Obtala Resources’ (LON:OBT) Morogoro farm project in Tanzania will receive a number of financial incentives after it was granted an Export Processing Zone Certificate (EPZ).
These incentives include a 10-year corporate and withholding tax holiday and duty and VAT exemptions on raw materials and capital goods.
As managing director Simon Rollason points out, the concessions will improve the economics of its operation.
However, the EPZ also includes a number of procedural initiatives that should make life easier for Obtala and its team.
MD Rollason said: "The award of this certificate from the authorities in Tanzania is highly significant due to the fiscal incentives that will ultimately improve our margin from products farmed at Morogoro.
“Also, this now gives us the ability to actively pursue our previously stated intention of building a cannery facility on the Morogoro project to enhance the product range from the farm and drive new revenue opportunities.
“Finally, the EPZ certificate will allow us to import capital goods duty free and provide additional benefits as we ramp up operations in Tanzania."