Tanzania urges India to strengthen trade and investment ties

By Beatrice Philemon , The Guardian
Published at 11:39 AM Aug 19 2024
Dr. Damas  Ndumbaro, Minister of Culture, Arts and Sports  (R) raises a toast to  India  High Commissioner  to Tanzania  ( L)  to celebrate the  78th  Independence Day  of India that took place at  Swami Vivekananda Cultural Centre on Friday evening last
PHOTO: India High Commission.
Dr. Damas Ndumbaro, Minister of Culture, Arts and Sports (R) raises a toast to India High Commissioner to Tanzania ( L) to celebrate the 78th Independence Day of India that took place at Swami Vivekananda Cultural Centre on Friday evening last

Tanzania has called on the Indian government to continue enhancing trade relations between the two nations to further business connections, increase foreign currency inflows, and expand investment opportunities.

Dr. Damas Ndumbaro, Tanzania’s Minister of Culture, Arts, and Sports, made this appeal last Thursday while addressing ambassadors, heads of international organizations, members of the diplomatic corps, the Indian diaspora, and government officials at the 78th Independence Day reception held at the Swami Vivekananda Cultural Centre (SVCC).

Dr. Ndumbaro emphasized that India remains a crucial trading partner for Tanzania, with bilateral trade volumes significantly increasing from US$1.6 billion in 2020 to US$3.1 billion in 2023. 

This growth solidifies India’s position as Tanzania's largest export destination.

In addition to trade, India has become one of the top three sources of foreign direct investment in Tanzania and ranks among the top five investment sources overall. These investments have created 600 jobs and are valued at US$3.7 billion.

Dr. Ndumbaro also expressed gratitude for India’s longstanding cultural and sports partnerships with Tanzania. He urged Indian ambassadors to further support collaborations between Tanzanian and Indian health institutions, particularly between the Indian Institute of Medical Science and Muhimbili University of Health and Allied Sciences. He also commended India’s ongoing assistance in the water and education sectors.

In 2022, six Indian companies signed an agreement to undertake a water development project in Tanzania valued at US$5 billion. Once completed, this project is expected to provide clean water access to over 4 million Tanzanians, a significant improvement in the quality of life.

India’s High Commissioner to Tanzania, Bishwadip Dey, highlighted the progress in bilateral relations, which were elevated to a Strategic Partnership during President Samia Suluhu Hassan’s state visit to India in October 2023. Since then, four high-level Tanzanian delegations have visited India, further solidifying ties.

According to Dey, bilateral trade reached US$7.9 billion in 2023, making Tanzania India’s second-largest trading partner in Africa. This success underscores the collaborative efforts of both governments.

In addition to trade, India and Tanzania have deepened their defense cooperation. This year, three Indian naval ships visited Tanzania and participated in joint maritime exercises with the Tanzanian Navy, as well as the second India-Mozambique-Tanzania trilateral naval exercise.

India continues to share its expertise with Tanzania through the Indian Council for Cultural Relations (ICCR) and Indian Technical and Economic Cooperation (ITEC) programs.

Reflecting on India’s 78th Independence Day, Dey remarked on India’s progress since gaining independence on August 15, 1947. 

Today, India is the world’s fifth-largest economy and one of the fastest-growing. Under Prime Minister Narendra Modi’s leadership, India aims to become a developed nation by 2047, striving for self-sufficiency and independence in all sectors.

India has also made significant strides in renewable energy, ranking fourth globally in installed capacity, with a goal of achieving 500 GW of non-fossil fuel-based energy by 2030. 

Additionally, India boasts the world’s third-largest startup ecosystem, substantial advancements in healthcare and pharmaceuticals, and leadership in real-time digital payment systems.

Dey praised Tanzania for its stunning landscapes, rich culture, and warm hospitality, noting that the country has recently become a favored destination for Indian celebrities. 

He expressed excitement about his new role as High Commissioner, having arrived in Tanzania two weeks ago, and emphasized the importance of engaging with the Indian diaspora, one of the largest in Africa.

As part of his mission, Dey plans to visit various regions across Tanzania to strengthen ties with local communities. 

The Indian High Commission intends to organize six consular camps annually in different regions, beginning with Tanga in September, followed by Mbeya in November, Arusha in January 2025, Mwanza in March, Dodoma in May, Morogoro in July, and Shinyanga in September 2025.