TIC targets Rukwa, Katavi for investment growth
RUKWA: THE Tanzania Investment Centre (TIC) has spotlighted the Rukwa and Katavi regions as prime targets for domestic investment, citing their substantial economic potential and rich resource base.
This strategic focus, according to TIC, aims to harness the regions’ underutilised assets and drive local economic growth.
Rukwa and Katavi are endowed with significant natural resources, including vast agricultural lands, minerals and forests.
The regions’ favourable conditions for agriculture, coupled with their untapped mineral deposits, present lucrative opportunities for investment in sectors such as farming, mining and manufacturing.
The TIC Domestic Investment Promotion Manager, Mr Felix John, who led the centre’s team on a tour of the two regions, informed its leaders about the National Investment Promotion Campaign. This campaign aims to raise awareness among citizens about investment opportunities and benefits, guided by the incentives outlined in the Investment Act of 2022.
“TIC is dedicated to educating the public about investment opportunities and new investment act of 2022” Mr John said after meeting separately with Rukwa Regional Commissioner Mr Makongoro Nyerere and Katavi Regional Administrative Secretary Mr Albert Msovela recently.
By encouraging domestic investments in Rukwa and Katavi, TIC aims to stimulate job creation, enhance local infrastructure and boost overall economic activity.
“This initiative is expected to attract investors seeking to capitalise on the regions’ resource wealth while contributing to sustainable development and poverty reduction.” He said.
The TIC’s focus on these regions highlights its commitment to promoting balanced economic growth across Tanzania and unlocking the full potential of its diverse geographic areas.
ALSO READ: TIC Catalysing investment and economic growth in Tanzania
The ongoing campaign launched in January, currently targets southern regions of Rukwa, Katavi, Lindi and Ruvuma with plans to expand to Kigoma.
The campaign aims to inform the public about investment opportunities and recent reforms in investment laws to boost domestic investment and regional developments.
According to TIC statistics, countrywide domestic investment in the just ended 2023/2024, reached 38 per cent in the total of 707 registered projects in comparison to only 10 per cent recorded in the 2022/2023 in which only 369 projects were recorded.
The new investment Act has reduced domestic investors’ capital threshold to 50,000 US dollars from 100,000 US dollars.
The two regions are strategically positioned between Lakes Tanganyika and Lake Rukwa plus its rift valley basin which are also endowed with unexploited arable land.
“This domestic investors’ seminar meant to enhance investors understanding of domestic investment opportunities available and process for initiating and development projects in Rukwa,” Rukwa RC Mr Nyerere said.
Besides the local market, the region shares borders with the Democratic Republic of Congo (DRC) in the eastern part and Burundi across Lake Tanganyika which are potential export destinations.
Additionally, Rukwa is situated between Lake Tanganyika and several smaller lakes and rivers, offering reliable fish production. The region is home to a variety of fish, including Nile perch, sardines, mudfish, English fish, luciolates, strapessil (mikebuka) and various ornamental species.
Rukwa too had set aside an area special for an industrial park and for tourism attractions there are Old Bismark Fort along the shoreline of Lake Tanganyika at Kasanga ward; Kalambo waterfalls, hot springs at Kizombwe village, Lake Rukwa scenery from Ufipa escarpment, lake beaches, red Columbus at Mbezi forest reserve, Uwanda and Lwafi game reserves, Lake Kwela and Tembwa waterfalls.
To tap these potential, Alpha Tanganyika Flavour Limited Chief Executive Officer Mr Alpha Nondo said that they primarily exports fish to the US supplying 20 states markets. The firm has also secured new markets in Canada and the European Union.
Equally speaking on investment prospect Katavi RAS Mr Msovela welcomed domestic investors to tap tremendous business opportunities since special areas for investment in agriculture, fishery and manufacturing sectors has been allocated.
ALSO READ: How Katavi boosts domestic investments
“We need to fully utilize Lake Tanganyika for regional economic development,” Mr Msovela stated, while also highlighting the tourism potential of Katavi National Park.
He noted that currently domestic investments in the region are still low despite of the presence of promising business opportunities.
Ends
Dr Shayo
Economic Impact: Reflection on Kizimkazi Festival 2024
FESTIVALS and events in small regional destinations like Kizimkazi in Zanzibar often play a crucial role in driving tourism and boosting economic growth. While serving various purposes, these gatherings can have a significant impact on local economies.
The impressive turnout at the 2024 Kizimkazi Festival’s opening ceremony prompted a deeper reflection on the potential economic benefits of such events.
The eight-day festival, inaugurated last week by Dr Hussein Mwinyi, highlighted his commitment to addressing key socio-economic challenges in South Unguja.
Dr Mwinyi emphasised the need for government action to resolve issues such as unreliable electricity, water shortages, land conflicts and shortages of medical professionals.
Much as many of us are used to thinking festivals are short-term lived events, the bigger picture of events spurs or level behind economic benefits to the local community.
Since this festival started, the Kizimkazi Festival, started as ‘Samia Day’ in 2016, has been transforming Unguja South. It has driven health, education, sports and employment development, and over 500 young people have gained knowledge in entrepreneurship, tourism, fishing, agriculture and the arts.
This year’s theme, trading as “More Five Years for Mama Samia, for a Prosperous Tanzania,” reflects and acknowledges the significant strides made by the Union government under President Samia’s leadership on the mainland and Dr Hussein Mwinyi on the Isles government.
Last year’s Kizimkazi Festival saw an impressive turnout, with attendees hailing from different places and different sectors of the economy, showcasing strong support for this unique festival to have been started by Dr Samia, drawing attendees from out of Zanzibar town, journeying in by the use of marine transport and through Zanzibar to partake in the festivities.
Compared to similar festivals, such attendance highlights the event’s strong appeal and its capacity to attract visitors from far and wide, thereby injecting new spending into the local economy of Kizimkazi.
Although it might not be immediately apparent, a substantial part of the economic impact is seen in the hospitality sector, especially in local dining establishments.
In this year’s 2024 festival, over 1,000 visits these eateries during the festival period, providing a considerable boost in revenue for restaurateurs and contributing to the vitality of Islands of Zanzibar’s culinary scene in addition to local businesses experiencing heightened foot traffic and increased sales, bolstering their bottom line.
It reflects on this year’s festival beyond the immediate economic gains the Kizimkazi Festival has fostered. It will continue to promote community cohesion and pride, strengthen social ties, and instil a sense of belonging among the United Republic of Tanzania residents.
Moreover, it serves as a platform for native artists, musicians, small businesses and vendors to showcase their talents and products, nurturing entrepreneurship and creativity within the community.
This year’s event goes beyond mere numbers; it embodies collaboration, innovation, and economic resilience. By harnessing the power of culture and community, such events not only enrich lives but also lay the foundation for sustainable economic growth in Kizimkazi and beyond.
Thus, it is possible to identify direct, indirect, and induced consequences as part of the Kizimkazi festival’s economic impact. The first shift in the economy has direct impacts.
For Kizimkazi, the economic benefits include money spent by guests at the festival and other establishments on Zanzibar Island. Even businesses that don’t directly host festival attendees benefit from indirect and induced effects.
For example, while festivalgoers might not visit a local accountant, that accountant may still earn income from clients who serve festival attendees, thereby contributing to the local economy.
One key issue that we all need to understand is that the fixed length of events and festivals set days encourages visitors to attend, often attracting new visitors that would otherwise not experience that particular region and, in this case, Kizimkazi and Zanzibar Island in this case.
For Zanzibar, this added exposure serves as an indirect marketing tool, showcasing the island’s beauty to previously untapped markets. The influx of participants and new tourists introduces fresh spending, diversifying the local market and boosting both actual and potential revenue. This impact extends through the supply chain, leaving a significant economic footprint.
In general, it is also essential to recognise that events and festivals like Kizimkazi are attractions that have drawing power and holding power. This means they bring in new visitors and help keep visitors in longer. This shows the importance of measuring the economic impact of those who came specifically for the event and those who didn’t and stayed longer because of the event.
As the Kizimkazi festival continues to thrive and evolve, its positive impact on the Zanzibar local economy will endure, making it a beacon of prosperity and vitality for years to come through direct, indirect and significantly induced impact.
