India is Tanzania’s main trading partner and has enjoyed healthy economic cooperations over the years.
Tanzania could push its economic performance up in the coming years, should the traders seize the export opportunities to India. Mr Sandeep Arya India’s High Commissioner to Tanzania has appealed to Tanzania traders to grab the business opportunities available. Tanzania and India have enjoyed better economic cooperations and could strengthen their relations even more.
Among the products imported to the South Asian country include gold, coconuts, cashew nuts, cloves, cotton, refined copper and copper alloys as well as ferrous waste and scrap. The demand for these commodities is increasing offering Tanzania businesses an opportunity to expand their reach and tap into the promising market.
The High Commissioner stated that the country suffers from different needs like its exporter. The Indo-Tanzanian ties have built stronger economies, created employment and fought poverty levels. In 2015, the volume of trade between the two parties amounted to $2.4 billion. Many top-notch businesses in Tanzania have originated from members of Indian origin.
Their influence and presence have spread all over East Africa as they establish their business empires. Their role in economic contribution to the regional economy has rekindled the hope of other foreign investors to venture into the promising markets. They have a touch of quality products that have cemented their dominance in various economic hubs.
When India’s Prime Minister Narendra Modi visited the East African nation in 2016, he and President John Magufuli penned an Agreement on Joint Action Plan between National Small Industries Corporation of India and Small Industries Development Organization of Tanzania. Later that year, the Government of Tanzania made a $170 million sale of vehicles from India.
As the Head of State prioritises the essence of inflows of foreign investments in the country, Tanzania investors are encouraged to invest in the seventh largest country by area, according to Mr Sandeep Arya.
India’s GDP stood at $2.264 trillion in 2016 with a $1,709.39 GDP per capita in 2016, according to a publication by World Bank.
It also recorded a GDP growth rate of 7.1% annual change. The rise of the economy has touted India to become the third largest consumer market by 2025. Its trading partner has a national development play for its industries in the same year. Tanzania’s industrialisation goals driven by President Magufuli would steer the economic prowess of the nation.
Being the leading trading partner of Tanzania, India would be an investment hub for Tanzania’s products. India’s economy is already making progress, bouncing back from its retrogression that begun in 2016. Tanzania’s GDP increased by 5.8 per cent in the first quarter of the year 2017 and projected to rebound to 6.1 per cent in 2019. The productivity level would have gone up as well giving the Government enough volume and quantity to export and financial revenue to invest.
Source: The Exchange