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Tanzania Rwanda Economic opportunities in the ermerging powerhouse of Africa & The land of thousand hills BELGIUM I LUXEMBOURG I AFRICA I CARRIBEAN I PACIFIC Chambre de Commerce, d’Industrie et d’Agriculture I Belgique, Luxembourg, Afrique, Caraïbes, Pacifique Kamer van Koophandel, Nijverheid en Landbouw I België, Luxemburg, Afrika, Caraiben, Pacific Chamber of Commerce, Industry and Agriculture I Belgium, Luxembourg, Africa, Carribean, Pacific 53e année I Trimestriel I Janvier, Février, Mars 2018
Janvier Février Mars 2018 CHAMBRE DE COMMERCE, D’INDUSTRIE ET D’AGRICULTURE ASBL KAMER VAN KOOPHANDEL, NIJVERHEID EN LANDBOUW VZW CHAMBER OF COMMERCE, INDUSTRY AND AGRICULTURE NPO SECRETARIAT Rue Montoyerstraat 24 B5 1000 Brussels T +32 2 512 99 50 SOMMAIRE F +32 2 512 28 29 EDITO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 info@cbl-acp.be Guy Bultynck - Chairman, CBL-ACP www.cbl-acp.be FOCUS RWANDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ADVISORS Opportunities in Africa's miracle economy Henri CHALON, Paul FRIX, Rwanda revisited Josyane HOUART, Jacques NYSSEN, Guy PHILIPS, Solange FOCUS TANZANIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 PITROIPA, Jorge SANTOS The emerging powerhouse MANAGING DIRECTOR Opportunities in Tanzania Jacques EVRARD TOURISM DIVISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 EXECUTIVE MANAGER Land of a thousand Hills... Corine COURBET Land of thousand Visions! LEGAL DIVISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 YOUR PERFECT PARTNER: MANAGER Didier VERHELST Quel véhicule pour votre investissement en Afrique, entre mythe et réalité AC BRUSSELS DIPLOMAT SALES DEPUTY MANAGER Jennifer LEFEBURE CBL-ACP RESPONSIBLE OF THE If you are a diplomat or have tax-free status at an international organisation, MAGAZINE FINANCE DIVISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 a special scheme from Volvo means that you can buy a premium car Michael STENGER Trade and development bank at favourable prices - and gain many benefits besides. Avenue Huart Hamoir 48 1030 Brussels EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Finding somewhere to live and buying a car are often two top priorities for T +32 2 242 05 10 Manifestations passées CBL-ACP diplomatic and embassy staff when they begin their posting. michael.stenger@idealogy.be We are privileged to serve tax-free personnel at: www.idealogy.be STAFF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 EMBASSIES & CONSULATES | UNITED NATIONS NEW MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 EUROPEAN UNION | INTERNATIONAL ORGANISATIONS Cover Visual composition by Céline Bacho CHIEF EDITOR Direct Service Contact: Gauthier DEMARET Pictures © shutterstock T: +32 474 107 550 E: c.romao@acbrussels.be Responsible of the publications www.acbrussels-diplomatsales.be SALES & ADVERTISEMENTS Mr. Michael Stenger, Avenue Huart Hamoir 48, B-1030 Bruxelles Nada NEBBOU VIP MEMBERS GRAPHIC DESIGN Céline BACHO Denis VAN MOORSEL ACB Louis Brussels: ACB Zaventem: ACB Overijse: Louise RIQUIER Leuvensesteenweg 381-383 Leuvensesteenweg 430 Brusselsesteenweg 343 1030 Brussels Ange-Felix STRAETMANS 1932 Woluwe - Zaventem 3090 Overijse 02 743 81 83 02 712 60 24 02 686 05 55 www.brusselsairline.com www.deme-group.be www.tractebel-engie.com www.transautomobile.be www.cblacp-press.be © This content is protected by copyright and may not be reproduced without the formal authorisation of the editor.
2/ /3 EDITORIAL L’AFRIQUE ET L’EUROPE le monde n’a atteint un stade de développement écono- perfectly capable and ready to handle development themselves, Is dat nu echt hét antwoord op de noden van Afrika inzake mique et social élevé sans avoir développé un secteur indus- autonomously and without western ‘guidance’. private en publieke investeringen, inzake de creatie van com- Afrique : Trois facteurs clefs, la jeunesse, les nouvelles technolo- triel avancé ? » petitieve industrieën, inzake de totstandkoming van grote gies et des réserves de matières premières représentant un tiers In short, it is time the West stopped stigmatising Africa by infrastructuurwerken, de versterking van de gerechtelijke kaders, des besoins mondiaux… avec en plus les côtes les plus poisson- L’Asie dans les dernières décennies du siècle dernier l’a bien teaching it ‘how to suck eggs’, as today Africa, and rightly so, de consolidatie van gouvernementele garanties, etc… met als neuses et les terres cultivables les plus riches de notre planète. compris et a ainsi bouleversé les équilibres économiques du wants to take matters into its own hands by assuming its own afgeleide het creëren van hoogwaardige werkgelegenheid? monde. Alors, pourquoi l’Afrique ne ferait-elle pas de même responsibilities and freeing itself of western paternalism. Devant cette évidence, tous devraient se tourner vers ce aujourd’hui ? Nog zo’n absurd voorbeeld is het koppig vasthouden van Europa Continent avec l’espoir, pour les financiers, les entreprises, In contrast, the same West had better listen to the appeal from aan de wil om Afrikaanse micro-, kleine en middelgrote onder- les organisations et les états d’être co-acteurs d’une incroyable Kofi Annan who stated: “There is not a single country in the world nemingen te versterken door het inschakelen van Westerse croissance annoncée. Et parmi les pays africains les plus promet- AFRICA AND EUROPE that has reached a high stage of economic and social develop- ‘experten’. Deze halsstarrigheid heeft geen enkele zin als je weet teurs, deux d’entre eux sont mis en exergue par notre présente ment without having developed an advanced industrial sector”. dat zelfs de meest fragiele Afrikaanse landen nu al beschikken revue : d’une part la Tanzanie, créditée d’une croissance de 7% Africa in three key factors: Youth, new technologies and reserves over een gekwalificeerde middenklasse, die perfect bekwaam is en 2017 et reprise parmi les 10 pays au monde les plus perfor- of raw materials covering one third of the world’s needs… and on In the last decades, Asia, for one, has really understood this and en klaar staat om zich op autonome wijze te ontwikkelen zonder mants l’année dernière, d’autre part le Rwanda qui depuis près top of that a coastline teeming with fish like nowhere else and has shifted the economic balance in the world. So why should de ‘goede raad’ van het Westen. d’une décennie est l’une des économies les plus dynamiques some of the richest farmland on the planet. Africa not do the same today? du continent. Kortom, het is hoog tijd dat het Westen stopt met de stigma- Given all of this, everybody ought to turn to this continent with tisering van Afrika door het te leren stappen wanneer het al Et pourtant, malgré cette description pour le moins idyllique, les hope; bankers, the corporate world, organisations and states AFRIKA EN EUROPA lopen kan. Vandaag wil Afrika immers terecht zelf zijn eigen liens entre l’Europe et l’Afrique restent hésitants ce qui constitue are lining up to co-write the script of the incredible growth verantwoordelijkheden ter hand nemen en het Westerse un des grands paradoxes de notre époque. Il est manifeste que lying so dormant. In this magazine, we turn the spotlight on Afrika bezit drie grote troeven: haar jeugd, nieuwe technolo- paternalistische juk van zich afgooien. l’alchimie entre les deux a encore souvent du mal à fonctionner. two of the African countries that seem so promising. Tanzania gieën en een reserve aan grondstoffen genoeg om te voldoen achieved 7% growth in 2017, placing it in the top 10 of best aan één derde van de wereldwijde vraag… voeg daarbij nog één En dient datzelfde Westen dan niet eerder te luisteren naar Diverses raisons basées sur des expériences passées pénibles, performing countries in the world. And Rwanda has been one van de visrijkste kustlijnen en een agrarisch territorium dat op de oproep van Kofi Annan, wanneer die stelt: “Welk land in de un manque de confiance ou une méconnaissance mutuelle pour- the most dynamic economies of the continent for a decade. onze planeet zijn weerga niet kent. wereld dat een hoog niveau van economische en sociale ontwik- raient expliquer cela. Mais il y a aussi et certainement les visions keling heeft bereikt, deed dat zonder eerst een geavanceerde différentes, voire opposées, en la matière. And yet, despite this almost idyllic description, the ties between In het licht hiervan zou iedereen zich hoopvol tot dit continent industriële sector te ontwikkelen?” Europe and Africa remain unsure, forming one the greatest par- moeten richten; de bankiers, de ondernemingen, organisaties Cette incompréhension mutuelle se révèle à divers niveaux. adoxes of this era. It is clear that the alchemy between the two en staten zouden moeten staan trappelen om mee te schrijven Azië heeft dat tijdens de voorbije decennia alvast goed begre- À titre d’exemple, les journées européennes du développement is still off at times. aan het succesverhaal van een ongelooflijke groei die voor het pen; het heeft het economische equilibrium van de wereld op 2018 qui auront lieu à Bruxelles les 5 et 6 juin prochain auront grijpen ligt. In dit magazine plaatsen we twee van de meest zijn kop gezet. Waarom zou Afrika dat vandaag ook niet kunnen comme thème w: « Les femmes et les filles à la pointe du déve- There are various reasons for this, based on past painful expe- belovende Afrikaanse landen in het voetlicht: aan de ene kant doen? loppement durable : protéger, autonomiser, investir ». rience, the lack of trust or the lack of mutual understanding. Tanzania, dat prat gaat op een groei van 7 % in 2017, waar- But another phenomenon comes into play as well: different – mee het vorig jaar tot de 10 meest performante landen van de Est-ce vraiment la réponse aux besoins de l’Afrique en investis- often conflicting – views … wereld behoorde; en aan de andere kant Rwanda, dat al bijna een sements privés et publics, à la création d’industries compétitives, decennium lang een van de meest dynamische economieën à la réalisation de grandes infrastructures, au renforcement de This mutual incomprehension can be seen on different levels. van het continent bezit. ses cadres juridiques, à la consolidation des garanties étatiques, By way of example, let’s showcase the European Development etc… avec comme corolaire la création d’emplois de qualité ? Days 2018 due to be held in Brussels on 5 and 6 June, which will En toch blijven de banden tussen Europa en Afrika ondanks deze have as its main theme: ‘Women and Girls at the Forefront of haast idyllische omschrijving een eerder aarzelend karakter ver- Un autre exemple aussi absurde est l’entêtement européen à Sustainable Development: Protest, Empower, Invest’. tonen, wat meteen een van de grootste paradoxen van vandaag vouloir renforcer les capacités des micros, petites et moyennes oplevert. Het is duidelijk dat de samenwerking nog al te vaak entreprises africaines par des « experts » occidentaux. Cette obs- Is that really the best response to accommodating the needs of mank loopt. tination n’a aucun sens quand on sait que même les pays africains Africa in terms of private and public investment, to the creation les plus fragiles disposent aujourd’hui déjà d’une classe moyenne of competitive industries, to the implementation of major infra- Aan de basis liggen diverse redenen, pijnlijke ervaringen uit qualifiée capable et prête à se développer d’une façon autonome structure projects, to the reinforcement of its legal framework, het verleden, een gebrek aan vertrouwen of een slechte ken- et sans les conseils de l’Occident. to the consolidation of governmental safeguards etc… all leading nis van mekaar. Ook verschillende, vaak tegenstrijdige visies to the creation of high-quality employment? spelen een rol. Bref, il est temps que l’Occident mette fin à la stigmatisa- tion de l’Afrique en lui apprenant à « comment pêcher » car Another equally absurd example is the European persistence Deze wederzijdse miskenning uit zich op diverse niveaus. aujourd’hui l’Afrique désire prendre en main ses propres res- in wanting to strengthen the capacity of micro, small and medi- Een voorbeeld ter illustratie. De ‘Europese Ontwikkelingsdagen ponsabilités et se débarrasser du paternalisme occidental. um-sized African enterprises by means of western “experts”. This 2018’ die op 5 en 6 juni plaatsvinden in Brussel, hebben als Par ailleurs, ce même Occident ne devrait-il pas plutôt être à wilfulness makes no sense considering that even the most fragile thema: ‘Vrouwen en meisjes als voorvechters van duurzame GUY BULTYNCK l’écoute à l’appel de Kofi ANNAN pour qui « aucun pays dans of African countries today already have a qualified middle class, ontwikkeling: beschermen, versterken, investeren’. Chairman, CBL-ACP
K E Y FAC TS RWANDA CAPITAL UGANDA TANZANIA Kigali D. R.C ECONOMIC & FINANCIAL CAPITAL Kigali CURRENCY Rwandan Franc FORM OF STATE PROVINCES OF RWANDA Presidential Republic BURUNDI TERRITORY 26 338 km2 North Province East GDP Province 8,41 billion USD (2016) West Kigali Province City GDP GROWTH 5,9% South NEIGHBOURS Province Burundi, Uganda, Tanzania, The Democratic Republic Of The Congo INVESTOR FRIENDLY CLIMATE Ranked as the easiest place to do business in the EAC region -PRESIDENT- -OFFICIAL LANGUAGES- -POPULATION- Focus PAUL KAGAME KINYARWANDA 11,92 million ENGLISH inhabitants FRENCH RWANDA MAIN RELIGION Catholicism RWANDA GDP COMPOSITION 0,93 100% • Opportunities in Africa's 30,9% miracle economy 50,57% • Rwanda revisited AG R ICU LT U R E 17,6% 0% SERVICES CATHOLICISM PROTESTANTISM SEVENTH-DAY IND U ST RY 56.9% 26% ADVENTIST 11.1% OT H ER
’’ 6 / RWANDA /7 OPPORTUNITIES IN AFRICA’S The main objectives of the Vision are to transform Rwanda into a middle-income country by 2020 based on a thriving private sector and a To increase the domestic and foreign supply of manufactured goods, the Government has put in place the Special Economic Zone MIRACLE ECONOMY knowledge-based economy. as well as four Industrial Parks in Bugesera, Huye, Nyabihu, Rusizi to address the short- comings in the business environment by In Rwanda, the G-20 presents 6 con- developing infrastructure, streamlining crete investment opportunities within the business regulations and facilitating fast CWA framework. These fall into different moving investors. In addition to this, sectors, the opportunities and context of every District has an area earmarked as which we outline below. an industrial park. In addition to the Rwandan market, 1. MANUFACTURING & the East African Community (EAC), of INDUSTRY (INDUSTRIAL which Rwanda is a member, constitutes a PARKS) huge market for manufactured products. The population of the EAC currently The manufacturing sector in Rwanda is still stands at 143.5 million. Rwanda is centrally small but steadily growing at an annual rate located in the EAC and has spatial prox- of 7%. Several policies and strategies such imity to each of the EAC member coun- as the National Industrial Policy and the tries. For instance, traders from Burundi, National Export Strategy have been devel- also an EAC member, and DRC source oped to accelerate industrial and export their merchandise through Rwanda from growth. The National Industrial Policy aims other EAC countries. In addition, Rwanda Over the last decade, Rwanda has been able to come together as a nation and achieve impressive economic growth under to diversify the economy by increasing the is a signatory to various bilateral and mul- stable governance. Today, it is ranked 41st in the World Bank Doing Business Report. By 2020, it aims to accomplish share of industry in the country’s GDP, tilateral trade agreements which ensure its transition from a low-income economy based on agriculture to a knowledge-based, service-oriented economy with a to increase exports to USD 1.5 billion by wider regional and international markets middle-income country status. Currently leading the African Union, the country is pushing the reform of this institution as 2020 as well as to increase the number of access. A COMESA/EAC/SADC tripartite well as the establishment of a continental free-trade zone. off-farm jobs. trade agreement representing a market potential of 600 million consumers is also Often referred as the economic miracle of Africa, Rwanda has As stated by the President of the Republic of Rwanda, H.E. Paul going to be signed in the near future. been able to overcome its violent past and has come together Kagame, “The EDPRS 2 period is the time when our private as one nation with strong economic growth for over a decade. sector is expected to take the driving seat in economic growth Under the G-20 initiative, the aim is to Ranked as the easiest place to do business in the EAC region and poverty reduction” develop and operate industrial parks and the 3rd most competitive country in Africa, Rwanda seems worth $215 million. The absence of ready- a go-to place for investors. It offers liberal trade regimes, cover- The results have been positive: GDP growth averaged 8% per to-use factory units is a major problem ing EU, AGOA, multiple bilateral treaties and signed agreements year between 2001 and 2015. Rwanda’s growth from mid-2016 with regard to light manufacturing invest- on the reciprocal promotion and protection of investments, as to mid-2017 was 6% due to drought, weak export prices and ment in Rwanda as the country really well as double taxation agreements. construction activities following the completion of large invest- needs this to achieve its development ment projects in 2016. Growth is expected to accelerate in 2018 goals. The government is thus looking for While being land locked, the country is well connected to the and 2019 as private and public investment picks up and agricul- a real estate developer to establish and other African markets and offers a large public to any investor ture becomes more productive, according to the World Bank. perhaps operate industrial parks that or businessman eager to make Rwanda their home base. They provide “Advance Factory Units” for light will have access to 12,1 million Rwandans, 162 million people in The country had a trade deficit of 13.2% of GDP in 2016, mainly manufacturers. the EAC, 430 million people in COMESO and 90 million people due to the drought and the purchase of two planes for RwandAir, in CEPEGL. the national airline company. Well connected land has already been secured and is ready for purchase and The Vision 2020 is a long-term strategy for Rwanda’s develop- Rwanda’s natural resources include gold, cassiterite, wolfram- development. (total build-up size: 13, 180m2) ment. It was devised through a national consultative process in ite, methane, hydropower and arable land. The mining indus- the year 1999 and was adopted in 2000. The main objectives try in Rwanda is very substantial and a major contributor to of the Vision are to transform Rwanda into a middle-income the country’s GDP and its second largest export industry. country by 2020 based on a thriving private sector and a knowl- The country is known for being the most important producer edge-based economy. of tin, tantalum and tungsten (the 3 T’s). Many opportunities await investors in the exploitation of the 3 T’s, industrial mining, The Economic Development and Poverty Reduction Strategy partnerships with local mining companies, trading in minerals. (2013-2018) stems from Rwanda’s Vision 2020 and guides medium term actions that will lead to the achievement of A singular initiative that should be highlighted is the G-20’s the Vision’s goals. The main goal of the strategy is to speed initiative “Compact with Africa”, which seeks to promote up Rwanda’s progress towards becoming a middle-income private investment in Africa. It is complementary to other status country and creating better quality of life for all Rwandans initiatives to advance private investment, including in infra- through sustained average GDP growth of 11.5% and acceler- structure and foster sustainable growth in Africa. ated poverty reduction to less than 30% of the population.
’’ 10 / RWANDA /9 The EDPRS 2 period is the time when our private sector is expected to take the driving seat in economic growth and poverty reduction. H.E. Paul Kagame, President of the Republic of Rwanda horticultural crops & plants, including various fruits & vege- According to the Rwanda Energy Group Report, as of August tables; flowers (mostly fresh roses); essential oils (pyrethrum; 2017, Rwanda had a 40.5% access rate. On-grid access repre- patchouli; etc.), stevia, dairy, meat, poultry, and fish. sents 29.5 % and off-grid access 11%. Rwanda plans to achieve 512MW of installed power generation capacity by 2023/24. Agriculture is expected to grow from 5.8% to 8.5% p.a by 2018, with the number of people making a living primarily in Off-Grid Systems and Solar Mini-Grids the agricultural sector going from 34% to 25%, focusing on Thanks to its strategic location, Rwanda enjoys high solar irra- agro processing. Exports are expected to increase on average diance. Measurements in the eastern province showed a global from 19.2% to 28% p.a, with imports being maintained at a 17% horizontal irradiance of 1890 kWh/per square metre. So there average growth. are many opportunities such as standalone solar home sys- 2. TEXTILES AND GARMENTS In 2015, it announced USD 1 billion of extra support to Rwanda tems, mini grid solar projects with hybrid and storage solutions. over five years to help realise certain infrastructure works Gabiro Irrigation and Farming Project Solar energy systems are in high demand, particularly in remote The Rwandan textile and garments market is small. It has such as the 130-Km Ngoma-Bugesera-Nyanza road network The aim is to establish cutting-edge water infrastructure, rural areas where there is no power grid. only two major textile manufacturing companies (C&H and to connect businesses between the East and Southern prov- sufficient energy supply and smart and sustainable irrigation UTEXRWA), several SMEs, knitting cooperatives and a young inces, Kagitumba-Kayonza-Rusumo (208km) in the Eastern schemes. This is a public private partnership for 16,000 hec- Nyabarongo II Project - $520 million est silk sector. As the market is unique, the following opportuni- Province; Huye-Kibeho (68km) in the South and the current tares in Gabiro. The land will be allocated to qualified private The creation of a multipurpose hydropower generation of 128 ties seem promising: City of Kigali ring road project (80km). The package also funds sector companies and local communities. MW with integration components for water supply and an irri- Rwanda’s Electricity Access project worth $70 million, water gation system is another great opportunity for investors. • Manufacture of mosquito bed nets for malaria prevention: harvesting and hillside irrigation ($69 million) and $50 million Floriculture Rwanda promotes universal coverage of long-lasting insecti- in support of the country’s social protection policy. With the aim of jumpstarting the floriculture industry in Rwanda, Rwanda remains a highly attractive country with a stable cidal nets as part of an integrated strategy to combat malaria the government has developed a strategic investment existing government, dynamic policy, an enviable easy of doing busi- Under the G-20 initiative, authorities seek to broaden the offer- of 65ha at Gishari and 15ha at Nyacyonga. The land will be pro- ness and great connectivity. All these elements should make • Processing of cotton, wool, and other woven fabric for use ing of cargo shipments and to lower prices thanks to a cargo vided to investors through leasing or acquisition. our readers eager to discover more about this country during in uniforms and work wear investor. Various possibilities of arrangements exist, through the forthcoming economic mission to Rwanda in October 2018. contracts with new air cargo carrier and partnership & invest- • Weaving bed sheets and towels ment agreements through its national carrier RwandAir. 5. AFFORDABLE HOUSING Gauthier Demaret • New garments manufacture as the country has banned 2nd Being a land-locked country, Rwanda needs a central corri- A recent housing market study showed that 340,000 units will hand clothing dor transportation corridor to Dar Es Salaam port in Tanzania. be needed by 2022 to meet market needs. Over 86% of these The government is looking for an investor to connect the exist- should be affordable to mid-range housing. ing Tanzanian railway system between Dar Es Salaam and Isaka. 3. INFRASTRUCTURE: AIR CARGO AND RAILWAYS This project poses a few major challenges in terms of the high Additionally, and not included in the G-20 initiative, there is the cost of the land and the building materials, the limited building Rwanda understands the importance of infrastructure in devel- building of a new Bugesera International Airport in the Kigali technology and the lack of long-term and low-cost finance for oping a competitive private sector. To this end, the government region. Boasting modern infrastructure and a state-of-the- affordable housing. continues to invest heavily in infrastructure. Almost one tenth of art passenger terminal building, it is designed to be the new Rwanda’s annual budget is committed to transport and other gateway to Rwanda. The project is realised through a public Authorities are looking to create an affordable housing facil- infrastructure. To develop a vibrant private sector, Rwanda is private partnership with private partners ACV/ADM handling ity/fund with participation from the government, international investing in roads, rail and water transport infrastructure with the financial and technical aspects. financial institutions and private investors. They are also seeking the intent of dramatically reducing the cost of transport to busi- experienced developers/investors to form private partnerships nesses and individuals. It also aims to modernize public trans- aimed at increasing Rwanda’s stock of affordable housing and port facilities in Kigali, offering a rapid bus transport system 4. AGRICULTURE will pilot a package of bankable projects for implementation in and privatising its national public company. the Kigali districts of Rugarama and Kinyinya. Agriculture in Rwanda accounts for one third of Rwanda’s The World Bank helps Rwanda to achieve this, funding USD 22 GDP, constitutes the main economic activity for rural house- million to support development of the transport sector, as well holds (particularly women) and remains their main source of 6. ENERGY as USD 45 million for feeder road construction to improve rural income. Today, the agricultural population is estimated to be infrastructure in Rwanda. a little less than 80% of the total population. The sector meets In Rwanda, in 2017, energy generation attained 210.9 MW of 90% of the national food needs and generates more than 50% installed capacity. Grid-connected generation capacity tripled of the country’s export revenues. since 2010. The power generation mix is currently diversified as follows: hydro power 48%, thermal 32%, solar PV 5.7%, Almost one tenth of Rwanda’s In the short and medium term, Rwanda intends to continue methane-to-power 14.3%. annual budget is committed to focusing its efforts on the traditional cash crops of tea and cof- transport and other infrastructure. fee and pyrethrum, as well as on the nascent, non-traditional
12 / RWANDA © shutterstock / 13 What often happens is that 100% of your shares and prof- vices or portals), marketing, or the environmental industry. RWANDA REVISITED its belong to you if you are the sole owner of your company. Just remember the actual size of the economy and dose your You do not need to share them with a local partner as is the investment accordingly. The German multinational Siemens, case in many other African countries. You can take your money with its Belgian subsidiary, is currently studying investing in out of the country in foreign currency at any time provided that the power segment and infrastructure. There is great demand ’’ your taxes have been settled. As a Belgian national you can in Rwanda and the entire region for more power and better have land on a 49-year lease. distribution networks. Volkswagen has also engaged itself with a semi knocked-down assembly plant in the country and Rwanda is located in the centre of Sub-Saharan Africa. It bor- Opportunities are in housing, tourism, the agri-business, the first Made-in-Rwanda car is expected for May of this year. ders the DRC, Uganda, Tanzania and Burundi. Rwanda is about training (particularly sectors such as ICT, banking, online ser- 10% smaller than Belgium in terms of land size and recently SOUTH overtook Belgium in terms of population size (12 million). SUDAN The median age in Belgium is 41 years, whereas in Rwanda it’s The Belgian Trade Commission (AWEX-BIE-FIT) is based 20 years. The estimated GDP of Rwanda for 2017 is just below UGANDA in Nairobi and covers the five countries of the East African There is great demand in Rwanda and the US$ 9bn, whereas Belgium’s GDP is just above 490bn. RWANDA KENYA Community. The highlight for 2018 will be in several segments entire region for more power and better BURUNDI distribution networks. • Arusha Kigali’s rapid development will require more than 350,000 TANZANIA A mission in banking technologies is currently being pre- new housing units by 2022. With a population of just over pared in Rwanda and Kenya. The Trade Commission is 220,000 in 1990, Kigali’s population has grown five-fold since. considering opening it up to other sectors (end of May Every month, the Trade Commission sends out a short news- 2018 – TBC) letter with information and projects under development in East Rwanda is part of the East African Community, a regional inter- Africa. The newsletter is available free of charge on simple governmental organisation of 6 Partner States: the Republics • 20 students from VUB have just started 20 market request at Nairobi@belemb.eu of Burundi, Kenya, Rwanda, South Sudan, the United Republic research projects for 20 Belgian companies (February of Tanzania, and the Republic of Uganda. It is headquartered 2018) in Arusha, Tanzania. The EAC regulates the free movement of This move up is the result of five reforms, making it easier to do goods, people, labour, services and capital from one Partner business, especially for small and medium-sized enterprises. • A focus on Ethiopia will be engaged as soon as the State to another as well as the rights of establishment and res- political situation stabilises. Ethiopia is a promising idence without restrictions. The agreement came into force in The reforms are: economy. The recent stepping down of the Prime 2010, the ultimate goal being a common currency. Eight years Minister (15 February 2015) is delaying our action until on, people and capital move freely, with the rest still to come. 1. Improving the building permit process by increasing qual- the institutions resume normal operations ity control and risk-based inspections. The system allows The SME sector makes up over 98 per cent of the total number applicants to track the progress of their applications online • September 2018 will bring the IAME conference on ports of businesses in Rwanda, employing 41% of the workforce and economics to Mombasa with the Belgian Professor playing a significant role in the economy. 2016 saw a push of the 2. Facilitating the payment of taxes with an online payment Michael Dooms as a key player in the organisation “Made in Rwanda” concept, a campaign that focuses on locally system made products, improving product quality to push export vol- • October 2018 will see the spotlight turned on the umes and receipts. This has created a need for capacity build- 3. Improvement in registration of property by entering online medical sector with an info booth at Medic East Africa ing, brand positioning, packaging and marketing. information on land, registration of plots across the country October 2018 – A multi-sector mission to Tanzania. and using the Irembo platform for property transfer The mission could also bring us to Rwanda if the May To sustain the initiative, an online platform was launched on 1st mission focuses exclusively on the banking sector May 2017: www.madeinrwanda.online. The Made-in-Rwanda 4. Improved protection of minority investors Trade Fair Expo is held annually in Kigali. • November 2018: focus on the construction segment IVAN KORSAK 5. The enforcing contracts indicator was also made easier as in Kenya with a booth at the Big 5 Trade fair and close Trade Commissioner The country moved up 15 places in the 2018 World Bank Doing judgements made at all levels in commercial cases are now collaboration with the National Construction Authority Embassy of Belgium in Nairobi Business Report, claiming the 41st spot globally, overtaking made available to the general public though the Judiciary’s of Kenya (NCA) T + 254 20 405 20 90 Belgium, which is ranked 52nd. website Nairobi@belemb.eu
/ 15 K EY FAC TS TANZANIA CAPITAL D.R.C UG ANDA Dodoma KE NYA RWAN DA ECONOMIC & FINANCIAL BURU N DI CAPITAL Dar es Salam Z A NZ IBAR CURRENCY IND IA N Tanzania Shilling (1 € = 2734.86 TZS) OCE A N FORM OF STATE Republic ZAMBIA M ALAWI TERRITORY MOZAMBIQUE 947 300 km2 CO R N GDP (2016) SO R G H U M 47,34 Billion USD R ICE NUMBER OF PORTS M ILLET 4 WH EAT NEIGHBOURS Kenya, Ouganda, Rwanda, Burundi, D.R.C, Zambie, Malawi, Mozambique. NUMBER OF STATES 26 -PRESIDENT- -OFFICIAL LANGUAGE- -VICE-PRESIDENT- -POPULATION- DR JOHN POMBE ENGLISH Chama Cha 55,57 million JOSEPH MAGUFULI SWAHILI MAPINDUZI inhabitants Focus (More than 130 ethnicities) MAIN RELIGION TANZANIA GDP COMPOSITION TANZANIA Christianity Agriculture 100% 36% 29% • The Emerging Powerhouse OT H ER S 12% • Opportunities in Tanzania 6% AGRICULTURE 7% 10% 0% CO NST RU CT IO N CHRISTIANITY ISLAM ANIMIST WH O LE A ND R ETA ILS T RA D E 62% 35% 3% PU B LIC A D M INIST RAT IO N M A NU FACT U R ING
’’ 14 / TANZANIA / 15 I would like to encourage all members THE EMERGING POWERHOUSE of CBL-ACP to consider investing in Tanzania, because it is the decision to make given that Tanzania is the present and the future for investment and tourism. A few words from His Excellency Joseph E. Sokoine We have had several economic missions that have come to Ambassador Embassy of the United Republic of Tanzania Tanzania in the past and we expect to have other economic to the BELUX countries and Mission to the European Union missions visiting the country soon. What we have retained from these past missions is the eagerness that we saw from the Belgian companies and entrepreneurs to do business in Tanzania. Some have established contacts and are following-up on areas of interest that they have earmarked, we are following up on those and we link them with the relevant authorities. Excellency, how would you present Tanzania from an economic Years ago, Sabena airlines used to fly to Tanzania but stopped We expect perhaps this year or next year to see new invest- point of view? during the restructuring, the new airline, Brussels Airlines now ments coming in from those who have participated in previous flies to neighbouring countries. However, TUI offers direct flights economic missions. We are optimistic thanks to this eagerness. I would present Tanzania from an economic point of view as to Zanzibar from winter to spring. We are in discussions with TUI We have also noted that some companies that took part in an emerging powerhouse in Africa. Tanzania is implement- to pursue them to fly to Kilimanjaro so as to enbale those who the first economic mission followed up on the second mission ing Vision 2025, where the country will be transformed into wish to visit some of the wonders of the world or world herit- and they maintained contacts established in previous visits. middle income with semi industrial economy. The 5th Phase age sites that are in Tanzania to do so: Some of the attractions This is a sign of seriousness and commitment. I will be amiss Government under the leadership of President Dr. John Pombe are Mount Kilimanjaro, Ngorongoro crater, Serengeti, Tarangire if I do not recognise the close cooperation and support that Joseph Magufuli is implementing flagship projects identified National Park, Manyara National park or even Ruaha National we have with CBL-ACP under the able leadership of the Vice to support the realisation of the Vision 2025. Furthermore, Park which was voted among the best national park in the world President Mr. Maurice Vermeesch, Mr Christian Verbrugghe, Tanzania is the present and the future investment and tourism last year 2017. the Trade Counsellor in Nairobi Mr Yvan Korsak, and the destination for obvious reasons, continuous political stability, Ambassador of Belgium in Tanzania H.E Paul Cartier and his supportive macroeconomic policies, attractive investment code In the area of mining, Tanzania has a unique gemstone called team, the Director General of BIO, Enabler (formerly BTC), and founded on win/win basis, arable land, skilled and semi-skilled Tanzanite, only found in our country. Some companies are the leadership of the Ministry of Development Cooperation with- labour force, abundant of natural resources which include already exporting Tanzanite to Belgium and it can be found in out their cooperation and support some of the successes would huge reserves of natural gas over 55 trillion cubic feet and Antwerp. There is room for more investment in this area, as well have been possible. His Excellency Ambassador Joseph E. Sokoine, Embassy of the United Republic world class helium gas reserves of about 100 billion cubic feet. as in the areas of diamonds. In this domain, “Petra Diamonds” of Tanzania to the BELUX countries and Mission to the European Union The discovery of helium was made just last year. We also have is currently mining and auctioning Tanzania’s diamonds in Your embassy is the first point of contact for Belgians who presence of strategic mineral reserves like iron, cobalt, nickel, Antwerp. In terms of gold, Tanzania is the fourth largest pro- are here? How do you help them? Are there other agencies uranium, titanium, just to mention a few. The economic is grow- ducer of gold in Africa after South Africa, Ghana and Mali. There for successful Belgian companies that are already in Africa to that are important to be in touch with? ing at an annual average rate of 7.2 percent and the inflation has has been discovery of new deposits of gold in some other parts be at the forefront of sharing their experience with new Belgian been brought down to average rate of 4 percent per annum. of the country. entrepreneurs. Such success stories would encourage new Our Embassy is the first point of contact for those who are inter- entrepreneurs even more. ested to get information relating to doing business in Tanzania. How would you describe the bilateral relations between What has struck you most about Belgian entrepreneurs since When they contact us we meet them, learn of their interest Belgium and Tanzania? you have been here? What are they key-sectors you would advise Belgian investors and in turn we brief them on the country‘s opportunities and to invest in, in Tanzania? explain how the system works. We brief them on the incentives Tanzania and Belgium enjoy over 4 decades of excellent What has struck me most about Belgian entrepreneurs is their they can receive in Tanzania through the Tanzanian Investment relations that over the years have grown from strength to eagerness and readiness to seek new opportunities to do busi- For those who are interested we are also modernizing our 8 Centre, Zanzibar Investment and Promotion Authority and the strength. Belgium is one of Tanzania‘s most important develop- ness or investments in Africa. They see challenges as business regional airports, companies that are interested in construc- Economic Processing Zones. We facilitate their visa applications ment partners. Our bilateral cooperation is based on Indicative opportunities, which is very true not all challenges are stum- tions should explore available opportunities in the sector. and arrange appointments with the relevant officials once they Development Co-operation Program. When we talk about devel- bling blocks. These are opportunities disguised as challenges. some of the information is available on our Procurement get to Tanzania. In short here in Belgium besides the Embassy opment strides in Tanzania, Belgium’s contribution can not be For example, in the area of IT, given the high rate of cell phone Authority website www. ppra.go.tz there isn’t any other government institution they can contact. overlooked. Particularly in areas of port development, energy, penetration and growing number of Internet users, new appli- When they arrive in Tanzania Investment Centre and Zanzibar water and sanitation, tourism development, support to SMEs, cations can be created to address or simplify some of the chal- In infrastructure it is the same thing, we are building roads Investment and Promotion Authority are their first points of education, environmental conservation, food security, research lenges or offer new solutions. Belgians know Africa, once the and rail. Energy sector, we are embarking on construction of contact depending on where they want to explore the invest- and health. In the multilateral framework the scope of cooper- new generation of entrepreneurs get more information, invest- a hydroelectric plant which will produce 2.100 MW of power. ment opportunities. These two Institutions are once stop cen- ation is even wider. There is still a room for further cooperation ment guarantees, including investment insurance, I am sure This project will spur related opportunities worth exploring. tres where all the needs of a company are taken care. particularly in the trade and investment domain. Given our close we will witness a big surge of Belgian investment in Africa. Another opportunity exists in the area of pharmaceutical; relation, we would like to see more investment of Belgians in we are looking for serious investments in this area. Pharmaceutical Is there any other message that you would like to address Tanzania and more tourists from Belgium visiting Tanzania. Closer interactions with the Belgian enterprises or business products produced by these companies have a ready market in to our members? It is important to note that 6 percent of Tanzanian exports to the traders is paramount. I believe that through this magazine we will the country. I encourage Belgian investors to go to Tanzania in EU countries end up in Belgium, making Belgium our biggest reach a number of them, arose their interest, we will definitely the upcoming economic mission this year. I would like to encourage all members of CBL-ACP to consider importer. Belgium can import quite a number of products from provide them with the necessary information. I also believe in investing in Tanzania, because it is the decision to make given Tanzania such as horticulture products, fish fillets, cut flower, sending trade missions for them to experience the new Africa. Several economic missions from Belgium have already been that Tanzania is the present and the future for investment coffee, cashew-nuts, tea, cloves and other spices, wines, beers, I am sure if there were some who were unsure they will get the organised. What do you retain from these in the past, what and tourism. Tanzania is an emerging economic power house. spirits, quarried products, artifacts, honey, coco, essential comfort when they experience the economic transformation most important result do you remember? One of the fastest growing economies in Sub-Saharan Africa oils ... just to mention a few. taking place in Tanzania. To succeed in this, there is also a need and globally too. They should not hesitate they can to contact us anytime. We would be more than happy to meet and brief them.
16 / TANZANIA / 19 OPPORTUNITIES IN TANZANIA Any investor can qualify to invest under NETHERLANDS the Special Economic Zone Scheme GERMANY provided they meet these simple criteria: 1. The investment must be new Tanzania is one of the best performing economies of Africa. ducer in the world, cashew nuts, tea and cloves. Mineral expor- 2. Annual export turnover should not be The country enjoyed steady growth for the last decade and tation, gold, diamonds and tanzanite are very important and less than US$ 5 million for foreign inves- a 7.0%1 GDP increase in 2016. Neighbour to 6 countries, it destined for exportation. The country’s main export partners are tors and US$ 1 million for local investors performs strongly in the industry, construction, services, India, Japan, China, the United Arab Emirates, the Netherlands information and communications sectors. and Germany. Tanzania is ranked 71st for Belgian export. 3. Adequate environmental protection systems For an investor, international business or businessman, it is reas- DESTINATION 2025 4. Use of modern production processes suring to know that all the macro-economic figures are encour- and new machinery aging and stable, as is the political landscape, paving the way Transport equipment, machinery, construction materials, for businesses to flourish. Inflation remains low, at around 5.2%, oil, fertilizers, industrial raw material and consumer goods 5. Investments must only be located in and the fiscal deficit is the lowest in seven years, representing are the main imports of Tanzania. These come from China, SEZ industrial parks 3% of GDP, with the lending rate of the Bank of Tanzania being India, South Africa, Kenya and the United Arab Emirates. UNITED ARAB INDIA at 9% to boost growth. Tanzania aims to become an industrialized middle-income EMIRATES country by 2025. In order to get there, a specific roadmap AGRICULTURE, THE BACKBONE Its stability and interesting economic growth are far from being has been foreseen in the Five-Year Development Plan, OF THE ECONOMY the country’s only strengths. It is strategically positioned as putting a greater accent on building a strong industrial base. a gateway to six land locked countries2. Its 35 million people To this end, Tanzania has set up Export Processing Zones (EPZs) As you may infer from our key figures, belong to the EAC Common Market and the SADC Free Trade and Special Economic Zones (SEZs) as ponds of industrial growth the Tanzanian economy and its GDP still Area, expanding its consumer market to over 300 million and services to promote export trade. The EPZ scheme promotes largely rely on agriculture – accounting people. investment in the manufacturing sector mainly for export, while for 85% of all exports, and 80% of the the SEZ scheme involves other sectors such as agriculture, trade, workforce. There are over 44 million hec- Thanks to developed rail and road networks, Tanzania is a natu- tourism, mining, and forestry. An investor might opt to invest in, tares of arable land available in Tanzania, ral gateway for East and Central Africa. The country has 3 deep but not limited to, the following sectors: with 29.4 million ha suitable for irriga- water ports (Dar es Salaam, Tanga and Mtwara) servicing the tion. Agriculture has a huge role to play neighbouring countries. Its good international relations and • Agriculture and agricultural products in the country’s industrialisation, offering interesting quota and duty-free entry to the markets of the the possibility of providing markets for US, Canada, Japan, South Korea and China also represent a • Metal products, machinery and transport equipment industrial products and raw materials for major stronghold. industries. Investment opportunities in • Electronics and electric appliances agriculture include: Ranked 137th on the Ease of Doing Business Report, it is ahead of the regional average but still fairly distanced from a country • Chemicals, paper and plastics • Undertaking in large-scale com- like Kenya, ranking 80th. The country has committed itself in its mercial farming of crops such as second Five Year Development Plan 2016/2017 to 2020/2021 • Light industries sugarcane, rice, wheat, coffee, tea, and includes keeping fiscal debt low, as well as encouraging sunflower, pulses, floriculture, cot- Public Private Partnerships and industrialisation. • Mining, ceramics and gemstones ton, sisal, grape, simsim and maize CHINA JAPAN Tanzania has a negative trade balance , importing more than it 3 Tanzania offers generous fiscal incentives under the Export • Huge potential for sugarcane farm- exports. Therefore, industrialization has been set as a major pri- Processing Zone/Special Economic Zone (EPZ/SEZ) schemes to ing and sugar production. Sugarcane ority in the Five-Year Development Plan. Its major exports are attract Foreign Direct Investments (FDIs) and Domestic Direct farming and sugar production are sup- agricultural products such as tobacco, coffee, cotton - 2nd pro- Investments (DDIs)4 . ported by vast water sources, good climate conditions and huge market potential IMPORTATION EXPORTATION • Huge potential in investment in The country’s main export partners are The Netherlands, Germany, India, agro-industries and agro-processing The United Arab Emirates, China and Japan • 6% Manufactured products Development of outgrowers to com- 1. World Bank 51% Manufactured products 23% plement the sources of raw materials 7% Agricultural products for the industries as appropriate 2. Uganda, DRC, Rwanda, Burundi, Zambia and Malawi Agricultural products 52% 11% Petrol and mining products Petrol and mining products 3. USD 608.20 Mo of exports, USD 741.00 Mo of imports, deficit of USD 132.80 Mo - May 42% 14% • Expansion and improvement of 2017 - source: Bank of Tanzania Others irrigation systems; improvement of R&D in crops cultivation 4. Please visit http://www.epza.go.tz/index.php
20 / TANZANIA / 19 MINING SECTOR TANZANIA’S TOURISM INDUSTRY The mining sector has grown very rapidly in recent years. In 2017 Tanzania’s tourism industry accounts for about 24.0% of its alone, it grew by 8.5 percent, exporting minerals such as gold, exports and 17.2% of GDP. This is a fast-growing sector that Tanzanite gemstones to other geographic regions. Investment offers plenty of investment opportunities. Here are some of the opportunities include: opportunities waiting to be seized by entrepreneurs: • Processing of precious metals and gemstones • Construction of tourist hotels in towns, game parks as well as along the 850-mile coast line of mainland Tanzania and • Establishing a caustic soda refinery plant in Engaruka the beautiful shores of the spice Island of Zanzibar • Production of iron ore and steel in Liganga • Establishment of leisure parks • Processing of nickel in Kabanga • Construction of golf courses • Extracting Uranium in Mkuju • Investing in conference tourism facilities • Investment in minerals smelters • Provision of air/ground transport The discoveries of large natural gas reserves on the coastal • Tour operations and trophy hunting shore of the Indian Ocean at Songosongo, Mnazi bay and Mkuranga in Coast Region have spurred natural gas develop- • Sea and lake cruising ments in Tanzania. Currently there are 22 oil companies under- taking exploration activities for oil and gas in the country. • Development of eco-tourism facilities These companies include: BG Group, Statoil, Petrobas and Ophir Energy. Tanzania is becoming a regional hub after a flurry • Beach tourism, cultural and historical sites of discoveries. It is said to be blessed with over 41.7 trillion cubic feet of gas reserves, according to recent estimates. The potential is huge as the exploration and extraction of the MANUFACTURING INDUSTRIES gas reserves are still in its early stages. Investors have the fol- lowing opportunities: Tanzania offers abundant natural resources which provide for plenty of raw materials for the manufacturing industries such • Domestic production and marketing of Liquefied Natural as cotton for the garment and textile industries, sisal for can- Gas (LNG) vassing, iron for steel, as well as various minerals and gem- stones. There are opportunities for establishing SEZs (Special • Domestic manufacturing of LPG (Liquefied Petroleum Gas) Economic Zones)/ EPZs (Export Processing Zones). As it is cylinders, valves and regulators, installation of filling plants, totally dependent on the import of passenger cars and has a retail distribution and development of simple, flexible and large deficit due to the import of refined sugar and edible oil, less expensive gas burners to encourage the use of gas there are many opportunities in this field. instead of wood In the manufacturing sector, Tanzania offers opportunities for • Establishment of processing plants and industries for the production of refined mineral oil, petroleum jelly and grease, • The establishment of SEZs/EPZs, industrial parks and logistics fertilizers; bitumen-based water/damp-proof building mate- centres rials, e.g. roofing sheets, floor tiles and tarpaulin • Establishing motor vehicle and motorcycle assembly plants • Establishment of chemical industries, e.g. distillation units for and spare parts production facilities for domestic and regional the production of Naphtha and other special boiling point markets solvents used in food processing • Construction, rehabilitation and providing requisite support • Development of petrochemical industries to strategic pharmaceutical industries • Establishment of LNG projects (Liquefied Natural Gas) • Production of construction materials, development of iron and steel industries • Small-scale production of chemicals and solvents e.g. The discoveries of large natural chlorinated methane, formaldehyde, acetylene etc... from • Agro-industries and agro-processing to add value to agri- natural gas cultural, livestock, forestry and fisheries products gas reserves on the coastal shore of the Indian Ocean at Songosongo, Mnazi bay and Mkuranga • Crude oil refining with efficient export facilities • Sugar industry in Coast Region have spurred natural gas developments in Tanzania. • Increasing domestic edible oil production
20 / TANZANIA / 23 Solutions for the rising sea level Solutions for polluted rivers and soils • Food and beverages: processing, and preservation of meat, fish, fruit, vegetables, oils and fats • Manufacture of dairy & other food products • The manufacture of bottled and canned soft drinks, fruit juices, beer, and wines Tanzania is identified as one of the 20 countries that will in the near future offer the most opportunities for consumer goods companies globally, particularly for food and beverages SERVICES There are enormous opportunities in the services sector, par- ticularly ICT. The market has changed rapidly over the last ten years and has increased number of subscribers, the variety of services offered, and has seen the coverage area expand. • Provision of mobile services especially in rural area as penetration is higher in urban areas • Provision and operation of value added network/data services (internet, voice mail, electronic mail services) • Repair and maintenance of telecommunications facilities • Huge potential in financial services which include establish- ment of financial institutions, microfinance banks, invest- ment banks, agricultural banks and commercial banks There were approximately 39 million mobile subscribers in the market in December 2015, compared to 3 million in 2005. The 2017 GDP growth rate has pushed the number of mobile phone owners up even higher. Penetration stood at 67% in Solutions for reduction of emissions Solutions for scarcity of resources December 2014, against 10% in 2005. The number of inter- net service subscribers has increased from 3.5 million users in 2005 to 16 million in 2015. ENERGY There are many opportunities in this sector, including: At present, 21% of the population with about 7.4 percent in the • Generation, transportation and distribution of energy from rural areas has access to electricity. Tanzania is endowed with various sources diverse energy sources, including biomass, natural gas, hydro, DEME has a leading position in a number of highly coal, geothermal, solar and wind power and uranium, much • Power infrastructure development, rehabilitation and specialized and complex hydraulic disciplines. In the of which is untapped. Commercial energy sources, i.e. petro- expansion leum and electricity, account for about 8% and 1.2%, respec- next decades, the world will be facing major challenges tively, of the primary energy used. Coal, solar and wind account • Extraction of biofuels – ethanol from sugar; biodiesel from such as the effects of climate change and scarcity of for less than 1%. palm oil and jatropha resources. Through innovative thinking DEME is offering DEME nv The Tanzania power sector is dominated by a single vertically • Construction of a petroleum pipeline and petroleum products Haven 1025, Scheldedijk 30 sustainable solutions in response to these future needs integrated national utility, Tanzania Electricity Supply Company offloading terminals, development of upcountry storage and in various fields such as soil and sediment remediation, B-2070 Zwijndrecht, Belgium Ltd (TANESCO). The total plant generation capacity of public distribution facilities water treatment, coastal protection, development of T +32 3 250 52 11 and private power plants is 1,438.24 MW. info.deme@deme-group.com green and blue energy, offshore dredging of gravel and • Geothermal exploration and development www.deme-group.com sand, deep sea harvesting of minerals and creation of Tanzania is identified as one of the • Rural electrification land in densely populated regions, ports and industries. 20 countries that will in the near future offer the • Development of new and renewable energy resources, and most opportunities for consumer goods companies globally, particularly for food and beverages. • Promotion of energy efficiency and conservation initiatives
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