Obtala Ltd (LON:OBT), the agricultural and forestry company, has pledged to invest US$10mln over the next five years in Tanzania under the 'Grow Africa' initiative.
'Grow Africa' works to increase private sector investment in agriculture, and accelerate the execution and impact of investment commitments.
The company will plough its money into a new modular pack-house facility, housing of staff and training centres, scaling plantation based activities and the development of an outgrower programme, subject to sourcing of matched funding, grants, preferential loans and equity from donors, development finance institutions and impact investors.
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"Obtala intends to progress our projects in Tanzania with the collaboration and partnership of the Government of Tanzania,” said Miles Pelham, chairman of Obtala.
“The project is consistent with the investment priorities identified by the country-led Comprehensive Africa Agriculture Development Programme (CAADP) investment plans. In particular, this project aims to contribute to Tanzania,” Pelham added.
Government of Tanzania intends to support Obtala's planned investment
Pelham said Obtala welcomed the government of Tanzania's intent to support this investment, which will see multiple stakeholders working together.
"We at Obtala are committed to be part of the agricultural transformation of Tanzania and look forward to building a long and lasting relationship with the farmers, the government, the donors, the private sector, and other players in Tanzania. Accordingly we are pleased to submit this Letter of Intent to support and accelerate the development of Tanzania's agriculture and to improve the lives of Tanzania's farmers and citizens," Pelham said.
Shares in Obtala were up 0.4% at 17.44p at midday.