THE US Agency for International Development (USAID) has announced an investment of $8.3m (22.5bn/-) in several local companies to enhance trade, improve food security and boost the country's competitiveness in the export sector through the US African Growth and Opportunity Act (AGOA).

Craig Hart, the USAID country director, said at an exhibition on the mission’s activities in Dar es Salaam yesterday, titled the USAID Africa trade and investment activity partnership showcase, attended by the Industry and Trade minister, Dr Selemani Jafo.

Nine local firms will receive grants under the USAID Africa trade and investment project, listed as BioBuu, Biotan Ltd, Central Park Bees, Minjingu Mines and Fertilizer Ltd, Mount Meru Millers, Red Earth Ltd, Sabayi Investments Ltd, Tanzania Tooku Garments Co. Ltd and Thirdman (Upendo Honey).

“The partnerships demonstrate the potential of collaboration between the private and public sectors,” the director said, highlighting partnerships with nine companies in viral export spheres like honey, cashewnuts and garments.

 These initiatives are expected to create 2,000 jobs, drive $42.5m in new exports and enhance Tanzania’s role as a regional economic hub, he stated, affirming that USAID support enhances the country’s regional breadbasket vocation, energy exporter and hub for youth-driven innovation.

AGOA plays a crucial role in US economic policy with Africa, offering eligible sub-Saharan countries duty-free access to the US market for over 1,800 products, he reminded the audience, projecting that Tanzania is poised to expand its honey production significantly, being Africa's second-largest honey producer and a top supplier to the European Union.

With USAID support, Upendo Honey expects an increase in honey exports sevenfold in the coming years, while Central Park Bees expects a 33 percent rise in production, he said.

In response to fertilizer access challenges, USAID partner Minjingu Mines is projected to boost fertilizer production by 50 percent and add $20mi in domestic sales over two years. Biobuu expects a 300 percent increase in organic fertilizer production as a result of the USAID grant, he further noted.

With their USAID grants, Tooku Garments aims to increase exports by $7.7m and Red Earth foresees a 20 percent boost in production for US markets, he said, while the minister of the USAID Africa Trade and Investment (ATI) project for its role in driving economic growth and improving livelihoods. 

ATI highlights the US commitment to unlocking Tanzania's economic potential through increased trade and investment, empowering the business community and fostering innovation in key sectors, he specified. 

The positive impact of the project, including increased exports, job creation and support for entrepreneurs enables the successful execution of plans, where Tanzania’s exports under AGOA will grow significantly, he added.