US to boost trade, investments in Tanzania

Visiting U.S Vice-President, Kamala Harris has announced plans to boost trade and investment in Tanzania as the world’s leading economy seeks to strengthen ties with East Africa’s second largest economy.

Ms Harris who landed in Dar es Salaam late on Wednesday from Ghana as part of her landmark trip to Africa that will also take her to Zambia, said the plans will include a new memorandum of understanding between the Export-Import Bank of the United States (EXIM) and the government of Tanzania.

The MoU will facilitate up to 500 million US dollars in export financing to help U.S companies export goods and services to Tanzania in sectors including infrastructure, transportation, climate and energy security and power generation, she said.

It is expected that the agreement will support jobs in both Tanzania and the United States and build on EXIM’s Congressional mandate to increase U.S exporters’ relationships in sub-Saharan Africa.

Harris also mentioned the opening of a new multi-metals pocessing facilities in Tanzania for minerals  into electric vehicle batteries.

The processing plant will use innovative, low-emission technology to process nickel and other critical minerals mined in Tanzania, targeting delivery of battery grade nickel to the U.S and the global market as soon as 2026, she said.

“In Tanzania, thanks to your leadership Madame President (Samia Suluhu Hassan), work is currently underway to build the first of its kind processing facility on the continent for minerals that go into electric vehicle batteries. This will deliver battery-grade nickel to the U.S and global markets as soon as 2026,”.

“Raw minerals will soon be processed in Tanzania by Tanzanians. This will help address the climate crisis, build resilient global supply chains and create new industries and jobs,” she said.

The partnership with LifeZone Metals will also work to identify additional opportunities across the region for critical mineral inputs to the new facility.

These efforts are aimed at building and expanding resilient, transparent supply chains for clean energy technology that are based on extensive local engagement, respect for the environment and conservation and safe, high-integrity labour practices.

US is one of the significant source of Foreign Direct Investments (FDIs) in Tanzania. According to Ministry of Foreign Affairs and East Africa Cooperation, US investments in Tanzania reached 4.778 billion US dollars to date from 266 projects.

Tourism sector leads the US investment in the country with a total of 68 projects, followed by the manufacturing sector with 66 projects. These projects have created about 54,584 jobs for Tanzanians.

Tanzania is an attractive trade and investment destination in Africa due to its relatively large population estimated to be 62 million people and strategic geographical location which makes it a gateway to Eastern and Southern Africa.

The East African country is accessible through the Indian Ocean, which gives it trade links to Asia and sits in between six landlocked countries – Democratic Republic of Congo, Uganda, Rwanda, Burundi, Zambia and Malawi that rely on Tanzania as the most efficient point for passage of goods.

Investors in Tanzania are guaranteed access to a market of more than 450 million people in Eastern and Southern Africa, in which Tanzania enjoys preferential trade arrangements by virtue of being a member of East African Community (EAC) and SADC.