Sustainable social development requires that social aspects are properly addressed. Agro EcoEnergy’s primary role towards the local communities is to serve as an economic engine for socio-economic development. This is done through jobs creations and salaries paid to the direct employees and outgrowers as well as the provision of markets for the products and services of the surrounding communities. The direct and indirect taxes generated from the project will also contribute to the finances of the Central and Local Governments.
Through the “Land for Equity” approach, Tanzania will receive 10% of equity at financial close and an additional of 15% after 18 years of operations in exchange for land free of encumbrance. This will ultimately benefit the government and local communities as they take part in the expected value increase of the land generated by the project. In the outgrower scheme that represents approximately 30% of the cane plantations, the local farmers will own 100% of the land.
Agro EcoEnergy is working closely with the government, government institutions, Bagamoyo District Council, Villages and some NGOs to support their activities. The intention with this approach is to help strengthen the existing structures responsible for delivering services and governance to the local citizens surrounding the project.