NARCO ordered to act against defaulting Kalambo Ranch investors

DODOMA: THE government has directed the National Ranching Corporation (NARCO) to take swift and decisive action against investors who have failed to uphold their contractual obligations in the Kalambo Ranch project.

This instruction comes after the Deputy Minister for Livestock and Fisheries, Mr Alexander Mnyeti, discovered that certain investors have diverted the leased ranches from their intended use as grazing land to agricultural farming purposes.

“I have been informed that there are investors living abroad with long-term contracts who have rented land in the Kalambo Ranch but have failed to develop it, instead subleasing it to others. These investors must also be issued notices for the termination of their contracts,” he added.

Instead, he stated that these blocks should be allocated to other Tanzanian investors who are willing to invest in the Kalambo Ranch in the Rukwa region, as originally anticipated.

NARCO entered into agreements with 27 investors to manage ranching blocks in Kalambo for cattle rearing.

However, according to the Deputy Minister, these investors have failed to develop the land as agreed.

Some are not only rearing cattle but also cultivating crops and subleasing the land to other investors, which constitutes a breach of the contractual agreement.

The Deputy Minister also directed NARCO management that, before renewing contracts for any investors who may qualify to continue with their leases, they must first settle all debts owed to the government, which total more than 1.3bn/-.

Mr Mnyeti reached this decision after visiting Kalambo Ranch yesterday, where he observed tenants with long-term contracts cultivating crops.

He also witnessed tractors ploughing farm fields within the ranch, which is a clear violation of the contract.

The agreement specifically stipulates that the blocks are meant for cattle rearing, not for agricultural cultivation.

“Adding that some investors who have failed to develop their blocks have opted to sublease their undeveloped land to other investors at an annual cost of 8m/- , thereby grossly breaching their lease agreements.

“I am ordering NARCO to ensure that all investors who qualify for the renewal of their contracts must first pay all outstanding debts, totalling over 1.3bn/-, before their blocks are returned to them,” he stressed.

On his part, the Chairman of Pastoralists in Tanzania and member of NARCO’s Board of Directors, Mr Mrida Marucha, briefed the Deputy Minister that investors in Kalambo Ranch have practically refused to pay their debts, amounting to over 1.3bn/-, owed to the government.

Representing the NARCO Managing Director, Mr Bwire Mwijabu, assured that the National Ranching Corporation (NARCO) will ensure that the directives issued by the Deputy Minister are implemented as soon as possible.

He emphasised the corporation’s commitment to maintaining effective management of the ranches and upholding the integrity of lease agreements.

Mr Mwijabu also highlighted the importance of compliance, ensuring that all ranching operations align with the national goals of enhancing livestock production and improving the livelihoods of local farmers.

However, most of the tenants who attended the meeting with the Deputy Minister at the ranch offices admitted to breaching their lease agreements and asked for forgiveness.

Several tenants expressed their willingness to cooperate with NARCO and adhere to the set regulations moving forward.

The meeting served as a platform to discuss the challenges faced by tenants in fulfilling the terms of their leases, including financial constraints and inadequate infrastructure, which have hindered their ability to fully utilise the land.

Despite these challenges, both NARCO and the tenants agreed on the need for collaborative efforts to address these issues and ensure the sustainability of the ranching industry