Posted on December, 11, 2018 at 10:19 am
PRIVATE investors have a list of benefits when they choose to start agro-processing factories for commodities such as cashew nuts in special economic zones (SEZ) under Exports Processing Zones Authority (EPZA).
EPZA Investment Promotion Manager, Grace Lemunge said in Dar es Salaam last week at a four-day industrial exhibition held at Julius Nyerere Trade Fair ground, that investing under SEZ allows owners to exploit huge domestic and foreign markets, better tax incentives and affordable labour costs.
“This initiative will benefit investors through access to export markets, local markets and better investment climate while our farmers get a market for their commodities and government gets taxes,” Lemunge said.
She said urged local and foreign investors to capitalise on the opportunities provided through EPZA facilities such as SEZ in order to produce processed cashew nuts for the exports market.
The industrial exhibitions were organised by Tanzania Trade Development Authority (TanTrade) in collaboration with United Nations Industrial Development Organisation (Unido) to showcase the country’s home made products.
“Investment in cashew value chain will support government’s efforts to add value to the commodity before exporting which will earn farmers more,” she noted saying the government has already banned exporting of raw cashews nuts.
This year cashew nut season is already taken over by Tanzania People’s Defence Force which has been directed by President John Magufuli to process all the over 200,000 metric tons of the commodity before selling both locally and abroad.
According to research, there are over 10 products that can be made from cashew nuts namely milk, wine, juice and lubricants. She said EPZA assures investors various incentives to support their investments including 10 years tax holiday that will lower cost of operations.
Lemunge said 80 percent of the products produced under the SEZ are destined for the export market while the remainder sells locally.
“Increased investments in agro-processing industries will have huge impact on the agriculture sector that employs over 70 percent of the workforce in rural areas,” the EPZA Promotions Manager added.
Cashew nuts are a major crop in Lindi, Mtwara and Ruvuma regions and were mainly exported raw to India where they were processed and sold to global markets, a development which President Magufuli’s administration want to end.
Source: IPP Media