The European Union-Tanzania business forum held successfully in the country providing an attractive co-investment opportunity.
The forum that holds the theme ‘Tap into Tanzania’s Investment Opportunities’ gathered nearly a thousand business leaders, ministers, international funders, Investors, and representatives of both Tanzanian and European business communities.
This forum which was conducted from February 23rd-24th, 2023 was timely and significant considering European Union is among the key trading and investment partners to Tanzania, being the destination for 8 percent of Tanzania’s exports and providing 10 percent of total imports.
Recent data shows, up to 2021 Tanzanian exports to the EU amounted to €456 million while imports from the EU amounted to €856 million.
That data is according to the issued 2022’s EU Investment in Tanzania report.
From the international forum key successes of the business forum include introduction of a new credit line valued at near Sh1.3 trillion and signing of several partnership agreements.
Introduction of new credits line
The major announcement was on the return of the European Investment Bank (EIB) with a financing agreement with three Tanzanian commercial banks that is CRDB Bank Plc, NMB Bank and KCB-Tanzania to unlock €540 million euros (Sh1.3 trillion).
The largest ever business financing engagement by the EIB, the world’s largest multilateral bank was signed by Thomas Östros, EIB Vice President and Abdulmajid Nsekela, Group CEO and Managing
Director of CRDB Bank, Aziz Chacha, NMB Bank’s Treasurer and Cosmas Kimario a Regional Businesses Director and Managing Director KCB Bank Tanzania in the presence of Zanzibar President Dr Hussein Ali Mwinyi.
The new EIB backed business financing initiative includes targeted investment that will unlock €170 million euros of new investment in companies owned by women and also and is expected to enable €100 million of new investment by both marine based fishing, maritime transport and tourism companies and marine related business such as seafood processing, ports and shipbuilding, as well as reducing the impact of land based industry on the marine environment.
EIB’s Vice President Thomas Östros said “The European Investment Bank is pleased to return to Tanzania and confirm our largest ever support for targeted investment by entrepreneurs and businesses across the country. The new business financing confirmed today in Dar es Salaam demonstrates the close cooperation between Tanzania and European partners to ensure that Tanzanian companies can expand, create skilled jobs and explore new business opportunities in the years ahead.”
Implementation of the new initiative is expected to be enhanced by sharing technical and financial best practice, gender financing and blue economy investment expertise through technical assistance
Programs and other financial support backed by the European Union through the European Commission’s Africa Investment Platform.
Memorandum of Understanding (MoUs)
During the EU-Tanzania Business Forum, three MoU were signed, first were the Air Service Agreement between the Government of France and the Tanzania Civil Aviation Agency (TCAA) which will saw increase the number of flights in Tanzania with the incoming inauguration of a direct flight between Dar es Salaam and Paris in June 2023.
Second was the agreement between the Port of Antwerp-Bruges International and Tanzania Ports Authority (TPA) to establish a stable model of institutional cooperation between both port authorities.
Third agreement was for Kakono - investment for construction of new hydropower plant in Kagera region (€296 million)
The project will involve the construction of a run-of-the-river hydro power plant in Kagera region, North Western Tanzania (with an installed capacity of 87 MW) and an associated 38.8 km of 132 kV transmission line to evacuate power to an existing substation at Kyaka.
There was also an announcement by Knauf Gypsum Tanzania Limited Company to triple their production in the country to €47 million by 2025.
The event program comprised of different panel discussions, business to business (B2B), business to financial (B2F), and business to government actors (B2G).
Some of the key sectors to be discussed during the forum was Finance and Support for Investment, Agriculture, Agriculture, Energy transition, Bankable projects/ PPPs, manufacturing, Connectivity and Digital enablers, Construction, Transport, and Logistics.
Economic diplomacy
Tanzania under President Samia Suluhu Hassan has been at the forefront to promote more economic integration within the African region and the rest of the world.
During his overseas trips, the President met with leaders from various countries and organizations to increase Tanzania’s capacity to source funds to support its strategic projects and boost Foreign Direct Investment (FDI).
President Hassan also visited the European Commission (EC) headquarters in Brussels, Belgium in February 2022 where, during a meeting with the President of the EC, Ursula Von der Leyen, she revealed that Tanzania will receive €425 million (about Sh1.15 trillion) over a period three years to fund projects related to strengthening digitization, promoting gender equality and green cities.
Von der Leyen informed President Samia that Tanzania was one of the African countries that will benefit from the new EU-Africa: Global Gateway Investment Package of more than €150 billion in support of Africa’s strong, inclusive, green, and digital recovery and transformation.
Gracing the closing ceremony on Friday Zanzibar’s President Hussein Ali Mwinyi also said the government is committed to promoting investment, which is why it influences the collaboration with the European Union, as the goal is to attract more EU investors to Tanzania.
“Consider Tanzania your preferred investment destination, given its conducive business environment and untapped investment opportunities. The Government has put investment at the forefront of its agenda and is committed to creating a competitive business and investment climate for private sector development,” said Dr. Mwinyi.