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USAID EAST AFRICA TRADE and INVESTMENT HUB Quarterly Progress Report for Tanzania, January 2019

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USAID EAST AFRICA TRADE and INVESTMENT HUB Quarterly Progress Report for Tanzania, January 2019 USAID EAST AFRICA TRADE AND INVESTMENT HUB Quarterly Progress Report for Tanzania, January 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by DAI Global, LLC. (DELETE THIS BLANK PAGE AFTER CREATING PDF. IT’S HERE TO MAKE FACING PAGES AND LEFT/RIGHT PAGE NUMBERS SEQUENCE CORRECTLY IN WORD. BE CAREFUL TO NOT DELETE THIS SECTION BREAK EITHER, UNTIL AFTER YOU HAVE GENERATED A FINAL PDF. IT WILL THROW OFF THE LEFT/RIGHT PAGE LAYOUT QUARTER 1 PROGRESS REPORT FOR TANZANIA FISCAL YEAR 2019 USAID EAST AFRICA TRADE AND PROGRAM TITLE: INVESTMENT HUB CONTRACT NUMBER: AID-623-C-14-00006 CONTRACTOR DAI GLOBAL, LLC. REPORTING PERIOD OCTOBER 1 – DECEMBER 30, 2018 DATE OF SUBMISSION JANUARY 30, 2019 CONTRACTING OFFICER’S RICHARD MUGO REPRESENTATIVE CHIEF OF PARTY MARC SHIMAN The authors’ views expressed in this report do not necessarily reflect the views of the United States Agency for International Development or the United States Government. i | USAID EAST AFRICA TRADE AND INVESTMENT HUB FY2018 ANNUAL DRAFT REPORT TABLE OF CONTENTS ACRONYMS AND ABBREVIATIONS III EXECUTIVE SUMMARY 1 I. Q1 KEY ACTIVITIES AND ACCOMPLISHMENTS BY HUB COMPONENT 3 COMPONENT 1: INVESTMENT AND TECHNOLOGY 3 COMPONENT 2: AGRICULTURE AND AGRIBUSINESS 7 COMPONENT 3: TRADE PROMOTION AND AGOA 10 COMPONENT 4: TRADE POLICY AND REGULATORY REFORM 14 1I. UPCOMING TANZANIA EVENTS 16 III. TANZANIA BUY-IN TARGETS FOR FY2018-2019 17 IV. PROJECT ADMINISTRATION 23 V. SUCCESS STORIES 23 ii | USAID EAST AFRICA TRADE AND INVESTMENT HUB FY2018 ANNUAL DRAFT REPORT ACRONYMS AND ABBREVIATIONS AGOA African Growth and Opportunity Act AGRIFOP Agribusiness Focused Partnership Organization AGMARK Agricultural Market Development Trust ALLPI Africa Leather and Leather Products Institute B2B Business-to-Business BDS Business Development Services C1 Component 1 C2 Component 2 C3 Component 3 C4 Component 4 COMESA Common Market for Eastern and Southern Africa DUS Distinctness, Uniformity and Stability EAC East African Community EACBTA East African Cross-Border Traders Association ECFFPC East Africa Customs and Freight Forwarding Practicing Certificate EAGC Eastern Africa Grain Council EAMS East African Monitoring System EATIH East Africa Trade and Investment Hub ECX Ethiopia Commodity Exchange EIC Ethiopian Investment Commission ENGINE Enabling Growth through Investment and Enterprise Program FACTS Financial Access Commerce and Trade Services Africa FEAFFA Federation of East African Freight Forwarders Associations FTE Full-time Equivalent FY Fiscal Year GSP Generalized System of Preferences HACCP Hazard Analysis and Critical Control Points ICT Information and communications technology IESC International Executive Service Corps IPA Investment Promotion Agency ISTA International Seed Testing Association MORAGG Morogoro Agricultural Group MoU Memorandum of understanding MT Metric Tons OCA Open Capital Advisors PMP Performance Monitoring Plan Q1 Quarter One ROO Rules of Origin SMEs Small- and Medium-Sized Enterprises SOPs Standard Operating Procedures SPS Sanitary and Phytosanitary TBT Technical Barriers to Trade TCCIA Tanzania’s Chamber of Commerce, Industry and Agriculture TDU Textile Development Unit TEGAMAT Textile and Garment Manufacturers Association of Tanzania TFFA Tanzanian Freight Forwarders Association TIC Tanzania Investment Centre TOSCI Tanzania Official Seed Certification Institute iii | USAID EAST AFRICA TRADE AND INVESTMENT HUB FY2018 ANNUAL DRAFT REPORT TMX Tanzania Mercantile Exchange UPOV International Union for the Protection of New Varieties of Plants USAID U.S. Agency for International Development USD U.S. Dollar WTO World Trade Organization iv | USAID EAST AFRICA TRADE AND INVESTMENT HUB FY2018 ANNUAL DRAFT REPORT USAID EAST AFRICA TRADE AND INVESTMENT HUB Funding Level: $63.9 million Presidential Initiative: Feed the Future Project Goals: Improve the policy environment for East African Community (EAC) integration, trade, and investment Increase the competitiveness of select regional agricultural value chains and bolster regional trade in staple foods Promote intra-regional and export trade, particularly under the African Growth Opportunity Act (AGOA) Facilitate investment and promote the use of available global technology Expected Accomplishments: Double the value of intra-regional trade in the EAC Increase non-oil exports to the U.S. under AGOA by 40% Foster 18,500 new full-time equivalent Jobs through firms assisted by the East Africa Trade and Investment Hub and its partners Facilitate $100 million of new investments in targeted sectors in the EAC Increase the EAC’s intra-regional trade in staple foods by 40% Project Locations: The East African Community countries – Burundi, Kenya, Rwanda, Tanzania and Uganda – and, Ethiopia, Madagascar, and Mauritius. v | USAID EAST AFRICA TRADE AND INVESTMENT HUB FY2018 ANNUAL DRAFT REPORT EXECUTIVE SUMMARY As of the end of quarter one (Q1) of fiscal year (FY) 2019, the U.S. Agency for International Development (USAID) East Africa Trade and Investment Hub (EATIH or the Hub) is well on track to meet the proposed indicator targets for Tanzania by proJect’s end in August 2019. PROGRESS TO DATE FY2018-2019 BUY-IN TARGETS • $45.8 million in country-level • $43.5 million in country-level exports exports through AGOA through AGOA • $145,965 in AGOA exports from • $500,000 in AGOA exports from Hub- Hub-supported firms supported firms • $15.5 million of new private sector • $20 million of new private sector investment investment • 427 new Jobs (full and part-time) • 500 new Jobs (full and part-time) • 237 export buyer-seller linkages • 200 export buyer-seller linkages • 10 trade and investment missions • 6 trade and investment missions • 23 food security producers and • 30 food security producers and organizations supported organizations supported • 8 policy and regulatory reforms • 8 policy and regulatory reforms • 90 firms receiving capacity building • 75 firms receiving capacity building assistance to export assistance to export Q1 STAND-OUT ACCOMPLISHMENTS: INVESTMENT AND TECHNOLOGY To date, the Hub has closed three investments in Tanzania valued at $15.5 million. The Hub’s pipeline in Tanzania stands at $99.4 million, and an estimated $12 million is expected to close in the coming months. The Hub facilitated the signing of a letter of intent for the purchase of high-quality soya meal products between Morogoro Agricultural Group (MORAGG), a Tanzanian company that manufactures livestock feeds, and Sigma Feeds, a leading Kenyan poultry producer. The Hub worked with MORAGG to first search for and identify interested buyers and to then draft and finalize a signed letter of intent that outlines the initial terms for potential orders of 30 metric tons (MT) of soya meal per month. AGRICULTURE AND AGRIBUSINESS Tanzania complied with two international seed schemes after it officially received International Seed Testing Authority (ISTA) accreditation and it submitted the final distinctness, uniformity and stability (DUS) test guidelines for priority crops (maize, sorghum, rice and common beans) in compliance with the International Union for the Protection of New Varieties of Plants (UPOV). This puts Tanzania in compliance with East African Community (EAC) and Common Market for Eastern and Southern Africa (COMESA) seed standards, positioning it for greater intra-regional seed trade in both regions. The Hub organized a study tour to the Ethiopia Commodity Exchange (ECX) in November for a delegation of seven Tanzania Mercantile Exchange (TMX) staff. The tour provided them with 1 | USAID EAST AFRICA TRADE AND INVESTMENT HUB FY2019 Q1 DRAFT REPORT FOR TANZANIA first-hand experience and training on best practices in managing an agricultural commodity exchange. The Hub and grantee Agribusiness Focused Partnership Organization (AGRIFOP) sparked business relationships between cross-border women traders through a business linkage workshop at the Rusumo border in October 2018. The new connections led to trade commitments for 1,598 MT of maize and 662 MT of beans valued at $411,484. TRADE PROMOTION AND AGOA The Hub finalized the draft for an African Growth and Opportunity Act (AGOA) Action Plan for Tanzania following two validation workshops in Dar es Salaam and Zanzibar in November 2018. The Ministry of Industry, Trade and Investment is currently reviewing the document. Once the document is completed, it will assist stakeholders with the implementation of Tanzania’s National AGOA Strategy. Twenty-eight Business Development Service (BDS) providers deepened their knowledge of AGOA through a two-day seminar led by the Hub in partnership with Enabling Growth through Investment and Enterprise Program (ENGINE), a USAID-funded proJect. The BDS providers are now better equipped to assist clients interested in exporting to the U.S. under AGOA. TRADE POLICY AND REGULATORY REFORM The Hub collected information from Tanzanian stakeholders needed to develop an online information and communications technology (ICT) monitoring tool. The tool will determine EAC Partner States’ implementation of and compliance with legal commitments related to technical barriers to trade (TBT), allowing the government to pinpoint areas where improvement and/or reforms are needed. The Hub expects to complete the ICT monitoring tool’s development in March 2019 and eventually incorporate it into the East African Monitoring System (EAMS) Central as a module. Q1 ADMINISTATIVE AND OPERATIONAL CHANGES: The Hub added
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