African men farming a field
The project supports Seed Change Tanzania and Oil Palm development in Kigoma through the nursery demonstration plots, established to provide training and hands-on knowledge transfer to hundreds of farmers in the region.

Local Investment Climate (LIC) in Tanzania

Unleashing the potential for economic growth in rural Tanzania

LIC project invests in agriculture and facilitates Public Private Dialogue in order to improve business environment for small companies.

Since the launch of the LIC project in 2014, LIC has invested significantly in agricultural value chains and promoted increased production, processing, strategic business facilities and infrastructure of such diverse produce as livestock (beef and skins), fisheries from lake Tanganyika, sunflower oil, rice, palm oil, grapes, cassava and vegetables. Aside from these investments of approximately 20 million Dkk (to date), the project has very successfully facilitated a Public Private Dialogue (PPD) process assistance and involvement of Tanzania National Business Council, National partners, local governments and not least local business people and companies. Progress has been significant and a “change of mindset” is evident: There is increased willingness to cooperate, plan and work together at a regional and local level for mutual benefit between public and private sector.

Most importantly, the Dialogue is now established, and matured to the extent that Tanzania National Business Council and Tanzania Private Sector Foundation have taken the lead to expand the efforts beyond the first phase regions (Dodoma and Kigoma), and beyond the LIC project. We are on the threshold of witnessing a shift in strategy and changed public-private cooperation for all of Tanzania.

LIC continues until 2020 and all-together will have invested USD 10 million when the project is finished directly in agricultural value chains through a Small Industrial Facilities Fund (SIFF).

Unleashing the growth potential of rural Tanzania through strategic investments in selected areas and value chains and by engaging both public and private sector.

NIRAS is managing the fund (and other activities). Five SIFF investments were already completed in 2016, while 20 new SIFF projects are underway.

The programme has been formulated using a Human Rights Based Approach and the principles of participation, accountability, non-discrimination and transparency as well as strong adherence and consideration of green growth aspects (climate change, energy, environment, sustainable economic development, etc.).