The secret for Tanzania manufacturers to enter and increase their market share in Norway is to strategically forge partnership with Norwegian companies.
This was said by the Director of Innovation Norway, East Africa office Mr. Jens Clausen at the Roundtable meeting between CTI members and Norwegian Companies held recently at the CTI offices.
Organised by CTI, the meeting aimed at bringing together Tanzania manufacturers and the Norwegian companies, with a view to discussing how to start partnership as well as joint ventures.
Speaking at the meeting, Mr. Clausen said that for Tanzania manufacturers to succeed in attracting partners from Norway, they have to develop viable and bankable projects for easy access to finance; invest in the value chain; and have technology, products or services proven to be competitive in the global market among others.
CTI members discussing, among other things, opportunities available for partnership with Norwegian Companies when the two (CTI members and Norwegian Companies) met recently at “Innovation Norway’s focus for 2015 will be to advocate for partnership between Tanzania manufacturers and Norwegian Companies in projects such as Aquaculture and Renewable Energy – mapping ongoing; Water/wastewater through PPP; and Oil and Gas by linking-up Tanzania industrialists with Norwegian supply industry” he said.
On his part, the Norwegian Investment Fund for Development Countries (Norfund) East Africa Regional Director Mr. Kjartan Stigen told CTI members that they have opportunity to access finance for investing in four areas.
He mentioned the areas as industrial partnerships, especially with companies that have direct investments with strong development effects; clean energy; financial institutions-building financial infrastructure; and for fund aiming at strengthening SMEs.”Norfund has invested directly USD 69 million in 8 businesses in Tanzania: agribusiness, hotels (the 230 room Dar es Salaam Serena hotel to the tune of USD 10 million), banking, equipment rentals, tourism, forestry and fertilizer distribution” he said.
The Companies that have benefited from Norfund finacing include Green Resources, TPS Dar es Salaaam Ltd, Agrica, Yara Tanzania Ltd., Africado, Exim Bank, African Century Infrastrucure Company Ltd and the African Spirit Group Ltd. Mr. Kjartan Stigen said that following gases pipeline building strategy in Tanzania in 2015, Norfund will from now focus on fewer but larger deals; on agribusiness especially agri-processing and primary agriculture; focus on partners who have strong and proven technical expertise; and to increase local content in the oil and gas industry in Southern Tanzania by supporting SMEs.
On the other hand, the Director for Norwegian-African Business Association (NABA)-East Africa Mr. Felix Osok encouraged CTI members wishing to get project partners as well as joint ventures to write bankable business proposals to NABA through CTI.
“NABA will, without delay, assess the proposals and find corresponding Norwegian Companies to link the prospective CTI members for partnership or joint venture arrangements” Osok said. The Manager of Market Development of StatOil Tanzania, one of the reputable international Oil Companies from Norway Mr. Kai Bjarne Lima urged CTI members to get prepared for massive investments in oil and gas sector following ongoing gas discoveries.
He said that the Production–Sharing Agreements (PSAs) which task producers of gas and oil to supply up to 10% of the gas produced for the domestic market was a huge amount which requires big investments. However, Mr. Lima cautioned that despite presence of huge local investment opportunity, there are challenges due to envisaged doubling of the current domestic gas supply, which will require substantial increase in gas consumption.
The Norwegian Companies which attended the roundtable meeting include Norfund, Statoil Tanzania, NABA and Innovation Norway - East Africa, and all of them made presentations on their business activities in Tanzania and East Africa.