Govt to freeze multi-billion shilling pact with US firm

By Sylivester Domasa

National Ranching Company (NARCO)

The government intends to put on ice a multi-billion shilling derivative  rights agreement signed with the US – based AgriSol Company over consistent  violation of its terms.

 

The company sealed a lucrative land deal with the Tanzania Investment Centre  (TIC) involving 10,000 hectares that belonged to the former National  Ranching Company (NARCO) at Uvinza in Kigoma Region for agricultural  investment.

 

But since 2012, when it was awarded by TIC derivative rights requiring it to  start investment in three years and issue six-month implementation reports,  it has done nothing.

 

The Deputy Minister for Agriculture, Food Security and Cooperatives, Godfrey  Zambi, said this in the House here yesterday on behalf on the Prime  Minister.

 

He said the government was in the process of breaking the agreement as he  was answering a question posed by David Kafulila (Kigoma-south NCCR- Mageuzi). 

 

The latter said the land was given to the US company by the government  without the prior consent of wananchi. 

“So, what action is being taken by the government on the investor who has  been allowed to invest on the land that is close to the district  headquarters?” He queried.

 

Zambi clarified that the land, which covers 15,000 hectares, was used by  refugees from the Democratic Republic of Congo (DRC) in 1994.

He explained that after the refugees left the country, the Kigoma regional  administration offered it to Uvinza District for setting up administrative  structures and agricultural investment under a letter reference no. CD  31/133/01 of February 27, 2010.

 

He said in 2011 the Ministry of Livestock Development and Fisheries  permitted that the farm should be incorporated in the Kigoma land use plan.  As a result 10,000 ha were apportioned to TIC and the 5,000 ha remained with  the district.

 

“This is when TIC had to give derivative rights to the investor, but on  condition that the investment should begin within three years and the  company should be reporting to TIC every six months,” he said.

 

The deputy minister went on to say that the investor had implemented neither  of the agreed terms. Therefore the government resolved to terminate the  contract and look for another investor in the area.

 

He was optimistic that the government would offer part of the land to  wananchi should they need it for agricultural activities.