The government of Tanzania has allocated 60,000 hectares of land for large-scale commercial production of sugar and rice, inviting both foreign and domestic investors to apply for allocations.

 

The Tanzania Investment Center (TIC), which was established under the Tanzania Investment Act No.26 of 1997 for the promotion, coordination, and facilitation of investments in the country will be coordinating any subsequent agreements.

 

The land is situated in the Mkulazi area, along the TAZARA railway line that links Dar es Salaam with the Zambian borer, approximately 100 kilometers from Dar es Salaam.

 

The land is well situated to serve the growing demand gap for sugar and rice both in the regional and global markets, and Christopher Chiza, the former Minister for Agriculture, Food Security and Cooperatives, states that there will be no expected conflicts over land with local residents, saying, “No single piece of land from farmers will be grabbed to fulfill investment purposes.”

 

Commercial and large-scale investors in the country will also stand to benefit from complimentary investments through the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) initiative – a multi-stakeholder public-private partnership developed to accelerate the agricultural potential in the region, as well as from the government, donors, and private investors looking to invest in infrastructure projects, input-supplies, and out-grower development and financing.

 

The title of the land being offered in Mkulazi is secured by the TIC from the Ministry of Land, Food Security, and Cooperatives, and is being held under the TIC land bank. The parcel is to be divided, dedicating 40,000 hectares for sugar production, which will be split into two farms of 20,000 hectares each, while the remaining 20,000 hectares will be earmarked for rice production, to be split into four farms of 5,000 hectares each. All established farms will be available on a 66 year lease.