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“DISCOVER THE TANZANIA MARKET”

DAR-ES-SALAAM, TANZANIA – 29 SEPTEMBER 2005

REPORT OF AN ASSESSMENT FOR MARKET DEMAND OF

SELECTED OMANI PRODUCTS TO TANZANIA

Report of an assessment for market demand of selected Omani products to Tanzania

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Table of contents

Page A. Aluminium profiles 1

B. Automotive batteries 4

C. Biscuits 8

D. Cement 10

E. Ceramic tiles 14

F. Dates 18

G. Detergents 19

H. Diapers and sanitary napkins 24

I. Electrical cables 26

J. Fire extinguishers 30

K. Fish 32

L. Fruit juices 35

M. Leather shoes 41

N. Product marble 43

O. Product: mattresses 47

P. Paints 48

Q. PVC pipes and tubes 51

R. Vegetable oils 53

S. Storage water heaters 56

T. Wheat flour 58

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A. Aluminium profiles 1. Market overview Tanzania’s current demand for aluminium profiles is between 1300-1400 metric tones per annum. Local production for the same is negligible, thus the entire consumption demand is imported. Re exports are negligible.

0

200

400

600

800

1000

1200

1400

Local Product ion Imports Exports Consumption

2. Market characteristics. A greater part of aluminium profiles consumption is by house holds through the retail market. These account for 75% consumption and the rest by contractors through turnkey projects (usually financed by Government or Donors through tendering).

Government o r Donors

25%

Retail Outlets75%

3. Importation and distribution channels Importation of aluminium profiles is by large Whole Sellers or Stockists and at times constructors who may require bigger quantities of materials, and to take advantage of discounts decide to source the same directly from suppliers. A point to note is that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment.


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4. Importation by product type

2003 2004Hs Code Product type Quantity wt. kg

760410 Bars, rods & profiles of aluminium not alloyed 960.199 307.639760421 Hallow profiles of aluminium alloys 69.773 359.480760429 Bars, rods & profiles of aluminium alloys 236.293 445.797

TOTAL 1.266.265 1.112.916Source: Tanzania Revenue Authority 5. Share of product imports by country (Figures of 2004) HS Code 760410 (Bars, rods and profiles of aluminium, not alloyed)

South Africa32%

M alaysia34%

Kenya17%

Others17%

Source: Tanzania Revenue Authority HS Code 760421 (Hallow Profile of Aluminium alloys)

Source: Tanzania Revenue Authority

0%

20%

40%

60%

80%

100%

China UAE Kenya Others


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HS Code 760429: (Bars, rods and Profiles of aluminium alloys)

0%10%20%30%40%50%60%70%

UAE Oman China Lebanon

Source: Tanzania Revenue Authority 6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a better security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania where importers may approach for cover in case of need. 7. Mode of transport The mode of transport ideal for this commodity between these two Cities is by sea. On the average freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 8. Duty structure HS Code Product Duty MFN % EAC %

Import 10 2 Suspended 0 0 Excise 0 0 VAT 20 20

760410 Bars, rods and profiles of aluminium, not alloyed

TOTAL 32 22.4 HS Code Product Duty MFN EAC


760421 Hallow Profile of Aluminium alloys

TOTAL 38 23.6


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HS Code Product Duty MFN EAC Import 15 3 Suspended 0 0 Excise 0 0 VAT 20 20

760429 Bars, rods and Profiles of aluminium alloys

TOTAL 38 23.6 9. Interested importers of the product Jabma Enterprises P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745/8, 2111848 Fax: +255 22 2111288 Mob: +255 847 780440 E-mail: [email protected] [email protected] Attn: Youssef Jaber

Al Hilal Ceramics & Hardware Ltd India Street P.O. Box 2465 Dar es salaam Tel: +255 22 2132812 Fax: +255 22 2132815 E-mail: [email protected] Attn: Mr. Suleiman N. Al Hilal

Maryland Holdings Ltd P.O. Box Dar es Salaam Tel: +255 744 372 804 E-mail. [email protected] Attn: Mr. David Kombe

Yemen Enterprises Ltd. P.O. Box 4890 Dar es Salaam Tel: +255 22 2860652/3 Fax: +255 22 2861985 E-mail: [email protected] Attn: Salim Islam

Tropical Aluminium & Glass Industries Ltd P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745 Fax: +255 22 2864886 Attn: Mustapha Nasreddine

B. Automotive batteries 1. Market overview The consumption of auto batteries in Tanzania stands at 300,000 units. Local production has just commenced by NAS Tyre Services Ltd and it will take time to gain a foot hold. Otherwise Imports still account for more then 95% of the commodity.


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0102030405060708090

100

LocalProduct ion

Imports Exposts Consumption

2. Market characteristics Automotive Batteries consumption is mostly urban. The popular brands include Yuasa, Exide in the following ranges N 40, N 50, N 70, N 120 etc.

3. Importation and distribution channels Importation of Auto Batteries is mainly by large Whole Sellers who in turn supply to their agents in regions for distribution to retail outlets. A point to note is that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment 4. Share of imports by product type

HS Code Product 2003 2004

850710 Lead acid batteries for starting piston engines 1,444,825,435.= 1,503,535,342.=850720 Other Lead acid accumulators 344,343,762.= 275,024,448.=850790 Parts 417,656,995.= 136,571,109.=TOTAL 2,206,826,192.= 1,915,130,899.=

Source: Tanzania Revenue Authority 5. Imports by Country share (figures for 2004) HS Code 850710: Lead Acid Accumulators for starting Piston engines

Thai land28%

UAE18%Kor ea (Rep)

16%

enya13%

Indonesia9%

China6%

Other s10%


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HS Code: 850720 Lead Acid Accumulators

Finland54%

Kenya19%

German12%

China6%

Others9%

HS Code 850790 Parts of electric accumulators

U.K.70%

France14%

Others7%

Sweden5%

India4%

6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a better security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common for high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania where importers may approach for cover in case of need. 7. Mode of transport The mode of transport ideal for this commodity between these two Cities is by sea. On the average freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam.


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8. Duty structure HS Code Product Duty MFN % EAC %


850710 Lead acid batteries for starting piston engines



850720 Other Lead acid accumulators



850790 Parts

TOTAL 20 44 9. Retail prices for Auto Batteries

Battery Size Yuasa ( Ex Japan) Exide ( Ex U.K) N 40 42,000.= 51,000.= N 50 52,000.= 60,000.= N 70 67,000.= 72,000.= N 120 120,000.= 145,000.=

Source: Kaps Battery Ltd.) 10. List of interested importers Neha Batteries Ltd. Zanaki Street P.O. Box 2116 Dar es Salaam Tel: +255 22 2126224 Fax: +255 22 2117040 Mob: +255 741 327778


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C. Biscuits

1. Market overview Tanzania’s biscuit consumption is estimated at 11,000 – 12,500 tons per annum. This demand is met by both local supplies and imports. Local capacity is increasing steadily. Last year for example production increased by 54.4% from 5,906 tons in 2003 to 9,117 tons. Figures in tons

0

2000

4000

6000

8000

10000

12000

14000

16000

Imports Exports Local Prod Consumption

2. Market characteristics The Biscuits consumption segment is made up mostly children at home, Schools, Army Hospitals etc. Packaging of the biscuits has to meet demands of the diversified consumption classes. Children for instance prefer small packets of three to five biscuits in a packet, the most common on the market are 20gm – 30 gm packets (for small ones) and 200 – 250 gm for larger ones. 3. Imports United Arab Emirates and South Africa account for 50% of total imports in value. In the last two years imports were as follows: Value in TShs

Products 2003 2004

Sweet biscuits, wattles and wafers 659,548,437.- 897,660,679.-


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4. Country share of Imports (figures 2004 – source TRA Customs)

UAE37%

S.Africa14%

Turkey9%

denmark7%

India7%

Kenya7%

Others19%

5. Distribution Importation is usually by large Whole sellers who then supply the same to their Agents (in regions) for distribution to food retail shops and supermarkets. 6. Exports Tanzania exports some of her excess supplies to her neighbours.

Product 2003 2004 Sweet biscuit; waffles and wafers 1.007.103.988.- 146.752.119.-

Main importing countries in year 2004 were DRC, Angola, Kenya, Antique and Mozambique. 7. Export by country: (figure 2004)

DRC26%

Angola22%

Kenya18%

Ant iqua12%

M ozambique7%

Others15%

8. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a better security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania where importers may approach for cover in case of need.


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9. Mode of transport The mode of transport ideal for this commodity between these two Cities is by sea. On the average freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 10. Duty structure

HS Code

Item Duties MFN% EAC %


190530 Biscuits

TOTAL 20 26 11. Retail price Type Country of Origin Weight Price in Tshs Cream Crackers Ireland 200g 1,250.= Mint Romany Creams South Africa 200g 2,400.= Short cake Britania Nairobi 200g 950.=

12. Interested importers Star Import and Exports P.O. Box 7711 Dar es Salaam Tel: +255 22 2114259 / 2112666 Attn Mr. Hasnain

D. Cement 1. Market overview The consumption of cement in Tanzania is estimated at 1.3 millions tons per annum. 90% of the total demand is met locally and the rest imported.

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Local Prod. imports Exports Comsumption


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2. Local production Following recent rehabilitations at the Twiga and Tanga Cement Plants, daily production for the two plants has gone up to 3,000 tons. Installed capacity of the three plants is about 1,800 million tons. Cement production in 2004, increased by 7.9% from 1.186 million tons in 2003 to 1.280 million tons in 2004. The three plants contribution is as follows.

Tanga, 500,000

Twiga, 500,000

M beya, 280,000

3. Importation 90% of cement consumption is met locally while 10% is imported. It should be noted that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment he main imports by type for the last two years include; Imports by product type (years 2003 and 2004)

2003 2004 HS Code Products type Net weights in kg

252310 Cement clinkers 157.314.098 111.852.489252321 White Portland cement 3.289.271 2.704.058252329 Portland cement(excl. white) 5.842.698 10.359.587252330 Aluminous cement 24.953 51.810252390 Hydraulic cement 432.138 38.687

TOTAL 166.903.158 125.006.631 Import countries by product groups 2003 Country HS 252310 HS 252321 HS 252329 HS 252330 HS 252390

Net weights in kg Egypt 78.056.750 195.328 - - -Saudia 78.766.163 - - - -Oman 350.000 1.954.150 3.085.000 - -UAE 115.000 183.529 1.997.535 - 365.000Others 26.185 956.264 760.163 24.953 67.138TOTAL 157.314.098 3.289.271 5.842.698 24.953 432.138


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Import countries by product groups 2004 Country HS 252310 HS 252321 HS 252329 HS 252330 HS 252390

Net weights in kg Indonesia 39.550.889 - - - -Egypt 42.000.000 318.000 - - -Japan 30.000.000 - - - -Oman 260.000 1.470.000 7.704.000 - -Others 41.600 916.058 2.655.587 51.810 38.687 111.852.489 2.704.058 10.359.587 51.810 38.687

4. Exports Part of the Cement during construction off seasons (rainy season) part of the idle cement finds market to neighbouring Burundi, Malawi, DR Congo etc. the export trend during the two years under consideration is as follows:

HS Code Products type 2003 2004 Net weight in kg.

252310 Cement clinkers 27.603.157 8.980.090252329 Portland cement 3.992.356 28.525.400252390 Hydraulic cement 2.801.250 -252321 White Portland cement - 149.500

34.396.763 37.654.990 5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 7. Packaging Cement is usually packed in craft bags of 50 kg with polyethylene seal inside to protect it from moisture, spillage and tempering.


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8. Duty structure HS Code Product Duty MFN % EAC %


252321 White Cement

TOTAL 87.5 57.5 HS Code Product Duty MFN % EAC %


252329 Portland Cement

TOTAL 368 57.5 HS Code Product Duty MFN % EAC %


252330 Alumina Cement

TOTAL 87.5 57.5 HS Code Product Duty MFN % EAC %


252390 Other Hydraulic Cement

TOTAL 87.5 57.5 9. Retail Prices for some products Type Country of Origin weight Prices Tshs White Cement UAE 50kg 16,000.= Portland Cement Tanzania 50kg 8,000.=

10. Interested buyers of cement Star Import and Exports P.O. Box 7711 Dar es Salaam Tel: +255 22 2114259 / 2112666 Attn Mr. Fazel

Afro Supplies Ltd. Jamhuri / Chagga Street P.O. Box 1440 Dar es Salaam Tel: +255 22 2121446 / 2118136 Fax: +255 22 2113840 / 2114667 Mob: +255 748 786 160 E-mail: [email protected]


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Al Hilal Ceramics & Hardware Ltd India Street P.O. Box 2465 Dar es salaam Tel: +255 22 2132812 Fax: +255 22 2132815 E-mail: [email protected] Attn: Mr. Suleiman N. Al Hilal

E. Ceramic tiles 1. Market overview The market for ceramic tiles in Tanzania is about 3,000,000 to 3,500,000 pieces per annum, and this demand is met by imports. There attempts to manufacture the same in Mbeya, but the quantities are still negligible.

0

0.5

1

1.5

2

2.5

3

3.5

Local product ion Imports Exports Consumption

2. Market characteristic Consumption of ceramic tiles is mostly an urban phenomenon. For households that cannot afford to flour the entire house, they do so in the kitchens and in wash rooms. Colours are ones choice, however, white is the most dominant. The common tiles are of the following sizes 30cm x 30cm for floor and 15cm x 15cm for walls 3. Distribution channels Tiles are imported by Whole Sellers in containers and then supply to their Agents in regions before distributing them retail outlets all over the country. 4. Import of ceramics The main sources of tiles are Untied Arabs emirates, Australia, United Kingdom etc. The respective country shares as follows;


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Ceramic building bricks (Hs Code 690041

Switzerland8 5%

Italy1%

Ind ia6 %

China8 %

So uth Africa0 %

Unglazed Ceramic tiles (Hs Code 690710)

UAE3 4%

Spain6%

China24 %

Australia3 0%

Others6%

Glazed tikes (Hs Code 690810)

UAE3 1%

Australia2 0%Switzerland

12%

China12%

Spain7%

Others13 %

U.K.0%

Ho ng Kong5%


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Ceramic sinks (Hs Code 691010)

UAE33%

Australia27%

Brazil11%

China0%

Spain4%

U.K.3%

3%

Switzerland9%

5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever, they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 7. Duty structure HS Code Product Duty MFN % EAC %


6904 Ceramic building bricks,

TOTAL 50 26 HS Code Product Duty MFN % EAC %


6907 Unglazed ceramic tiles

TOTAL 50 26


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HS Code Product Duty MFN % EAC %


6908 Glazed tiles

TOTAL 50 26 HS Code Product Duty MFN % EAC %


6910 Sanitary ware

TOTAL 50 26 8. Retail prices

Type Country of origin size Price Tshs Blanco Spain 30cm x 30cm 12,500.=

9. Interested Buyers Jabma Enterprises P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745/8, 2111848 Fax: +255 22 2111288 Mob: +255 847 780440 E-mail: [email protected] [email protected] Attn: Youssef Jaber





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F. Dates 1. Market overview The consumption of Dates in Tanzania is at a region of 900 – 1100 metric tons per annum. Local production is non existence as such most of the dates consumed is imported.

0

200

400

600

800

1000

1200

Imports Exports Local prod. Consumtion

2. Market characteristics Consumption of dates is seasonal, mainly during the Holly month of Ramadhan. Because its consumption is linked to Islamic faith, its consumption and distribution is inclined along these lines, with little efforts to other consumers by popularising its consumption before and after the festival dates. 3. Importation Most dates are imported by religions institutions and to a smaller extend private Enterprises. Dates that come through religious institutions is often by way of donations either from Governments or Religions institutions. Dates obtained under this arrangement is usually given to consumers free of charge. With these free handouts, private enterprises do not find any business in it. All the same there are few who import it for commercial grounds. It should be noted that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment. 4. Import by Countries (years 2003 & 2004)

2003 2004 S/N Country of Import Net weight in kg.

1 United Arab Emirates 623.408 663.9502 Iran 358.855 155.1853 Oman 33.855 15.9454 Saudi Arabia 17.751 14.6985 Other 2.283 3.464

TOTAL 1.036.152 850.242Source: Tanzania Revenue Authority (Customs Department)


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5. Import by country shares: (Figures 2004)

UAE, 63950

Oman, 15945

Others, 3464Saudia, 14698

Iran, 155185

6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever, they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 7. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 8. Tariff structure HS Code Type of products Type of cuties MFN % EAC %

Import duty 25 5 Suspended 0 0 Excise 0 0 VAT 0 0

080410 Dates

TOTAL 25 5

G. Detergents 1. Market overview Tanzania consumption of detergents is estimated at around 25,000 tons per annum. 80% of this demand is met from local supplies and the rest imported.


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0

5000

10000

15000

20000

25000

Local product ion Exports Imports Consumption

2. Market characteristics Consumption of detergents is rivalled by laundry soap which sells cheaper and which in some occasions can be used as a substitute for detergent. However with the increasing use of washing machines, the choice for detergents is more paramount. To cater for all classes of consumers packaging is in the range of 100g, 250g, 500g, 1kg. 5kg, 10kg, 18kg. The first four denominations are the most popular. The most popular brands are Tossi, Omo, Foma and Tesa Ultra. 3. Import and distribution Importation is done by Whole Sellers and stockist who then supply the same to their Agents for distribution to the retail market. A point to note is that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment Imports by product type

2003 2004Hs Code Product type Net weight in kg

340211 Anionic surface - active agents 739,003 645,577340212 Cationic surface – active agents 53,193 33,133340213 Non ionic surface – active agents 103,819 204,580340219 Organic surface agents 101,119 187,997340220 Washing and cleaning preparations put up for retail sale 438,520 769,537340290 Washing and cleaning preparations not put up for retail sale 387,366 144,8071TOTAL 1,823,020 2,598,895


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4. Imports by country share Anionic surface - active agents (Hs Code 340211)

Kenya71%

Australia25%

Others4%

Cationic surface – active agents (Hs Code 340212)

South Africa51%

Switzerland8%

Kenya37%

USA4 %

Non ionic surface – active agents (Hs Code 340213)

Germany67%

Ind ia15%

spain8 %

Kenya3%

Others7%


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Washing and cleaning preparations not put up for retail sale (Hs Code 340290)

Kenya67%

South Africa13%

USA8%

India3%

Uganda3% Others

6%

Washing and cleaning preparations put up for retail sale (Hs Code 340220)

Kenya48%

South Africa18%

Egypt17%

U.K.7%

India2%

Others8%

5. Exports Part of excess production of detergents is exported to the neighbouring countries. Part of these exports are in fact re –exports. The position for the last two years is as follows

2003 2004Hs Code Product type Net weight in kg

340211 Anionic surface - active agents 950,030 2,480340219 Organic surface agents - 18,170340290 Washing and cleaning preparations not put up for retail sale 14,990 488,278TOTAL 965, 020 508,928

6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a better security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania where importers may approach for cover in case of need.


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7. Mode of transport The mode of transport ideal for this commodity between these two Cities is by sea. On the average freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 8. Duty structure

HS Code



340211 Anionic surface - active agents

TOTAL 32 48.32

HS Code



340212 Cationic surface – active agents

TOTAL 32 48.32

HS Code



340213 Non ionic surface – active agents

TOTAL 50 46.88

HS Code



340219 Organic surface agents

TOTAL 50 48.32

HS Code



340220 Washing and cleaning preparations put up for retail sale

TOTAL 50 48.32


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HS

Code Item Duties MFN% EAC %


340290 Washing and cleaning preparations not put up for retail sale

TOTAL 50 48.32 9. Interested Importers Jabma Enterprises P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745/8, 2111848 Fax: +255 22 2111288 Mob: +255 847 780440 E-mail: [email protected] [email protected]

Tanzania Road Haulage (1980) Ltd Nelson Mandela High way P.O. Box 21498 Dar es Salaam Tel: +255 22 2115261 Fax: +255 22 2112585

Tropical Aluminium & Glass Industries Ltd P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745 +255 22 2864886 Attn: Mustapha Nasreddine

H. Diapers and sanitary napkins

1. Market over view The consumption of Diapers and Napkins is estimated at 300 tons per annum. 65% of the demand is imported. There are negligible exports in this sector, and if any, they are confined to the neighbouring countries.

-10.0020.0030.0040.0050.0060.0070.0080.0090.00

100.00

Local Product ion Exports Imports Consumpt ion

2. Local production There is only one company involved in the production of Diapers and sanitary napkins. The local brand is Jassy. This brand is competing with other brands the most popular is Always


- 25 -

3. Importation and distribution Importation is done by Whole Sellers and stockist who then supply the same to their Agents for distribution to the retail market. A point to note is that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment Country share of imports

UAE24%

S. Africa19%

Switzerand14%

China11%

Italy10%

M aurit ius5%

Turkey4%

Others13%

Imports for the last two years

2003 2004 Hs Code Product Net weight in kg

481840 Sanitary towels and tampon, napkins.. 160,187 197,506 4. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a better security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania where importers may approach for cover in case of need. 5. Mode of transport The mode of transport ideal for this commodity between these two Cities is by sea. On the average freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam.


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6. Duty structure

HS Code



481840 Sanitary towels & tampons, napkins and napkin liners for babies

TOTAL 32 51.2

I. Electrical cables

1. Market Overview Tanzania’s demand for electrical cables is about US $ 8 million per annum. Local supplies meet only 60% of the demand. Daesung Cables Ltd is the main local producer of electrical cables with an ISO standard. There are other emerging producers, who are yet to gain a foothold. 85% of Daesung Cables is consumed by Tanzania Electrical Supply Company Ltd (TANESCO) who have 10% stake in the industry.

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Local Production Exports Imports Consumption

2. Consumption segment The main consumers of electric cables are Tanesco. Contractors rank second and these by regulations have to be registered by Tanesco to conduct electrical installations.

Tanesco55%

Others45%


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3. Importation and distribution Imports by product type between 2003 and 2004 are as follows:- Hs Code Product group 2003 204 854441 Conductors<80v with connectors 33,977.466 167.434.016854449 Conductors<80v with no connector 365.166.552 1.235.193.387854451 Conductors >80<100 with connector 1.165.562.109 1.394.993.617854460 Conductors>1000v 2.289.907.708 469.794.732TOTAL 3,854,613,835 3,267,415,752

The main countries supplying the most cables are the United States, United Kingdom, India, South Africa, Kenya, Korea (Republic). The influence of Oman exports in this area is insignificant. Tanesco regulates the type of electrical equipment to be imported into the country to match with their infrastructure in place. How ever importation is done by large Whole sellers and stockists who in turn supply the same to their retail outlets. It should be noted that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment 4. Country share of imports (Figures 2004) Conductors<80v with no connector (Hs Code 854490)

So uth Africa38 %

Ko rea (Rep )2 1%

Australia10 %

Kenya9 %

Italy7%

Ind ia4 %

Others11%

Conductors >80<100 with connector (Hs Code 854451)

Ind ia52 %

Ko rea (Rep)19 %

South Africa12%

China11%

Germany1%Kenya

3 %Others

2%


- 28 -

Conductors>1000v (Hs Code 854460)

Italy50%

Ind ia19%

So uth Africa17%

U.K.3%

UAE5%

Kenya4 %

Others2%

Conductors<80v with connectors (854441)

USA3 2%

So uth Africa2 9%

No rway9%

China3%

U.K.8 %

Ireland4%

Others15%

5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a better security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania where importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between these two Cities is by sea. On the average freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam


- 29 -

7. Duty structure

HS Code Type of product Duty MFS % EAC % Imparity 25 5 Suspended 0 0 Excise 0 0 VAT 20 20

854441

Electrical conductors<80v with connectors

TOTAL 50 26

HS Code Type of product Duty MFS % EAC %


854449

Conductors<80v with no connector

TOTAL 50 26

HS Code Type of product Duty MFS % EAC % Import 25 5 Suspended 0 0 Excise 0 0 VAT 20 20

854451

Conductors<80v with no connector

TOTAL 50 26

HS Code Type of product Duty MFS % EAC % Import 25 5 Suspended 0 0 Excise 0 0 VAT 20 20

854460

Electrical conductors>1000v

TOTAL 50 26 8. List of interested buyers Fast Cash & Carry Ltd P.O. Box 64 Dar es Salaam Tel: +255 22 2111871/5, 2124271 Fax: +255 22 2111220 Mob: +255 741301741 E-mail: [email protected] Attn: Mohamedraza jivraj

Akbar Ali Suleman Ltd. Uhuru Street, Near Clock Tower P.O. Box 1612 Dar es salaam Tel: +255 22 2113160 Fax: +255 22 2116499 E-mail: [email protected] Attn: Mr Mustapha Ibrahim


Al Hilal Ceramics & Hardware Ltd India Street - P.O. Box 2465 Dar es salaam Tel: +255 22 2132812 Fax: +255 22 2132815 E-mail: [email protected]


- 30 -

Cash Sale Store Ltd P.O. Box 64 Morogoro / Mali street Dar es Salaam Tel: +255 22 2111875, 2124271 Fax: +255 22 2111220 E-mail: [email protected] Attn: Mr. Hussein A. Tayabali


J. Fire extinguishers 1. Market overview Tanzania’s consumption of fire extinguishers is 100% dependent on imports. Actual numbers could not be determined but the demand is steadily increasing over years as depicted from the following import data. Part of the fire extinguishers enter the market as part of other products e.g., in cars, lories, sea vessels etc. Hs Code Product 2003 2004 842410 Fire Extinguishers Quantity in numbers TOTAL

159,513

252,201

2. Market characteristics Consumption of the commodity is limited to a small segment, Hospitals, fuel stations, industries etc. The most common types on the market are 5 kg and 8 kg carbon dioxide and dry powder and the dominant standards are British standards. 3. Importation and distributions Importation is dominated by a few companies who in turn supply it to retail outlets. Following Government’s enforcement of industrial safety regulations, where each industry / enterprise is required to put in place fire fighting gear, the demand for fire extinguishers in workplaces, transport vessels has increased. Distribution is not cumbersome as the demand for the commodity is urban based where infrastructure is more improved. It should be noted that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment County share of imports by value (‘000’000) Tshs.

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

UAE M alaysia China S. Africa USA Australia Others


- 31 -

4. Country share of imports (Figures 2004 – Source TRA)

UAE28 %

Malays ia2 7%

China17%

Ind ia3 %

South Africa12%

USAAustralia4 %

Others9 %

5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between the two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 7. Duty structure Hs Code Products Type of Duty MFN % EAC %

Import 15 3 Suspended 0 0 Excise 0 0

842410 Fire extinguisher

VAT 20 20 TOTAL 38 23.6

8. List of interested buyers Star Import and Exports P.O. Box 7711 Dar es Salaam Tel: +255 22 2114259 / 2112666 Attn Mr. Fazel



- 32 -

Fast Cash & Carry Ltd P.O. Box 64 Dar es Salaam Tel: +255 22 2111871/5 Attn: Gulam Bhiman

K. Fish 1. Market overview Tanzania is endowed with considerable resources that support a Maximum Sustainable Yield (MSY) of about 730,000 metric tons. Despite that potential, annual production oscillates between 300,000 - 350,000 tons. Fresh water catches accounts for more than 70% of the entire production. Main fresh water species include the following, lates, dagaa, tilapia luciolates, and haplochomic.

S/N Type of fish Annual catches 1 Lates 103.920 2 Dagaa 46.830 3 Tilapia 17.800 4 Lucialoitea 11.600 5 Haplochomic 8.650 6 Other spices 11.500

TOTAL 200.300 The marine species are sardines, lethrinus, rays and other jelly species. 2. Consumption The majority of fish caught is consumed fresh, dried or smoked. 62% is consumed by human being 30% exported and 8% for animal feeds.

Human Consumption

62%

Exported30%

Animal Feeds8%

3. Fish exports Out of the fish exported, Nile perch fillets accounts for 80.9% (by value) followed by prawn 7%, fish maws 3% and the rest 9.1%.


- 33 -

Main export markets by value (2004 figures) (Tshs ‘000’000)

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Kenya Italy Netherlands Japan Others 4. Fish imports Fish imports comprise of processed /canned products, fresh or chilled fish fillets, frozen lobsters, salmonidae. Main sources of imports include Spain, Singapore, Kenya, Norway and smaller quantities from other countries. Due to high retail prices for such products consumption preferences are for fresh local catches. Consumption of imported fish is for a premier segment and to some extend in areas which starve local fresh fish supplies. No fish imports from Oman were reported in the statistics during 2003 and 2004. Retail prices for some imported fish

S/N Item Weight (gm) Price in Tshs 1. Prawns from Thailand 200 5,700.=2. Tuna from Thailand 200 3,700.=3. Fillets from Thailand 90 4,300.=

Prices for local fresh/dried fish

S/N Item Weight (gm) Price in Tshs 1. Prawns (fresh) 1000 4,000.= 2. Tuna 1000 2,500.=

5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very preferred high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between the two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam.


- 34 -

7. Duty structure Hs Code Item Duties MFN% EAC %


0302 Fish, fresh or Chilled

Total 25 5 Hs Code Item Duties MFN% EAC %


0303 Fish, frozen



0304 Fish fillets and other fish meaty

Total 25 5

Hs Code Item Duties MFN% EAC %


0305 Fish, dried, salted or in brine, smoked



0306 Crustaceans, whether in shell or not, live fresh, chilled, frozen, dried



0307 Crustaceans, whether in shell or not, live fresh, chilled, frozen, dried

Total 50 26


- 35 -

L. Fruit juices 1. Market overview Tanzania agro processing industry is still at its infancy. As a result, most fruits are sold fresh. Due to low capacity production most fruit is consumed locally as fresh and very little finds its market outside Tanzania. For this matter, Tanzania still relies from fruit juices imports for her demand, though there are a few emerging companies in fruit processing. The exact quantity is still negligible to the actual demands. Fruit juices imports in 2004 increased by 16% from Tshs. 1,059.505.347= in 2003 to Tshs 1,229.164.923 in 2004 a clear indication that consumption of the same is still on the increase. Fruit preferences for year 2004 is as follows:- S/N Hs Code Product Tshs (“000”)

1 200920 Grape fruits juice 16.240.052 200930 Single citrus fruits juice 51.682.703 200940 Pineapple juice 50.476.114 200950 Tomato juice 8.252.905 200960 Grape juice 49.867.706 200970 Apple juice 210.448.137 200980 Juice of other single fruit 468.054.608 200990 Mixture of juice 374.142.78

TOTAL 1.229.164.97 Export of fruit juices are negligible

S/N Hs Code Product Tshs (‘000”) 1 200940 Pineapple juice 1.711.52 200980 Juice of other single fruit 7503 200990 Mixture of juices 16.411

TOTAL 18.872.5 2. Share of fruit juices flavour Tanzania depends on imported juices for her consumption. The breakdown of consumer preferences is exemplified as follows:-


- 36 -

Imports of fruit juices by country share

Pineaple4%

Apple17%

M ixture30%

Citrus (o ther)39%

Tomato1%

Grape5%

Single Citrus4%

Hs Code 200920 - Grape fruit juice

Italy7%

UAE1%

S.Africa67%

Oman25%

Hs Code 200930 - Single citrus fruits juice

Denmark51%

UAE25%

Zambia9%

UK3%

Others12%


- 37 -

Hs Code 200940 - Pineapple juice

S.Africa43%

Oman31%

UAE16%

Kenya6%

4%

Hs Code 200950 - Tomato juice

Germany1%

S. Af r ica6%

Ot hers1%

Spain16%

Oman44%

U.K.32%

Hs Code 200960 - Grape juice

UAE1%

Oman6%

Spain17%

S. Af r ica44%

U.K.32%


- 38 -

Hs Code 200970 - Apple juice

S. Af r ica42%

Net herlands27%

Oman13%

Kenya7%

UAE5%

Ot hers6%

Hs Code 200980 -Juice of other single fruit

S. Africa38%

Oman13%

India2%

2%Others

4%

UAE41%


- 39 -

Hs Code 200990 - Mixture of juice

Kenya28%

Oman19%

UAE0%

U.K.2% 6%

S. Africa45%

3. Imports from Oman Main import products from Oman that are reflected in the 2004 statistics include

S/N Hs Code Type of products Tshs (“000”) 1 200920 Grape fruit juice 4.074.52 200940 Pineapple juice 15.896.83 200950 Tomato juice 4.271.64 200960 Crape juice 2.802.25 200970 Apple juice 27.138.06 200980 Juice of other single fruit 59.486.47 200990 Mixture of juice 55.620.3

TOTAL 169.289.8 4. Distribution of fruit juices Fruit consumption is mainly an urban phenomenon, schools, Army and in Institutions. Importation is mainly by Whole Sellers & Stockists who supply to their agent and these distribute to retail outlets. Because Super Market Culture is just at its infancy, distribution of fruit juices (where need for fridge’s etc are important) in rural areas is premature, despite the need for the commodity. 5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need.


- 40 -

6. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam 7. Tax/duty structure Hs Code Product Type of duty MFN % EAC % 200920 Grape juice Import 0 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 20 26

Hs Code Product Type of duty MFN % EAC % 200930 Citrus fruit Juice Import 0 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 20 26

Hs Code Product Type of duty MFN % EAC % 200940 Pineapple Juice Import 0 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 20 26

Hs Code Product Type of duty MFN % EAC % 200950 Tomato juice Import 25 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 50 26

Hs Code Product Type of duty MFN % EAC % 200960 Grape juice Import 0 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 20 26


- 41 -

Hs Code Product Type of duty MFN EAC % 200980 Other fruit juice Import 25 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 50 26

Hs Code Product Type of duty MFN EAC % 2009900 Mixed fruit juice Import 25 5 Suspended 0 0 Excise 0 0 VAT 20 20 TOTAL 50 26

8. List of interested buyers Star Import and Exports P.O. Box 7711 Dar es Salaam Tel: +255 22 2114259 / 2112666 Attn Mr. Fazel

Nufaika Distributiors Ltd P.O. Box 1368 Dar es Salaam Tanzania Tel: +255 2865506 / 2861304 Fax; +255 2865505 E-mail: [email protected] Attn;: Rajeev Midha

M. Leather shoes 1. Market overview In the mid 70s Tanzania Leather Sector comprised of tanning, footwear and leather goods, all geared for the local market and negligible volumes for neighbouring countries. Since privatisation and the current opening of the local market to international competition, capacity within the sector has deteriorated appreciably. The leather footwear and leather goods sub-sectors are now in a collapsed state. The tanning capacity is limited to the production of wet blue hides. Because of this scenario, local production is in very small quantities, as the absence of raw materials (finished leather) necessitates importation which amounts the finished product to be expensive. 2. Demand for local market The demand for footwear is very difficult to ascertain due diversified preferences for the type of footwear. In the rural areas they prefer sandals made from car types (makobazi), and in the coastal areas rubber sandals. The absence of local production has resulted into an influx of second hand and cheap leather like footwear from Far East. Imported leather shoes has vigorous task to compete with this fancy cheap stuff in terms of price, consumption is for the working class and prosperous businessmen.


- 42 -

3. Imports (in number of pair)

Hs Code Item 2003 2004 6403 Footwear with out soles of rubber 283.886 142.9136404 Footwear without sole 837.124 794.644640510 Other footwear with appear of leather 66.119 85.744TOTAL 1.187.129 1.166.214

As there is a negligible local production, what is reflected in export statistic l are re-export. Exports of leather products between 2003 and 2004 is as follows:-

Hs Code Item 2003 2004 6403 Footwear with out soles of rubber 36.931 16.5306404 Footwear without sole 1.140 23.425640510 Other footwear with appear of leather 331.112 347.431TOTAL 369.183 387.386

Most of these were consigned to neighbouring Malawi, Burundi, and Madagascar. DRC and Mozambique. 4. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 5. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam 6. Duty structure Hs Code Item Duties MFN% EAC %


6403 Footwear with outer soles of rubber, plastics, leather or composition leather & uppers of leather.

Total 50 26


- 43 -

Hs Code Item Duties MFN% EAC %


6404 Footwear with outer soles of rubber, plastics, leather or composition leather & uppers of textile materials



640510 Other footwear with uppers of leather or composition of leather

Total 20 26 7. List of interested buyers Anand Agencies Ltd. India / Masque Street P.O. Box 8157 Dar es Salaam Tel: +255 22 2111933 Fax: +255 22 2121226 E-mail: [email protected] Attn: Mr. Chavda (Managing Director

N. Product: Marble 1. Market overview Tanzania has vast reserves of natural stones, which have been certified to comply with the requirements of ASTM specification C 503 – 89 for class I, II and IV marble. Such reserves are in Mwanza and along the Great African, Rift Valley in Mbeya. Trial cutting and polishing slabs has commenced with Marmo E Granito Mines (T) Ltd. At Iyenga Industrial Area Mbeya. 2. Local production Local production has not gained a foot mainly due to the preferences by many to use terrazzo and ceramic tiles, secondly the cost aspects who can afford. At least for the time being, there is a negligible local supply. 3. Market demand As said, marble is not a priority commodity for construction, this is showed by the level of imports as per table below:


- 44 -

2003 2004 Hs Code Item

Import in (Net weight kg) 251511 Marble, circle or roughly trimmed 84.060 83.175251512 Marble merely cut into blocks 228.849 106.480680221 Worked marble 147.156 231.694680222 Other marble 358 18.500

TOTAL 460.423 439.849 4. Importation and distribution Importation of marble is done by large importers (whole sellers) who then supply to their Agents for onward distribution to retailers. Consumers are usually contractors / Institutions heavy construction such as hotels, and well to houses for a well to do class. As the economy improves demand for the commodity will rise steadily. The main source of imports is Italy which in 2004 accounted for 91% of Marble (Hs Code 680221) and 100% of HS Code 251512 imported. Other countries are China, South Africa and India. 5. Country share of imports Marble worked – Hs Code 680221

Italy88%

U.K.1%

India1%

China4%

South Africa4%

Others2%

Marble, circle or roughly trimmed (Hs Code 251511)

Saudi Arabia65%

Egypt35%

Aust ralia0%


- 45 -

Marble, travertine merely cut into square HS Code 251512

It aly100%

Importation by product

M arble & travertine crude

7%

Worked marble77%

Other marble5% M arble merely cut

11%

6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 7. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam


- 46 -



251511 Marble, circle or roughly trimmed



251512 Marble merely cut into blocks



680221 Worked marble



680222 Other marble

Total 50 26 9. List of interested buyers Jabma Enterprises P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745/8, 2111848 Fax: +255 22 2111288 Mob: +255 847 780440

Yemen Enterprises Ltd. P.O. Box 4890 - Dar es Salaam Tel: +255 22 2860652/3 Fax: +255 22 2861985 E-mail: [email protected] Attn: Salim Islam E-mail: [email protected]

Tropical Aluminium & Glass Industries Ltd P.O. Box 32527 Dar es Salaam Tel: +255 22 2139745 +255 22 2864886 Attn: Mustapha Nasreddine



- 47 -

0. Product: Mattresses

1. Market overview Tanzania consumption of mattresses is estimated at 2,100,000 – 2,300,000 pieces annually. The figure may be a conservative due to unmonitored trade in the commodity in neighbouring boarders The majority use foam mattresses because it a type that is within their wherewithal. Spring mattresses are for hotels and premium consumer segments, and most of it is imported.

0

500

1000

1500

2000

2500


2. Local production capacity Tanzania has a number of factories manufacturing mattresses and various forms of pillows and cushions. Most of the raw material is imported. Prominent factories include: Quality Foam Ltd, Tan Foam Ltd, Banco Products Ltd, Vita Form, Pan African Enterprises Limited. These factories meet more than 95% of the local demand, the shortfall is imported see table below:-

HS Code Product 2003 2004 940421 Mattress of rubber of plastics 29.712 27.813

Source: TRA Some of the mattresses are exported to the neighbouring countries, though in small quantities, see table below:-

HS Code Product 2003 2004 940421 Mattress of rubber or plastic 7,905 9,646

3. Imports of mattress by country (figures 2004) Most of the mattress Imports come from Kenya, South Africa, United Arab Emirates.

Kenya30%

UAE22%

S. Africa17%

Sweden6%

Others25%


- 48 -

4. Importation and distribution Importation of mattresses is done by large importers (whole sellers) who then supply to their Agents for onward distribution to retailers. 5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam



940421 Mattresses of cellular rubber or plastics whether or not covered

Total 50 26

P. Paints 1. Market overview Tanzania’s consumption of paints is estimated at more than 18 million litres per annum. This is due to the expanding of the construction industry. Local production is estimated to meet demand by 90% and 10% is imported.

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

18000000

Imports Exports Local Prod Consumpt ion


- 49 -

2. Local production In 2004 Tanzania produced 15. 9 million litres of paint 5.3% below the previous year of 16.8 million litres. The main players in this field are:- Berger Paints Tanzania Limited, Gold Star Paints (Tanzania) Limited, Sadolin Paints Ltd., etc. 3. Imports .

2003 2004 Product CH Co. Net weight in kg.

Paints 1.183.069 1.549.100 4. Imports by products (Figures 2004) by wt. kg

Paints & wanishes no water based

31%

Paints & wanishes water based

60%

Other paits9%

The dominant import sources for paints imports are South Africa, untied Arab Emirates, Kenya, the Netherlands and Australia The composition of the imported paint is about 55% decorative, 30 automatic and the balance is industrial. During 2004, only 25565 kg paint worth TShs. 15,116.865 (US $ 13.873) was imported from Oman. 5. Distribution channels Paint is imported by large whole sellers who together with Paint manufacturers sell their products through their agents, and then to retail shops. 6. Exports Tanzania is not self sufficient in paints consumption however, occasionally, some of the locally produced or imported find its market to the neighbouring land locked countries, like Zambia, Burundi, DRC. However, there are small quantities. 7. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever; they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need.


- 50 -

8. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam

9. Duty structure

Hs Code Item Duties MFN% EAC % Import 25 5 Suspended 20 0 Excise 0 0 VAT 20 20

3208 Paints & Vanishes, non water based

Total 80 26


3209 Paints & Vanishes, water based

Total 80 26


3210 Other paints

Total 58.4 26 10. List of interested buyers Yemen Enterprises Ltd. P.O. Box 4890 Dar es Salaam Tel: +255 22 2860652/3 Fax: +255 22 2861985 E-mail: [email protected] Attn: Salim Islam



- 51 -

Q. PVC pipes and tubes

1. Market overview Tanzania’s consumption of PVC pipes and tubes is estimated at 16,000 – 18,000 tons per annum. Local production accounts for 85% of the construction demands, and the rest is imported from other countries. With the on going expansion of production capacity, local demand can be met up to the level close to 90%. Local producers include, Chemi Cotex Industries, DPI Simba Ltd, Plasco Ltd, etc.

0

2000

4000

6000

8000

10000

12000

14000

16000

Local prod. Exports Imports Consumtion

2. Market characteristics End users of PVC pipes and tubes are house hold consumers through retailers, Construction companies, Government and Donor Agencies.

households, 0.40

Govt / Donors, 0.45

Constractors, 0.15

3. Importation and distribution Importation of PVC Pipes and Tubes is mainly by large Whole Sellers who supply to their agents in regions for onward distribution to retail outlets. These account for more than 70% of the business. On isolated cases Contractors when implementing turnkey projects may opt to import supplies directly from suppliers, to take advantage of possible discounts. It should be noted that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment


- 52 -

4. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever, they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 5. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 6. Duty structure of PVC pipes

HS Code Type of product Type of duties MFS % EAC % Imparity duly 25 5 Suspended 0 20 Excise 0 0 VAT 20 20

391723

PVC pipes & tubes

TOTAL 50 51.2 7. Retail prices Type Country of Origin Price in Tshs1½ inches Diameter Tanzania 8,000.= 2 inches Diameter Tanzania 10,000.=2 inches Diameter Tanzania 12,000.=

8. List of interested buyers Al Hilal Ceramics & Hardware Ltd India Street P.O. Box 2465 Dar es salaam Tel: +255 22 2132812 Fax: +255 22 2132815 E-mail: [email protected]

Gemstyles Company Ltd Nkurumah / Uhuru Street P.O. Box 22741 Dar es salaam Tel: +255 741 612793 Fax: +255 22 2127226 [email protected]

Yemen Enterprises Ltd. P.O. Box 4890 Dar es Salaam Tel: +255 22 2860652/3 Fax: +255 22 2861985 E-mail: [email protected]


- 53 -

R. Vegetable oils 1. Market overview Tanzania’s current demand for vegetable oils is estimated at about 200,000 – 240,000 tons. Palm oil accounts for more than 70% of oil consumed.

0

50000

100000

150000

200000

250000

Local prod. Exports Imports Consumtion

2. Market characteristics Tanzania has five major oil refining industries whose volume of production is increasing year after year. Last year production increased by 2.5% from 89,368 tons in 2003 to 91,593. The main industries are, Murzal Oil Industries, Tradeco Investment, Coastal Oil Industries, and Vegetable Oil Industries (VOIL). There are thousands of other small scale producers extracting oil from cotton, sunflower, groundnuts seeds, Production at this level is estimated at around 10,000 tons. Imports of refined oil is relatively small, the bulk is crude or semi refined for further processing. 3. Importation Importation of refined vegetable oil is by large whole Sellers in 3kg, 9kg or 18kg tins or plastic containers ready for the retail market. However, such imports are not much, a bigger portion is imported in the form of crude or semi refined oil for further processing and packing it into smaller containers ideal for the retail market. It should be noted that imports destined to Tanzania are subject to Destination Inspection Scheme (DIS), and this attracts a levy of 1.2% of the FOB value of the consignment 4. Product segment The main oil imports include palm oil, sunflower seed oil, and maize (corn) oil.

Palm oil65%

sunflower15%

Others20%


- 54 -

Share of imports by country (figures for 2004 – Source TRA) 19.4.1 Sunflower (Hs Code 151219)

SingaporeM alaysia

S. Africa

Oman Others

19.4.2 Palm oil (HS Code 151190)

Indonesia

M alaysia

KenyaUAE

5. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever, they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 6. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam.


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7. Duty structure of vegetable oils

HS Code Type of product Type of duties

MFS % EAC %


151110

Palm oil crude

TOTAL 20 46.88 HS Code Product Duty MFN % EAC%


151211 Sunflower oil crude



151521 Maize oil crude



151190 Palm oil others

TOTAL 50 51.2

HS Code Type of product Duty MFN % EAC % Imparity 25 5 Suspended 0 20 Excise 0 0 VAT 20 20

151219

Sunflower Seed Oil

TOTAL 50 51.2

HS Code Type of product Duty MFS % EAC %

Imparity 25 5 Suspended 0 20 Excise 0 0 VAT 20 20

151529

Maize oil

TOTAL 50 51.2


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8. Retail prices Type Country of origin Volume Price Tshs Pure Sunflower oil South Africa 2 litres 5,800.= Pure & Triple refined Sunflower oil South Africa 2 litres 7,200.= Okay Cotton seed Oil Tanzania 2 litres 2,500.=

S. Storage water heaters 1. Market overview The consumption of storage Water Heaters (SWH) in Tanzania is estimated at about 100,000 pieces per annum. There is no local production for this commodity. The entire demand is imported figures for this demand are derived from Tanzania Revenue Authority (Customs departments statistics)

0100002000030000400005000060000700008000090000

100000


2. Market characteristics SWH are common in hotels, hospitals and areas with cooler temperatures. However, for Hotels in the Northern circuit and the Southern Highlands it demand is obvious. 3. Imports of SWH The importation of SWH from the last two years i.e. 2003 and 2004 has been on the increase.

HS Code Product 2003 2004 851610 Storage Water heaters 60,005 97,014.

Figures(Quantities ) TRA 4. Imports by country (figure 2004) Most of the Storage Water Heaters are imported from Italy, China, Untied Arab Emirates and Taiwan. The rest offer negligible figures.


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Chi na

74%

T ai wan

12%

Other s

5%I tal y

6%

UAE

3%

5. Distribution Importation is usually by big Whole sellers of electrical appliances who in turn supply to their agents in regions before finding their way to the retail markets. SWH from Italy are very expensive compared to those from Taiwan, China and UAE, thus they have a separate market segment. 6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever, they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need. 7. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 8. Duty structure


854610 Electric instantaneous or storage Water heater and immersion heaters

Total 50 23.6


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9. List of interested buyers Fast Cash & Carry Ltd P.O. Box 64 Dar es Salaam Tel: +255 22 2111871/5, 2124271 Fax: +255 22 2111220 Mob: +255 741301741 E-mail: [email protected] Attn: Mohamedraza jivraj


Yemen Enterprises Ltd. P.O. Box 4890 Dar es Salaam Tel: +255 22 2860652/3 Fax: +255 22 2861985 E-mail: [email protected]

Cash Sale Store Ltd P.O. Box 64 Morogoro / Mali street Dar es Salaam Tel: +255 22 2111875, 2124271 Fax: +255 22 2111220 E-mail: [email protected] Attn: Mr. Hussein A. Tayabali

T. Wheat flour

1. Market overview The consumption wheat flour in the country is estimated at 350,000 tons annually a bigger portion is milled within the country.

0

50000

100000

150000

200000

250000

300000

350000


2. Market characteristics Tanzania has no enough wheat grains for her demand. Thus most of it is imported and the milling done locally. Prominent millers include Coast Millers Ltd Premiers Flour Mills Ltd, Said Salim Bakhresa & Co. Ltd etc. The local milling capacity is between 330,000 – 360,000 tons per annum well close to the actual consumption demand. Wheat flour consumption is by bakeries (bread etc)


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3. Flour – Imports Despite the fact that, local industries have the capacity to mill sufficient grain to meet demand, during wheat production off season (Tanzania produces 60,000 tons of wheat per annum), traders are forced to import wheat flour from other countries. The scenario for years 2003 – 2004 has been as follows;

S/N Product 2003 2004 Wheat or meslin flour 2.231.708 1.713.120

4. Flour import by country (figures for 2004)

UAE82%

South Africa1%

Others2%Oman

15%

S/N Country 1 United Arab Emirates 1,410.5302 Oman 256.5003 South Africa 19.8613 Others 26.229

TOTAL 1.713.120

5. Flour exports Some of wheat flour milled or imported is sometimes exported mainly to our neighbours, viz. Rwanda DRC, Burundi, Kenya and others. The scenario in the last two years 2003 and 2004 is as follows:-

Product 2003 2004 Wheat or meslin flour 21.741.763 2.255.835

6. Mode of payment for imports Most importers are open to all modes payments. Letters of Credits, despite offering a security to both buyers and suppliers, are shied away because of their costs, how ever, they are very common in high value transactions. The Advance Payment mode is for less risky transactions (≤US$ 50,000. =) and Payment Against Documents (PAD) is for small valued transactions. The Bank of Tanzania is operating an Export Credit Guarantee Scheme on agency arrangement with the Government of Tanzania which importers may approach for cover in case of need.


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7. Mode of transport The mode of transport ideal for this commodity between these two cities is by sea. On the average, freight for a 20ft container is US$ 1300 from Muscat / Salalah to Dar es Salaam. 8. Duty structure Hs Code Item Duties MFN% EAC %


110100 Wheat flour, meslin flour

Total 60 5