Bridging the Financial Gap for Fast Tracking the Commercialization of Sustainable Charcoal Briquettes in Tanzania

“Bridging the Financial Gap for Fast Tracking the Commercialization of Sustainable Charcoal Briquettes in Tanzania” is currently (2015-2016) implemented by ARTI Tanzania and funded by the Energy and Environment Partnership/Southern and East Africa (EEP S&EA) to pursue its goal of setting up a sustainable and profitable charcoal briquette industry.  The project is being implemented  in Dar-es-Salaam and neighboring districts of Kibaha and Bagamoyo.

This project is an outcome of the successful implementation of a pilot project funded by the World Bank called “Promotion of Charcoal Briquettes in Tanzania” in 2011-2012. The pilot project was  scaled-up in 2013 -2014, funded by EEP S&EA. This project was titled “Scaling-Up of Charcoal Briquette Production in Tanzania”.

The objectives  of the current – “Bridging the Financial Gap for Fast Tracking the Commercialization of Sustainable Charcoal Briquettes in Tanzania” project are dual.

On one hand, the project aims at providing working capital to the Community Based Enterprises (CBEs)  to cover costs such as purchase of raw materials, lease payment, salaries, utilities, packaging, transportation, communication and sales and distribution costs so that the CBEs can become self sustaining within 18 months.

On the other hand, ARTI Tanzania wants to demonstrate to sceptical Financial Institutions and Investors that the Sustainable Charcoal Briquette industry is a safe and commercially profitable investment for further scaling up and to encourage entrepreneurs to set up similar production units.

During previous projects (Waste to wealth and Scaling-Up of Charcoal Briquette Production in Tanzania), Community Based Enterprises have been created and equipped with high performing equipment to manufacture high quality sustainable charcoal briquettes (total installed production capacity : 2000 tons/year). The CBEs are located in Bagamoyo and Kibaha districts and the centralized briquette production unit is located in Salasala, Dar-es-Salaam. 1500 farmers (women and men) have been trained and equipped during  the previous projects to carbonize  their agriculture waste into char powder using a simple technology. They, then, sell the produced char powder to the CBEs. The char powder is processed into Mkaa Mkombozi Charcoal briquettes  and packed at the production unit in Dar-es-Salaam.