Finnfund

Lojer Oy has made hand-operated water pumps in Tanzania since 1992, when it established a joint enterprise, Tanira Ltd, with Finnfund. Lojer was previously known as Vammalan Konepaja.

Tanira pumps have beaten their competitors in various tests, including one arranged by the World Bank. But selling pumps has been no goldmine in one of the poorest countries of the world.

“We’ve had to import key components from Europe,” says Lojer’s managing director Ville Laine. “Freight costs, shipping time and delays in getting the goods out of Dar Es Salaam’s congested port have been a constant brake on our operations.”

Development project makes production profitable

To improve profitability, the company decided to look at whether local subcontractors could produce the materials. Finding a partner proved to be surprisingly easy.

Tanira’s own employees also had to be trained in quality control. This was previously unnecessary when materials of steady quality were imported from Finland.

To survey local subcontractors and train workers, the company used Finnpartnership’s support facility. Finnpartnership is a business partnership programme managed by Finnfund and financed by Finland’s Ministry for Foreign Affairs.

A water pump for African conditions

Tanira’s main product is the Nira AF85 direct action pump. It is durable, simple in structure and easy to maintain. In just over two decades, thousands of Nira pumps have been installed in different parts of Africa. They ensure clean water for millions.

The outlook for water pumps in Tanzania is fairly good, says Ville Laine. The country is planning a large-scale water supply programme with assistance from the World Bank.

The whole story will be published soon in English at Finnpartnership website. Finnish version can be read here.