East African Business Week

DAR ES SALAAM, TANZANIA - Over 125,000 local smallholder farmers will benefit from a potatoes project which will be undertaken in the southern Tanzania highlands that aims at producing quality potato seeds.
The project will be undertaken by Mtanga Farms Limited (MFL) in collaboration with Nigeria-based company Tonny Elumelu Foundation that will invest in a 2,200-hectare farm to produce the potato seeds.
Beneficiaries of the project will be those proven to be capable to increase yields threefold when provided with quality seed potatoes.
The progress comes following a deal inked recently by Tony Elumelu Foundation (TEF) with Heirs Holdings Limited and Tanzania-based farmers firm, Mtanga.
A statement made available to the East African Business Week in Dare es Salaam said the companies will invest in the establishment of the seed potato industry in Iringa region. "This deal will help Mtanga establish a seed potato industry which will significantly benefit more than 125,000 local farmers in the region alone," it said.
It noted that Tanzania doesn't have new potato varieties registered locally in the last decade.
Mtanga Farms Company is currently engaged in cultivation of wheat, barley, maize and oil seed crops in Iringa region. It also has livestock comprising local and cross breed cattle as well as fattening for premium meat.
The southern highlands are prime land for horticultural production and could be the cornerstone of the country's agricultural initiative of 'Kilimo Kwanza' and have significant potential to improve the country's food security.
The founder and chairman of the TEF, Tony Elumelu noted that all MFL's crops, including livestock, are for domestic consumption and will greatly contribute to Tanzania's food security stock.
Elumelu said, the deal marks the first time an African philanthropic organization and investment firm have jointly engaged in investments. "With this deal, we hope to set a new standard for both philanthropy and investments in Africa," said Elumelu.
"We seek to drive African economic growth from within by investing in businesses that generate social, environmental, and financial returns," he stressed.
Both TEF and Heirs Holdings were promoted by the former CEO of United Bank for Africa, one of Africa's largest financial services instructions, based in Nigeria, where some of the continent's most innovative financial deals have been struck in the last decade.
The Foundation's chief executive, Dr Wiebe Boer said, Mtanga Farms was an example of how responsible foreign investment in agriculture can be commercially viable, environmentally sustainable, and also create substantial social impact through the benefits to small holder farmers and the contribution to food security.
The Heirs Holdings is a principal investment vehicle, with a diversified portfolio, including interests in the financial services, real estate and resources sectors.