M a r k e t N e w s

Tanzania: SIDO Launches Ultra Modern Packaging Centre

Posted on : Monday, 24th October 2016

 Small Industries Development Organisation (SIDO) has launched a multi-million shilling packaging centre in Dar es Salaam to ease shortage package materials to local enterprises. The centre which cost 250,000 US dollars to build, is a one-stop centre of excellence in the continent which supports SMEs services.

The Finland Deputy Head of Mission in Tanzania, Mr Simo Pekkaparviainen, said they will borrow a leaf from the centre and implement the same in other African countries. "We are pleased with the centre results. We will use its model to set up others in the region," he said.
The Deputy Head of Mission was a chief guest yesterday when officially inaugurating the centre at SIDO Dar es Salaam regional office in Vingunguti. "The aim is to earn premium price of their products (after improving packaging materials), thus removing bottleneck to access new markets," Mr Pekkaparviainen said.
The government of Finland was sole financier of the centre under Products Intertrade in East Africa programme where Tanzania, Kenya and Zambia are beneficiaries.
SIDO Director General, Prof Sylvester Mpanduji, said the centre offers a full range of services from packaging material, label designing to training. "Good packaging material not only increase market visibility but also increase shelflife of a product," Prof Mpanduji said.
He said still the post-harvest lost is huge as up to 80 per cent of fruits and vegetables perish before reaching markets. SIDO's 2015 research revealed that 94 per cent of food processors wanted to use bottles to pack their stuff but the market could only supply 5.0 per cent of total demand.
Also on paper and plastic packages, the study shows that the market can only supply 36 of total demand. "Thus, this centre will work out on the challenges and looking for a solution by scouting where to source the materials," Prof Mpanduji said. Manufacturers in the developing world are spending up to 60 per cent of total product cost on packaging while in the country hardly they spend 20 per cent.
International Trade Centre (ITC) Senior Advisor, Export Packaging Division of Business and Institution Support Enterprise Competitiveness, Frederic Couty said packaging sales silently products. "The centre will offer innovating of different package material ... at much lower costs than in the market," Mr Couty said.
The costs, for instance, of a glass jar will go down between 35 to 40 per cent. ITC Director, Division of Country Programmes, Mr Ashish Shah, said since most SMEs indicate that packaging material poses a big challenge, the centre was focused to address that issue.
A Dar es Salaam based ice cube maker, Joseph Mlay, Chief Executive Officer of Mlako Purified Ice Cube said they were eagerly waiting the commissioning of the centre because it will address their challenges.
"We hope this is the beginning of other useful and most required inputs for our entrepreneurs to upgrade most products in quality control and smooth fine finishing on international level," Mr Mlay said.
The centre will advance the blue print line of ensuring best product creation, sustainable packaging packs including product brand, labelling and expiry dates.
Also, processors may use the centre for processing and packing of their products. Similar centres are envisaged to be built in every SIDO regional office in the coming years.
Most of SMEs lack financial muscle for bulk procurement of packaging materials, a factor that undermines their operations. The packaging centre will involve training, producing and raise awareness for SMEs to add value on their packaging material thus attract customers in and outside the country.

Source : allafrica.com
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