NOTES ON INTERNATIONAL FIRMS IN TANZANIA Carol Barker + & David Wield++ The purpose of this article is mainly to present empirical information about foreign investment in Tanzania, which will be useful to those interested in the Tanzanian political economy. This data, which is mainly presented in Table 2 was partly collected in the course of other research on Tanzania in- dustrial development (Barker, Bhagavan, Mitchke-Collande, & Wield, 1974-75), and later updated and amplified. A knowledge of what foreign investment exists in an underdeveloped: country is clearly an important prerequisite to seeing the structure of the political economy. Quantities of capital which are extremely small compared with the investments of U.S. and Western European firms based in those countr~es, may in the underdeveloped country play an important role in shaping social, economic and political reality. The text puts the list of firms in context by sho~ng the historical setting in which investment has taken place in Tanzania, and by examining how much of total capit~ investment i;. foreign-owned. It looks at international monetary strategy only marginally. It is difficult of course to divorce the investments of 11rmsfrom the international monetary system as a whole, since for example the policies and activities of agencies such as the World Bank and the International Monetary Fund are crucially important in fashioning the political environment within which international. firms can operate (Payer, 1974). The express purpose of the World Bank is to act "as'a safe bridge over which capital can move". (The World Bank Group, 1974). Nontheless, study of the activities and influence of international firms in specific underdeveloped countries is important, since only thus can we see specific forms of the relationship and understand its effects. Investment in Tan~anyika pre-1945 TllD.gllD.yika (German East Africa) was penetrated by explorers, missionaries and traders in the period 1850-1885. The first German firm established itself +Formerly IDS, Dar es Salaam, now 'Ministry of Health, Maputo, Mozambique. ++ Universidade Eduardo Mondlane, Maputo, Mozambique. 316 in Zanzibar in 1849 and by 1971 one-quarter of Zanzibar trade was with Gell'- many. Tobacco and sugar plantations were started in the 1880's in PlUlgani; in the 1890' s sugar plantations were set up in the East Usambaras, and sisal planting started a few years later. By 1912 there were 750 European plant- ations, mostly owned by individual settlers. Industrial development around this time was on a very small scale and concentrated on first- stage processing of primary products for export, and provision of a few consumer goods for the settlers. The tendency towards a settler economy was blunted by the First World War and then takeover by the British. The fact that the settler community there- after remained small meant that there was little {ressure for, or capacity to promote, industrialisation. In any case British calonial pOlicy was to actively discourage any moves from primary production to industrial proces- sing ar import substitution. Furthermore, in the period between the war, Kenya with its larger settler cammunity, became established as the centre for such industry as there was in the British colonies G)fEast Africa. By 1945 the largest foreign investments were in the primary production sector in trading (mainly import-export). Much trading was also centred on Na\rabi. All sisal exports for example were controlled through Nairobi by Ralli Bro. thers. Lacal capital (awned largely by wsinessmen of Asian descent) concen. trated on petty trading, though as early as 1947 the Indian Chamber afMer- chants called for a move into industry and agriculture 'far the greater econa- mic security af the Indian community' (Haney, 1973). These aspirations were hawever limited by both British colanial interests and the dominlUlceaf Kenya. Lacal capital awned factaries praducing saft drinks and sa!!p, cattan ginner- ies and saw-mills, and a few af the bigger wsinessmen awned pllUltations, the largest being Karimjee-Jivanjee. Amboni sisal estates were started in 1922, Tanganyika Planting Ca., the large sugar-graving farm. dates fram a similar time. Import-export firms included Hawse and McGearge, Ja8. HlUlsen und Saehne, and the Hagemeyer Trading Corporation, all af which were owned by European firms aperating through Nairabi. The few industries included machine repair, cigarettes and brewing r the Dar es Salaam branch af what is naw Tanzanian Breweries was apened in 1924. Nyanza Salt Mines date from 1927 and Williamsan Diamonds Ltd. apened in 1942. 317 1945-1961 (Independence) Despite the fact that Kenya remained the real focus for East African eco- nomic activity, this was a prosperous period for Tanganyika. Foreign invest- ment rose, reflecting the post-war expansion of European capitalism and the freedom of movement allowed to multinational capital at this time. Post-war shortage of both raw materials and products led to expansion in Tanzania in industry and on other sectors. Trading companies expanded and increased. The number of manufacturing establishments with more than ten employees, rose from 101 in 1946 to 3$0 in 1960. A few, such as Robbialac paint, were involved in the production of goods for local use. Others however, such as Tanganyika Packers were export-oriented in that the canned meat and other products were handled as exports for Liebig's Extract of Beef Company, while Metal Box was set up to produce the cans. Plantation agriculture ex- psnded, especially in tea. Sisal production grew, from 111, 000 tons in 1945 to 186,000 tons in 1961. The ground-nut scheme of 1947 was doomed to failure, but in any case as Leys points out, Kenya, offering better 'financial , technical, recreational and communications facilities' in fact benefited from a large proportion of the £35 million investment (Leys, 1975). The largest enterprises were all foreign-owned. One firm tended to have virtual control of each sector of exports; thus Tancot Ltd. handled cotton, Brooke Bond handled Coffee and Mitchell Cotts hanB.ledpyrethrum and tea exports. The smaller and medium-sized enterprises involved capital origin_ ating in East Africa, largely from the Kenyan settlers and the Asian business_ men. Both these groups expanded their interests in this period, the latter group continuing to try to move from trade into industry. 1961-1967(Independence to the Arusha Declaration) After Independ.enceTanzania began to break some of her bonds with Kenya, and growth was quite rapid in finance, real estate, trading and manufactur- ing industry. There were big investments by foreign capiUll in some sectors of industry; .thus during this period all the major textile mills were started. Tanganyika Sisal Spinning Co. and other rope manufacturers were initiated, as was British. American Tobacco. Some investment was in import substitution, such as Philips (EA) Ltd. assembling radios, Tanzania OxyRen, Hoechst and Fisons and Tiper oil refinery. The cement factory, later nationalised, aI.so 318 dated from this period. Tiper is one of the few joint ventur,es in which the government was involved in this period. Kenyan settler capital also expanded in finance, trading and motor repairs. Many East African businessmen were quick to seize the opportunities prese- nted by the new government investment incentives, to move from commerce into industry. During this time the Madhvani (Uganda based) group invested in breweries (they started the Arusha branch of what is now Tanzania Breweries), sugar, glass and soap manufacturies, and milling. Karimjee Jivanjee joined the move into sisal spinning with their investment in T .I.C., while the Chandaria family, based in Kenya, invested in a large project AluminiumAfrica Ltd., which catered for 'the whole East African market. Private African capital was almost non-existent. 1967 - Present This is the period of state intervention. Following the nationalisations which took place immediately after the Arusha Declaration, the state has.held control of decisions about investment in the 1anzanian economy, and has taken over majority shareholdings in more of the pre- existing companies. The major investments since 1967, such as the fertilizer plant, tyre factory and steel rolling mills have all been set up on the basis of state capi,~alin part- nership with multinational capital (Barker et aI, 1974-5). The norm is for the multinational partner to supplY,fhe technical and management expertise, which is of course in accordance with the most modern capitalist technique of controlling means of production without necessarily owningthem, and has been explored in some detail by Shivji (Shivji, 1974). It is interesting however, that some of the largest foreign companies, such as Tanganyika Planting Co. and Amboni Estates Ltd. , have not been nationalised and re- tain 100%ownership of their enterprises in Tanzania. About half of all foreign investment is by ,now in enterprises owned jointly with the state. There is still clearly a role for the totally foreign private company. Firms in our list such as Associated Battery Manufacturers, Henkel Chemicals, Pearl and Dean Insurance Co., Sadq.olin's Paint, Tetra- pack, Amboni Plastics (and about a dozen more), have all been set up post- Arusha Declaration. These are typically rather small investment in terms of capital as compared with the joint vehtures. Hemraj Bharma]:(T) Ltd. re- 319 presents the only recent investment of capital of Kenyan origin. A number of the post 1967 investments (Kilima Bottles, Pattex Knitwear, Perma- Sharp and T angwood) were set up primarily on the basis of the capital of small 1 loc81 enterprises in partnership with TDFL. Magnitude of Forei~ Capit81 Investment in Tanzania There are 5,200 registered companies in Tanzania (a high, but unknown proportion of which are dormant). Table 2. lists 140 wholly private companies which are in operation,. and 94 firms in which private capital and state capital is involved jointly. There must be more firms in which Kenyan capit81 is involved, but these were the most difficult to detect. In order to obtain some idea of the importance of foreign investment in the Tanzanian economy, we looked at the equity capital investment figures for over 300 of the biggest companies registered (Table 1.) Table 1.: Ownership of equity capital of Tanzania's lar~est firms, 1974. Source of capital. M.Sh. % Total Local capital invested in wholly private enterprises 4 Foreign private capital invested in wholly private enterprises 410 25 Foreign private capital invested in enterprises in which the state also has a holding 373 23 State capital invested in enterprises in which foreign private capit81 also has a holding 379 23 State capital invested in 100%state-owned enter- prises 420 25 Total capital formation in industry by 1972 was a little less than 2,000 mil- lion shillings, of which companies with government share investments of one sort or another constituted 800 million shillings. 2 Hveem (1975) quotes the stock of foreign (private) direct investments in Africa in 1972 as $65 mil- lion, a figure which is much less than (only about tvo-thirds of') the 783 mil- lion shillings ve have confirmed for the 300 odd biggest companies. We can therefore conclude that the companies included in our calculation represent a substantial proportion of investment in TlID.zlID.ia.Of course, the method of counting only equity investment means that our total is reduced ~ capital vhich is actually tied up in loans. Since much more loan capital will 320 have been obtained for new projects with joint state interest, this would tend to diminish the foreign investment fraction. On the other liand older companies have lower equity capital investment for similar assets than the newer companies with state involvement. We have assumed that these cancel each other out. We can conclude that foreign capital represents somewhere near one half of all investment in Tanzania. Table 2: Tanzanian firms which are wholly owned by private forei~ capital Tanzanian Subsidiary Parent Company Country %age holdin~ Achelis Motorex (T) Ltd. Joh. Achelis & Soehne F.R.G. 100 Achelis (T) Ltd. Joh. Achelis & Soehne F.R.G. 100 Afcot Ltd. Lonrho Ltd. (3) U.K. 100 African Commodities (Tanzania) Ltd. (d) Bowater Corporation U.K. African Mercantile Co. Overseas Ltd. lnchcape & Co. Ltd. U.K. Afriventures (T) Ltd. Olin Corporation U.S.A. 50 Ambangulu Tea Estates Ltd. Mitchell Cotts Group Ltd. U.K. Amboni Estates Ltd. Schoeller Ltd., Zurich Switzer- (4) land Argonaut Investment Ltd. Assam Investment Ltd. U.K. Assam Consolidated Tea' Estates Yule Catto & Co. Ltd. U.K. Associated Battery 1) Inchcape & Co. Ltd. . U.K. Manufacturers (T) Ltd. 2) Lucas Industries Ltd. U.K. Blackwood Hodge (T) Ltd. John Blackwood Hodge U.K. 100 & Co. Ltd. The Boots Company (T) Ltd. The Boots Company Ltd. U.K. 100 Brooke Bond Liebig (T) Ltd. Brooke Bond Liebig Ltd. U.K. 100 Brooke Bond Oxo (T) Ltd. Brooke Bond'Liebig Ltd. U.K. 100 Bruce (T anzania) Ltd. Lonrho Ltd. U.K. 100 Burns & Blane (T) Ltd. Lonrho Ltd. U.K. 100 Burroughs Wellcome (T) Ltd. (d) The Wellcome Found- ation Ltd. U.K. 100 Caltex Oil (T) Ltd. Caltex Petroleum Corp. U.S.A. 100 R.S. Campbell & Co. (T) Ltd. C. T. Bouring & Co. Ltd. U.K. 100 321 Table 2: Continued Tanzanian Subsidiary Parent Company Country %age holding Holland Africa Line Agency SM Nederlandsche Holland 100 (Tanzania) Ltd . Scheepvart Unie NV .- Holman Brothers (T) Ltd. International Compres~ 100 U.K. sed Air Co. Ltd. Holman & Wilson Tanganyika Shipping Industrial U.K. 100 Insurances Ltd. Holdings Ltd. International Computers (T) International Computers 100 U.K. Ltd. Holdings Ltd. International Gems Tanzania International Minerals & 100 U.S.A. Ltd. Chemicals Corp. Izal (Tanganyika) Ltd. Sterling Drug Inc. U.S.A. 100 James Warren & Co. (T) Ltd. Janies Warren & Co. Ltd. U.K. 100 J. W. Kearsley Powell-Duffryn Ltd. U.K. 100 Kingolbrew Lonrho Ltd. U.K: 100 Leyland Albion (T) Ltd. British Leyland Inter- U.K. 100 national Ltd. Leyland Paints (T) Ltd. British & Commonwealth 100 U.K. Shipping Co. Ltd. Lombard Banking Tanganyi- National Westminster U.K. 100 ka Ltd. Bank Ltd. Lombard Tanganyika Ltd. National Westminster 100 U.K. Bank Ltd. Longman Tanzania Ltd. S. Pearson & Son Ltd. U.K. 100 Lugongo Estates Ltd. N. V. Rubber Cultuur Holland 100 Mij 'Amst~rdam' Mansoor Daya Chemicals Arthur Guinness Sons & U.K. 33 Ltd. Co. Ltd. Maramba Estates Ltd. 1) Commonwealth Develop- UK ment corporation • 2) Holland Tanganyika Compagnie NV Holland 3) Beheern Exploitatie- mij, Vavasseur Neder- Holland land (BEM) N. V. The Maritime Co. of East Africa (Tanzania) Ltd. Ellerman Lines Ltd. U.K. 100 Maritime Forwarders (T) Ltd. Ellerman Lines Ltd. U.K. The Maritime Shipping & Trading Co. Ltd. Slater Walker Ltd. U.K. 100 Marshalls (T) Ltd. Marshalls Universal Ltd. U.K. 1~ 323 Table 2; Continued %age Tanzanian Subsidiar~ Parent Company Country holdinA Matsushita Electric Matsushita Electrical Co. Tapan 100 Co. (E .A.) Ltd. Metalock (E.A.) Ltd. Lonrho Ltd. U.K. 100 Mica Mining (T) Ltd. General Electric Co. U.K. 100 Michelin Tanzania Ltd. Cie Generale des Ets France 100 Michelin J.H. Minet & Co. (T) Ltd. Minet Holding Ltd. U.K. 100 Mitchell Cotts & Co. (]') Ltd. Mitchell Cotts Group Ltd. U.K. 100 Mobil Oil Tanzania Ltd. Mobil Oil Corp. U.S.A. 100 J. L. Morison Son & Jones Ltd. Arthur Guinness Son & U.K. 100 Co. Ltd. Motor Mart (T) Ltd. Lonrho Ltd. U.K. 100 The Motor Service (T) Ltd Lonrho Ltd. U.K. 100 Mufindi Tea Co. Ltd. 1) Lonrho Ltd. U.K 2) Yule Catto & Co. Ltd. U.K. National Tours Ltd. Lonrho Ltd. U.K. 100 NaumannGepp (T) Ltd. Bowater Corporation U.K. 100 Neon & General Signs Ltd. Lonrho Ltd. U.K. 100 N rconsult Norconsult AS Norway 100 Pearl & Dean (T) Ltd. Lion International Ltd. U.K. 100 Ralli Brothers (T) Ltd. Bowater Corporation U.K. 100 Ralli Estate~ Ltd. Charco Fund Ltd. U.K. 100 Ralucot (T) Ltd. Bowater Corporation U.K. 100 Rank Xerox (T) Ltd (d) Xerox Corporation U.S.A. 100 Rechtt & Colman Industries Reckitt & Colman Ltd. U.K. 100 (T) Ltd. Rentokil Laboratories Rentokil Group Ltd. U . K. 100 Robbi!l.lacPaints Ltd. 1)_Forbwerke Hoechst AG F. R. G. 80 2) Wigglesworth & Co. U.K. 20 Ltd. Sadolins Paints (T) Ltd. Sadolin og Holmblad A/S Denmark 100 Savings & Loan (T) Ltd. Pearl Assurance Co . Ltd. U. K . 100 Simba Plastics 1) Private businessmen F .R •G . Eb 2) T.D. F.L. 26 Simpson & Whitelaw (T) Ltd. Mitchell Cotts Group Ltd. U. K. 100 Sisal Kamba Spinning Co. Ltd.P. Baumhuter O.H.G. F.R.G. 100 324 Table 2: Continued Tanzanian Subsidiary Parent Company Country % aQe holdin~ Stationery Office Supplies Lonrho Ltd. U.K. 100 Ltd. Stirling-Astaldi (Coast) Ltd. Stirling Astaldi Ltd. London 100 Stone Valley Tea Co. Ltd. Lonrho Ltd. U.K. 100 Tancot House Lonrho Ltd. U.K. 100 Tanganyika Concessions Ltd. 1) s. A. General de Bel- Belgium gique 2) S .A. BeIge de Parti- cipations et de Gestion D'Enterprises Electri- ques, Industrielles et CommerciaIes Tanganyika Corundum Corp. International Minerals & U.S.A. 100 Ltd. Chemicals Corp. Tanganyika Cotton Co. Ltd. Lonrho Ltd. U.K. 100 Tanganyika Motors Ltd. Marshalls Universal Ltd. U.K. 100 Tanganyika Sisal Spinning 1) P. Baumhuter O.H.G. F.R.G. Co. Ltd. 2) Deutsche Gesellschaft fur Wirtschaftlichel D.E.G. Zllsammenarbeit (Ent- wicklungs gesellschaft) 3) United Rope Works Holland! F.R.G.! Belgium 4) Vereinigde T ouwfa- Holland brick en Tanganyika Standard Lonrho Ltd. U.K. 100 Tangas em L. Clause, S. A. France 100 Tanzania Motor Corp. Ltd. Lonrho Ltd. U.K. 100 Tanzania Orchards Ltd. (d) Marshalls Universal Ltd. U.K. 100 Tanzania Oxygen British Oxygen U.K. 100 Tanzania Tea Blenders Ltd. Brooke Bond Liebig Ltd. U.K. 100 Tanzania Transit Co. Ltd. Bowater Corporation U.K. 100 Tanzania Vehicle Finance Lonrho Ltd. U.K. 100 Ltd. Tanzania Wattle Co. Ltd. 1) Commonwealth oi)evelop- ment Corporation U.K. 84 2) TDFL 16 Tetrapak (T) Ltd. Tetrapak International Sweden 1.00 325 Table 2: Continued Tanzanian Subsidiary Parent Company Country % a~e holdin~ Total Oil Products (T) Ltd. Francaise des Petroles, France 100 SA, Cie. Tukuyu Tea Estates Ltd. 1) Inchcape & Co. Ltd. U.K. 2) Mitchell Cotts Group U.K. Ltd. Tungi Ltd. 1) Agricultural Develop- ment Co. Ltd. Guernsey 63 2) Wigglesworth Ltd. U.K. 17 3) Fibre Investments Ltd. Guernsey 7 Twentsche Overseas Trading Borsumij Wehry Holland (Exp,) Ltd. Twiga Chemical Inqustries 1.C.1. Ltd. U.K. 100 Ltd. United Africa Co. of (T) Ltd. Unilever U.K. 100 United Touring Co. Ltd (d) British Electric U.K. 100 Traction Co. Ltd. Usambara Spinning'Co. Ltd. 1) Lankhorst Touwfab- Holland 50 rieken 2) Rubber Cultuur 'M aat schappij Amsterdam NYHolland 50 Van der Ploeg (TY Ltd. D. Van Der Ploeg's Elite Zaden NV Holland Wafcot British & Commonwealth Shipping Co. Ltd. U.K. 100 Wellcome 'ranzania Ltd., Wellcome Foundation Ltd. U.K. 100 Wiggins Teape Tanzania Ltd. 1) British American Tobacco Ltd. U.K. 2) Imperial Tobacco Ltd. U.K. Wildlife Lodges Ltd. (d) British Electric Trac- tion Co. Ltd. U.K. 100 Tanzanian firms which are owned by private forei~ capital and which are mana~edunder an a~reement with a forei~ firm . Tanzania Subsidiary Parent Company Country %age holding Phillips Electronics Ltd (T) Phillips Industries Holland 100 (6) (Eindhoven) Ltd. Tanganyika Planting Co. A. P. Moller Denmark 100 Ltd. (7) 326 Table 2: Continued Tanzanian firms which are owned by private forei~n capital and with forei~ expertise proVided under an agreement Tanzanian Subsidiary Parent Company Country %age holding Amboni PlastJ.cs Ltd. 1) Amboni Estates Ltd. 60 2) Schoeller International GMBH & Co., KG (Mue- nchen- S oUn) F •R •G • 15 3) TDFL 25 Tanzanian firms which are owned by private capital originatin~ in other East African countries Tanzanian Subsidiary Parent Company Country %age holding Cooper Motor Corp. (T) Ltd. Cooper Motor Corp. Kenya Hemraj Bharmal (T) Ltd. Individual members of Kenya the Shah family Kioo Ltd. Muljbhai Madhvani Sons 100 Uganda & Co. Ltd. Mabati Ltd. The Chandaria Group (9) Kenya 100 Moshi Textile Mills Kenya Knitting & Weav- Kenya ing Mills Pan African Insurance Co. Ltd.Pan-Africa Insurance Co. Kenya Paper Products I.td. The Chandaria Group Kenya Tanzanian firms owned jointly by foreiWl private capital and private capital :>ri~inating in other East African countries r anzani an Subsidiary Parent Company Country %age holding (iddoch Motors Ltd. 1) Lonrho Ltd. U.K. 2) Standard Bank Nomi- nees (Central Africa) U.K. (Private) Ltd. 3) John L. Riddoch (busines sman) Kenya 4) Pan Africa Insurance Co. Ltd. Kenya 5) Standard Bank Nomi- nees (E.A.) Ltd. Kenya 327 Table 2: Continued Tanzania Subsidiary Parent Company Country %age holding Tanzania Litho Ltd. 1) National Printers & Publishers Ltd. Kenya 75 2) TDFL 25 Tanzanian firms owned jointly by foreiWl private capital and local private c;apital Tanzanian Subsidiary Parent Company Country %age holding Kilima Bottlers Ltd. 1) Karmali Juma & Sons Tanzania 81 Ltd. 2) TDFL 19 Mount Carmel Rubber 1) Karmali Juma & Sons Tanzania 83 Ltd. 2) TDFL 17 Mwanza Fishnet Manufactur- n Karmali .furoa& Sons Tanzania 35 ers Ltd. Ltd. 2) TDFL 29 3) Hirata Spinning Co. Ltd. Tapan 36 Pattex Knitwear Manufactur- 1) Private individuals (L..~ Tanzania 66 ers (T) Ltd. 2) TDFL 34 Perma-Sharp (T) Ltd". 1) Private individual~ (2) Tanzania 53 2) Private individual Cl) U.K. 7 3) TDFL 40 Tangwood 1) Private individuals (2~ Tanzania 80 2) TDFL 20 Ti'lnzania Enamelwere I) 'Private individuals (4) Tanzania 50 F8ctory 2) Prhata individuals (2~ Hong Kong 40 3~TDI:L 10 Tanzanian firms owned jointlv bv private forei~n capital, private capital ori~inatin~ in other East Afri9an countries. and private local capital Tanzanian Subsidiary Parent CompFL Tanzania 5 5) CDC U.K. 3 6) IPS (Gen) Ltd. Switz. 2 7) Barclays Bank DCO U.K. 1 Tanzania Fertiliser Co. DNDC Tanzania 60 2) Kloeckner-Humbolt- Deutz AG F.R.G. 40 Tanzania Tanneries Co. (15) DNDC Tanzania 75 2) Ehrnberg & Sons Laderfabrick Sweden 25 Tanzanian firmy which are jointly owned by state and foreign capital and which have foreign expertise agreements. Tanzanian Subsidiary Parent Company Country %age holding Steel Rolling Mills Ltd. (16) 1) NDC Tanzania 80 2) Danieli & Co. Spa. Italy 20 Tanzanian firms which are jointly owned by state and foreign capital origin- ating in other East African countries. Tanzanian Subsidiary Parent Company Country %age Iloldi Aluminium Africa Ltd. DNDC Tanzania 2) Chandaria Group Kenya Blanket Manufacturers Ltd. 1) Texco Tanzania 30 2) Hemraj Bharmal Ltd. Kenya 20 3) Maruki& Co. Kenya 35 Mtibwa Sugar Estates 1) EMCO Ltd. (Madh- vani Group) Uganda 45 2) NAFCO Tanzania 45 332 Table 2: Continued Tanzanian firms which are jointly owned by state and forei~n capital ori~in- atin-,\in other East African countries. Tanzanian Subsidiary Parent Company Country % a~e holdinSi 3) TIE Tanzania 10 Tabora Msitu Products Ltd. 1) Twico Tanzania 75 2) Timber Holdings Ltd. Kenya 25 Tanganyika Creameries Ltd. 1) Kenya Coop. Cream- eries Ltd. Kenya 67 2) NDC Tanzania 33 Wire Industries Ltd. 11 Chandaria Group Kenya 88 2) TDFL Tanzania 12 Tanzanian firms which are wholly owned by the state and which have mana~e- ment a~reements with forei~ companies. Tanzanian Subsidiary Parent Company Country %age holding Kibo Paper Products (17) 1) NDC Tanzania 76 2) National Milling Corp. Tanzania 14 3) Workers Dev. Corp. Tanzania 10 Tanganyika Instant Coffee 1) NDC Tanzania 90 Company (18) 2) BUCOOP Tanzania 10 Tanzania Shoe Co. Ltd. (19) 1) NDC Tanzania 100 Tanzanian firms which are jointly owned by state, foreign and private local capital. Tanzanian Subsidiary Parent Company Country %age holding Mafia Cononuts Ltd. 1) NAFCa Tanzania 3.6 2) TDFL Tanzania 36 3) H.]. Stanley & Sons Ltd. U.K. 22 4) Coastal Industries Ltd. Tanzania 7 333 Table 2: Continued Tanzanian firms which are jointly owned bt state, fore~n capital includin~ a 'Dart ori~inatiniZ in other East Afrlcan countries, private local capital and in which a mana~ement agreement operates. Tanzanian SubSidiary Parent Company Country %age holdin~ Bahari Beach Hotel (20) 1) Tanzania Tourist Corp. Tanzania 29 2) IPS T ISwitz/ Kenya 29 3) TDFL 43 Tanzanian firms which are jointly owned by state and foreign capital includin~ a. ~ ori~atm~ in other East African countries, and in which a mana~ement tU(I"eement exists. Tanzanian Subsidiary Parent Company Country %age holdin~ Tanzania Breweries Ltd. 1) Allied Breweries U.K. 6 (21) 2) Imperial Tobacco Co. U.K. 4 3)NDC Tanzania 55 4) Various Kenya, U.K. 35 Tanzanian firms which are jointly owned by state and forei~ capital includin~ a part ori~natin~ in East Afric~ and bv nrivate local canital. Tanzanian Subsidiarv Parent Company Country %age holdin~ Industrial Promotion Services 1) NDC Tanzania 18 m 1.td. (14) 2) The Aga Khan Switzerland 44 3) IPS S.A. Ltd. Switzerland 5 4) Jubilee Insurance Co. Ltd. Kenya 1 5) 182 other investors Tanzania 32 FOOTNOTES: 1. Tanzania Development Finance Company Ltd. (TDFL) has capital from four sources, operating respectively for the Tanzanian, Federal German, U. K. and Netherlands governments. It was set up to support potentially profitable 334 business projects in Tanzania, particularly in the industrial, agricultural, housing and tourist sectors. By preference it extends loans rather than investing in equity" but it has minority shareholdings in over twenty enterprises. It provides finance for both public and private projects, and has provided an investment channel for investors reluctant to participate directly with state institutions. Its assets were 50 million shillings in 1972. TDFL is not considered as part of the state sector in Tanzania, and we have counted it as foreign private capital. 2: Calculated from the returns from individual enterprises for the Industrial Survey, 1972. 3. Lonrho Ltd. has extensive holdings in Tanzania, most of them controlled from Kenya. Lonrho, following the breek-up 'Ofthe Central African Federation, expanded rapidly into independent Africa. By 1967 it had offices in 14 countries. Between 1963 and 1967 the group's assets ex- panded from £3.5 million to £15 million. Lonrho's first African director was Udi Gecaga. nephew of both Kenya's Foreign Minister Mungai and of Kenyatta (Cronje. Ling and Cronje, 1976). Gecaga is a director "f many of the thirty-odd Tanzanian companies controlled by Lonrho. Ap. idea of Lonrho's operations in Tanzania can be obtained from Appendix 1. On the whole the companies are small ones, such as Lonrho was buying up in a number of countries at that time, none individually exciting lnt together providing a solid base in black Africa for subsequent expansion. Most of Lonrho' s .subsidiaries in Tanzania are wholly owned. 4. Schoeller l.td., the owners of Tanzania's largest private sisal estates with about 25%of national production, is linked with the UK firm of Wigglesworth and Co. which has extensive sisal interests and trading interests in fibre and machinery, in Kenya and elsewhere. The network of interests is shown by the interlinking directorships shown below. W. Schoeller is the owner of the Zuric4 firm, and Dr. Albers, is the chief executive. (S ee table on page 336) 5. The CommonwealthDevelopment Corporation was set up by the UK government in 1948 to invest and make loans in Commonwealthcountvies. It has share capital invested in a small number of Tanzanian companies, but larger loans outstanding particularly for the Kilombero Sugar Co. Ltd. and TANESCO, the state electricity supply company. 335 CIl ..... u i=I+:l o ,0 oj CIl :x: S ..... <::P- I III ~~ a 0 u 0 ..<:l ..<:l CIl ~ 0 ..<:l CIl ~..... :=lcd ~ (I) ~ al i=I (I) :x: :x: ,81d :x: :x: ~ :x: :x: :x: +:l ..... ..... z0 (I) 0 -:S U ..... ~ ;J:: ..... '00 'd ~ ~ <:: CIl ~ .....f1l .....llIJ 00 i=I llIJ (1- 4.1-- i ~ ... ~N G l~ ~\3 ~ -.l. ) ~