Jamhuri ya Muungano wa Tanzania - Tovuti Rasmi ya Rais

Jamhuri ya Muungano wa Tanzania
Tovuti Rasmi ya Rais
Ofisi ya Rais - Ikulu

REMARKS BY H.E. DR. JOHN POMBE MAGUFULI, PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA DURING THE TANZANIA – SOUTH AFRICA BUSINESS FORUM, DAR ES SALAAM, 11TH MAY 2017

Thursday 11th May 2017

Your Excellency Jacob Zuma, President of the Republic of South Africa;

Honourable Ministers here present;

Distinguished Members of the Business Community

from Tanzania and South Africa;

 

Invited Guests, Ladies and Gentlemen;

 

I am very pleased for this opportunity to meet with the members of the Business Community not only from my own country but also from a brotherly and friendly country, South Africa. I understand you have been here since morning and much has already been said. However, allow me to take this opportunity to warmly welcome to Tanzania our guests from South Africa. As you are all very well aware, Tanzania and South Africa are very good friends and strong allies. Our friendship has been maintained for years and that our two countries have been enjoying excellent cooperation at bilateral, regional and international levels. It is for this reason that I would like to very sincerely welcome our South African friends to Tanzania. Please, feel at home. This is indeed your home.

 

It is unfortunate that you will be here just for a short stay, but it is my sincere hope that you will find time to visit our country again so that you get a chance to experience and enjoy, in particular, Tanzania’s touristic attractions, such as Mount Kilimanjaro, Serengeti National Park, Ngorongoro Crater, as well as the beautiful shores of the spice Island of Zanzibar.

 

Distinguished Members of the Business Community;

I have noted, with great encouragement, that trade and investment are on the increase since 2011. However, as we strive to further consolidate the relations between our two countries, we also need to enhance further our cooperation in trade and investments. To that end, and this being a Business Forum, I am sure serious business has been discussed since morning. And by now, each side has sufficient or necessary information about the investment and business opportunities available in each other’s country. That notwithstanding, I would like to add my voice on the investment and business opportunities available in Tanzania.

 

To begin with, Tanzania has got a conducive business environment. We are a peaceful and politically stable nation. We have enjoyed uninterrupted peace, political stability and national concord since independence. We are a vibrant democracy and committed to advancing good governance and the rule of law. I should also mention that the basic infrastructure services such as power, road, rail, air and water transport are available at a satisfactory level.

 

Furthermore, our country has put in place stable and predictable economic policies and investment regimes that are friendly to investors. They are comparable to any other environment that an investor would enjoy in almost all the hot spots of investment flows in the developing world.  There are favourable fiscal incentives to investors with regard to corporate tax, customs duty, VAT, capital investments, work and resident permits.  The investment law provides for protection of investments and we are committed to fighting corruption, terrorism and other vices. Additionally, we are a member of the International Centre for Settlement of Investment Dispute and the Multilateral Investment Guarantee Agency (MIGA) of the World Bank.  So, it is safe to invest in Tanzania, as we are also ready to improve the business environment.

  

Apart from that, we have a huge market. As you know, we are located in a very strategic area, bordered with 8 countries, including six landlocked countries, namely Burundi, DRC, Malawi, Rwanda, Uganda and Zambia. These countries, by and large, use Tanzania territory to conduct their international trade. As a Member of the East African Community (EAC) and the Southern African Development Cooperation (SADC), investors are assured of the huge market of about 400 million people. Besides, we have trade quota and tariff free trade arrangements with China, India, Japan, USA and the EU.

Your Excellency, President Zuma;

 Distinguished Members of the Business Community;

In addition to good business environment, we have plenty of business and investment opportunities in our country. We have 44 million hectors of arable land of which less than 10 million hectors are currently under use. The climate is favourable for agriculture, water for irrigation is also plenty, and the land is fertile. Almost all crops can grow in Tanzania.

 

Fishery is yet another sub-sector that presents business and investment opportunity for the private sector. Our country now needs at least 400,000 tonnes of fish per annum. Yet, we are now producing only 30,000 tonnes. In this respect, in order to promote fisheries business in Tanzania, the government has reduced import taxes on most of the fishery equipment, including those used in fish farming. In line with this we invite investors to invest in this sector whereby, opportunities range from Deep Sea Fishing, Fish Processing & Canning, Aqua/Mari culture and Establishment of lending facilities.

 

We also invite investors to come to invest in one of the fast growing sectors in the country, that is, Tourism.  This industry accounts for about 24.0 % of exports and 17.2% of GDP. We are the only country in the world that has allocated more than 25 percent of its total area for wildlife and other resources’ conservation. There are 16 National Parks, 28 Game Reserves, 44 Game Controlled areas, 1 Conservation Area and 2 Marine Parks. Opportunities exist for investing in areas such as tour-operators business, and tourism infrastructure development particularly construction of first class hotels in towns, game parks as well as along the 1,424 Kilometres coast line of mainland Tanzania and the beautiful shores of the spice Island of Zanzibar.

 

Our construction sector is also growing very fast. The list of projects in the pipeline is very long. We have huge infrastructure projects which require investments, especially in the fields of transport, energy and water. These projects include a 1,200 kilometre Standard Gauge Railway line from Dar es Salaam to Mwanza, as well as Kiwira and Mchuchuma coal to power projects. We, therefore, welcome South African investors to come to invest in these projects.

 

Your Excellency, President Zuma;

 Distinguished Members of the Business Community;

Tanzania is committed to becoming a semi-industrialized nation by 2025. To this end, we have decided to put greater accent on building a strong industrial base, including setting up Export Processing Zones (EPZs) and Special Economic Zones (SEZs) as ponds of industrial growth and services to promote export trade.  I, therefore, invite you to come to make full use of these ponds for our mutual benefit. 

 

In this respect, one of the areas that present great opportunities is manufacturing. Tanzania offers abundant natural resources which provide for plenty of raw materials for the manufacturing industries such as cotton for garment and textile industries, sisal for canvassing, etc. 

 

For those of you who have a capability for minerals processing, investment opportunities exist in the mining sector where we have precious gemstones and minerals including gold, diamond, nickel and tanzanite, just to mention a few.  These locally available raw materials will assure investors with raw materials for extractive industries on low cost but with high value investments.

 

Our service sector is also growing very fast. There are enormous opportunities in the services sector particularly ICT, which is among the fastest-growing sub-sectors in Tanzania.  In the last 10 years, the ICT market has grown in terms of subscribers, variety of services and the expansion of the coverage area. Potential areas for investment include provision of mobile services especially in rural areas, provision and operation of value added network/data services, as well as repair and maintenance of telecommunications facilities. We also welcome potential investors to establish financial institutions such as Industrial and Agricultural banks.

 

 

Your Excellency, President Zuma;

 Dear Members of Business Community;

Distinguished Invited Guests, Ladies and Gentlemen;

  I could go on and on mentioning opportunities for investments that are available in Tanzania. But, it is not my intention to labour you with a long speech. Let me end here. But, before I conclude, I wish to take this opportunity to once again thank His Excellency President Zuma for coming with all of you to meet with your counterparts, the businessmen and women of Tanzania.

 

I wish also to commend all the Organizers of this Business Forum. It has been a success by all standards. Finally, I wish to once again welcome South African business people to come to invest in Tanzania. I encourage you to come to make full use of these opportunities. Tanzania is a safe place for investment and also to do business.

 

“I thank you for your kind attention”