Tanzania, US deepen development ties
NAIROBI: TANZANIA and the United States have reaffirmed their commitment to strengthening cooperation in key development sectors, including health, agriculture, energy, minerals, infrastructure, education and tourism.
The commitment was made during talks between Deputy Minister for Finance Laurent Luswetula and US Deputy Secretary of the Treasury for International Affairs Erin Browne on Friday in Nairobi, Kenya, on the sidelines of the High-Level Ministerial Finance Dialogue on strengthening joint investment in the health sector.
During the talks, Mr Luswetula invited US companies and investors to explore opportunities in Tanzania,particularly in agriculture, energy, minerals, infrastructure, health, education and tourism.
He also thanked the US government for its continued cooperation and contribution to Tanzania’s development since the establishment of diplomatic relations between the two countries in 1968.
Mr Luswetula said the longstanding partnership had supported Tanzania’s efforts to promote social and economic development and reduce poverty.
Ms Browne said the United States will continue working with Tanzania in various development areas while strengthening and expanding existing cooperation between the two countries. The talks also underscored the importance of deepening economic and investment ties for the benefit of citizens in both countries.
Meanwhile, speaking yesterday during a high-level dialogue on financing sources for advancing the health sector, led by US Treasury Department expert Eric Meyer, Mr Luswetula said Tanzania was strengthening domestic financing while expanding the use of PublicPrivate Partnerships (PPPs) to fund development projects.
He represented Finance Minister Ambassador Khamis Mussa Omar at the High-Level Ministerial Finance Dialogue in Nairobi.
Mr Luswetula said PPPs were among the key avenues Tanzania was pursuing to mobilise additional financing for development projects and give the private sector a greater role in supporting national development.
“Tanzania is ready to work with the private sector through long-term agreements in implementing various projects. We welcome companies and investors to partner with the government in productive investments,” he said.
He said the government’s policy was focused on expanding investment and economic activity by creating more opportunities for private sector participation in financing and implementing development projects.
Mr Luswetula said the approach would help widen the country’s capacity to finance essential services while supporting long-term economic growth.
On taxation, he said excise duty was being used not only as a revenue measure but also as an instrument to protect public health from the harmful effects associated with certain products.
Revenue collected through such taxes, he said, contributes to financing health services and infrastructure while strengthening the country’s domestic capacity to fund social services.
On government borrowing, Mr Luswetula said Tanzania was taking a selective approach, directing loans towards projects capable of generating long-term economic benefits and contributing to debt repayment.
He said priority was being given to strategic investments, particularly basic infrastructure and other capital projects expected to generate lasting benefits for the economy and society.
The approach, he said, would enable Tanzania to expand development financing while maintaining sustainable public finances.
