Tuesday, September 28, 2021

Israeli firm to invest Sh575 billion in agro areas

  Israel pic

By Alex Nelson Malanga

Summary

  • Some $200 million of the money will be invested in infrastructure of agro-industrial projects, with the remaining $50 million being working capital

Dar es Salaam. Aie Holding Ltd will invest $250 million (about Sh575 billion) in Tanzania’s agro-industrial education and agro-management skills.

The company - which was registered in Tanzania last year - will invest in projects related to agricultural education, logistics division, vegetable oil plant, feed mill, packing and storage, solar power, cattle farm, poultry farm, fish farm, field crops, tropical fruit concentrate, solar power and wastewater treatment.

Headquartered in Dar es Salaam, the company whose founder and chairman is Mr Avi Postelnik, an investor from Israel, will source the money from private equity as well as local and international banks.

“We have already met the TBA (Tanzania Bankers Association) to get their support in organising five big banks to build a syndicate,” without revealing the names of banks, Mr Postelnik said at the weekend .

He said while some $200 million of the money will be invested in infrastructure of the agro-industrial projects, the remaining $50 million would be working capital. “The doors are open for potential local partners,” said Mr Postelnik.

The company, whose operation will be in Dar es Salaam, Kagera, Mwanza, Bagamoyo, Njombe and Morogoro, is expected to create about 70,000 direct jobs including that of chief executive officer to locals.

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Agricultural education

Mr Postelnik said agricultural education and training will be provided in Tanzania and Israel.

“We intend to use the advanced agriculture education in Israel by enrolling Tanzanians for short and long periods in our special projects of education available in our country,” he asserted.

Some of its employees, he explained, will be taken to Israel for a 6-7 month training.

“We intend to use their (Israel) know-how to employ graduates in management and technical positions in our agro-industrial projects in Tanzania,” noted Mr Postelnik.


Logistics division

Mr Postelnik said the transportation and Logistics division will be used for delivery of the raw materials to the processing plants and then for transportation of the finished products to the local markets for sale or to the ports for export.


Vegetable oil plant

This plant is designed to process oil seeds, such as Soya bean, sunflower, corn and cotton, and bottle the oil for the local and export market.

This plant is fully automated and the residue containing protein and fat will be used in the feed mill.


Feed mill

The feed mill is specifically designed for feeding our cattle, poultry and fish. The total area for the supplying farms is planned to be around 25,000 hectares.

Packing and storage

He said the whole chicken, eviscerated, cleaned and plucked will be packed in special plastic packaging to be sold as chilled or frozen.

Solar power

All the projects will use solar energy.

Experts from Israel will come to evaluate the sites and advise the type of solar energy for maximization of natural energy.

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