UNGA 80: Dr Mpango opens Tanzania-US Trade and Investment Forum

NEW YORK: THE Tanzanian Vice President, Dr. Philip Mpango, said Tanzania is ready to work closely with the US business community and facilitate investment through amended laws, improved infrastructure, and a liberal economy.

The Vice President said this while opening the Tanzania-US Trade and Investment Forum held on the sidelines of the 80th Session of the United Nations General Assembly (UNGA 80) in New York, USA, where he said the Tanzanian Government recognizes the private sector as a key partner in development efforts for social and economic transformation.

The VP said Tanzania has had political and social stability for 60 years, with rapidly improving infrastructure and the business environment has improved significantly so US businessmen and investors can use the opportunity to invest.

He also called on Tanzanian businessmen to think and act internationally by embracing the opportunities available in the US market.

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“The Tanzanian government is constantly working to improve and create an enabling environment for business and investment, currently reducing the time for business registration from 14 days to 24 hours, investment permits that used to take months, now take hours or days through the Tanzania Investment and Special Economic Zones Authority (TISEZA).

He said the Government is determined to improve the regulatory environment, including removing unnecessary regulations as well as investing in education to produce workers with the necessary skills.

The VP  invited businessmen and investors from the United States to invest in Tanzania in important and strategic sectors including rare and important minerals which are the yeast of the green revolution.

“While the United States invests in clean energy, Tanzania stands as a reliable supplier of needed materials such as Graphite minerals located in Mahenge, Morogoro region, which are estimated to provide up to 15 percent of the world’s battery needs as well as the presence of Kabanga nickel ore, and lithiu,m which is among the largest high-grade deposits in the world.

He said that investment in minerals emphasizes more on value addition from mining, processing to battery-scale production.

In addition, the VP  mentioned the opportunities available in Tanzania in the digital sector, where he said the positive digital transformation that has taken place in Tanzania is an indication of the great potential that exists.

He added that, the increase in internet usage from 13 percent to 60 percent in five years, mobile money transactions have reached $ 75 billion – almost 90 percent of GDP and there are about 27 million money accounts for 65 million people as well as the revolution of Tanzanian companies such as NALA, which currently serves more than five hundred thousand users worldwide in financial transactions.

Similarly, the VP  invited them to invest in other sectors such as Agriculture, where Tanzania boasts of having 44 million hectares of land suitable for agriculture. He said Tanzania needs partners in smart agriculture, including precision farming, drone technology, smart farming, and investment in agro-processing areas.

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Similarly, the VP  mentioned opportunities in healthcare, such as collaborating with US companies in manufacturing medicines and medical equipment for the 300 million people of East Africa and the 1.4 billion people under the African Free Trade Area.

“There are opportunities in the infrastructure sector where, after the completion of the 2,561-kilometer Standard Gauge Railway (SGR) that will carry passengers and 10,000 tons of freight per train connecting Uganda, Burundi, the Democratic Republic of Congo, and Rwanda. Also, opportunities provided by the tourism sector if Tanzania welcome more than 2 million visitors annually, and generate revenues of 3.37 billion dollars.

At the Forum, the VP noted that Tanzania needs to attract a total of 185bn US dollars over the next 5 years, equivalent to 37bn US dollars annually, to enable Tanzania to achieve the main goals of Vision 2050 in the medium term, including building an industrialized country, integrated infrastructure, and strong trade.

Trade in goods between the two countries has increased from 228m US  dollars in 2020 to 770m US dollars in 2024. The United States has continued to be a supplier of goods to Tanzania, reaching 566m US dollars in 2024, while Tanzania’s exports to the United States increased from 47m US dollars in 2020 to 204m US dollars in 2024.

Annual direct capital investment from the United States has increased from 12.3m US dollars in 2020