THE UNITED REPUBLIC OF TANZANIA PRESIDENT’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT MTWARA REGION INVESTMENT GUIDE The preparation of this guide was supported by the United Nations Development Programme (UNDP) and the Economic and Social Research Foundation (ESRF) 182 Mzinga way/Msasani Road Oyesterbay P.O. Box 9182, Dar es Salaam Tel: (+255-22) 2195000 - 4 978 - 9987 - 664 - 11 - 5 E-mail: [email protected] Email: [email protected] Website: www.esrftz.or.tz Website: www.tz.undp.org MTWARA REGION INVESTMENT GUIDE | i TABLE OF CONTENTS LIST OF TABLES ........................................................................................................................................v LIST OF FIGURES .....................................................................................................................................v ABBREVIATIONS AND ACRONYMS .............................................................................................vi FOREWORD ..............................................................................................................................................x EXECUTIVE SUMMARY ......................................................................................................................xii DISCLAIMER ..........................................................................................................................................xiv PART ONE: ...............................................................................................1 REASONS FOR INVESTING IN MTWARA REGION .............................................. 1 1.1 Mtwara Region in the Broader Tanzanian Context ...........................................1 1.2 Investment Climate and Trade Policy in Tanzania .............................................2 1.3 Why One Should Invest in Mtwara Region ............................................................5 1.4 Suggested Priority Investment Areas in Mtwara Region ...........................10 1.4.1 Regional Level Priority Investment Opportunities ..........................10 1.4.2 Council Level Priority Investment Opportunities .............................10 1.5 The Guide’s Target Groups.............................................................................................11 PART TWO: .............................................................................................13 SOCIO-ECONOMIC PROFILE OF MTWARA REGION .......................................13 2.1 Geographical Location ....................................................................................................13 2.2 Land Area and Administrative Units .......................................................................13 2.3 Population ...............................................................................................................................14 2.4 Population Density ............................................................................................................15 2.5 Climate, Soil, Vegetation and Topography ..........................................................15 2.5.1 Climate ........................................................................................................................15 2.5.2 Soil .................................................................................................................................16 2.5.3 Vegetation ................................................................................................................16 2.5.4 Topography ..............................................................................................................17 2.6 Agro-Ecological Zones ....................................................................................................17 2.7 Regional Economy .............................................................................................................18 2.8 Productive Sectors .............................................................................................................18 ii | MTWARA REGION INVESTMENT GUIDE 2.8.1 Agriculture ................................................................................................................19 2.8.2 Livestock ....................................................................................................................22 2.8.3 Natural Resources ................................................................................................25 2.8.4 Tourism .......................................................................................................................27 2.8.5 Mining Sector .........................................................................................................30 2.8.6 Industrial Sector ....................................................................................................31 2.8.7 Energy Sector..........................................................................................................31 2.9 Economic Infrastructure .................................................................................................32 PART THREE: ..........................................................................................37 PRIORITY INVESTMENT OPPORTUNITIES IN MTWARA REGION ...............37 3.1 Summary of Priority Investment Opportunities by Sector .......................37 3.2 Regional Level Priority Investment Opportunities .........................................43 3.3 Council Level Priority Investment Opportunities ...........................................51 PART FOUR: ...........................................................................................71 FACILITATION, PROCESSES, REQUIREMENTS AND INCENTIVES ...............71 4.1 Supportive Policies and Legal Environment ......................................................71 4.1.1 Policies, Legal, Institutional and Regulatory Considerations ......... 71 4.1.2 Strategies, Plans, and Programmes ...........................................................72 4.1.3 Investment Options: Private, PPP, PPCP, and Joint Ventures ......73 4.2 Facilitation: Processes and Requirements ............................................................74 4.2.1 Lead Institution......................................................................................................75 4.2.2 Main Institutions Dealing with Investment in Tanzania and Mtwara Region .......................................................................75 4.2.3 Registration ..............................................................................................................75 4.2.4 Central Government Taxes .............................................................................76 4.3 General Investment Incentives ..................................................................................78 4.4 Access to Resources ..........................................................................................................79 4.4.1 Land for Investment in Tanzania .................................................................79 4.4.2 Land for Investment in Mtwara Region ..................................................79 4.4.3 Banking and Financial Services ...................................................................79 4.4.4 Labour .........................................................................................................................80 4.5 Inclusion and Participation of the Private Sector ............................................80 MTWARA REGION INVESTMENT GUIDE | iii PART FIVE: .............................................................................................82 KEY CONTACTS IN MTWARA REGION ..................................................................82 5.1 Key Websites ..........................................................................................................................82 5.2 Key Contacts ..........................................................................................................................82 5.2.1 Regional Commissioner’s Office .................................................................82 5.2.2 Mtwara Mikindani Municipal Council .....................................................83 5.2.3 Town Councils ........................................................................................................83 5.2.4 District Councils ....................................................................................................83 iv | MTWARA REGION INVESTMENT GUIDE LIST OF TABLES Table 1.1: Freight and Passengers Transported through Mtwara Port .................8 Table 2.1: Population Projection for Year 2019 ................................................................ 15 Table 2.2: Tourism Attractions in Mtwara ............................................................................ 29 Table 2.3: Road Network within Mtwara Region ............................................................ 33 Table 3.1: Priority Investment Opportunities in Agriculture .................................... 38 Table 3.2: Priority Investment Opportunities in the Industrial Sector ............... 39 Table 3.3: Priority Investment Opportunities in Tourism ........................................... 41 Table 3.4: Priority Investment Opportunities in Education Sector ...................... 42 Table 3.5: Priority Investment Opportunities in Health Sector .............................. 42 LIST OF FIGURES Figure 2.1: Map Showing the Location of Councils in Mtwara Region .............. 14 Figure