THE US government has pledged to consolidate the long-standing cooperation with Tanzania by promoting capital growth and bringing in investors to stimulate the economy and social services.
US Ambassador to Tanzania Donald Wright expressed his country’s readiness to cooperate with Tanzania during his talks with Finance and Planning Minister Dr Mwigulu Nchemba in Dodoma.
“The cooperation between US and Tanzania has lasted for more than 60 years ... it is my responsibility to continue strengthening the ties by encouraging US investors to come and invest in technology and capital,” Mr Wright said.
The envoy who is also a medical doctor identified other areas of cooperation as strengthening health sector and enhance youth development programme to promote employment.
Mr Wright said that the US has been supporting Tanzania’s development through various projects in health, security, education and infrastructure which in turn consolidated the cooperation between the two countries.
“For several decades US has been cooperating with Tanzania in fighting diseases such as HIV/AIDS , Tuberculosis, Malaria and implementation of family planning programmes... we are going to strengthen these areas,” he said.
“I am pleased with the cooperation between the US and Tanzania which has lasted for decades. My government will closely cooperate with President Samia by encouraging investors from the US to come and invest in Tanzania,” he said.
On his part, Dr Nchemba said that Tanzania government under the leadership of President Samia will continue to improve business environment in order to attract both local and foreign investors.
He said that huge investments in the country will stimulate capital growth, employments and thus promote other sectors which produce raw materials and boost revenue collections which will be used in executing development projects.
Dr Nchemba also said that other issues discussed include strengthening cooperation agreement between the two countries especially tax exemption on aids provided by US government for the implementation of various projects in the country.
He said the government will review the agreement by involving experts from both parties to allow the country to benefit from the support.
On Wednesday, the envoy also held talks in Dodoma with Minister of Industry and Trade Prof Kitila Mkumbo and Minister of State, Prime Minister’s Office, (Investment) Mr Geoffrey Mwambe.
During their talks, Prof Mkumbo expressed gratitude to the US government and its people for consoling Tanzanians following the death of the fifth President Dr John Magufuli.
“Tanzanians are confident with the cooperation between the two countries. This meeting is crucial for strengthening the ties in industry, trade and investment sectors,” he said.
Prof Kitila added that the country aims at strengthening its relations with the US and attract investors from various countries in order to create employment and increase government revenue.
“The government will continue to formulate friendly policies and laws in order to attract more investors, especially in the establishment of factories for processing agricultural produce so as to curb importation of goods,” he said.
“We have realised that there are numerous opportunities in the African Growth and Opportunity Act (AGOA) market, especially when we add value to our products before exporting them,” he said.
Prof Mkumbo further added that the US government has assured Tanzania of a reliable market for its agricultural goods, and that what is needed is for Tanzanians to grab this opportunity.
“Tanzania is proud of its long-standing cooperation with the US,” he said.
On his part, Minister Mwambe commended the US government for its continued cooperation with Tanzania and pledged to continue improving the investment climate to facilitate smooth business operations.
“The government has continued with the implementation of various projects in such fields as health, education, road infrastructure, electricity and water as part of efforts to lure more investors in the country,” he noted.
He said that Tanzania is well prepared to increase its production capacity in order to sell products to the AGOA market.
“AGOA provides a reliable market for our products, if well utilised it will help to boost the production capacity and reduce importation of goods,” he said.
Meanwhile, the US government has also pledged to support livestock and fisheries sectors so that they can fairly contribute to the country’s economy.
Minister for Livestock and Fisheries Mashimba Ndaki revealed this to journalists shortly after holding talks with the US Ambassador to Tanzania Donald Wright.
He said that during their talks, Mr Wright assured the government that his country was ready to bring in investors in order to stimulate and promote growth in the twin sectors so that they can contribute to the country’s industrial economy.
US foreign direct investment (FDI) in Tanzania (stock) was $1.5 billion in 2019, a 5.2 per cent increase from 2018. There is no information on the distribution of the US FDI in Tanzania.
Tanzania’s FDI in the United States (stock) was $1 million in 2019, unchanged from 2018.
Again, Tanzania was the US’s 119th largest supplier of goods in 2019 while the US goods imports from Tanzania totaled $130 million in 2019, up 34.2 per cent ($33 million) from 2018, and up 162.7 per cent from 2009.