Denmark keen on finalising $3bn fertiliser factory deal
Danish ambassador to Tanzania Einar Jensen. Photo |File
What you need to know:
The factory will have the capacity to produce 3.8 million tonnes of fertilizer per year and will employ about 3,500 people, mainly locals
Dar es Salaam. The Danish government has reaffirmed its keenness to finalize negotiations with its Tanzanian counterpart over the pending construction of the $3-billion (about Sh6.8 trillion) worth fertilizer plant in Lindi Region.
Speaking during a tour of the Tanzania Investment Centre (TIC), last week Danish ambassador to Tanzania Einar Jensen asked the government to finalise the deal so that the construction of the plant would begin the soonest possible. “I believe that Tanzania needs more fertilizers, and I acknowledge that farmers now only have 10kgs of fertilizer, on average per hector,” he said.
The plant is a joint venture involving Tanzanian government, Forrestal Industrial Projects of Germany, Danish industrial catalysts producer Haldor Topsoe and Pakistan’s Fauji Fertilizer.
The factory will have the capacity to produce 3.8 million tonnes of fertilizer per year and will employ about 3,500 people.
He further asserted that the establishment of the fertilizer plant could be the start of the country’s green revolution and will benefit farmers at large.
TIC executive director Geoffrey Mwambe assured the ambassador that the plant building will start soon, as the government through the Tanzania Petroleum Development Corporation (TPDC) was finalizing the process.
He further applauded the Danish government for its continued commitment to support local investment initiatives.
He mentioned Cowi Tanzania, Consulting Engineers and Planners as among the Danish companies that for many years have been cooperating with the government to implement various development projects.
Commenting further, Mr Jensen reiterated that Denmark has been engaging in improving business in Tanzania by providing credit facilities for farmers and entrepreneurs.
“At least 170, 000 farmers last year received loans to improve productivity,” he mentioned.
He further applauded the government for establishing a new business blueprint, saying the move would accelerate improvement of the business climate in the country.
“The difficult part of it, of course, is implementation, we will be more than happy to assist the government in that role,” he said.
The newly established blueprint sets the stage for a raft of amendments to laws and regulations governing the conduct of businesses in Tanzania.
