1 SEPTEMBER 2017 TABLE OF CONTENTS ABBREVIATIONS 4 THE MESSAGE FROM THE REGIONAL 5 COMMISSIONER CHAPTER 1 8 1.0 Mbeya Regional Profile 8 1.1 Vision 8 1.2 Mission 8 1.3 Administrative Framework 8 1.4 Geographical Location and Land 8 1.5 Topography 8 1.6 1.6 Climate 9 1.7 Population 10 1.8 Ethnic Groups 10 1.9 The Regional Economy 10 CHAPTER 2 11 2.0 Agriculture and Livestock: The Existing 11 Situation 2.1 Types of agriculture practiced in Mbeya 11 region 2.2 Investment Opportunities in Agriculture 12 2.2.1 Livestock Keeping 14 2.2.2 Investment Opportunities in Livestock 16 2.2.3 Agricultural and Livestock Research and 16 Development CHAPTER 3 17 3.0 Tourism: The Situation 17 3.1 3.1 Tourist attractions in Mbeya Region 17 3.2 3.2 Investment Opportunities in Tourism 19 CHAPTER 4 20 4.0 Natural Resources: The Situation 20 4.1 Forestry 20 4.2 Investment Opportunities in Natural 21 2 Resources CHAPTER 5 23 5.0 Mining: The situation 23 5.1 5.1 Investment Opportunities in Mining 24 CHAPTER 6 25 6.0 6.0 Energy: The situation 25 6.1 6.1 Electricity Transmission and Distribution 25 6.2 6.2 Alternate Energy Solutions 25 CHAPTER 7 27 7.0 Industries and Manufacturing 27 7.1 Investment Opportunities in Industries and 29 Manufacturing CHAPTER 8 30 8.0 Economic Infrastructure: The situation 30 8.1 Road and Transport 30 8.2 Railway and Railway Transport 31 8.3 Civil Aviation and Air Transport 31 8.4 Marine Transport 32 8.5 Road and Roads transport 34 8.6 Civil Aviation and Air Transport 34 8.7 Lake Transport 34 CHAPTER 9 36 9.0 Social Infrastructure: The Situation 36 9.1 Education 36 9.2 Health 36 9.3 Water Supply and Sanitation 37 9.4 Solid Waste Management 37 9.5 Security 37 9.6 Social Security 38 9.7 Investment Opportunities in Social 38 Infrastructure 9.7.1 Education 38 9.7.2 Health 38 9.7.3 Water Supply and Sanitation 38 9.7.4 Solid Waste Management 38 3 9.7.5 Security Services 39 10.0 Concluding Remarks 39 11.0 Annexes 40 4 ABBREVIATIONS BoT Bank of Tanzania BBC British Broadcasting Cooperation BOA Bank of Africa BIC Business Information Centre CBA Commercial Bank of Africa CHF Community Health Fund ECGS Export Credit Guarantee Scheme EWURA Energy and Water Utilization Regulatory Authority EPZ Export Processing Zone GDP Gross Domestic Product HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome ICT Information Communication Technology LAPF Local Authorities Pension Fund LGA Local Government Authority MRIF Mbeya Region Investment Forum MU Mzumbe University NBS National Bureau of Statistics NHIF National Health Insurance Fund NEMC National Environment Management Commissioner NSSF National Social Security Fund OUT The Open University of Tanzania PCCB Prevention and Combating Corruption Bureau PPF Parastatal Pensions Fund PPP Public Private Partnership PSPF Public Service Pension Fund SEZ Special Economic Zones SIDO Small Industries Development Organization SMEs Small and Medium Enterprises TANESCO Tanzania Electrical Supply Company Limited 5 TANROADS Tanzania Road Agency TAZARA Tanzania Zambia Railway Authority TCCIA Tanzania Chamber of Commerce, Industries and Agriculture TCRA Tanzania Communication Regulatory Authority TOL Tanzania Oxygen Limited TEKU Teofilo Kisanji University TIC Tanzania Investment Centre TIB Tanzania Investment Bank TRA Tanzania Revenue Authority TTCL Tanzania Telecommunication Company Limited TBC Tanzania Broadcasting Cooperation 6 THE MESSAGE FROM THE REGIONAL COMMISSIONER Hon. Amos G. Makalla Mbeya region has a total surface area of 35,954sq. kms out of which 461.7 sq.kms is covered by water bodies of Lake Nyasa and several rivers while the remaining 34,144.3 sq.km is land area. Administratively, the Region is divided into 5 districts with 7 Local Government Authorities (LGAs). The Administrative Districts include Mbeya, Chunya, Mbarali, Kyela, Rungwe, 15 divisions, 178 wards, 533 villages and 181 Mitaa. According to the 2012 census the undivided Mbeya region had a population of 2,707,410 people out of whom 1,297,738 are male and 1,409,672 are female. The new Mbeya Region population projection of 2016 was 1,883,024, out of whom 902,479 are male and 980,545 are female. Mbeya has a good road transport connection to Dar es Salaam (the main harbour and commercial city of Tanzania) and to other neighbouring regions. There is also a railway line which links Mbeya to Dar es Salaam and Kapirimposhi in Zambia. The existence of Mbeya – Malawi Cargo Dry port is an added 7 advantage. All key economic areas within the region can be reached with ease. There is a new international airport Songwe as started operating linking Mbeya with Dar es Salaam and link to other cities of Southern African countries such as Malawi, Zambia, Democratic Republic of Congo, Mozambique, and South Africa. Water supply system is also adequately developed for domestic and industrial use. The region is also connected to the National electricity grid system which is continually being upgraded and expanded to meet the present and future requirements. There is a good number of modern communication and media companies operating in the region, serving both local and international needs. Topographically, Mbeya Region consists of 3 ecological zones: lowlands (within the Rift valley), plains (including Usangu wetlands) and highlands (Uporoto highlands and Livingstone mountain ranges). These ecological zones are favourable for the development of agriculture, forestry, industry, tourist services and mining. Apart from rain fed agriculture, the Region has about 110,721 hectares that are suitable for irrigation, out of which 25,626 hectares need to be developed. The Region is also rich in a variety of mineral deposits including coal, gold and industrial minerals such as limestone, marble, iron ore and phosphates. Mbeya Region has a large tourist potential with famous sites such as Lake Ngosi, Ihefu wetland plains, Matema Beach, etc. 8 The economy of Mbeya is based on agriculture, livestock and bee keeping, fishing, commerce and manufacturing. Other economic activities and potentials include mining and tourism. On the basis of current prices, Mbeya Regional Gross Domestic Product was Tshs 5.831 trillion and per capital income was Tshs. 3,097,049 in year 2016. The Region contributed 5.62 % in the national income (GDP) holding a third position national-wide after Dar-es-Salaam and Mwanza To maintain and improve this growth target, the Region has planned to concentrate on the following activities: First, further development of agriculture, livestock farming, forestry, fisheries and beekeeping sub-sectors for large volume and high quality production to meet domestic and export markets. Second, expansion of important road networks to key economic areas including industrial zones in urban areas. Third, taking measures aimed at expanding and developing the tourist sector. The fourth step is to gradually transform and update utilities infrastructure including electricity, water supply and sewerage systems. Apart from our own efforts, the region wishes to attract investments from domestic and foreign investors as well as economic organizations for the purpose of exploiting the regions opportunities on the basis of mutual benefits in various areas. Therefore, I am looking forward to cooperate with you in making Mbeya Region a vibrant investment location in Tanzania. 9 Welcome to Mbeya Region! Karibuni Mkoani Mbeya! Hon. Amos G. Makalla REGIONAL COMMISSIONER, MBEYA 10 MBEYA REGION MAP SHOWING ITS DISTRICT COUNCILS 11 Chapter 1 1. 0 Mbeya Regional Profile 1.1 Vision To be a highly competent and dedicated institution adheres to good governance in supporting development initiatives. 1.2 Mission To facilitate and build the capacity of LGAs for sustainable socio- economic development of the community by providing multi- skilled technical support while interlinking with central government, LGAs and other stakeholders with the view of reducing poverty. 1.3 Administrative Framework The Region is divided into 5 districts with 7 Local Government Authorities (LGAs) namely: Chunya, Mbeya, Kyela, Rungwe, Mbarali, Busokelo and Mbeya City. It is further sub divided into 15 divisions, 178 wards, 533 villages and 181 Hamlets (Mitaa). 1.4 Geographical Location and Land The Region borders the Republic of Malawi to the South, Songwe Region to the West, Singida and Tabora Regions to the North and Iringa and Njombe Regions to the East with Kasumulu in Kyela district being the main entrie and exit into the neighbouring country of Malawi. 12 Mbeya Region covers a total area of 35,954 sq. kms, which is 4.1% of the total area of the United Republic of Tanzania excluding sea area of 883,343 sq. km. Out of the Region’s total surface area, 35,201 sq. kms is dry land and 753 sq. kms is covered with water bodies of Lake Nyasa and rivers Kimani, Chimala, Igurusi, Kiwira, Lufilyo, Mmbaka and Zira. 1.5 Topography Mbeya region can be classified under the low elevation of the western encompassing Songwe Region and southern Lake Nyasa, the Eastern Rift Valley where the Usangu plains are dominant and areas between these zones there is Rungwe – Uporoto highlands. Generally, the altitude ranges between 475m at Lake Nyasa to above 2,000m around Rungwe Peak (2,981m). The region is divided into three drainage basins namely Rufiji and Lake Nyasa. Mbarali and a small part of Mbeya district are in the Rufiji basin, Rungwe and Kyela districts are in Lake Nyasa basin while Chunya and a big area of Mbeya District are in the Lake Rukwa basin. 1.6 Climate The climate of Mbeya region is greatly influenced by physiology and altitude. It is generally tropical with marked seasonal and 13 altitudinal temperature variations and sharply defined dry and rainy seasons.