The Norwegian Investment Fund for Developing Countries (Norfund), has recently announced on its website the completion and official launch of the new Yara’s Fertilizer Terminal in the port of Dar es Salaam at a total investment of NOK 169 million.
The new terminal, officially launched by Norway’s Minister of Trade and Industry, Ms. Monica Maeland, is meant to make quality fertilizer more readily available and in smaller packages specialized by type.
By doing this, Yara expects to specially benefit small-scale farmers whom needed to buy it from traders without getting a high quality product and competitive prices.
Norfund, Norway’s main instrument to fight poverty in developing countries, partially financed the terminal with a NOK 40.1 million loan.
The remaining balance was assumed by Yara, the world’s largest producer and marketer of mineral fertilizers.
The terminal’s handling facility with a capacity to process 150,000 tons of fertilizer per year is not only meant to secure the supply of this product at cheaper prices, but also to support the Dar port with extra capacity since it is one of the main gateways in East Africa according to Norfund.
The new terminal is part of broader project called the Southern Agricultural Corridor of Tanzania (SAGCOT), which was launched by Yara in 2008 and aims at developing underutilized areas in the country to enhance food production and securing inclusive growth in the Tanzania’s agricultural sector.
During the terminal’s opening, the Tanzanian President Jakaya Kikwete, explained that aid alone is not enough to end poverty and secure inclusive growth. To reach those goals, the country needed more investments in the private sector to raise job creation.
Finalizing the event, Minister Maeland, said that both governments have agreed to deepen their bilateral relations in terms of business, investment and trade, since there is a huge potential that has not been explored yet.
According to the Royal Norwegian Embassy in Dar es Salaam, the total balance of trade between both countries is currently at NOK 417 million being machinery and transport equipment the most exported goods from Norway to Tanzania totaling NOK 332 million.
On the other hand, crude materials are the most exported goods from Tanzania to Norway totaling NOK 18.5 million.
The Norwegian government holds a total of 56 aid projects in Tanania with a total investment over the NOK 2.5 billion.