Bid to make Dar a global tea marketing hub materialising

08Apr 2019
Financial Times
Bid to make Dar a global tea marketing hub materialising

IN    efforts to increase production and value addition to Tanzania’s traditional cash crops,   DL Group has said that it’s working hard in conjunction with the Tea Board of Tanzania to make Dar es Salaam a strategic international tea marketing and transit hub.


“It is a huge ambition, but we are on course,” the DL Group chairman Dr David Langat declared here in a special interview, further explaining, “the government of Tanzania has a clear position on honest investors and it is very positive on decent private sector initiatives. This kind of government stand is very, very important in making Tanzania one of Africa’s tea productions and trading hub.”


In the budget speech covering for the current fiscal year, tea was one of the eight key traditional cash crops listed down by the Agriculture Ministry and which the ministry said are begging for serious production and processing attention under the Agricultural Sector Development Programme (ASDP II), Phase Two.


 Other crops are cotton, pyrethrum, cashew nut, sisal, sugar, coffee and tobacco.  The ministry said tea production in 2018/2019 year is expected to reach 35,000 tonnes.


Dr Langat said prospects for stepped up tea production and processing were bright because, tea was not a new crop to Tanzanian growers and already Tanzania is a key exporter of tea in East and Central Africa and the international market. 


“What is needed now is to increase investment in efficient, lean and cost effective technology, improve product quality through capacity building, good farm management and processing practices and give opportunity to smallholders to grow tea

in environmentally sustainable manner, clear growing and trading

bottlenecks and open markets in Europe and Asia. All stakeholders must play their part”

As part of its economic and social responsibility, he explained that

the DL Group invested in to a number of non-performing tea companies in the Southern Highlands and a tea blending & warehousing facility in Dares Salaam, Tanzania. The company has invested heavily in reviving the abandoned estates and factories and has gained confidence from the smallholder farmers and suppliers and statutory bodies by clearing long outstanding debts. The company, he further explained, has improved tea production in Iringa and Njombe Region’s and sequel to those efforts for the first time some Tanzania teas including Kibena and Itona marks fetched better prices compared to some high performing

Kenyan factory teas at the Mombasa auction.  The company has also invested in the rehabilitation of more than 160ha of tea fields

including the tea research institute Igoda farm in Mufindi District.

With the licensing of  RVTS Warehouse, the first of its kind in

Dar es Salaam, the tea board of Tanzania is in discussions with the

company to facilitate a stakeholder meeting with  buyers, producers and broker members of the East African Tea Traders Association, government agencies and key tea stakeholders to discuss ways of streamlining the export  procedures of tea to other countries and encouraging other countries to use the Dar es Salaam port as a tea transit route in the region as a cheaper option.

The chairman said the company was working with the government to remove transportation constraints that contribute to making Tanzania’s tea expensive at the tea auction, constraints that also contribute to low prices given to growers.


“This initiative will create jobs and promote trading business within the tea value chain and port of Dar es Salaam,” Dr Langat said.


Dr Langat did not hesitate to commend President John Magufuli for stern measures he was taking to transform the Tanzania's economy, saying that he was on the right track.


DL Group owns Mufindi Tea and Coffee ltd, Kibena Tea Ltd,Ikanga Tea Company ltd, Rift Valley Tea Solutions ltd and Kyimbila Tea packers Ltd.