Agriculture Fast Track Fund awards two new grants with positive impact on local economy in Tanzania

29/05/2014
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The Agriculture Fast Track Fund (AFT) has awarded two grants worth almost US$650,000 to high value agriculture infrastructure projects in Tanzania. Tanga Fresh UHT Milk Factory and Kijani Agro Integrated Horticulture projects have been selected for their strong impact on local communities in Tanzania. They will be receiving funding to finance their market analyses, produce site surveys and other costs.

The AFT has granted two new agribusiness operators in Tanzania with funding for project development. The first project, Tanga Fresh UHT Milk Factory, will receive US$150,500 to expand its production capacity in order to maintain the milk supply throughout the dry season. The second enterprise is Kijani Agro, granted US$490,000 for producing a variety of fresh fruits and vegetables in high tech irrigated tunnel houses and open-fields in Iringa and Morogoro.

The AFT funds projects in their preparation stage. Tanga Fresh in Tanzania will focus on developing an implementation strategy for improving milk quality. Kijani is to conduct an independent study on the horticulture market in Tanzania, Kenya and South Africa.

The positive local impact pursued by the two projects in Tanzania falls in line with the AFT’s mandate to boost agriculture infrastructure in Africa.

Tanga Fresh seeks to expand the sales of its Long Life UHT milk to other cities besides Dar Es Salaam by involving at least 13,000 smallholders. The company plans to provide a safe and healthy source of calcium and protein to communities living far inland where imported UHT milk isn’t available. Kijani Agro is planning to have 3,000 smallholders benefitting from the project, 60 per cent of them women. The company has a training program to ensure that local farmers adopt rigorous standards for environmental and social practices.

Tanzania is one of the six first pilot countries (along with Côte d’Ivoire, Ghana, Burkina Faso, Mozambique and Ethiopia) to try out AFT support. The country is part of the New Alliance For Food Security and Nutrition in Africa, coalition of Africans states committed to a Cooperation Framework for Food Security on the continent. The AFT contributes to better food security in Africa by helping to improve the infrastructure for agriculture.