This was revealed by the Tanzanian Prime Minister Kassim Majaliwa during the just ended Tanzania-India business Forum on the occasion of the visit by the Prime Minister of India Shri Narendra Modi in Dar es Salaam over the weekend.
According to PM Majaliwa, in 2015, 11.7 per cent of all imports came from India, while 19.8 percent of all Tanzanian exports went to India. Tanzania exports include oilseeds, gemstones, plastic products, gold, fish and cashew nuts to India, among others.
“I wish however, to point out that, currently, there exists a remarkable trade imbalance between Tanzania both in volume and value than what Tanzania exports to India.”
For instance, he said that in 2013, Tanzania exported goods and services worth USD2, 308 million; while Tanzania on the other hand exported USD752 million; and the total volume of the trade was USD3,060 million, with Tanzania’s balance of trade being minus USD 1,556 million.
He further revealed that in 2014, Tanzania imported USD2, 467 million of goods and services from India while Tanzania exported USD 1,293 million to India; and the total volume of trade was USD 3,760 million with Tanzania’s balance of trade being minus USD1, 174 million.
“It is my conviction that one way of reversing this trend is to focus more efforts on increased direct investment in Tanzania by Indian businesses,” he urged.
Majaliwa told the Indian business delegation that, over the last decade Tanzania has put in place the most conducive investment environment. “The doors are open for Indian investors interested to invest and do business in Tanzania in various sectors of the economy,” he promised.
He noted that the economic reforms implemented in Tanzania have generated strong macroeconomic performance over the last ten years. There has been a rapid real GDP growth, low inflation and a stable foreign exchange position…
Furthermore, according to the Prime Minister Tanzania has undertaken major reforms in the legal, discal and public service sectors.
Over the last decade a number of policies and legislations were put in place in order to further improve the investment climate, promote growth and improve livelihoods.
“Investments in Tanzania are guaranteed against nationalization and expropriation. Tanzania is a signatory of several multilateral and bilateral agreements on the protection and promotion of foreign investment. Among other international agreements and membership, Tanzania is a member of multilateral investment guarantee agency (MIGA) band the international centre for settlement of investment disputes (ICSID).
For his part, the Tanzanian Minister for Industry, Trade and Investment Charles Mwijage said that the government was doing all possible ways to borrow a leaf from successful countries, mentioning India and Vietnam, among successful countries that could help Tanzania to reach in high ranks.
Mwijage noted that India has managed to boost its economy by establishing small industries, which increased manufacturing of various products.“India has developed its economy through small industries. They are now exporting various products because of small industries. Tanzania is keen to learn from India and other countries in this.
According to Mwijage, India has a total of 51 million industries, adding that small-scale industries in India contribute 38 per cent of GDP to the Indian economy, noting that Tanzania has so far got at least 40,000 industries. “The small-scale industry is a key to India’s growth and alleviation of poverty and unemployment in the country.
He retaliated that Tanzania was also focusing on improving its economy by promoting small-scale industries; revealing that 45 per cent of the Indian exported products are produced from small-scale industries.
Mwijage further revealed that Indian investors had shown their readiness to invest and generate electricity in various areas of the country without connecting them to the national grid, as a way of serving the people living in remote areas, like the islands located in Indian Ocean and Lakes. “These are areas that are not connected to the national grid.”
The Ag. Executive Director of the Tanzania Investment Centre (TIC) Clifford Tandari, speaking at the Tanzania-India business Forum, mentioned the ten major reasons why an investor should come and invest in Tanzania, as: The prevailing peace, political stability and economic stability; abundant natural resources, which combine the 44 million hectares of land suitable for Agriculture.
Others are the recent gas discoveries (more than 55 trillion cubic feet) ; extensive unexploited minerals resources(Gold, diamond, Tanzanite, graphite etc), and wide range of natural tourist attractions, Mount Kilimanjaro, spice island of Zanzibar and Ngorongoro crater.
Attractive investment incentives, which also include fiscal/tax incentives; whereby investors enjoy an exemption of import duty and VAT relief on projects capital and deemed capital goods.
The non-fiscal incentives, include automatic immigration quota of up to 5 expatriates at the initial stage of the projects, repatriation of profit, dividends, fees is allowed through authorised banks.
While strategic investor incentives include: Privilege to an investor to dialogue with the government to seek additional investment incentives.
With the investment guarantees and security: Investments in Tanzania are guaranteed against political risks, nationalisation and expropriation.
This is possible because Tanzania is a member of the International Convention on the Settlement of Investment Disputes (ICSID); Tanzania is also a member of Multilateral Investment Guarantee Agency (MIGA).
Other reasons include: Progressive banking, legal and insurance services of international standards, a strong and growing insurance sector for both life and non-life insurance products. Various international banks in including Standard Chartered, Citibank, Bank of India, and Bank of Baroda have opened branches in Tanzania. And also a well English Common Law and Customary Law system with licensed International firms has been established.
Strategic location and access to markets: Tanzania is a gate way to many neighboring landlocked countries.
Booming Private Sector: Continuing of liberal market-led economic policies aimed at facilitating private sector; continuing government support and promotion of private sector.
Magnificent business and leisure destination: Tanzania is one of the Africa's safest nations with strong rule of law; where measures to lower cost of doing business are deployed; easy access to exotic beaches and abundance natural tourist attractions; and availability of private jet and helicopter for hire.
A positive and investor’s friendly environment, whereas over 10 years of steady GDP growth; direct support and facilitation by TIC for all your investment registration and other licenses for your business to take off; and continually to streamline licensing and administrative processes for the private sector.
The last one is the one stop shop services. With this, the government has set up a 'One-Stop-Centre’ Services provided at TIC HQ in order to centralise all services by having key institutions under one roof.
Currently there are six institutions under “One Stop Centre”, namely registration of companies (BRELA); business licensing - ministry of industry and trade; land for investments - ministry of lands; immigration & residence - ministry of home affairs; labour/ work permits - ministry of labour and employment; and tax issue - Tanzania Revenue Authority (TRA).
Tandari further mentioned the priority sectors in Tanzania as manufacturing; agriculture and livestock and fisheries; petroleum and gas; economic infrastructure; tourism; ICT; health and education; mining; energy; and transportation.
Presenting his paper on the experience of doing business in Tanzania the General Manager of International Business, Kamal Steels Limited Iqbal Singh said that due to conducive business environment the Kamal Group has been in present in Tanzania since last 12 years.
He said Flagship company ‘ Kamal Steels Ltd’ was registered in 2004 through the Tanzania Investment Centre ( TIC). Kamal Group that has business interests across major sectors instrumental in industrial development, was one of the largest private sector employers in Tanzania.
Singh said that Kamal Group mainly deals with refinery, power, industrial infrastructure developer, mining, agro industry, steel, and gases-industrial and medical.
On industrial and medical gases Kamal Group manufacture and supply high quality Oxygen, Nitrogen, Argon and Acetylene. Has extensive network of gases distribution across Tanzania.
In refinery, they have a green project initiative; have environment friendly project as it recycles waste oil; sludge generated from ships, industrial machinery, and automobile lubricant is recycled.
In power project, the Kamal Group is developing a 225MW gas based combined cycle power plant at Kamal industrial estate, Zinga, Bagamoyo District, supplying the entire power to Tanzania Electric Supply company (TANESCO).
In mining, they have acquired area for coal, iron ore, lead, manganese and gold. He therefore emphasised on optimal utilisation of country’s abundant resources and generate employment for local population. The Kamal Steels Limited has employed about 300 people.
Meanwhile, Kamal Group eyes to invest in agro projects; agro based food processing industry-focusing on cereals, fruits and dry fruits so as to generate rural employment.
The Tanzania-India Business Forum held on 10th July 2016, on the occasion of the state visit of Prime Minister of India ShriNarendraModi to Tanzania, was organised by the Tanzania Investment Centre (TIC) in collaboration with Tanzanian Private Sector Foundation (TPSF), together with the India Business Forum Tanzania (IBF), and Federation of Indian Chambers of Commerce & Industry (FICCI)
The objective of the forum, amoing others was to create and promote partnerships so as accelerate investment and trade between the two countries.
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