TANZANIA and Mozambique have joined forces to strengthen collaboration in trade and investment, President Samia Suluhu Hassan has declared.

Addressing a point press conference at the State House in Dar es Salaam yesterday, she said the ground-breaking development was part of agreements reached in talks with the visiting Mozambican President Filipe Nyusi.

Seeking to foster the dynamic for mutual growth and prosperity, the president underscored the need for revamping business relations between the two countries that have stagnated for years.

The two sides will build customs centres for monitoring trade at border areas, she said, noting that more investments are needed, citing an initiative to boost the Mtambaswala border crossing this side of the border.

Trade between Tanzania and Mozambique reached $57.8m last year and toward mid this year trade stood at $ 20.1m, implying a declining tendency, she said, hinting that informal transactions at the customs point is likely to be a contributing factor.

“Tanzania has two investors from Mozambique that have provided 650 jobs while Mozambique has 16 investors from this side, a situation that needs to be positively scaled up, she said.

Cashew nut production is a pivotal area for collaboration as it has the potential for shared success, while it faces the challenge of price setting by international markets, in which case there is a need to set local prices helpful for farmers as well as traders, she said.

The blue economy is another sphere where the two countries are well positioned to engage in business with neighbouring countries and Africa in general, an issue that will be taken up with upcoming Frelimo presidential candidate Daniel Chapo.

The incoming leader has chosen Tanzania as the first country to make a state visit upon taking office later this year, as he considers Tanzania as his second home due to shared heritage.

President Nyusi recalled Tanzania’s role in the country’s journey to independence, insisting on the need to boost our ties given spacious investment potential with land, energy sources, rivers and people. “What is needed is to see ways on how we will utilize the resources,” he said.

The visit and upcoming visit of the presidential candidate provide an opportunity for the two countries to find ways on improving cashew nut production, a vital crop that can extract more benefits for the two countries, he emphasised.

He praised the role of units of the Tanzania People’s Defence Forces (TPDF) engaged in fostering peace and security in Mozambique, asserting that Africans should be at the forefront of solving their own problems.

The Mozambican leader was expected to officiate at the 48th Dar es Salaam International Trade Fair (DITF) today in the city.