Entrepreneurship Zone: 26 November 2021 :: Alternative packaging and carrier bags in Tanzania

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Entrepreneurship Zone: 26 November 2021 :: Alternative packaging and carrier bags in Tanzania

 


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In 2019, Tanzania’s government banned plastic carrier bags and prohibited people from selling beverages or other commodities wrapped in plastics unless the nature of the product required it. Technically, this means no one is allowed to import, export, manufacture, sell, supply, store or use plastic wrappings or plastic carrier bags within mainland Tanzania, apart from its use in exempted industries.

Even for the exempted industries (including food processing, agriculture, and medical services), the government regulations require suppliers and users to ensure that the waste is managed and disposed of in line with good environmental management.

According to Tahira Nizari, co-founder of Tanzanian agribusiness Kazi Yetu, which produces organic and fair-trade tea for export, the impact of the ban provides major opportunities for companies that produce alternative packaging.

Kazi Yetu uses sustainable, eco-friendly, and biodegradable packaging and tea bags for its products, some of which currently must be sourced from abroad.

“A lot of the locally available options in the country, or region, are still plastic or boxes that are not food friendly. If you are packaging food it needs to be sealable and meet the relevant health and hygiene standards,” she says. “It can’t go directly into the box without being sealed first.”

“There are a couple of representatives from European suppliers of alternative packaging in the country at the moment, but this option is quite expensive, and not local.”

Nizari also believes that new players would be successful if they lower their minimum order quantities. This would make their products a viable option for smaller businesses that don’t have the working capital for the large single orders currently required (often around 20,000 units per order).

To meet the demand of small businesses, a packaging company could raise its per unit cost slightly but gain loyal customers who are willing to pay if their order numbers can be smaller.

“I don’t think the initial investment would be too high. It really is a great opportunity, and I am not seeing enough interest at the moment,” she says. –Howwemadeitinafrica



 

 


 


 


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DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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