly appreciated, but from the government side, there is still significant work to be done to fully exploit the trade and investment potentials in the country.

"There is a need to continue to develop and enhance our production and supply capacity to meet market demand, diversify our export basket by expanding beyond traditional sectors to include value-added products with higher margins, and strengthen supply chain resilience by building robust and efficient supply chains to ensure consistent product quality and timely delivery," he said

He said there is also a need to enhance infrastructure by investing in transportation, logistics, and digital connectivity to facilitate trade and reduce costs, and to promote innovation and entrepreneurship by encouraging the development of new products and services to meet the evolving demands of the US market and elsewhere.

"As we look to the future, the government is committed to building on this momentum reached through the ATI Project, scaling up our efforts, and ensuring that the benefits of this project reach even more people across the country," he said.

He said the government has been implementing various reforms aimed at ensuring the existence of a conducive and sustainable environment for business and investments in the country.

According to him, all reforms undertaken have placed the private sector at the centre and as a key player in economic activities.

It is worth noting that the government maintains both the regulatory role and the facilitation role.

"We have opened our doors wide and maintained a high level of transparency, and we are ready to engage and dialogue on how further we can improve our business and investment environment," he said.

According to him, with all these efforts and initiatives by the government, the ATI Project activities will be implemented in a smooth manner, and in case of any challenge, we are ready to engage, discuss, and resolve.