An Enterprise Map of Tanzania - London School of …

1 An Enterprise Map of An Enterprise Map of Tanzania In the first decade of the new millennium, Tanzania 's gross domestic product Tanzania doubled in real terms, making it one of the handful of sub-Saharan economies that have shown strong and sustained growth in recent years. This growth was, moreover, broad based, with manufacturing output growing slightly faster than the economy as a whole. To maintain this rate of growth over the next decade, Tanzania 's industrial capabilities will need to advance in a quite substantial way.

2 The foundations for this advance lie in the current capabilities of Tanzania 's industrial companies. The purpose of this volume is to set out a detailed description, industry by industry, of those capabilities. Along the way, we explore a series of questions. Sutton/Olomi Where did Tanzania 's current industrial capabilities originate? To what extent are Tanzanian firms held back by problems of access to land? Will it be possible to successfully integrate Tanzanian companies into the supply chains of the oil and gas sector?

3 This is the third volume in John Sutton's Enterprise Map' series, which profiles the industrial capabilities of selected countries in sub-Saharan Africa. Volumes on Ethiopia and Ghana have already appeared. The forthcoming fourth volume will be on Zambia. John Sutton and Donath Olomi 1 05/11/2012 09:51. A N E N T E R P R I S E M A P O F TA N Z A N I A. AN Enterprise MAP OF. TA N Z A N I A. John Sutton and Donath Olomi Copyright 2012 International Growth Centre Published by the International Growth Centre Published in association with the London Publishing Partnership All Rights Reserved ISBN 978-1-907994-07-4 (pbk.)

4 A catalogue record for this book is available from the British Library This book has been composed in Utopia using TEX. Copy-edited and typeset by T&T Productions Ltd, London Cover design: LSE Design Unit Cover photograph courtesy of ALAF Ltd CONTENTS. About the Authors ix Acknowledgements xi Acronyms and Abbreviations xiii 1 Introduction 1. 2 Widely Diversi ed Firms 11. Five Leading Firms 11. Said Salim Bakhresa, Sumaria Group, Mac Group, Motisun Holdings Limited, Mohamed Enterprises Tanzania Ltd 3 Coffee and Tea 25.

5 Sector Pro le 25. Pro les of Major Firms 32. Tanzania Instant Coffee Company Ltd, Afri Tea and Coffee Blenders (1963) Ltd, Unilever Tea Tanzania Limited, Tanzania Tea Packers Limited 4 Oilseeds and Edible Oils 39. Sector Pro le 39. Pro les of Major Firms 43. Murzah Oil Mills Limited, Mount Meru Millers Limited, Vegetable Oil Industries Ltd, BIDCO Oil and Soap Limited 5 Horticulture 53. Sector Pro le 53. Pro les of Major Firms 57. Hortanzia Farms Ltd, Multi-Flower Ltd 6 Food Processing 61. Sector Pro le 61. Pro les of Major Firms 65.

6 Vic sh, Tanga Fresh Limited, Azania Wheat Flour, Coast Millers Ltd vi C O N T E N TS. 7 Beverages 73. Sector Pro le 73. Pro les of Major Firms 79. Tanzania Breweries Limited, Coca-Cola Kwanza Limited, SBC Tanzania Limited, Banana Investment Limited, Bonite Bottlers Limited 8 Tobacco 85. Sector Pro le 85. Pro les of Major Firms 90. Alliance One Tobacco Tanzania Ltd, Tanzania Cigarette Company Ltd 9 Sugar 93. Sector Pro le 93. Pro les of Major Firms 98. Kilombero Sugar Company limited, Tanganyika Planting Company 10 Sisal 103.

7 Sector Pro le 103. Pro les of Major Firms 106. D. D. Ruhinda & Co. Ltd, China State Farms Agribusiness (Group). Corporation ( Tanzania ) Limited 11 Cotton 111. Sector Pro le 111. Pro les of Major Firms 116. Badugu Ginning Company Limited, Olam Tanzania Limited, Birchand Oil Mills Ltd 12 Textiles 121. Sector Pro le 121. Pro les of Major Firms 127. Tanzania China Textile Friendship Mills, Karibu Textile Mills 13 Hides, Skins and Leather 131. Sector Pro le 131. Pro les of Major Firms 136. Ace Leather Tanzania Limited C O N T E N TS vii 14 Furniture 141.

8 Sector Pro le 141. Pro les of Major Firms 144. New World Furniture Company Limited, Palray Limited 15 Construction 149. Sector Pro le 149. Pro les of Major Firms 157. China Railway Jianchang Engineering Co. Ltd, Konoike Construction Company Ltd, Fabec Investment Ltd 16 Cement and Building Materials 163. Sector Pro le 163. Pro les of Major Firms 168. Tanga Cement Company Ltd, Tanzania Portland Cement Company Ltd 17 Metals, Engineering and Assembly 173. Sector Pro le 173. Pro les of Major Firms 178. ALAF Ltd, Kamal Steel Ltd, Sayona Steel Limited 18 Plastic, Glass and Paper 183.

9 Sector Pro le I: Plastics 183. Sector Pro le II: Glass 185. Sector Pro le III: Paper 186. Pro les of Major Firms 186. Cello Industries Tanzania Ltd, East Star International Tanzania Ltd, Mu ndi Paper Mills (MPM) Limited, Dar es Salaam Glassworks Ltd A B O U T T H E AU T H O R S. John Sutton is the Sir John Hicks Professor of Economics at the London School of Economics. Donath Olomi is Chief Executive Of cer of the Institute of Management and Entrepreneurship Development, Tanzania , and formerly a senior lec- turer and director of the University of Dar es Salaam Entrepreneurship Centre (UDEC).

10 The International Growth Centre ( ) promotes sustainable growth in developing countries by providing demand-led policy advice based on frontier research. The IGC is directed and organized from hubs at the London School of Economics and the University of Oxford and comprises country of ces across the developing world. The IGC was initiated and is funded by the Department for International Development (DFID). John Sutton's Enterprise Map Project aims to provide a standardized descriptive account of the industrial capabilities of selected countries in sub-Saharan Africa.