africa development Diplomacy Economy FDI Finance Tanzania

American Chamber to woo multi-investments to support U.S – Tanzania partnership

Approximate reading time: 3 minutes

The U.S – Tanzania partnership is about to get stronger after newly elected chairman made remarks concerning the trade relations.

 

Newly elected chairman of the American Chamber of Commerce in Tanzania (AMCHAM-TZ) Mr. Garry Friend has vowed to lure more United States of America (USA) traders to the country.

Mr. Garry highlighted the objective as his top priority after his election as an initiative to support the Government of Tanzania.

In a country that has thrived from Foreign Direct Investments (FDIs), the plan will be welcomed by many. Tanzania’s President John Pombe Magufuli has emphasized the need to create space for foreign investors in the business environment to steer the economic performance of the nation. Several amendments have succeeded the President’s desire to create a sustainable business environment to support the local investors as well and grow businesses.

Quoted by a local daily, Mr. Friend said his “Priority in office after been elected chairman of AMCHAM-Tanzania is to convince and encourage US traders to screen all opportunities available in Dodoma City and make multi-investment to support Tanzanian Government and foster economy.”

The meteoric rise of Ethiopia has seen many investors opt for the country in the Horn of Africa stiffening the competition for the East African economy through FDI. The potential in the economy of Ethiopia, the business incentives and its economic outlook has hooked the attention of foreign firms to seek investment opportunities in the nation, overshadowing fellow competitors.

Mr. Friend is keen on balancing the trade relations between Tanzania and US by establishing a two-way workflow of investment and trade, that would give Tanzanian traders an opportunity to access the American market.

In September this year, Hyatt Hotels Corporation, an American multinational hospitality company hinted on expansion plans in Tanzania with Dodoma being the target. The luxury hotel, whose General Manager is Mr. Friend seeks to add its influence in the East African nation as well as expand American investments in the country.

Dodoma City is the national capital of the United Republic Of Tanzania with a population of approximately two million people. Businesses are relocating to the new city that has taken the capital crown off Dar es Salaam and the region is already showing potential for investments. It is also the largest city in Tanzania.

Being among the preferred destinations for foreign investment in Africa, Tanzania Foreign Direct Investment net inflows increased by 13% from $1.8 billion in 2010 to $2.04 billion in 2014. However, the FDI net inflows in Tanzania decreased to $1.5 billion accounting for 34 percent drop in 2015. China, the United Kingdom, and Canada are among the non-African countries to have investments in Tanzania.

In 2017, the U.S. direct investment position in Tanzania was $1.4 billion, which was an increase of 2.8 percent from the previous year. U.S Multinational Enterprises (MNEs) have created employment opportunities for many Tanzanians.

Source: The Exchange

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