Draft Speech of Mr Ashraf Khan, Mon 17 Oct 2011

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PART 1 - ADDRESS

Mr. President, (Related Protocols), Distinguished Guests, Your Excellencies, Ladies and Gentlemen, I wish to thank you Mr. President for convening this first ever high profile Lake Tanganyika Zone Investors Forum , which directly signifies and reinforces what you said at the Rukwa Regional Investment Forum in 2007 : I have made investment promotion a major item on my development agenda. The theme of the forum Promotion of Lake Tanganyika Zone Investment Potentials is appropriately named and timed at a crucial time when Tanzania is on the threshold of progress towards achieving the Millennium Development Goals (MDG)-2015 and Tanzania Development Vision (TDV)-2025. For a country to progress, the economic growth has to be pro-poor lest the growth would be imbalanced with wider gaps in income distribution. So, it is the rural areas with potential that deserve developmental focus. And, Mr. President, this is precisely what you are doing now by opening up the welldeserved and resource-rich Lake Tanganyika zone to the potential investors. I commend and congratulate you, Mr President, on this historic event which, I am sure, will foster commendable growth of the region and uplift the lives of rural masses. This Forum marks a watershed in the history of our country ushering in sustainable development initiatives by making private and public sectors as developmental partners. The sheer number of potential investors and the supportive Government officials stand testimony to this fact. Opportunities Mr. President, Opportunities galore here and await the investors. Strategic location of the Lake Tanganyika zone bordering Zambia, Burundi and DRC with immense scope for crossborder trade holds the key to improve the economic status of the people in the area. Vast open lands of fertile soil and abundant fresh water supply, which are a rarity in the developed regions, are waiting to be exploited for the mutual benefit of the investors and the local people. Full and productive employment and decent work for all including women and young people will become a reality. 1

Draft Speech of Mr Ashraf Khan, Mon 17 Oct 2011

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Livestock keeping, natural resources including minerals as well as on the tourism potential are some of the attractive features the region has to offer Challenges Mr. President Much as the opportunities exist, there are also standing challenges, but definitely not insurmountable, that co-exist.. Lack of reliable power supply perhaps tops the list of challenges followed by inaccessible roads. I believe that the Government is seized with these issues and projects are underway to improve the infrastructural facilities. As a nation, and with the support of the willing private sector these challenges can be overcome in course of time. I am sure that all of us here today at this forum share the dream of making this wonderful region a success story and turn it into reality. I cant resist the temptation of quoting our revered late President Nyreres catch phrase coined in 1970s: We must run while others walk. PART 2 SSBS PLANS Introduction As the representative of the Said Salim Bakhresa & Co Ltd (SSB), the flagship company of the Bakhresa Group of Companies, I , Ashraf Khan, has been given the honor and privilege of sharing with you how our company can contribution to the regions development. Our company has is keenly interested in investing in the following broad sectors in the Lake Tanganyika region: Port &related infrastructure : The Port of Kasanga and its immediate villages surrounding it. Investing on complimenting infrastructure in the DRC to facilitate transit trade, and the overall enhancement of the Dar es Salaam throughput. Logistics & Transport: The Transport & Logistics (Multimodal) issues as they relate to transiting goods to the DRC and other land locked nations. Trading : Marketing / Exports and Storage of agriculture produce in the Lake Tanganyika region. For what purpose? Agriculture: The Agriculture potential covering the regions of Rukwa , Mbeya and others. What is the potential?

Draft Speech of Mr Ashraf Khan, Mon 17 Oct 2011 Said Salim Bakhresa & Company Ltd Vision:

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To develop the Port of Kasanga to International standards. To provide standard facilities for a medium size passenger, general cargo and container vessels servicing the Lake Tanganyika region through investment on a container storage yard, ships, Grain Silos and Jetty. To provide for regular / scheduled lake transport for general cargo, containerized cargo and Ro-Ro facility (for all types of vehicles crossing lake). To develop the Agriculture sector by direct investment in industrial farming and producing products for local and exports markets (surplus permitting). Details of the he PlanPort of Kasanga (PPP with TPA): The project will look into investment in the entire port infrastructure, that includes the construction of a capable jetty that will provide services for vessels that can transport passengers, general cargo, containers and RoRo vessels. The plan is to provide for transit cargo arriving through the Port of Dar es Salaam linking it to Ports in the DR Congo and vice versa. Most of the Eastern part of the DRC is going to benefit from the proposed investment on the Kasanga Terminal, reducing the traffic congestion being experienced at the Tunduma Border Post. The project will construct a grain silos within the Port premises to provide storage facilities for agriculture products produced by SSBs Agriculture Division to be established in the region and from other agriculture industrialists which will also include local farmers in the region. The Project in its entirety will include deployment of Lake Transport Vessels for: Passengers, General cargo, Containerized Cargo and RoRo type. Create employment and business opportunities for the Kasanga Port Town community.

The Agriculture Sector: The Master Project will focus on investing in Agriculture sector and concentrate on producing high grade and better yield products for the local markets as well as on export oriented produce (surplus permitting). The plan is to deploy expertise in industrial farming that would involve mechanized farming facilities. To provide for storage facilities for the agriculture produce while eliminating the long overdue public outcry on the problem of grain damage due to lack of storage facilities. The Master Plan will further include the deployment of transport fleets that will be charged with the responsibility of transporting agriculture produce between the 3

Draft Speech of Mr Ashraf Khan, Mon 17 Oct 2011

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farms and Port of Kasanga, where both storage and transportation will be possible. (distances/radius?) Others: To invest in DRC Inland Container Terminals to facilitate on seamless supply chains to and from the DRC connected to the coastal ports of Tanzania, which geographically offer the lean distance between.

The Foreseeable Challenges: The Main Power connections to the region, especially at the Port of Kasanga and the anticipated industrial take-off. Tunduma transverse very important for Tunduma infrastructure logistics to be reviewed and provide for a direct route connecting Sumbawanga Highway and Tanzam Highway. Inter- Government protocols between the DRC and the Tanzanian Counterparts with reference to: Upgrading and where possible to work for the construction of better highways, particularly on the DRC ports (Lake Tanganyika) that would connect transit cargo to and from the Kasanga Port enroute to or from the Port of Dar es Salaam. Provide policies onto both countries, where (PPP) will promote private capital into the development of the DRC Inland Ports (lake Tanganyika) that will be able to cater for the projected vessels, as per plans on Port of Kasanga. Provide for security arrangements for the transportation of transit goods into or from the DRC, in the wake of persistent political and safety risk that is still prevalence in DRC

PART 3 FINAL IMPRESSIONS Mr. President, Due to inherent infrastructural limitations, the Lake region is heavy dependent on marine services, which have lately been in short supply. Travelling along the shoreline from Kigoma to Port Kasanga in the south will involve transiting through a number of nonjetty cluster ports, that are served twice a month by vessels owned by the Marine Services Company Limited (MSCL). Mr. President, Ports are critical infrastructure for facilitating the regional development. In view of this fact, SSB intends to invite the Tanzania Ports Authority (TPA) in a Joint Venture

Draft Speech of Mr Ashraf Khan, Mon 17 Oct 2011

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undertaking to introduce marine capacities and services across and along Lake Tanganyika. Currently, the existing challenges on the improvement of the Dar es Salaam Port includes the following; i. ii. iii. To improve port operation services. To synergize key transport providers and to enhance efficiency of the port and trade facilitation with landlocked countries. Digitizing the customs process and fast tracking tax compliant customers as well as reducing congestion being experienced at the Port of Dar es salaam.

Mr. President, The Tanzania Ports Authority is taking initiatives to develop a Port at Kasanga, and subsequently concession it to a Contractor who will manage the terminal, expected to offer services to inland shippers as well as offer transit services to the land locked nations connected to Lake Tanganyika i.e. Port Mpulungu (Zambia), Port Moba (DRC), Port Muliro (DRC), Port Kalemie (DRC) and Ports of Bujumbura (Burundi) and Kigoma (Tanzania) in the North. The objective of the project is to contribute towards the implementation of an efficient common multinational transport program which will foster regional economic integration and the development of zones with high potential on agriculture, mining, tourism, industrial or commercial attributes within those countries. Likewise, a highway linking Port Kasanga and Tunduma via Sumbawanga is also under construction. These new developments shall enable access of the landlocked countries to international transport links. Mr. President, To improve further the development of the Lake Tanganyika investment region, SSB intends to engage on industrial agriculture as well as on food storage, whereby Silos are being contemplated to be established on the environ of the Kasanga Port. It is therefore expected that this new initiative will give a big boost to marketing of agricultural produce of which have recently been reported to lack appropriate storage and marketing. Farmers will indeed enjoy a new era where they are to have better prices and markets for their produce. This will therefore promote not only efficiency on the National Grain Reserve, but act as a regional strategic reserve for the landlocked countries of Zambia, Malawi, Rwanda, Burundi, the DRC as well as Uganda in the North. With a view to improving accessibility and reliability of transport to both the Lake Tanganyika Investment zone, as well as on the land locked Central African states, M/S Salim Said Bakhresa Limited is dedicated to make this dream a reality. 5

Draft Speech of Mr Ashraf Khan, Mon 17 Oct 2011

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In this spirit, it is in the expectation of SSB , that the Government of the United Republic of Tanzania, together with the interested parties from the Private Sector, will increase its level of participation in terms of creating conducive and deliberate policies that will see this country make real progressive developments against all odds, bearing the fact that our geographical location, teamed up with much of the unexploited resources, stands to frog-leap, where others are stack. Mr. President, With my concluding remarks, SSB believes the fact that all efforts that are geared today to implement our resolutions, will require effective partnership between, not only the Tanzanian Government alone, but transit and landlocked countries as well, together with deliberate global partnership between various international stakeholders. Further, SSB considers the investment proposal for the Lake Tanganyika Economic zone will result onto mutual benefits to all parties as the economies in question would lead to more effective participation in regional and international trade, benefiting from economy of scale. Mr. President, I thank you for your attention.