THE UNITED REPUBLIC OF TANZANIA

PRESIDENT’S OFFICE

REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT

KAHAMA TOWN COUNCIL

T A O M W

A N H

A K

C OUNCIL

KAHAMA TOWN COUNCIL INVESTMENT PROFILE

Prepared by: Town Director, Kahama Town Council, P.O. Box 472, KAHAMA Tel No: 028-2710179 Fax No: 028-2710179 Email : [email protected]

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ACRONOMY

KTC-Kahama Town Council FYDP - Five Year Development Plan TDV -Tanzania Development Vision EAC-East African Countries SADC-South Africa Development Corridor COMESA –Common Market for East and South Africa CBD- Central Business District SGR-.Standard Gauge Railway line TANESCO-Tanzania Electrical Supply Company KUWSA -Kahama Urban Water and Sanitation Authority URT-United Republic of Tanzania PPP-Public Private Partnership

TABLE OF CONTENTS

PART ONE: REASONS FOR ONE TO INVEST IN KAHAMA TOWN COUNCIL ...... 6

1:1 KAHAMA TOWN COUNCIL IN ITS INVESTMENT CONTEXT ...... 6

KEY REASONS FOR ONE TO INVEST IN KAHAMA TOWN COUNCIL ...... 7

1...... LOCATION ...... 7

2. POPULATION ...... 8

3. PRESENCE OF MINERAL DEPOSITS ...... 10

4. PRESENCE OF LIMESTONE AREAS ...... 10

5. PRESENCE OF BASIC ECONOMIC SERVICES ...... 11

6. AVAILABILITY OF GOOD LAND FOR CROP PRODUCTION ...... 11

7. TANZANIA INVESTMENT CENTRE –KAHAMA BRANCH ...... 11

8. AVAILABILITY OF LARGE AREA FOR INDUSTRIAL DEVELOPMENT, LIVESTOCK AND AGRICULTURE ...... 12

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9. KAHAMA TOWN COUNCIL INVESTMENT POLICY ...... 13

10 ...... GOOD CLIMATIC CONDITIONS ...... 13

SUMMARY OF INVESTMENT OPPORTUNITIES IN KAHAMA TOWN COUNCIL ...... 14

PART TWO: - SOCIO ECONOMIC PROFILE OF KAHAMA TOWN COUNCIL ...... 16

2:1 LOCATION ...... 17

2:2 AREA ...... 17

2:3 ADMINISTRATIVE UNITS ...... 17

2:4 POPULATIONS ...... 18

2:5TOPOGRAPHY ...... 20

2:5:1 DRAINAGE ...... 20

2:5:2 VEGETATION COVER ...... 20

2:5:3 SOILS ...... 20

2:5:4 AGRO-ECOLOGICAL ZONES ...... 21

2:6CLIMATE ...... 21

2:6:0 CLIMATIC FEATURES ...... 21

2:6:1 RAINFALL...... 22

2:6:2TEMPERATURE ...... 22

2:6:3 RELATIVE HUMIDITY ...... 22

MAJOR ECONOMIC ACTIVITIES OF KAHAMA TOWN COUNCIL ...... 22

3:1 AGRICULTURE ...... 23

II. LIVESTOCK ...... 25

COOPERATE UINIONS ...... 26

3:3 BEEKEEPING ...... 27

3:4 MINING SECTOR ...... 27

THE TOWN COUNCIL WITH COMMENDABLE INFRASTRUCTURES ...... 29

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4:1 ECONOMIC INFRASTRUCTURE ...... 29

4:2 ROADS ...... 29

TARMAC ROADS...... 29

II. EARTH AND GRAVEL ROADS...... 31

4:10:1: 3 THE STANDARD GAUGE RAILWAY LINE (SGR)...... 33

4:10:1: 2 AIR STRIP ...... 34

4:10:1: 3 ELECTRICITY ...... 36

4:10:1: 4 WATER SUPPLY ...... 36

4:10:1: 5 WASTE MANAGEMENT SYSTEMS ...... 37

4:10:1: 5 TELECOMMUNICATION AND DATA TRANSMISSION ...... 38

PART THREE: PRIORITY INVESTMENT AREAS IN KAHAMA TOWN COUNCIL ...... 39

INVESTMENT IN KAHAMA BUSINESS HUB AND LOGISTICS CENTER (KBH&LC) ...... 39

A). ZONGOMELA INDUSTRIAL PARK ...... 39

B) NYASHIMBI LOGISTICS CENTRE ...... 42

C) THE BUZWAGI (MWENDAKULIMA) LOGISTICS CENTRE ...... 43

CHAPULWA INDUSTRIAL PARK ...... 44

PART FOUR: INVESTMENT OPPORTUNITIES IN KAHAMA TOWN COUNCIL ...... 45

A)IRRIGATION OPPORTUNITIES ...... 45

B)BEEKEEPING ...... 45

C)LIMESTONE FOR CEMENT FACTORY ...... 46

PART FIVE: INDUSTRIAL DEVELOPMENT AND LOGISTICS CENTERS STRATEGY ..... 53

7.1 AGRO-PROCESSING FRUIT PRODUCTS PROCESSING AND BUILDING MATERIAL INDUSTRIES ...... 54

COTTON GINNING ...... 54

PART SIX: FACILITATION, PROCESS, REQUIREMENTS INCENTIVES AND CONTACTS ...... 55

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LIST OF TABLES Table: 1 Population of Kahama Town Council by Sex, Average Household Size and Sex Ratio………………………………………………………………………………………………………....……..7

Table 2: Food and Cash Crop Production …………………………………………………………..13 Table :3 Crop Production 2010/14-2018/19 (In Tons)………………………………………….13

Table: 4 Number of large, medium and small scale minerals by 2012……………….....15

Table 5: Road Type and Condition in the Township……………………………..………..…17. Table 6: Proximity Regions to Kahama Town Council……………………………………….18 Table .7 Distance Value in Kilometers and Miles to other Towns & Cities from Kahama……………………………………………………………………………………………………..…19 Table 8: Neighborhoods to other countries (Name & Distant in Kms)…………………19. Table: 9 Overview of the Investment Opportunities…………………………….……28-..30.

LIST OF MAPS

MAP No.1 Kahama Town Council……………………………………………………………….….6 Map 2: Population Density in Kahama Town…………………………………………………..8 MAP 3. Roads Kahama Town………………………………………………………………………17 Map: 4 Block plan of the Industrial Park Area at Zongomela Area- Kahama Township……………………………………………………………………………..……………………...25 Map: 5 Block plan of the Proposed Logistic Area at Nyashimbi Area- Kahama Township…………………………………………………………………………….………………..….…26 Map: 6 - Buzwagi Logistics Centre at Mwendakulima-Kahama TC…………………..…27 Map: 7- Chapulwa for Logistics Centre-Kahama TC………………………………………....28

LIST OF PHOTOS Photo: 1 Gold processing plant at Buzwagi Gold mine 7km from Kahama Town……15

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PART ONE: REASONS FOR ONE TO INVEST IN KAHAMA TOWN COUNCIL

1:1 Kahama Town Council in Its Investment Context Kahama Town Council is endowed with exceptional richness in the natural resources that recognizes investment in economic activities that are environmentally friendly. Kahama Town Council is part of the hinterlands that feeds and provides raw materials to other major towns within and outside the country. Its location, the availability of markets, amiable weather, plentiful labour, and water supplies makes it an ideal area for investments in agriculture, livestock products, mining, tourism, light industries and commerce. This makes specific reward of investment opportunities in their vertical and horizontal production linkages. It is also committed to improving the infrastructure to support investment in economic activities Kahama Town Council has a comparative advantage in providing massive trade, transport and distribution services to the neighbouring land-locked countries such as Rwanda and Burundi. From the year 2016/17-2020/21, with the support from stakeholders Kahama Town Council has planned to dedicate its efforts toward realization of its Strategic Plan and vision that state KTC is to be “With Quality Services and Conducive Investment Environment for Sustainable Development” and its mission is “To Provide Socio- Economic Services and Create Conducive Investment Environment in Collaboration with Stakeholders using available Resources for Sustainable Development”. The Kahama Strategic Plan took into account among other items aspiration of the government articulated in the Second Five Years National Development Plan (FYDP II 2016/17-2020/21) whose theme is: “Nurturing Industrialization for Economic Transformation and Human Development” is intended to rally and align society’s efforts towards realization of the development aspirations.

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In line with these vision and Mission Kahama Town Council has put greater accent on building a strong Economy using the available resources to have an industrial base. In order to realize Tanzania Development Vision (TDV) 2025, Kahama Town Council has allocated vast land for various investments intending to make Kahama Town Council a business Hub and Logistics Center (KBH&LC). The land allocated include 69.2 hectares set for establishing a Logistics Centre at Nyashimbi, 1,029 hectares for Industrial Development at Zongomela (Dodoma) and 68.7 hectares for establishing the Buzwagi Logistics Centre at Mwendakulima Ward and 120 hectors at Chapulwa. It represents a unique location opportunity for investment in heavy/Large and light industries, logistics and distribution companies seeking to access high-value markets in Tanzania and neighbouring countries. The Council has mandated to coordinate the broader investment programmes to attract investors in all sectors of the economy and provides flexibility on where to execute their investment activities. With these developments, Kahama Town Council investment opportunities provide a complete and comprehensive platform for economic growth of all potential investors. Kahama Town Council dearly welcomes you as it has a well- balanced package of incentives to investors with additional negotiated benefits to strategic investors Kahama Town Council would like to welcome all esteemed investors to explore the irresistible opportunities and is determined to cooperate with them and is committed to lead your way.

KEY REASONS FOR ONE TO INVEST IN KAHAMA TOWN COUNCIL

1. Location

Kahama Town Council TC is strategically located to cut short route distance by hundreds and thousands of mileage from all walks of the Lake Zone in Tanzania. With this geographical advantage-based location, Kahama Town Council is an ideal location for investments in market-seeking industries that target the emerging markets in EAC, SADC and COMESA. This location offers a favorable link to other commercial

7 towns and cities in east and central Africa that could ferry both agricultural and industrial goods. Kahama Town is near to Isaka Dry port a Railway station (TRL) which is about 38 kilometers. The Isaka Dry Port is used as a dry port for transit goods destined for Burundi, Rwanda and DRC Congo. This is another opportunity that will boost business among East African countries. A Domestic Cargo Handling Station is set begin sometimes in near future at Nyashimbi in Kahama Town. Once the station starts operating, it will enhance local and region transit goods handling.

The location of Kahama Town also is an entry point to the great lake region and facilitates the interaction of people from different parts of the country since it is a junction with linking roads to Rwanda, DRC, Burundi and Uganda in the western part and Northern part links Geita region, Msalala District. While, in the East it links with Nzega district in Tabora region. Since Kahama Town is strategically located to meet the business hub to the great lake region it usually experience an influx of between 800,000 – 1,000,000 a figure that offers a potential market for the business and trading. Kahama Town Council has rapidly emerged as the most effective entry point and gateway for trade to the great lake region countries. The above location makes Kahama Town a leading business hub on the side of Shinyanga Region, and is a highly business centre connecting with Kigali, Entebbe and Jinja on the Rwanda and Ugandan side, The Council has some geographic advantage; with positive historical business and socio-cultural links with other towns within the great lakes region. Traders from Kenya, Uganda, Rwanda, and Burundi and from as far as Democratic Republic of Congo frequently visit Kahama Town.

2. Population The population of Kahama Town is growing at an annual rate of 3.7% which is higher than regional growth rate of 2.1% (National census, 2012. This growth rate provides a key opportunity for market and manpower needed in the industrial sector in Kahama Town Council. The growth rate makes Kahama TC a rapidly growing emerging market for investors.

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Table: 1 Population of Kahama Town Council by Sex, Average Household Size and Sex Ratio

No. Ward Type Population size (Number) area Household (Hector) Population( Women Men 2012) 1 Majengo Urban 15,917 8,334 7,583 3,861 9,008 2 Nyasubi Urban 20,181 10,469 9,712 4,502 16,601.8

3 Nyihogo Urban 13,622 7,047 6,575 3,515 24,203.6

4 Nyahanga Urban 15,794 8,282 7,512 3,585 1,082

5 Kahama Mjini Urban 6,621 3,142 3,479 1,348 17928.8

6 Malunga Urban 10,225 5,371 4,854 2,360 797.0

7 Mwendakulima Urban 13,711 7,014 6,697 2,611 2,294

8 Busoka Urban 5,323 2,705 2,618 1,002 7,001.9

9 Mhungula Urban 10,486 5,431 5,055 2,396 11,905.9

10 Zongomera Urban 10,438 5,177 5,261 1,869 1,267.4

11 Mhongolo Urban 15,427 7,954 7,473 3,299 1,606.3

12 Nyandekwa Rurali 11,391 5,782 5,609 2,098 15,134 13 Ngogwa Rural 8,202 4,131 4,071 1,397 632.2

14 Wendele Rural 7,536 3,790 3,746 1,296 4,801.6

15 Kinaga Rural 14,841 7,665 7,176 2,453 1,906

16 Isagehe Rural 10,828 5,606 5,222 1,923 1075.5

17 Mondo Rural 11,481 5,918 5,563 1,859 7,873.0

18 Kagongwa Rural 21,446 11,193 10,253 4,814 6,718.1

19 Kilago Rural 11,118 5,728 5,390 2,072 5,017

20 Iyenze Rural 7,620 3,971 3,649 1,177 15,162

Total 242,208 124,710 117,498 49,437 152,016

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3. Presence of Mineral Deposits

Kahama Town Council has valued Mineral Deposits that provide advantage to investors in that scene. Presence of Buzwagi Gold mine at Mwendakulima and other little gold mines including that of Diamond at Nyambula is an exceptional advantage. Kahama Town is therefore a home to precious minerals.

4. Presence of Limestone Areas

According to Kahama Mineral office there is deposits found at Isaka within Kahama District and at Bukombe District. By its strategic location Kahama Town is near to Isaka Dry port a Railway station (TRL) which is about 38 kilometers. These surveyed Limestone areas at nearby places of Isaka, Masumbwe and Ushirombo all along the way to the great Lake regions of DR Congo, Burundi, Rwanda, Uganda and South Sudani

Limestone areas in Kahama District

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5. Presence of basic economic services

The council is endowed with basic facilities like Banking Institutions, NMB, CRDB, AZANIA ACCESS, Tanzania Postal Bank (TPB), Diamond Trust Bank (DTB) and other Micro financial (like FINCA, PRIDE,). Kahama TC has also a good number of Health Institutions (2 Hospitals, Health Centres and Dispensaries) TANESCO-for electrical supply and KUWASA for water supply. All these basic facilities are vital and do support investors in Kahama. Kahama Town Council has a good number of improved schools and Executive Hotels

6. Availability of good land for crop production

Kahama Town Council has a total area of 152,016.1hectors of land out of which 71,873, hectors are potential for agriculture both for livestock keeping and crop production. Currently 56,269 hectors equivalent to 78.3 % is under cultivation. This land is suitable for raising Cotton, Sunflower and other food crops

7. Tanzania Investment Centre –Kahama Branch

Kahama Town Council has access to the primary agency of Tanzania Investment Centre (TIC). These offices of which were inaugurated in 18/11/2018 has 24 Investment Funds including SIDO, SELFMF,OUT,GS1, NSSF, VETA, NBC LTD, TCCIA, PTF,

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MKURABITA, YDF, WDF, PASS TRUST, AGITF, TRA, TANTRADE, TIMAP, TBS, NEEC, VICOBA FETHA, and IR VICOBA. These primary Agency TIB has helped Kahama Town Council to coordinate encourage promote and facilitate investments in Kahama Town Council.

8. Availability of Large Area for Industrial Development, livestock and Agriculture

Kahama Town Council covers an enormous area of 1520.2Km2 (152,016.1 ha) of which 45,834.5 hectare is used for residential and 106,181.6 ha used for diverse economic activities including farming and livestock keeping. Kahama Town Council has allocated vast land for various investments intending to make Kahama Town Council a business Hub and Logistics Center (KBH&LC). The land allocated includes 69.2 hectares at Nyashimbi, 1,029 hectares at Zongomela (Dodoma) and 68.7 hectares at Mwendakulima Ward and 120 acres at Chapulwa. This vast area is and ideal for investment in various ventures schemes and projects such as establishment of business Hub and Logistics Centers and Industrial Development. Kahama Town Council has available arable land for cultivation. The Council has 71,873 Ha (47.3%) of the total land. It is understood that agriculture is the mainstay of the world economy (FAO, 2008). It provides the world population with food as well as employment opportunities including supporting industrial activities. Kahama Town Council is endowed with the suitable land for irrigation about 4000 Ha out of which total area of more than 1,200 acres (485 ha.) of plain land is potential for irrigation at Malenge village,500 ha at Bumbiti “A” Village in Mondo, Investors are welcome help Kahama TC population to move away from subsistence to a more commercial mode of production through reliable irrigated agriculture which has proved to be an essential tool for combating food shortages, and alleviating hunger and poverty in other areas.

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9. Kahama Town Council Investment Policy

Since Kahama Town Council focuses on building an industry- driven economy it is therefore committed to ensuring that it creates and maintains a conducive business climate with supportive economic policies that attract investment in to the Council. This is supported by her Strategic Plan and vision that state KTC is to be “With Quality Services and Conducive Investment Environment for Sustainable Development” and its mission is “To Provide Socio-Economic Services and Create Conducive Investment Environment in Collaboration with Stakeholders using available Resources for Sustainable Development”.

The Investment Policy Objective of the Kahama Town Council is to attract investors to tap the available investment opportunities in order to ensure maximum utilization of resources available in Kahama Town Council and develop them for the benefit of its community and reduce poverty.

Kahama Town Council has compiled this investment profile with the aim of identifying the investment opportunities and providing information as a guide to interested investors and to facilitate their activities. The profile is intended for attracting investors to develop and make maximum use of the investment opportunities while contributing to greater economic and social improvements and environmental conservation in the area. 10 Good Climatic Conditions Kahama Town Council experiences tropical climate, which is favourable for crops cultivation and livestock keeping. Temperature is moderate (ranging 22.3°C and 26°C), allowing for smooth economic activities especially the cultivation of a wide range of cash and food crops including paddy, lentils, cotton and tobacco.

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SUMMARY OF INVESTMENT OPPORTUNITIES IN KAHAMA TOWN COUNCIL

The following Investment opportunities will enable ones investments to grow further.  Strategic geographical location- Kahama Town Council is located between latitude 30 15” and 40 30” South of the Equator and Longitudes 310 30” and 330 00” East of Greenwich is found along the Isaka-Benako-Rusumo trunk road, about 986.12 Kilometers from Dar es Salaam, 267 Kilometers from Mwanza, and 109 Km from Shinyanga Town. This makes Kahama Town Council to have a comparative advantage in providing massive trade, transport and distribution services to the neighbouring land-locked countries and the great Lake region such as such as Rwanda, Burundi Uganda, DRC Congo and South Sudani.  Presence of Limestone Areas -According to Kahama Mineral office there is deposits found at Isaka within Kahama District and at Bukombe District.  Commendable Economic Infrastructures- i. Electricity (TANESCO), Water KUWASA- Serving about 11,087 cubic metres (80%), Telecommunication Networks, Postal services, telephones (TTCL) private carriers and internet. Postal services. Internet cafes and services, There are three local radio stations namely Kahama FM, Divine FM and HUHESO FM radio. Telephone services are provided by TTCL, Tigo Tanzania Millicom International Cellular, Airtel, Vodacom, Halotel and Zantel. Some of the Township institutions are connected to the National Fiber Optic Network) ii. Tarmac roads - The Town has a good road network, The Township has a road network of 951.52km of which 16.13 Km are tarmac, 67.88 Km are covered with gravel and 870 Km are earth roads. iii. Air Strip -The Town of Kahama can easily be accessed by flight from all the major cities of the East African Community. There is an Air strip at Mwendakulima with the Precision Air, a private airline whose flight currently scheduled three times a week at an affordable price.

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 Priority investment areas- The land allocated include 69.2 hectares at Nyashimbi, 1,029 hectares at Zongomela (Dodoma) and 68.7 hectares at Mwendakulima Ward and 120 acres at Chapulwa. This vast area is and ideal for investment in various ventures schemes and projects such as establishment of business Hub and Logistics Centers and Industrial Development.  Its significant areas for agricultural crops, livestock keeping and other production sectors-  The Council’s enabling policies –Kahama TC Vision “With Quality Services and Conducive Investment Environment for Sustainable Development” and its Mission is “To Provide Socio-Economic Services and Create Conducive Investment Environment in Collaboration with Stakeholders using available Resources for Sustainable Development”.  Abundant natural resources- Beekeeping Reserves (Kilago village Forest(Ngitile) with a total area of 304.32 Ha, Ngulu Vilaage (Ngitili) at Ngongwa with ana area of 330.14 Ha., Igunhwa Village Forest (Ngitili) with an area of 141 ha.,Ukamba Local Authority Reserve at Bukamba. This has 1,000 Ha, Mkweni Hills Reserve at Wendele. This is under TFS and has an area of 15,744 ha, Chapulwa Forest reserve at Mwendakulima Kahama town has both natural and planted vegetation. Varieties of exotic tree species which were grown in various areas of the town at different times and indigenous breeds are now a good base for aesthetic view, shade, timber and wood products.  Tanzania Investment Centre –Kahama Branch-Kahama Town Council has access to the primary agency of Tanzania Investment Centre (TIC). Kahama TC has 24 Investment Funds including SIDO, SELFMF, OUT, GS1, NSSF, VETA, NBC LTD, TCCIA, PTF, MKURABITA, YDF, WDF, PASS TRUST, AGITF, TRA, TANTRADE, TIMAP, TBS, NEEC, VICOBA FETHA, and IR VICOBA.  Large Fertile Agricultural land- Approximately, 71% of the total arable land (106,181.6 ha) is presently being utilized either for crop production or as grazing land Kahama Town Council approximately hoards 66,091 Tons of Rice during

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Peak Season while during off season in the months of January, February and March annual rice harvest is about 22,030.6 tons  Suitable land for irrigation -Kahama Town Council is endowed with the suitable land for irrigation about 4000 Ha out of which total area of more than 1,200 acres (485 ha.) of plain land is potential for irrigation at Malenge village and 500 ha at Bumbiti “A” Village in Mondo  Good Climatic Conditions- The climate of Kahama TC is tropical climate with two seasons a wet season and a dry season. Kahama Town Council receives rains for a period of approximately seven months, starting from late November to early May, with an average of 932mm annually. The rainy season is characterized by two-week to one-month dry spells, noticeable in January and February. This tropical climate allows for smooth economic activities especially the cultivation of a wide range of cash and food crops including paddy, lentils, cotton and tobacco.  Unmatched peace and stability.

Kahama Town Council with an attractive investment regime which is actually your investment destination of choice. It is actually a Paradise for Investors; it gives you the most conducive opportunity to realize your entrepreneurial ambitions. It is no doubt Kahama Town Council is a great place to invest in Tanzania as has put in place the most conducive investment environment one can think of. The Council has wide opened its doors for anyone interested to bring his money and do business/investment with Kahama TC.

PART TWO: - SOCIO ECONOMIC PROFILE OF KAHAMA TOWN COUNCIL

Kahama Town Council was established on July 2012 after being officially declared as a Town Council on Government Notice NO.174 and Published on 17th June 2011 in the Local Government (Urban Authorities) Act, (CAP.288) by the Order Made under Section 5 (3).

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2:1 Location Kahama Town Council is located between latitude 30 15” and 40 30” South of the Equator and Longitudes 310 30” and 330 00” East of Greenwich on the road off to neighbouring countries of DRC Congo, Uganda, Burundi and Rwanda. It boarders Tabora Region to its eastern part by linking to Nzega District and Msalala District Council and Geita region to its north. It is found along the Isaka-Benako-Rusumo trunk road, about 986.12 Kilometers from Dar es Salaam, 267 Kilometers from Mwanza, and 109 Km from Shinyanga Town. Kahama Town Council borders Nzega District to the East, Msalala District Council to the North. Bukombe and Mbogwe to the West and Ushetu District Council to the South. TC is strategically located to cut short route distance by hundreds and thousands of mileage from all walks of the Lake Zone in Tanzania. With this geographical advantage-based location, Kahama Town Council is an ideal location for investments in market-seeking industries that target the emerging markets in EAC, SADC and COMESA. This location offers a favorable link to other commercial towns and cities in east and central Africa that could ferry both agricultural and industrial manufactured goods.

2:2 Area The size of Kahama Town Council covers an area of 1520.2Km2 (152,016.1 ha) of which 45,834.5 hectare is used for residential and 106,181.6 ha used for diverse economic activities including farming and livestock keeping and is administratively divided into 20 wards comprising of most of Kahama Division. However, other parts of the council cover rural area with 45 villages. This vast area is and ideal for investment in various ventures schemes and projects.

2:3 Administrative Units

The township area has 8 wards which are subdivided into 32 sub-villages (Mitaa) and each ward being a group of streets that are locally administered as a unit. Each ward has an Executive Officer and every village has its own village government and

17 assembly. New wards have been created in 2010 since the establishment of the Town Council with some villages becoming incorporated into the mitaa system. These changes need to be accounted for in the analysis of population trends. Politically the Town council is within 1 electro constituencies with 20 Wards each represented by one elected Councilor and six appointed Councilors representing special seats for women. This makes a total of 28 Councilors including 2 members of parliament. There are also politically elected leaders, 45 at the villages and 32 at sub- village levels (mitaa).

MAP No.1 Kahama Town Council

2:4 Populations According to the 2012 National Population and Household Census, Kahama Town Council had 242,208 people which are 15.8% of the regional population (1,534,808). The female population was 117,498 (48.5%) while the male population was 124,710 (51.5%). The growth rate is 3.7% per annum and by 2019 Kahama Town was estimated to have a population of 323,905 (Women 157,130 (48%) and Men 166,775 (51%)

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The age distribution for Kahama Town Council shows that the young population under 15 years was 49.2 percent. For the working population of the age group between 15 to 64 years the proportion was 48.7%. Kahama TC by 2019 is estimated to have 49,436 numbers of households at the average family size of 5 persons and the life expectancy set at an average of 45 years. Migration and population growth makes population of Kahama Town to grow at an annual rate of 3.7% which is higher than regional growth rate of 2.1% (National census, 2012). The location of Kahama Town facilitates the interaction of people from different parts of the country since it is a junction with linking roads to Rwanda, DRC, Burundi and Uganda in the western part and Northern part links Geita region, Msalala District. While, in the East it links with Nzega district in Tabora region. Population Density With reference to map 2, Kahama Town has a population density 442 persons per kilometer square. The population density of Kahama Town varies from the center of the town compared to the periphery of the town. The existing difference in population density is due to the availability of service infrastructures and social and community facilities as well as the concentration of urban economic activities at the center of the town. Map 2: Population Density in Kahama Town

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2:5Topography

The Town Council is located on the inter-rift plateau at altitudes ranging from 1,050 to 1,500 m. above sea level. The land surface can best be described as an almost flat to undulating plains. Residual hills of low relief are common, the highest hills are not much higher than the about 300m above their surrounding plains. These undulating to flat plains are characterized by frequent occurrences of bottomlands, which the lowest levels in the landscape and locally known as mbugas. These are in fact very shallow and wide, flats to almost flat, seasonally flooded valleys.

2:5:1 Drainage Kahama Town Council is landlocked and has no perennial streams, all streams have very low gradients and over 80% of their annual flows can be expected to occur in the period of December to May.

2:5:2 Vegetation Cover Kahama town has both natural and planted vegetation. Varieties of exotic tree species which were grown in various areas of the town at different times and indigenous breeds are now a good base for aesthetic view, shade, timber and wood products. Thicket vegetation is mostly found on the outskirts of the town. Natural vegetation cover is decreasing in most parts of the town mainly due to grazing and cultivation activities. Most of the lower altitudes of the town have shrubs and short grass connoting existence of sub layer hard rock underlying the soil.

2:5:3 Soils The common geological deposits comprise of alluvium soils, themselves comprising of sandy and clay soils. Most parts of the town have loam soils. Most of the soils from the town centre towards all directions are predominantly sandy clay. In some parts the soil is saline and sandy, acidic and grayish brown in color. Areas within river valleys are

20 dominated by blackish sand loamy soils. These are the areas mostly used by the natives to undertake horticulture. Various isolated points in town have the potential for quarrying activities.

2:5:4 Agro-Ecological Zones The majority of Kahama Town council residents depend on subsistence agriculture and livestock rearing as main source of income, it is estimated that more than 55% are engaging in this business. Approximately, 71% of the total arable land (106,181.6 ha) is presently being utilized either for crop production or as grazing land. Farm sizes vary from 0.4 to 10 ha per farm household, averaging to 2.4 – 6.0 ha. The local rainfall and evaporation patterns greatly influence the agricultural practices in the council area while the valley provides considerable potential for irrigation. Four main agro ecological zones in the Town Council have been distinguished as follows:

 Cotton farming system zones (12% of total Town Council area)  Rice farming system zones (17%)  Maize, cassava and sweet potato farming system (22%) and  Maize-chick pea farming system (< 1%)

2:6Climate

2:6:0 Climatic Features Climate is the statistics of weather over long period of time. It is measured by assessing the patterns in variation in temperature, humidity, clouds, wind and atmospheric pressure. The climate of Kahama TC is tropical climate with two seasons a wet season and a dry season. Kahama Town Council receives rains for a period of approximately seven months, starting from late November to early May, with an average of 932mm annually. The rainy season is characterized by two-week to one-month dry spells, noticeable in January and February.

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2:6:1 Rainfall Climatically, Kahama town has experiences heavy down pour for approximately 5 months with an average of 750 - 1030 mm. Rainfall is generally erratic, there is no clear pattern, and the Town Council is characterized by highly unreliable conventional rainstorms causing considerable differences in rainfall both in terms of space and time. Nevertheless, rainfall variability on a year-to-year basis is not exceptionally high. Rains fall mainly during a period of approximately five (5) months, lasting from late October to early May; this rainy period is characterized by two-week to one-month dry spells, being most in January and February. Further clarity is as follows.

2:6:2Temperature According to the Tanzania Meteorological Agency records (2017) Kahama town which is between 958 and 1345 meters above sea level has mean daily temperatures ranging from 24° to 32°C, August and September are the warmest months. Due to relatively small difference in elevation, the Town Council temperatures are essentially the same throughout the area the coldest month being June and July with an average of 21.3 °C and the warmest month is October with an average of 25.7 °C.

2:6:3 Relative Humidity Relative humidity is on average of 79% with little variation during the year; during the rainy season values are between 80% and 85% and are slightly lower during the dry season. On a monthly basis wind speed seems to be little variation – averaging to 0.9m/sec, during the rainy season wind speeds are slightly lower than during the dry season. Strong winds frequently occur associated with rainstorms, particularly at the onset of the rains.

MAJOR ECONOMIC ACTIVITIES OF KAHAMA TOWN COUNCIL

Kahama Town Council is not only an important passageway for traffic between the coastal eastern areas to the western and northern of mainland Tanzania but also a

22 significant area for agricultural crops, livestock keeping and other production sectors. Kahama Town Council is a good source of food and raw materials for the people living in this part of the area, as well as for the commercial and industrial activities. A diverse economy also provides a livelihood to the inhabitant of Kahama Town Council.

3:1 Agriculture Agriculture is the main economic activity in Kahama Town Council. 25% of Kahama Town Council population depend on agriculture. Kahama TC comprises a total area of 152,016.1 Ha (1,520.2km2) of which available arable land for cultivation is 71,873 Ha (47.3%) of the total land. While, suitable land for irrigation is about 4000 Ha and area under irrigation is 3.2 Ha. (0.08 %) of total suitable land for irrigation. Land ownership is basically characterized by patrilineal ownership and inheritance. Smallholder farming is the major occupation for the majority of the people in the council. The farming system is predominantly subsistence. The Council produces both food and cash crops. The main food crops grown in Kahama Town Council are paddy, maize, sorghum, cassava, sweet potatoes and millet, tomatoes, water melon, cucumber, paw paws, cabbages, okra, Common beans, Egg plants, Peppers, mangoes and oranges. They are grown using Farming techniques and traditional where farmers use the hand hoes to prepare land, plant and weed their crops.

The fast growing population has always had pressure on arable land and subsequently decreasing the land productivity due to declining soil fertility. In the years 2017/2018 up to 2018/2019 crop production was as seen in the Table 7: below.

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Table 1: Crop Production 2010/14-2018/19 (In Tons) Crop 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Maize 22598.25 19139.4 26683.6 12342.6 34174.6 21647.9 Rice 28096 30635.2 44607.6 21194.2 39503.4 27082.2 Bulrush 0 0 0 0 1 0 millet Sorghum 67.2 27.5 21.4 257.8 252.1 7.5 Cassava 5437 12339.7 4987.5 5375.4 13433.9 5995.9 Sweet 3981.5 14120 9583.8 62239.6 60875.6 27498.6 potatoes Beans 439.5 372 920.3 312.9 974 473.4 Bambara 71.3 49.5 39.4 54.2 377.8 90.4 nuts Groundnuts 3061.4 2426.9 9033.5 3184.9 5399.5 8409.2 Cotton 575.83 134.2 108.3 125.7 287140 262057 Sunflower 441 493.9 524.8 174.2 1088.5 1038.9 Grams 1 2 29.4 24.5 17.5 0 Cowpea 5.2 409.5 857.7 206.9 682.5 1285.5

Kahama Town Council approximately hoards 66,091 Tons of Rice during Peak Season while during off season in the months of January, February and March annual rice harvest is about 22,030.6 tons. Transportation of this crop to the great Lake countries is approximately 44,060.8 tons.

a. Adding Value for Boribo and Dodo Mangoes

Kahama Town Council has 600 of Natural Mango trees with approximately 2- 3 tree of Mango tree growers per household. The Town Council has so far started with 79 groups of people with 3,924 at Mondo and Mwendakulima Wards (Pilot areas) for 2000 Mango tree seedlings.

b. Warehouse

Kahama Town Council has 104 warehouses with capacity of each 260,000 tons. These can support thousands of food storage for serious and intended investors

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II. LIVESTOCK

Kahama Town council has 302 Dairy cattle among them 207 are in the project of Life and Environment in which it’s a joint venture between the Town Council and KKT church. The plan of the project is BORROW A COW PAY A COW. The project started in 2012 with 60 livestock keepers under which each livestock keeper was provided with one dairy cattle. The livestock sector makes significant contribution to food security and poverty eradication at household level. Besides, the subsector is an important source of protein through meat, milk and poultry products

Production An estimated production of milk for each cow is 12 litres a day, but if the cows could have been kept well they could produce about 20 litres per day. The reasons for not attaining 20 litres include:

 Low ability of the livestock keepers in keeping the cattle.  Lack of good pasture (Mostly depend on natural pasture).  Livestock diseases especially Mastitis and East Coast Fever. In general, the Town Council produces 69,085 litres per month from traditional cows (which are many in number) and 12,324 litres per month from dairy cattle (which are small in number). In order to increase the production of milk by the livestock keepers so as to fulfill the needs of the industries present in the town council, the following strategies are introduced:  Performing transfer of 50 Dairy Cattle (both exotic and traditional cattle) in a year 2020/2021  Establishment of women cooperatives of livestock keepers for milk production in Nyasubi ward in which they will be given loans in terms of cows which will good for milk production.  Provision of vaccination of East Coast Fever to 302 Dairy cattle and Pneumonia to 91,182 Dairy Cattle.

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 Provision of proper pasture seeds to 20 livestock keepers who have farms for pasture cultivation.

COOPERATE UINIONS There is Kahama Co-operative Union (KACU) Ltd which is a limited liability Secondary Co-operative Society established and registered in 1994. KACU is registered under the Co-operative Societies Act No 20 of 2003, Registration No. 5493. Its establishment is mandated to assist primary societies in production, processing and marketing of produce.

The Union products in this case includes; lint cotton for export, cotton seeds which is internally consumed to produce cotton edible oil, seed cake, husks and refinery soap which will all be sold in the local market. Lint cotton in Kahama has high export demand generating good foreign currency reserves to the country. About 70% of the lint cotton is exported and only about 30% is consumed locally. The market for cotton seed edible oil is also quite big. Cottonseed oil is actually the major edible oil consumed by many households in the Lake Region.

The union owns a cotton ginning plant located at Mhongolo Industrial Area in Kahama Township. The ginnery is in excellent working condition following the installation of new double roller gins and a new weigh bridge which are all in good working condition. However, in view of the expected big increase in seed cotton production next and subsequent seasons, the Union proposes to expand its cotton ginning capacity as well as invest in a new Oil Mill Plant at same site. The objective is to utilize all cotton seeds produced by the ginnery to go to its oil mill for production of edible oil and it’s by products.

Kahama Town Council invites potential investors as it addresses legal framework and development strategies and action plans for farmers, using livestock as supplementary source of income for the development of small and medium enterprise (SME) and large businesses in the livestock sector. The Council also aims to bring about a radical change in the current livestock production system and is ready to cooperate with investors in

26 exploitation of the livestock sector for their advantage. The Council is all organized to cooperate with potential investors who wish to develop a competitive and more efficient livestock industry that contributes to the improvement of the wellbeing of the people whose principal occupation and livelihood is based on livestock

3:3 Beekeeping Though beekeeping practice is still done in traditional ways but it is another subsector which earns income to Kahama Town Council. Beekeeping in Kahama Town Council produces poor quality of bee products such as honey, glue and Bee wax due to its local mode of its production. Currently, the council has 7 beekeepers groups, 216 modern beehives as well as 220 local beehives and 1 honey processing industry. Currently Production and Productivity in Kahama Town Council honey production by June 2019 is estimated to 2670 Kg per year that fetch Tshs. 10,680,000/- and 186 Kg of beeswax fetch Tshs.612000/-. Also, there is an increase/ of beekeepers within the council compared to past trend where 60 in 2015, 65 in 2016, 80 in 2017, in 2018 and 92 in 2019. In Kahama Town council there are only two apiaries, one is in Wendele (Ngogwa) with 110 hives and another one is in Mwendakulima (Mwendakulima) with 150 beehives

3:4 Mining Sector

Kahama Town Council plays a significant role in mineral production in the country. However, the sector has yet to contribute significantly to the council’s and community economy. Kahama Town Council attracted a large flow of Foreign Direct Investment, mainly in the mining of gold at Buzwagi in Mwendakulima Ward. Minerals are a principle source of income for many developing countries, including Tanzania. At first glance, mineral-rich economies have an advantage over those less

27 well-endowed because minerals provide funds for rapid development and poverty reduction. Mining in Kahama Town Council is a famous economic activity and therefore mining sector has significant contribution to the council's economy. The mineral deposit available in the council is Gold which is in large scale at Buzwagi Gold Mine (Open ground mining), Also there is small scale gold mining activities at Mwime However, Small-scale Diamond mines are found at Nyang’hwale where large mining companies were operating in the past.

Table: 3 Number of large, medium and small scale minerals by 2012

District Type of Mineral Deposits Small Scale Medium Scale Large Scale Kahama Gold 6 0 1 Diamond 48 1 0 Total 54 1 1 Table: Number of large, medium and small scale minerals by 2012

Photo: 1 Gold processing plant at Buzwagi Gold mine 7km from Kahama Town

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THE TOWN COUNCIL WITH COMMENDABLE INFRASTRUCTURES

4:1 Economic Infrastructure Kahama TC is best served with good and reliable supporting infrastructures such as roads, aerodrome, Water pipelines, Electricity, Telephone, Communication facilities and the Isaka- Kigali railway line set to begin sometimes in near future.

4:2 Roads The road network is a crucial means of transportation for both goods and services. It enhances the movement from one area to another and also allows social interactions. A high quality road network is important for connecting key areas as well as the isolated local communities, improving domestic firms' investment decisions and also determining the Council’s potentiality to investments. The roads are the most important means of transportation in Kahama Town Council In Kahama town, major roads are highly passable throughout the year but collector and feeder roads are not passable especially during rainy season. The roads are affected leading to poor accessibility to various community facilities. Kahama roads are in various conditions basing on the road inventory survey done there were tarmac roads, earth and gravel roads.

Tarmac roads. Kahama town is served by three major tarmac roads which passes through the CBD area these are:- . Isaka road with total length of 5.25 km . Tabora road with total length of 6.42 km . Lumelezi road with total length of 4.46 Km. The tarmac Trunk road from Isaka to Bujumbura (Rwanda) passes outside the CBD area.

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The Town has a good road network, The Township has a road network of 951.52km of which 16.13 Km are tarmac, 67.88 Km are covered with gravel and 870 Km are earth roads. The current road status in the Township are shown in table 3 Table 5: Road Type and Condition in the Township Type Condition Kilometers Good 10.7 Tarmac Fair 02 Bad 00 Good 19 Gravel Fair 26 Bad 22.88 Good 90.05 Earth Fair 214.73 Bad 870.94 Total 951.52

Source: TARURA KTC Records (2019)

30 ii. Earth and gravel roads. The earth and gravel roads have covered large area of CBD which connects the different activities at CBD area. These roads are of great potential because they provide a good linkage and serves large community. MAP No.3. ROADS KAHAMA TOWN

Table 6 : Proximity Regions to Kahama Town Council NO SOURCE REGION REGION ESTIMATED ESTIMATED DISTANCE DURATION FROM FROM KAHAMA KAHAMA (Kilometres) (HRS) 1 Shinyanga 107 01:49

2 Mwanza 223 4:36

3 Musoma 409 6:56 KAHAMA 4 (SHINYANGA Simiyu 244 4:28

5 REGION) Arusha 627 10:21

6 Manyara(Babati) 462 7:36

7 Singida 303 5:11

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8 Mpanda 540 9:08

9 Rukwa(Sumbawanga) 776 12:53

10 Kigoma 485 7:50

11 Kagera (Bukoba) 393 5:43

12 Burundi(Bujumbura) 504 8:46

13 Rwanda (Kigali) 447 9:07

14 Uganda (Kampala) 696 10:54

15 Congo DRC 2908 50 (Kishansa)

Table .7 Distance Value in Kilometers and Miles to other Towns & Cities from Kahama FROM KAHAMA TO OTHER DESTINATION IN DISTANCE UNIT No. START END LOCATION Kilometers ( Miles ( Mil) LOCATION CITY/TOWN Km) 1 Kahama Isaka 38.98 24.22 2 Kahama Dar es Salaam 803.48 499.26 3 Kahama Babati (Manyara) 462 196.00 4 Kahama Singida 303 209.12 5 Kahama Mwanza 223 94.08 6 Kahama Bukoba 393 181.83 7 Kahama Tabora 231 84.79 8 Kahama Kigoma 485 214.77 9 Kahama Musoma-Mara 409 253.88 Source: Kahama Town Council -2019

Note: Distance Calculation Introduction

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1. Kilometers (km): is the unit of length equal to 1000 meters or 0.62137 miles. 2. Miles (mi): is the unit of length which though rarely used is equal to 1.60934 kilometers.

Table 8: Neighborhoods to other countries (Name & Distant in Kms)

1 Kahama Bujumbura 504 225.67 (Burundi) 2 Kahama Kigali ( Rwanda) 446.8 215.06 3 Kahama Kinshasa(DRC 2908 119.13 Congo) 4 Kahama Juba (Sothern 1,329.7 Sudan) 5 Kahama Kampala(Uganda) 696 Source: Kahama Town Council -2019

From the above roads distance linkages, routes distances via Kahama Township will cut short route distance by hundreds and thousands of mileage from all walks of the Lake Zone in Tanzania. Business and goods trafficking from Mwanza, Arusha Singida and the nearby major Towns from Rwanda, Burundi and the Democratic Republic of Congo will have no reason to ferry their goods from Dar es Salaam thousands of mileage away while Kahama Township has the access to the need. It should be understood that Kahama Township is well served with the modern big Lories Car Parking that meets demands from Business Companies.

4:10:1: 3 The Standard Gauge Railway line (SGR). The slowest mode is by train, which currently takes about 24 hours from the major city of Dar es Salaam to Isaka Dry port. There is hope of reducing train travel time to Kahama town with the completion of the standard gauge mega project after which further connection to Rwanda will be possible via Kahama Town.

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The SGR is expected to carry passengers and cargo up to 35 tones and transport 17 million tons of freight per year at a speed of up to 160 kilometers per hour. The railway at Isaka Railway Station which is also a Dry port to the great Lake Region will also improve the movement of people and cargo to the neighboring countries of Rwanda, Burundi, Uganda and the Democratic Republic of Congo, stimulating regional trade and will generate more than 600,000 direct employments. Kahama Town Council needs to be prepared to take advantage of this The Standard Gauge Railway line (SGR) to be built under the Fifth Phase Government under the leadership of his Excellency the President John Pombe Magufuli from Dar es Salaam to Kigali via Isaka there would be profit to investors. The SGR project will to a larger extent cover Kahama Town Council and will improve passenger and cargo transportation between Dar es Salaam and the central and western parts of Tanzania and the neighbouring land locked countries of Democratic Republic of Congo (DRC), Rwanda, Burundi and Uganda. These plans have not been fully implemented. This Railway line will be connected by Rail bypass at Nyashimbi Dry Port that will help to transport bulky and heavy goods to other places especially during bad weather which does not affect rail transport as much as it affects road transport. Trading personnel will find Nyashimbi SEZ the only suitable place for transporting and marketing goods in both rural and urban places

As Kahama offers a nearby hub for commercial activities, goods transported in shorter distances will be delivered within a particular locality, e.g., if door delivery is to be given by a dealer. It will thus make goods to reach the actual place of loading and unloading. Both tarmac and non-tarmac roads to connect Kahama Township with the rest of the world is commercially viable.

4:10:1: 2 Air Strip The Town of Kahama can easily be accessed by other different modes of air, train, water and from all the major cities of the East African Community. There is an Air strip at Mwendakulima which serves visitors who usually come to Kahama Town. Precision Air, a private airline whose flight time is about two hours from Dar es

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Salaam to Kahama, is the fastest mode of transport. The flight is currently scheduled three times a week to meet the demand of the customers at an affordable price.

The current Mwendakulima Airstrip caters for international and local visitors who usually come to Kahama Town. It is located 08km from Kahama CBD with three times a week scheduled flights to meet customers demand at an affordable price. The presence of this airstrip encourages aviation industry operators and definitely cargo and passenger operating from Kahama Town Council. The Mwendakulima airstrip has currently been serving aircraft consignment both for passengers and goods cargo that records a three times weekly flight from Precision.

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4:10:1: 3 Electricity

The Kahama Town Council receives 80% of its daily demand of electricity from main secondary feeders. Electricity supply is drawn from the national grid system. Electricity is used for commercial, domestic, institutional and industrial purposes. All wards are served with hydroelectric power from National Grid System. Electricity is one major part of energy in Kahama Town Council. Electricity is commonly used in Kahama Township and rural parts of the council. Electricity supply which is a prerequisite for proper functioning of nearly all sectors in the economy in Kahama District stimulates development, both social and economic. Like other parts of the country, TANESCO is the sole supplier of electricity in Kahama Town Council. A good number of institutions in the council have been connected with electricity. Number of domestic installation has each day been increasing all together with commercial segment of customers.

4:10:1: 4 Water Supply

Kahama Urban Water and Sanitation Authority (KUWSA) is the main supplier of clean and safe water in the Township. The sources of water are Lake Victoria, natural springs, boreholes and rain water harvesting at a small scale. The current daily water production of KUWSA is 11,087 cubic metres. It is estimated that 70% of Kahama TC is covered with 16,957 clients’ connection and 70% of the population has access to water managed by KUWSA. Clients are metered and charged for water used on monthly basis. From Kahama Town Five-year strategic plan reveal that, the main source of water supply in Kahama is from Lake Victoria with a total length of distribution network approximately 240 km with 200km UPVC and 14km of steel pipes.

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Isagehe-Water Tanks The current supply of water in Kahama Town Council is adequate. About 84,074 households had reliable and safe sources of water by the year 2019.

Table 2. 1: Number of Households with Reliable and Safe Sources of Water in Kahama Town Council 2015- 2019

LGA 2015 2016 2017 2018 2019

Kahama TC 60,870 64,550 65,775 80,054 84,074

Total 60,870 64,550 65,775 80,054 84,074

4:10:1: 5 Waste Management systems

Kahama Town Council has nine (9) collection points which are located in area where the rate is higher than the collection capacity in unplanned areas and some are just free land, and some areas there is no collection points people have tendency of throwing the waste in the soil despite the presence of collection point. 12 urban Wards are operated by community based organization, the collection system in Kahama Town Council is door to door collection whereby community based organization (CBO) is passes along the roads, household, Institutions and entrepreneurs to collect all wastes stored in plastic sacks and dustbins. The door to door collection is being conducted with pushcart or ‘guta’ (motorcycle) for transportation to the collection Point.

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The transportation of wastes from collection point to dumping site is conducted by hired Company where the Kahama Town Council cannot conduct the service due to lack of equipment’s. Ward Committee and street leaders play major role in management of solid waste. Each Ward Environmental/Health Officer is responsible for coordination and management of the service by doing inspection for each street and household. Liquid waste is disposed of through pit-latrines, and septic tanks. Residents are serviced by cesspit emptier owned by the private operators. Paid for washrooms are also available at the central bus terminal and the markets. Kahama Town Council like other urban areas in Tanzania is facing the Solid Waste Management (SWM) problem. The trend seems to worsen particularly in Kahama Town Council due to social economic activities and escalating population growth. In the year 2019 Kahama TC was estimated to have a population of 304,940 and production of solid waste was 170 tons per day while the capacity to collect is 51 tons per day (30%), and recycling capacity of 79 tons/day.

4:10:1: 5 Telecommunication and data transmission

Communication services that are available in the Kahama Township include postal services, telephones, private carriers and internet. Postal services that include handling of cargo and mail, money transfers, sale of postage stamps and Expedited Mail Services (EMS) are handled by the Tanzania Postal Corporation (TPC). Internet cafes and services are provided by Tanzania Telecommunication Company Limited (TTCL) and other private providers. There are three local radio stations namely Kahama FM, Divine FM and HUHESO FM radio. Telephone services are provided by TTCL, Tigo Tanzania Millicom International Cellular, Airtel, Vodacom, Halotel and Zantel. Some of the Township institutions are connected to the National Fiber Optic Network.

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PART THREE: PRIORITY INVESTMENT AREAS IN KAHAMA TOWN COUNCIL

This part presents priority investment opportunities identified by the Council. The opportunities are grouped into level as follows Based on the available raw materials and availability of required infrastructure for some of the investment opportunities, Kahama Town Council has identified the following key investment opportunities (flagship investment opportunities) to be recognized and implemented at the Council level.

Investment in Kahama Business Hub and Logistics Center (KBH&LC)

In order to realize Tanzania Development Vision (TDV) 2025, Kahama Town Council has allocated vast land for various investments intending to make Kahama Town Council a business Hub and Logistics Center (KBH&LC). The land allocated include 69.2 hectares set for establishing a Logistics Centre at Nyashimbi, 1,029 hectares for Industrial Development at Zongomela (Dodoma) and 68.7 hectares for establishing the Buzwagi Logistics Centre at Mwendakulima Ward Kahama Town Council has available land for industrial purposes; there is Zongomela Industrial Zone and Nyashimbi Special Economic Zone. In order to realize Tanzania Development Vision (TDV) 2025, Kahama Town Council has allocated vast land for various investments intending to make Kahama Town Council a business Hub and Logistics Center (KBH&LC). The land allocated include 69.2 hectares set for establishing a Logistics Centre at Nyashimbi, 1,029 hectares for Industrial Development at Zongomela (Dodoma) and 68.7 hectares for establishing the Buzwagi Logistics Centre at Mwendakulima Ward and 120 acres at Chapulwa. a). Zongomela Industrial Park Kahama Town Council has allocated 1,029 hectares for establishing an Industrial Park at Zongomela. The Industrial Park is 3.4 Kilometers from Kahama Town expected to

39 serve large, medium and small industries. About 245 hectares have been prepared for small scale industries while 784 hectares are for medium and heavy scale industries. In line to this investment, there are some ongoing industrial investments in the area with 788 plots put on use and about 1,692 entrepreneurs are doing business in the area and. The Council is committed to providing conducive environment for investments in which various infrastructures are constructed such as roads, water and power distribution.

Map: 4 Block plan of the Industrial Park Area at Zongomela Area- Kahama Township

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Zongomela Industrial Park Zongomela Industrial Park therefore represents a unique location opportunity for investment in Large and light industries. It is planned to be serviced by good tarmac roads to link the Industrial Park with the modern market within Tanzania and neighbouring countries of the great lake region and hence Kahama Town Council is already witnessing an influx of requests to set up business from potential investors.

Zongomela Industrial park offers huge opportunities to investors who will find them useful and are fore invited to exploit these rich potentials including cotton, Pad, tobacco, minerals like gold, fruits and many other raw materials. Investors will make good industrial products and other light and bulk materials to unearth cost-effective markets It is obvious that Kahama Town Council through its precious Zongomela Industrial Park has the highest return on investment. The location of Zongomela Industrial park also offers good ways responsible for facilitating all transportation communications to and from the Cities and Towns which scales better in all forms. The project will reduce the liability of scale as business grows, so will transportation needs to ferry them from Kahama. This is especially true in retail where traders and other people would not like to be left in the dust if they aren’t

41 executing this multichannel selling strategy. They will need to be in all the places where customers will be. b) Nyashimbi Logistics Centre Kahama Town Council has allocated 69.2 hectares and still there are 490 hectares available for expanding the Logistic Centre. This Logistic Centre apart from being planned to handle goods in transit from one location to storage at the desired destination, it is planned to be developed into the Railway- Bypass Centre (Dry Port) where goods in transit would be momentarily stored. The area so far does not require compensation for its development which is an added advantage to the potential investors. A Standard Gauge Railway Line (SGR) from Dar es Salaam to Kigali via Isaka is being constructed and will support this investment.

Map:5 Block plan of the Proposed Logistic Area at Nyashimbi Area- Kahama Township

42 c) The Buzwagi (Mwendakulima) Logistics Centre The Buzwagi Logistic Centre specific plan accommodates up to 68.7 hectares of which warehouse can be built. The Logistic Centre also offers distribution of private streets, parking areas and track courts, drive aisles, utility infrastructures landscaping, drainage retention, commercial plots, residential areas, petrol station, nursery school, wastes collection point, parking lots, open space and dispensary just as shown in the Logistic Centre Map below.

Map :6 for Buzwagi Logistics Centre at Mwendakulima-Kahama TC

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Chapulwa Industrial Park Chapulwa industrial Park is 4Km east of Kahama Town and 1.5 Km from Barick-Buzwagi Gold Mine along the road from Isaka off to the Great lake regions of DRC Congo, Burundi, Rwanda, Uganda and South Sudan. The Industrial which is owned by Kahama Town Council has a total area of 120 acres out of which only 50 acres have been allocated for an investor; There are still more acreages for potential investors. Currently there are Eight (8) different Industries under construction including those of processing and grading Rice, Juice and water. It is expected that on their completion the Industries will process a total 64,000 bottles of Juice and Water, each 32,000 in an hour; a capacity that will generate 2,000 job opportunities. The are still more

Map: 7 Chapulwa for Logistics Centre-Kahama TC

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PART FOUR: INVESTMENT OPPORTUNITIES IN KAHAMA TOWN COUNCIL

Together with the already above mentioned opportunities in commendable Economic Infrastructures, priority investment areas, strategic location, its significant areas for agricultural crops, livestock keeping and other production sectors, Kahama Town Council still offers abundant natural resources which provide for plenty of raw materials for the manufacturing industries such as sunflower for oil seed production and furniture in light industries, at its Zongomela Industrial Park as well as various agricultural products. Opportunities exist for establishment of other outstanding natural resources for livestock development including resilient livestock breeds, extensive rangelands and diverse natural vegetation of hectares of land resources in the council.

Kahama Town Council enjoys an abundance of natural wealth, which offers tremendous investment opportunities for investors. The present opportunities include the following:

A) Irrigation Opportunities

Kahama TC has a total area of 152,016.1 Ha (1,520.2km2) of arable land with an estimated 71,873 Ha (47.3%) suitable for agriculture and 4000 Ha. for irrigation. There is land at Bumbiti “A” Village, Mondo Ward in Kahama Town Council, Shinyanga Region about 20 kms from the Town Council headquarter. The scheme has a total area of 500 Ha. of plain land which is all potential for irrigation

There is also the Malenge valley which has about 1,000 ha potential for irrigation; meanwhile this potential piece of land is not fully utilized. The irrigation system desirable to the intended beneficiaries will is surface irrigation. B) Beekeeping Kahama Town Council has abundant natural resources base including forest reserves for Beekeeping. In Kahama Town council there are large Natural forests as follows

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1) Kilago village Forest(Ngitile) with a total area of 304.32 Ha 2) Ngulu Vilaage (Ngitili) at Ngongwa with ana area of 330.14 Ha. 3) Igunhwa Village Forest (Ngitili) with an area of 141 ha. 4) Ukamba Local Authority Reserve at Bukamba. This has 1,000 Ha. 5) Mkweni Hills Reserve at Wendele. This is under TFS and has an area of 15,744 ha 6) Chapulwa Forest reserve at Mwendakulima. C) Limestone for Cement Factory There is Limestone deposits found at Isaka within Kahama District and at Bukombe District; both sites are near Kahama Town. These are a good for Cement production. Kahama Town Council would like to confidently give you these unmatched opportunities to realize your entrepreneurial ambitions and is looking forward with effective implementation that you have ushered to in a realistic hope of setting up a cement Factory.

An investor might choose to invest but not limited to the sectors like Agriculture and agricultural products, Metal products and machinery, Light industries and Mining, Kahama Town Council is looking forward to hearing from you and working with you to further development of investment and, please find in summaries of these investment opportunities the Town Council has

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Table: 9 Overview of the Investment Opportunities

Overview of the Investment Opportunities relating to Kahama Business Hub and Logistics Centers (KBH&LC) Key features  Investors are encouraged to invest in the KBH&LC under the Public-Private Partnership (PPP) arrangement. Kahama TC is centrally allocated along the neighbouring region of Geita, Tabora, and Simiyu. Also, it is connected to the great lake countries (Rwanda, Burundi, DRC, Uganda and South Sudan). Recognizing this potential, Shinyanga region through Kahama TC has surveyed and allocated area of:  69.2 hectares at Nyashimbi for logistic centre and a dry port  The aforementioned area can be used for establishing KBH&LC and does not require compensation. When fully implemented, KBH&LC will reduce transport costs, attract businesses, generate national and regional revenues and employment  The proposed hub and logistics centre is a unique opportunity for companies seeking to invest in heavy and light industries, logistics and distribution and access high value markets in Tanzania and neighbouring countries.  71,873 Ha (47.3%) suitable for agriculture and 4000 Ha. for irrigation  1600 acres allocated at Nyashimbi for other investments including pastures, agro processing, livestock projects and horticulture products. 

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Key investment  KBH&LC will facilitate smooth and efficient movements of goods rationale within Tanzania and neighbouring countries  Building this hub will reduce costs and improve distribution activities including reducing the current load burden of road infrastructure caused by trucks that shifts cargo from Dar es Salaam to lake zone and nearby countries  This hub will also generate national and regional revenues  Moreover, they will generate employment opportunities . Available support  Regional authorities and Kahama TC have strongly supported this initiative and thus set aside area and establish supportive infrastructure including water and electrical infrastructure  The URT support PPP arrangement.

Cement Production Factories and Industries

Overview of the Opportunity

Key features  Investors are invited to invest in Cement Production  According to Kahama Mineral office there is deposits found at Isaka within Kahama District and at Bukombe District; both sites are near Kahama Town.

 Investors may also venture in provision of technologies for small-scale miners who use crude technology  Kahama Town Council has set aside land for establishing these industries:  1,029 hectares at Industrial area in Kahama TC,  840 hectares at Zongomera Industrial Park,

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 Key investment  Cement Manufacturing will increase increase incomes rationale  These activities will also generate national and regional revenues

 Moreover, they will generate employment opportunities  The industry will also create a forward and backward linkages within the mining sector and other sectors Available support  Kahama Town Council offers incentive including easily access of land  The Council will ensure a smooth process for land acquisition, coordination of Government departments, private sector actors and other relevant institutions in order to facilitate investment implementation  Good infrastructure, which includes roads networks, communication, electricity and markets  This investment is in line with Government industrialisation policy, which among other things promotes value addition at both primary and secondary levels  Political support at national, regional and local government levels

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Construction of a Modern Bus Terminal Mbulu Overview of the Opportunity

Key features Kahama Town Council

 Investing in modern bus stand at Mbulu  The Council has set aside 4.6 ha equivalent to 46,000square metres for this investment.

. Key  Bus stations are a significant element in the operation of bus services. investment Bus stations provides complimenting facilities for the benefit of rationale passengers such as food kiosk public car parks, taxi bays as well as parking bays for bus operators to pick up and ferry passengers to their

destination. A modern bus station with good management and environment will spur further economic activities in and around the bus station. Available  The Councils have allocated land for the construction of the Bus Stand support and related facilities  Bus stand facilities development is aligned with the objective Number 2 of the Government’s Five Year Development Plan – II (FYDP – II) which aim to enhance Human Development and provisioning of quality services  75-percentage import duty relief on project Deemed Capital Goods including equipment’s, utility vehicles and some building materials through TIC.

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Light Medium Heavy industries & Edible Oil Industries 1. Edible Oil Industry Overview of the Opportunity

Key features  Investors are invited to establish Light Medium Heavy industries an edible oil industry using cotton as raw material  Kahama Town Council has set aside 1,029 hectares at Zongomela Industrial Park in which 245 hectares have been allocated for small scale industries while 784 hectares for medium and heavy scale industries

  Kahama Town Council 70 hectares for establishing Light, Medium and Heavy Industries at Chapulwa

 83.3 hectares for establishing Buzwagi Logistic Centre at Mwendakulima Ward  70 hectares for establishing Light, Medium and Heavy Industries at Chapulwa  Opportunities in industries including 3 Ginneries which process cotton, Dragon Industries which produces Iron sheets, Lachanya which produce Painting colors and KOM with Industries producing Plastic Materials, Iron sheets, Cooking Oil (Cotton), edible oil and Baker products

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 Plastic Pipes

 Edible Cotton Oil

Iron Sheets

Key investment  Since Industrialisation is relevant not only because of economic rationale reasons but more so because it enhances shared prosperity, it is therefore necessary to ensuring civil harmony. It does this by increasing employment for our youth, reducing poverty and

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redressing inequality.  The industry will generate employment and become a source of markets for farmers 

Available  Kahama Town Council Support Supported by FYDP II 2011/2012- support 2020/2021  Supported by the National Public-Private Partnership (PPP) Policy,

2009.



PART FIVE: INDUSTRIAL DEVELOPMENT AND LOGISTICS CENTERS STRATEGY Establishments of Nyashimbi Logistic Center are consistent with the National Development aspirations articulated in the Tanzania Development Vision 2025 of transforming the Economy into a Middle Income and Semi-Industrialized State by 2025. The Logistic Centre is intended to easy transportation operations costs by making link connections with storage and movement of goods between the sender and the recipient, including support for intermodal transport and providing customers with various additional services. Nyashimbi Logistic Centre is planned to be developed into the Railway- Bypass Centre (Dry Port) where goods in transit would be momentarily stored. The area so far has no land compensation for its development a situation is an added advantage to the potential investors.

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7.1 Agro-processing Fruit Products Processing and Building Material Industries In Kahama Town Council agro projects are rated highly. As pointed earlier Kahama Town Council has allocated Zongomela Industrial Park. The area is all aimed for investment; the small industrial investment currently contains 1,548 entrepreneurs and 788 plots which are in use. Fruit Mangoes, oranges, lemons, passion fruit, Fruit Juices, will find a place for establishing their industrial Investments. Other industries include 3 Ginneries which process cotton, Dragon Industries which produces Iron sheets, Lachanya which produce Painting colors and KOM with his Industries producing Plastic Materials, Iron sheets, Cooking Oil (Cotton), edible oil and Bakery products. There is also Milk Processing Industries at Kagongwa for Milk Products can find place in Kahama as it is the case with KOM GROUP containers and other receptacles.

Kahama Oil Mills (KOM) & Kagongwa Milk Processing Plant Large markets are available within the Town and Export to other regions. Bulk sales to institutions eg. Schools colleges, prisons. Hotels and Lodges and people in and out of Kahama Town Council.

Cotton Ginning

Kahama Cooperative Union KACU is a long established Cooperative Union which has been in the cotton marketing business since 2004/05 season. Operations have been varying over the years partly due to technical problems with the plant and competition in seed cotton procurement due to low production by farmers. As per financial records,

54 the company realized net loss of (Tshs.290.638) Million for 2018/19 season mainly from tobacco farming activities.

The existing cotton ginning plant consists of Double Roller Gins located at Mhongolo Industrial Area in Kahama Township with capacity of producing about 6 bales of lint cotton per hr. equivalent to 144 lint bales per day which is equivalent to 73,440 kgs of seed cotton per day. The Ginnery is in excellent working condition. This cotton ginning plant has enough Storage and Haulage Capacity. The cotton Ginning Plant is a modern facility with 14 Godowns with average capacity of 150 tons of goods per Godowns. Transportation of seed cotton, other raw materials and finished products is done either using its own transport or hired trucks from outside.

In order for the Union to realize the above plan for cotton growing seasons, potential investors are mostly invited to mobilize total credit facility so as to expand its cotton ginning capacity from the present 16 Double Roller Gins and install additional 11 Double Roller Gins to make a total of 27 Gins. This would result into new ginning capacity of 10 (200kg) lint bales per hr equivalent to 240 lint bales per day assuming 3 shifts per day working 8 hr per shift. Investors are mostly welcome for financing the planned expansion program and sustaining of business operations for cotton growing seasons.

PART SIX: FACILITATION, PROCESS, REQUIREMENTS INCENTIVES AND CONTACTS Kahama Town Council is all ready to provide access to various services related to permits, licenses and approvals and Facilitation for investors. Most of the policies and laws, unless specified, are applicable nationally for specific sectors. Local government authorities, through the blessings of Kahama Town Council town which is mandated to enact by-laws and notices that must also be endorsed by the Minister responsible for Regional Administration and Local Government (RALG). For the potential investor to have information on the Main Institutions Dealing with Investment in Tanzania and Kahama Town Council General Investment Incentives, Registration and Taxes like Personal Income, Withholding, & Value Added Tax (VAT) Taxes please make it through key contacts below.

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8:2 KEY CONTACTS IN KAHAMA TOWN COUNCIL 8:2:1 Office Website Kahama Town Council www.kahamatc.go.tz 8.2 Key Contacts Town Director, Kahama Town Council, P.O. Box 472, KAHAMA Tel No: 028-2710179 Fax No: 028-2710179 Email : [email protected] [email protected]

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