The visit of US Vice President Kamala Harris to Tanzania has reinforced the partnership between the United States and Tanzania, which has been flourishing for over sixty years in various areas such as trade, investments, technology, health, etc. The partnership is based on mutual respect and a shared vision for a peaceful and prosperous future. The US government plans to provide $560 million in bilateral assistance to Tanzania in the fiscal year 2024, supporting efforts to enhance cooperation in areas such as commercial engagement, and digital connectivity.
During her visit to Dar es Salaam, VP Harris announced various US plans and initiatives, working with Congress as appropriate, and highlighted additional resources requested in the FY 2024 President's Budget. One of the main areas of focus is trade and investment, where the US and Tanzania will sign a memorandum of understanding (MOU) between the Export-Import Bank of the United States (EXIM) and the Government of Tanzania.
The MOU aims to expand US-Tanzania commercial engagement by enabling US businesses to export quality, innovative goods and services to Tanzania. This agreement will facilitate up to $500 million in US export financing to Tanzania and support exports in infrastructure, transportation, digital technology, climate and energy security, and power generation and distribution projects. The partnership is expected to create jobs in both countries and aligns with EXIM's mandate to increase US exporters' relationships in sub-Saharan Africa.
Vice President Harris' visit comes a year after President Samia Suluhu Hassan's visit to the US, where she met with Harris and other leaders, resulting in various US companies pledging almost $1 billion in investments to Tanzania. Harris' visit is anticipated to enhance trade, tourism, education, health, agriculture, environment, information and communication technology, security, and defense ties between the two countries.
Despite these efforts, the US lags behind China in terms of bilateral trade with Tanzania. Over the past five years, the total value of trade between Tanzania and the US was $1.53 billion, compared to $11.13 billion between Tanzania and China, as reported by the Bank of Tanzania. The renewed commitment between the US and Tanzania, exemplified by Vice President Harris' visit and the signing of the MOU with EXIM, is an important step toward narrowing this trade gap and fostering a mutually beneficial economic relationship.
Vice President Kamala Harris' visit to Tanzania has reaffirmed the strong partnership between the United States and Tanzania, with a focus on enhancing trade and investment ties between the two nations. The MOU between EXIM and the Government of Tanzania is a vital step in fostering commercial engagement and supporting economic growth in both countries. As the partnership continues to grow, the United States and Tanzania can look forward to a future of shared prosperity and collaboration.