Investment Opportunities

1. General Information

Geographical location and climate

Arusha region is found in northern Tanzania. Arusha shares its northern border with the Republic of Kenya. To the northeast Arusha region borders to Kilimanjaro region. Further east is Tanga region. To the south Dodoma Region is found, where the capital city of Tanzania is situated. To the west Shinyanga region is found and to the northwest Mara region.Arusha region combines both highland which include Mount Meru (4,566 mm. asl.) and low land. Temperatures average 21º C and lowlands temperatures average 26º C.Rainfall ranges from 250 mm to 1200 mm per annum.

Area and population

Arusha region covers total of 86,999 sq. km. of which 3,571 sq. km (4.1%) is water. It is the largest Region in Tanzania occupying 9.2% of the mainland. The last census in 1988 recorded a population of 1,351,675 individuals and the current projections for 1998 indicate 1,963,200 individuals. The major ethnic groups include the Maasai, the Arusha the Meru, the Iraq, the Hadzabe and the Barbaig who all have unique cultural heritages.

Regional and district administration

Arusha region is divided into 9 districts with 485 villages. The town Arusha is the capital of the region and is the head district. Other districts are Arumeru, Babati, Kiteto, Loliondo Mbulu, Monduli, Ngorongoro and Simanjiro. Area code and distances from Dar:-

The country code and area code for Arusha is +255 (0)57 –

Distance from Dar is 653 km.

2. Infrastructure:

Roads

Arusha region has a road network that that covers the main districts and townships. Roads are generally passable throughout the year, although four wheel cars are recommendable and certain areas experience obstacles of passing during rain season. Nairobi, the capital of Kenya and the regional capital Arusha are linked together by a well maintained road through the border town Namanga. Also from Dar es Salaam is a good road leading up to Arusha passing by the famous mountain Kilimanjaro.

Telecommunications

Tanzania Telecommunication Company Ltd. (TTCL) is the state owned company providing telephone services throughout the country. Recently the market for mobile telephone companies has opened up, which allows private owned companies to operate in Arusha. Both companies Mobitel and Tritel are accessable.

Air or water communications

Kilimanjaro International Airport provides easy access to the region from abroad. Several international airlines operate and have regularly scheduled flights to the airport. There is one national airport within Arusha region. Also 29 airstrips across the region provide access to remote areas.

Railway: There is no railway operating

Power and water supply

Arusha region is served by the National grid from the major hydroelectric power plant in Morogoro region further south. Many areas of Arusha region enjoy a good water supply from different spring and river sources. The dryer areas of the south and far west are served by shallow wells and boreholes, but face considerable water shortage, particularly during the dry season.

3. Logistics:

Hotels

Arusha Naaz Hotel Ltd.
Sokoine Road
Box 1060 Arusha Tel. 057 2087

Arusha Resort Centre
Box 360 Arusha Tel. 057 8333, 8326, 8327
Fax. 057 8233

Novotel Mount Meru
Box 877
Arusha Tel. 057 2711, 2712, 2719, 2728
Fax. 057 8925, 8503

The Impala Hotel
Box 7302 Arusha Tel. 057 2398, 2962, 7083, 8448-51
Fax. 057 8220, 8680
Email: [email protected]

Transport within area

Serena Car Hire
Box 2556 Arusha Tel. 057 6593

Car rental is to recommend to get around easily. Also tour operators are to recommend.

Health facilities: Several local hospitals are in the area.

4. Financial situation:

Banks

CRDB
Box 3150
Arusha Tel. 057 7241, 7239

Stanbic Bank Tanzania
Box 3062
Sokoine Road
Arusha Tel. 057 7736, 4011, 4012
Fax. 057 8809

Standard Chartered
Box 3000
Arusha Tel. 057 4703, 4704, 4705
Fax. 057 4708

Tanzania Postal bank
Uhuru Road Tel. 057 3193, 4528

Credit systems:No credit system available

5. Economic activities:

Natural resources

-Gemstones, especially Tanzanite
-Meershaum
-Natural phosphate
-Wildlife

Major sectors and activities

Foresting

The region also boasts of good forestland covering about 2555 sq KM forest reserves covering 133.444 ha with a total annual wood capacity of about 2 million c u-meters. Theses forests give a natural support to the ecosystem and provide a boost to a hospitable environment.

Industry

The major industrial activities in the region include textile, tire manufacturing, home use products, electrical equipment, pharmaceuticals, phosphate processing, meerschaum, beverage, food and fruit processing, lumbering. Industry has not reached the level of development, which it deserves. This is due to a low level of capital investments, poor infrastructure and.

Mining

Arusha region is endowed with a variety of minerals and gemstones which include the world famous Tanzanite, and others. This vast mineral wealth has been only barely exploited and it thus offers great potential for investments.

Wildlife and Natural attractions

Arusha region is endowed with very rich resources in terms of wildlife. It comprises some of the worlds biggest national parks, which host tremendous wildlife attractions. These parks are Serengeti, Lake Manyara, Ngorongoro Crater, Tarangire, Arusha National park. Also the site of the fossil the “Nut cracker”, Oldupai Gorge, is a major area of attraction for historians and anthropologists. The rich cultural heritage of the people in the region offer another unique experience.

Agro economic zones:

Arusha region comprises a variety of land characteristics. Therefore the land has been classified as follows:

Arable land: 2,472,940 ha under cultivation 520,130 ha.
Irrigable land: 59466 ha.
Unexploited land: 38000 ha.
Banana /Coffee Zone

This zone is mainly highland with some lowland towards the South of the district enjoying rains of over 1000 mm annually. The population density is very high. A fairly high income refers mainly from crops as coffee, vegetable, fruit and banana. Large scale farming is picking up in horticultural activities and dairy farming within this zone due to conducive climatic condition.

Maasai steppes Zones

This zone stretches from southwest to the south covering Monduli, Kiteto, Simanjiro and Ngorongoro Districts. The area has low rainfall, below 800 mm. Farming activity is mainly maize and legumes mostly to the South of the zone. A low population density comprises mainly pastoral people.

Rift Valley Highland Zone

This zone is in the west and northwest of the region covering Mbulu, Karatu, Babati,, Hanang and part of Ngorongoro Districts. The average annual rainfall in this area is between 800 and 1000 mm. The major crops in this zone are wheat, barley, maize, legumes and some coffee. There is considerable traditional livestock keeping and limited dairy farming. The population density is moderately high.

Major industries

The existing industries are within

-diary,
-milling,
-brewery and other
-agricultural sectors.

6. Investment potentials:

Many of the regional areas are still minimally exploited or not at all thus offering a very lucrative business setting.

Industry

The industrial base in the region is relatively at infant stage. The region produces considerable quantities of coffee annually. Still it is no financially sustainable economic coffee processing plant in the region. Coffee is traded in its raw form and it is processed and exported by other countries.

Vegetable/ Fruits Canning

The highland zone of the region provides a wide range of exotic fruits and vegetables. There is a big surplus and in the area and very much is thus wasted as it is not possible to take care of it. The region does not have a sustainable fruit/vegetable canning/ processing plant.

Oil milling

The vast volume of corn, vegetables, sunflowers, soya beans and other oil seeds, which exist in the region offers . There is some oil milling activity basically on small scale basis this gives good opportunities for investments.

Dairy processing

Arusha region has a vast potential for milk production due to the conducive weather and the livestock population. The absence of a large plant affords an opportunity for investments in this line.

Industrial minerals

The existence of industrial minerals likes meerschaum, salt, phosphate, magnetite gives an opportunity for large scale investments. Previously there was some mining activity in meerschaum and phosphate, which have now ceased although the plants are still there. It may be worthwhile for interested investors to explore this area.

Gemstones

Mining of gemstones and semi precious stones is currently undertaken on small scale. It may be an area of interest for investments. Apart from direct involvement in mining of gemstones and semi precious stones opportunity could be explored for processing, that is cutting and polishing of the stones.

Agriculture

Arusha offers suitable climate for the growth of cut flowers. Investments in horticultural activity is already in place, still there is a growing demand for flower seeds and cut flowers, which has potentials.

Ranching

The climatic condition in this region provides an attractive environment for ranching activities which may be extended into processing of the livestock products. There is a small market that has all opportunity to involve further investments in this area. Ranching can include cattle, sheep and birds like ostrich.

Hatchery

There is a growing interest in rearing of chicken. This is due to the expansion of the tourist market which demands hotel and restaurant businesses. Arusha municipality or its vicinity does not have hatcheries that can cope with this demand. It will also have offspring possibilities in the processing of animal food.

Tourism

Arusha region is endowed with rich tourism potentials due to the presence of the National parks. The tourism industry is yet to be developed properly to meet the high quality of standards required by tourists.

Opportunities are in all areas of safari tours to cover game viewing, professional hunting, photographic expeditions, trekking and mountain climbing, camping safaris. Hotel facilities of high quality are still in demand from small private lodges, luxury tented camps, hotels. This is certainly an area that offers great opportunities for investments.

Real Estate

The Arusha Municipality is host to a number of International organisations including the International Crime Tribunal for Rwanda, the Regional Secretarial of the World Health Organisation, Pan African Postal Union, the Secretariat of the East African Cooperation, Eastern and Southern African Management Institute. Recent developments show that the Arusha municipality is gradually becoming an economic hub and it is destinated for growing businesses and is thus becoming a fast expanding city. Due to the increase in the economic and development activities the demand for office space and residential accommodation will definitely grow in near future.

Currently, the Arusha municipality has limited modern accommodation facilities. The Arusha International Conference Center hosts many local and international conferences/ workshops hence the delegate population offers more need for quality hotel accommodation.

7. Development problems:

Infrastructure is the main source to development setbacks in the area. That comprises both roads, water and power supply, telecommunications systems and the logistics.

8. Interesting addresses:

The Regional Commissioner
P. O. Box 3050
Arusha Tel. 057 8003
Kilimanjaro International Airport
P. O. Box 2
Arusha Tel. 057 2301

Regional Development Director
P. O. Box 3050
Arusha Tel. 057 2508