Tanzania is facing competition from Namibia and South Africa in the export of briquetted charcoal to international markets. PHOTO | COURTESY
Dar es Salaam. Iringa-based Tractors Company Ltd has secured a market to export its organic charcoal briquettes to the European Union (EU) countries.
The company’s achievement has come after obtaining East Africa’s first Forest Stewardship Council (FSC) certificate issued for briquetted charcoal and other wood products.
The company produces sustainable and organic charcoal briquettes, firelighters and other bio-waste products also known as sustainable charcoal. Currently, the company exports its products to Germany, but plans are afoot to trade in Belgium, the United Kingdom and the Netherlands where they have secured orders.
“We are planning to export 2,500 tonnes this year, which is equivalent to about 220 tonnes a month,” said the company’s chief executive officer, Mr Benjamin Lane during his interview with The Citizen.
According to him, future plans are to double exports to those countries to 5,500 tonnes per year.
Mr Lane said the company also produces a by-product known as wood vinegar which is exported to Australia where it is used in farming activities.
He said Tanzania is facing competition from Namibia and South Africa in the export of briquetted charcoal to international markets.
“In order to sustain the competition we are planning to increase production from the current 300 tonnes per month to 500 tonnes,” he said, adding.
He said his company is closely working with Mafinga Town Council to manage wood wastes, noting however that since they are paying Value Added Tax (VAT), their products are more expensive in the local market than the normal charcoal.
Mr Lane outlined challenges hindering a considerable growth as payment of levies, taxes and royalties on products from wood wastes the same as exporters of high value timber products.
“This is a new concept in East Africa, therefore, we are struggling to raise investment capital in order to scale up our operations, despite the big order we have received from the EU countries,” said Mr Lane.
Another challenge, he said, while his company is supposed to pay VAT, locally processed charcoal sold at low prices is widely available.
According to him, the company was converting only 12,000 tonnes of between 150,000 and 200,000 tonnes of commercial wood wastes which are being dumped and burned annually in the area.
Tanzania has committed to restoring 5.2 million hectares of degraded land and forests by 2030 under the African Forest Landscape Restoration Initiative (AFR100) in its efforts to protect the country’s valuable natural forests.
For his part, Mafinga environment officer, Mr Charles Tuyi said the factory was a huge boost to the council in terms of waste collections as generated by timber factories.
“The council’s waste collection capacity stood at 33 percent only with the remaining percentage covered by the factory. To us the factory plays a commendable role in environmental conservation, which is a huge opportunity,” he said.
He expressed wishes for more stakeholders to setup their factories in the area, and change citizens’ mind-set to abandon use of normal charcoal to the modern one, which is environmentally friendly.
“The company should build the capacity of small scale producers who will become agents for taking the product to different parts of the country. This will also create jobs to residents of the area and help the country in addressing the challenge,” he said.
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