HOLDINGS
A diversified business line and excellent distribution network are the keys to success for these two holding companies.
How has the company grown since its establishment and what has been its strategy?
Toufiq S. Turky Turkys Group grew from a bottling plant to cement trading, which was our core business, manufacturing, and, eventually services. We took our inspiration from Dubai, Singapore, and Hong Kong, which are all massive service-driven economies. Trading is still our backbone: we supply almost 80% of building products and 60% of food products in Zanzibar, and 40% of food products in general in Tanzania. We have also refined our value streams, working backward in the cement line through the construction of our cement plant, and adding value downstream in the hospitality and catering sectors. The key to our strategy has been diversification. Most holdings companies in Tanzania have dedicated themselves to one sector: food products, energy and mining, or communication. However, Turkys Group is constantly on the lookout for new ventures or business propositions. When we travel abroad and see what is on offer in other world markets, we take inspiration to start something similar on our home turf. The ultimate objective is to improve the quality of life and empower our people to reach similar standards of living that can be found elsewhere.
Mohammed Dewji MeTL is a family business with many different branches. We began as a trading house dealing in imports and exports. Today, we still import a huge range of soft commodities, in total around 200, and export all cash commodities. However, we have also integrated many of our operations, and now manufacture in over 40 industries. We are in direct competition with many of the multinational FMCG giants, which we consider a considerable achievement. We have some key areas of focus: textiles—since we are involved in sisal cultivation and processing, and have three textile mills in Tanzania producing over 100 million meters of cloth—grain, plastics, and soft drinks. We have also started boosting our agricultural arm of the business. We have developed out-grower schemes, processing plants, and look to increase our export footprint of these goods. The key to successful diversification is distribution. We have thousands of outlets countrywide, over 2,000 vehicles, and the warehousing and ICT infrastructure to support this. All in all, we contribute a little over 3% of the GDP of Tanzania and employ 28,000 people, making us one of the largest employers in the country after the government.
How can the government further drive Tanzania's industrialization agenda?
TST First and foremost, we need to tackle massive challenges in infrastructure—not just physical, but also in terms of policy. If policy is not clear or misinterpreted, then this puts the country at a disadvantage when it comes to attracting investment to boost industrialization. For example, while taxation tariffs in Tanzania are fairly similar to other countries within the East African Region, the interpretation of the legislation has differed from that of say, Kenya. The actions of the Kenya Revenue Authority have pushed the country up to 80th in the world in terms of ease of doing business, while Tanzania lags behind at 132nd. The second major concern is labor. We are limited in our array of vocational training on offer for those who wish to focus on high technology or highly specialized industrial skills. The government has clearly demonstrated an understanding of the importance of boosting human capacity; however, it needs to streamline the process of training. While we do want to improve the caliber of expertise among native Tanzanians, it is important to bring in those people who already have the necessary skills to bring up the level in the first place. I am President of the Zanzibari Chamber of Commerce, Industry and Agriculture (ZCCIA), and we have been working closely on this front, signing deals with aid organizations from the US, the German government, and BEST AC.
MD We are at the front of driving industrialization, always on the look out for industries we can develop domestically. When we have the raw material, competitive pricing, and available human resources, it is possible to develop diverse lines of production, and enable those to flourish. We also aim to develop linkages between our products; for example, we are into grain milling, but have begun exploring opportunities in processing and value addition and are opening lines in biscuits, bread, pasta, and noodles. With the government placing a huge emphasis on industrialization, particularly in the Five-Year Development Plan, and working in general to improve the business environment, we are expecting more and more players to move into this sector with us. The administration has realized, for example, the importance of incentives in this field, such as removing VAT on certain machinery imports.
HOLDINGS
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
read articleReview
Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
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