What is your analysis of the actual economic situation in Tanzania and what are the factors contributing to its growth ?
The Tanzania economy has been growing quite well at an average of 6% for the past 20 years +, sometimes it grew even higher. Of course just like other countries, during the Covid days the economy went slightly down (4,7%) but we have almost recovered. We are now talking about 5,3% this year and we are projecting 6,1% by next year. So the economy is great and also the economic indicators for example the inflation is within the limit around 3,8%. The exchange rate of our currency has remained relatively stable over the past 10 years.
Tanzania’s economy is in the top 10 tier of fast-growing economies in Africa and is predicted to grow faster than other regional peers in the coming years.
In terms of the sectors, the Tanzania economy is still largely dominated by agriculture. The agriculture sector contributes to almost a quarter of GDP (26%), followed by the real estate and construction sector which contributes close to 13%, and of course other sectors like manufacturing, tourism and mining. The focus of the Government is to see the manufacturing sector which is key for value addition and job creation taking the lead.
In which sector would you particularly recommend Belgium investors to set up in Tanzania ?
Number one, we recommend the agricultural sector because we know that EU countries import a lot of food and Tanzania is blessed with arable land suitable for agriculture. We would be happy to see more Tanzania products displayed on shelves when visiting Belgian supermarkets.
We are also encouraging investments in the tourism sector because we receive many tourists. We need more investments in the hotel sub-sector to meet the growing demand for accommodation.
We also know that Belgium as part of the European Union, is implementing the Green Deal which aims to achieve net zero emissions through energy transition. We have 22 critical materials useful for energy transition. We would like to have investors in the mining process and in the value addition. We would like to export batteries to Belgium and other countries instead of raw minerals.
We are importing almost 80% of our pharmaceutical needs. The pharmaceutical sector is still underdeveloped and given that Belgium is very much advanced in this space, we would like to see more investors in this sector. The finance sector also has immense investment opportunities.
What measures are being taken in Tanzania to attract Belgian and foreign investors ?
More generally, the main interest of every investor is the safety of their investments. Tanzania guarantees security for investment. We remain a peaceful and politically stable country. We are a democracy, we adhere to international laws.
Secondly, we are offering low-cost but skilled labour. We no longer have an energy problem, we are developing infrastructures.
What do you expect from Belgium and Tanzania trade relations ?
We expect to increase our volume of trade. Currently, the volume of trade between Tanzania and Belgium is Euro 273 million. The potential remains high, we hope that this Business Forum is going to open new windows. Our Ambassador is doing a commendable job in strengthening business relationships between our two countries.
What are Tanzania perspectives for the next 5 years ?
Our vision is to sustain the economic growth and translate it into poverty reduction and more job creation. We expect that our efforts to industrialise the economy will result in increased prosperity for all Tanzanians.
What is your message to our membres ?
My message is very clear, Tanzania is ready to do business with Belgium and we welcome you. We will ensure that everything is done to facilitate your business in Tanzania.
We want you to come!
