India anticipates a surge in trade with Tanzania, surpassing $7 billion (Sh17.5 trillion) annually, following President Samia Suluhu Hassan’s recent visit to the country.
Binaya Pradhan, India’s High Commissioner to Tanzania, highlighted the anticipated growth during a press briefing at the embassy in Dar es Salaam on October 19, 2023.
The elevation of the bilateral relationship from a standard diplomatic one to a strategic partnership is expected to fuel this economic expansion.
“When I arrived in 2021, India-Tanzania trade stood at $2.5 billion (Sh6.25 trillion). It reached $4.5 billion (Sh11.25 trillion) the following year and $6.4 billion (Sh16 trillion) in the last fiscal year. With our new strategic partnership, we expect it to hit $7 billion,” stated the High Commissioner.
President Samia’s visit marked the first by a Tanzanian Head of State to India in eight years, with the last Indian Head of State visiting Tanzania in 2016. The strategic partnership is expected to enhance communication and increase high-level visits between the two nations.
“In strategic relations, each country will have its own priority areas that will be taken seriously,” Pradhan explained, adding that Tanzania joins Nigeria, South Africa, and Egypt as African countries with such ties to India.
Beyond boosting trade, President Samia’s visit is expected to elevate Indian investments in Tanzania, with both governments committed to facilitating this growth.
“We, the government, cannot increase business or trade unless we enable our businessmen to do so and continue to motivate more people to do business involving these two countries,” Pradhan emphasized.
He cited avocados as an example of a product with significant trade potential between the two countries. “We have removed the tax on avocados from Tanzania, but transportation remains a challenge due to reliance on air freight, making the product expensive and limiting quantities.”
“Many Tanzanian avocados are shipped through Mombasa, Kenya, due to infrastructure limitations at the Dar es Salaam port. Ongoing port rehabilitation, including cold storage facilities, will make shipping easier and cheaper, boosting trade,” he added.
With enhanced trade and investment opportunities, the India-Tanzania strategic partnership holds immense promise for both nations.
Source: The Citizen