FEERUM S.A., a leading producer of comprehensive grain elevators in Poland, also active on export markets, has started investments in Tanzania. On April 21, in the presence of the Prime Minister, minister and deputy minister of agriculture of Tanzania and a representative of the World Food Program, the cornerstone was laid on the construction site in Dodoma. The Polish company will build a total of five grain silo complexes and storage facilities, and will revitalize existing warehouses.
The agreement between FEERUM and the National Food Reserve Agency (NFRA) was signed at the end of December 2016. Its total value is 33.14 million USD. The ratification process, led by the Governments of the United Republic of Tanzania and the Republic of Poland, was completed in November 2017.
We’re starting with the first investment on the African continent. This is a historic moment for FEERUM. Our experience, the technology that we have and the appropriate production facilities allow us to implement ambitious development plans also in such distant markets – informed the president of the board of FEERUM Daniel Janusz.
The subject of the contract is the execution of 51 designs of grain silos with a total capacity of 191 thousand. m3 and 5 flat warehouses, their production, transport to Tanzania, assembly and commissioning. FEERUM under the contract will provide warranty service and conduct training of NFRA personnel in the service of silos. The Polish company will also build additional storage facilities and revitalize the existing warehouses in Tanzania belonging to NFRA.
The construction of silos and storage facilities is expected to increase the quality of the grain storage process – mainly maize, and in the long term it may improve the efficiency of the agricultural sector in Tanzania.
After the ratification of the contract, we have launched the necessary construction equipment and equipment for construction sites to Tanzania. Machines, equipment, tools and other necessary equipment were sent from Chojnów to Tanzania packed in over 150 containers. There is already a large part of the equipment and our assembly teams. Construction in five different locations in Tanzania has moved in full swing – says Daniel Janusz.
The financing of the project comes entirely from a loan granted by the Government of the Republic of Poland to the Government of the United Republic. Payments will be sent according to a set schedule.
For the needs of the project, FEERUM has registered a branch in Tanzania, which is responsible for the implementation of the contract. Designs of storage and drying complexes for all locations were taken into account, taking into account seismic and geological conditions there. Cooperation was also established with local construction companies and design offices.
The contract is to be completed within 18 months of obtaining the necessary approvals and permits. According to the schedule, the first five silos will be ready in the third quarter of 2018.
Ambassador of the Republic of Poland in Tanzania, Mr. Krzysztof Buzalski on FEERUM investments: link
The economy of this East African country is largely based on agriculture, which accounts for 24.5% of the country’s GDP, 85% of exports, and provides employment for half the employed. Arable land covers 15.2% of the country’s area, of which 2.4% is intended for permanent crops. The largest share in the collections brings, among others corn, cassava, sweet potatoes, beans, rice and millet. Tanzania is also one of the poorest countries in the world. The Global Hunger Report from 2013 was one of the worst in the whole of the East African Community for this country. In recent years, Tanzania has made limited progress towards reducing extreme hunger and malnutrition, and the low productivity of the agricultural sector is mainly due to insufficient infrastructure investments, limited access to agricultural inputs and loans, and high dependence on weather conditions (Source: www.wikipedia.org/wiki/Tanzania).