Agrisol Energy Tanzania - Letter To Tanzania

July 6, 2011
Fellow Tanzanians: As AgriSol Energy Tanzania Limiteds development activities in Tanzania progress, we want to be sure that you know and understand how our proposed project is designed to enable and empower Tanzanian farmers to significantly increase the use and productivity of our nations farmland for the benefit of our country. Some recent news accounts and reports have inaccurately portrayed our intentions. Having been involved in the AgriSol Tanzania project from the beginning, I personally know the people, the plans, the politics and the potential of this project for Tanzania. I also know that the news accounts are wrong. Our project is about partnering with world-class agricultural experts and putting Tanzanian farmland to its best and fullest use. AgriSol is focused on being a major sponsor of significant, long-term and sustainable change in emerging agricultural markets by bringing state-of-the-art farming practices, modern seeds and other inputs, and top-quality farming equipment to such markets. Our ultimate objective is to create large-scale agriculture zones that: Help stabilize local food supplies and bring lasting food security to our country; Create jobs and economic opportunity for local populations; Spur investment in local infrastructure improvements; Develop new markets for our agricultural products; and Attract investment in related businesses. In developing this project, we have always sought to work only with people and organizations that have a demonstrated track record and commitment to sustainable and socially responsible agriculture, as exemplified by our American partners in AgriSol Energy Tanzania Limited, and to working with small farmers. We bring our own significant local expertise to the project, and we have also specifically sought the involvement of other local experts and institutions, for example, by partnering with Sokoine University of Agriculture, the leading Tanzanian agricultural institution. Our team also includes experts in commercial agriculture, educational outreach and small landholder programs from Iowa State Universitys College of Agriculture and Life Sciences (one of the leading agricultural universities in the world), and international business development and finance. AgriSol also will use its relationships with leading global and regional suppliers of seed and fertilizers, farming equipment and technical expertise for the benefit of our project. Importantly, our project is consistent with the vision of President Jakaya Kikwete to transform the countrys economy through significant, long-term investment in agriculture. The ambitious Kilimo Kwanza strategy is central to AgriSols mission to forge a partnership with the government and with farmers to ensure that Tanzania rises above subsistence farming, low productivity and limited access to the best farming practices.
67 Kibo Road | Mikocheni A | Dar es Salaam | Tanzania www.agrisolenergy.com
AgriSol firmly believes that the best way to tackle these issues in Tanzania is to develop agricultural enterprises that combine large-scale, profitable commercial farming with significant local outreach and outgrower programs for small landholders. This approach will not only stabilize local and national food supplies and create local jobs and prosperity, it also will support: Organized, efficient and transparent markets for agricultural products, providing small farmers with enhanced access to local, national, regional and global farming production, inventory and pricing data; Increased access to funding for similar and complementary agricultural businesses; and Greater investment in roads, rail, water and air transportation infrastructure, and crop and value-added product storage, processing and distribution.
Additionally, profits generated from this type of venture will support long-term investments in cooperative organizations and community investment trusts. These trusts will invest in local medical clinics, schools, water sourcing and treatment systems, power generation and other types of infrastructure that will have a profound and positive impact on the quality of life for local populations. Regarding the proposed agriculture zones, our government made AgriSol aware of three tracts of land in western Tanzania that were previously used as camps for refugees, but were, at the time, either closed or being closed. The decision to close these camps was made well before AgriSol became involved and was based on a model program agreed to with the United Nations. The government then designated these lands for modern agricultural development, as part of the Kilimo Kwanza initiative, in order to restore the land to productivity. Despite being in fairly remote locations with limited road, power and water infrastructure, AgriSol found these tracts to have attractive agroclimatic conditions and to be geographically wellpositioned to serve growing local, national and regional markets. While these lands represent a very small portion of Tanzanias vast land resources, these factors led AgriSol to conclude that these lands provide a major opportunity to demonstrate the nations ability to feed its own people and contribute to world food supplies on an accelerated basis. As part of its feasibility analysis for this project, AgriSol has spent considerable time consulting with key participants in Tanzania to ensure that we have taken into account local and national interests appropriately, including: Meeting repeatedly over several months with local and national officials and representatives in Mpanda, Rukwa, with the full knowledge of the central government, to discuss our vision for agricultural development in their region and the country and to seek their input and guidance; Hosting our Prime Minister, Hon. Mizengo Kayanza Peter Pinda, and key local and national government officials on visits to the U.S. to see our partners modern, largescale commercial farming operations, and to meet with Iowa State University experts in small landholder outreach; Attending and presenting at an investment forum held in Mpanda for Rukwa and Kigoma regions at the invitation of the Honorable Prime Minister, who chaired the meeting, and which was attended by several members of the cabinet along with senior government officials at the local and national levels;
Sponsoring a workshop in Dar-es-Salaam with local and national government officials, and including Iowa State University, to discuss and obtain their input into the development of small landholder and community programs specific to western Tanzania; and Contracting a leading Tanzanian agricultural consultancy, Diligent Consulting Ltd., to evaluate local, national and regional crop and value-added product markets, local infrastructure and small landholder activity in western Tanzania.
AgriSol anticipates beginning commercial farming and small landholder and community programs in Tanzania in 2012, starting with modest activities in the initial years. In addition to food security, a key initial focus will be on fighting Tanzanias protein deficiency problem by investing in crop cultivation and value-added businesses, including animal feed, cooking oil and livestock production. AgriSol is committed to conducting its operations in a socially and environmentally responsible manner, and we welcome feedback and questions from all stakeholders. We have a deep respect for our fellow citizens, and we are realistic about the challenges ahead. We also are unshakably optimistic about Tanzanias future and the contribution that our project can make to our collective food security and economic prosperity. Asanteni sana,
Iddi Mohammed Simba, on behalf of AgriSol Energy Tanzania Limited
About Mr. Simba: Iddi Simba is the founding Chairman of PRIDE Tanzania, was the founding Director-General of the East African Development Bank, former Resident Director of the African Development Bank in London, and Member of Parliament and Minister for Trade and Industry in the Tanzanian government. He continues to maintain meaningful relations with the Government of Tanzania, and was recently appointed to the Bomani Commission, which was set up in 2007 to investigate and review mining contracts in Tanzania. Mr. Simba sits on the Board of Directors of several media, manufacturing and financial services firms.

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July 6, 2011

67 Kibo Road | Mikocheni A | Dar es Salaam | Tanzania www.agrisolenergy.com

67 Kibo Road | Mikocheni A | Dar es Salaam | Tanzania www.agrisolenergy.com

Iddi Mohammed Simba, on behalf of AgriSol Energy Tanzania Limited

67 Kibo Road | Mikocheni A | Dar es Salaam | Tanzania www.agrisolenergy.com

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