Wednesday 30th March, 2022; Dar es Salaam: The European Union (EU) Delegation together with the European Business Group (EUBG) hosted an event to present the report EU Investment in Tanzania: How European investment contributes to industrialisation and development in Tanzania. Hon. Amb. Liberata Mulamula, Minister of Foreign Affairs and East African Cooperation, represented Hon. Kassim Majaliwa, Prime Minister of the United Republic of Tanzania, and gave the keynote address. Also present were Hon. Exaud Kigahe, Deputy Minister for Investment, Industries and Trade, and Hon. David Kihenzile, Chairperson of the Industry, Trade and Environment Parliamentary Committee. The event was attended by European Union (EU) Member States Ambassadors, representatives from the Government, and from the private sector.
The report highlights the scope, scale and reach of investments from the EU in Tanzania, showcasing their impact on the national economy, as well as trends and opportunities for further investments. It has a specific focus on developments that have taken place in the past five years, mapping in detail eleven key sectors of the economy: agriculture; banking and finance; construction and real estate; energy; Information, communication and technology (ICT); manufacturing; mining; retail and trade; transport and logistics; tourism; as well as oil and gas.
The report shows that the European Union is a major trade and investment partner for Tanzania with a total trade volume of 856 million euros of exports from the EU to Tanzania and 456 million euros imports from Tanzania to the EU in 2021. Investment inflows from the ten most active EU member States was USD 1.5 billion between 2013-2020. The contribution to the Tanzanian economy has been substantial. It is estimated that EU companies currently provide 151,000 jobs, of which 38% are women while the largest companies alone paid USD 1.45 billion taxes between 2015-21. EU companies are long term investors, the majority have been active in Tanzania for over 10 years with the main sectors being agriculture and tourism. The outlook among EU investors is positive with an increasing focus on extending their activities from the local to the regional and international markets.
The report has been jointly prepared by the European Union Delegation and the European Business Group (EUBG), and supported by numerous stakeholders from both the private sector and the Tanzanian public administration. It was developed following an extensive survey of European companies.
In her remarks, one behalf of Prime Minister Kassim Majaliwa, the guest of honour and the Minister of Foreign Affairs and East African Cooperation, Hon. Amb. Liberata Mulamula said that, “This report is positively received and it will be used to add value to the ongoing business environment conversations and it will be a useful tool for dialogue and collaboration. It is satisfying to note that the Report in page 11 and 12 has acknowledged the personal commitment of the President and that of her Government in ensuring the investment and business environment in the country is improved. The Report has also acknowledged the various efforts that the Government has taken to improve investment and business climate.”
EU Ambassador Manfredo Fanti noted in his speech that, “This report has been prepared with two objectives. Firstly, to showcase the positive contribution of European Union investors to the Tanzanian economy and present the many opportunities that Tanzania and East Africa offer for additional investments. The second objective is to provide a tool to economic diplomacy at a time when European investors are showing a renewed interest in Tanzania and the country is actively seeking new partners to develop and diversify the national economy.”
For more information please contact:
Susanne Mbise – EU Press & Information Officer Cikay Richards – EUBG Executive Director
[email protected] /0754 323 245 [email protected]/ 0758 535 005
