How Dar, UAE heighten relations in 2022
THE year 2022 will be remembered for a number of reasons, one of which is bolstering Tanzania and the United Arab Emirates (UAE) relations to improve trade and investment exchanges between the two countries.
Among the notable events recorded is the Memorandum of Understanding signed during the Expo Dubai 2020 in the UAE, in which Tanzania signed agreements with several parties, of which the effective implementation will result in the creation of jobs as part of efforts to address youth unemployment in the country.
Tanzania is a very important partner in non-oil trade with the UAE and the foreign trade between the two countries exceeded 1.8 billion US dollars in the first 10 months of the year 2021, this represents 7 per cent growth compared to the same period in 2020.
In February 2022, President Samia Suluhu Hassan met with Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai during the Expo.
President Samia also met with Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi.
Following the meetings, the governments and private companies of the two countries signed 36 MoUs for a total investment of more than 7.49 billion US dollars (about 17.8tri/-) which will create 204,575 jobs over the next four years.
12 MoUs were signed between the Tanzanian government and investors, while 23 MoUs were signed between Tanzanian companies and various investors seeking joint ventures or collaboration in various sectors of the economy.
Among key sectors which will benefit from investment agreements are energy, agriculture, tourism, infrastructure, transportation, textiles, ICT, construction and other sectors in the country.
The MoUs ushered in a new era of a robust and multi-faceted partnership between the two countries, opening doors for a more prosperous future, particularly for Tanzania which strives to build a strong industrial-based economy.
Similarly, one MoU was signed between Zanzibar’s Ministry of Trade and Industrial Development and potential investors in the tourism industry, specifically in the area of conference tourism.
Others were a 500 million US dollars deal for Dubai-based logistics firm DP World to install better ICT systems and other infrastructural improvements at Tanzania’s Indian Ocean ports and another for UAE renewable energy firm Masdar to oversee the development of up to 2 gigawatts of renewable energy in Tanzania.
Tanzania– UAE relations entails the diplomatic relations between Tanzania and the United Arab Emirates. The UAE is one of Tanzania’s largest trading partners and have had cordial relationship for many years.
Commenting on the MoUs, a renowned economist-cum banker, Dr Hildebrand Shayo, said President Samia’s excursion to Dubai Expo 2020, once again, has shown a sincere desire to continue to open-up to Tanzania, especially in terms of investments.
“Her personal participation is a strong sign that she intends to bring Tanzania back to the world map, which in one way or another had previously placed Tanzania in a tough time, due to among other things, was caused by the global economic downturn and the presence of Covid-19 which left many wounds in the economies of various countries.
“In the process of reaching an investment deal, it should be observed that much as the government values good intentions shown at the Dubai Expo, signing of 36 MoUs amongst business partners, government and other business entities is in my view a preliminary step,” he observed.
Dr Shayo applauded President Samia’s stark reminder that the MoUs signing should not be just a ceremony inundated with colourful photographs and showing interest but rather turning the agreements into execution.
“The task that remains is to take these investors and place them within sectors that will not only bring productivity and efficiency but returns to the nation and to investors in a win-win situation,” he stated.
In a separate interview, a veteran economist, Prof Haji Semboja, urged state organs to put in place a conducive environment for potential investors.
