15th November 2013CEPA recently supported the development of three co-investment opportunities in Tanzania for AgDevCo, the social impact investor and agribusiness project developer. This is part of the Department for International Development (DfID)’s blended partnership programme, through which the UK Government is seeking to increase private sector investment in Tanzania.
One £6.7m project will allow AgDevCo to invest in Kilombero Plantations, East Africa’s leading rice producer which forms part of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a public-private partnership focused on developing the region's agricultural potential and fostering inclusive, commercially successful agribusinesses that will benefit small-scale farmers. This proposed investment will help finance a rice husk gasification plant and in due course a significant expansion of irrigation capacity to increase rice yields.
In the second project, AgDevCo intends to provide up to £2.5 million to fund the development and construction of a new small hydro plant to support production at Tanzanian Tea Packers’ Katumba Tea Factory. This will significantly reduce the energy costs, increase the productivity of the tea factory and improve rural electricity supply to the adjoining areas.
In the third project, AgDevCo intends to invest up to £3.3 million in Equity for Tanzania, an innovative financial leasing business set up by UK charity Equity for Africa, that provides equipment finance for small and medium size businesses in Tanzania. AgDevCo’s funding will allow Equity for Tanzania to provide finance to small agribusinesses and farmers in need of agricultural equipment.