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11/21/2014 Bilateral Relation | Tanzania High Commission - New Delhi

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BILATERAL RELATIONS

OVERVIEW

India and Tanzania are closely linked through diverse geographical, historical, cultural, political,economic, commercial and other ties. Geographically both are neighbours across Indian Ocean.Evidence shows that even before Vasco da Gama discovered the sea-route to India via Cape ofGood Hope (Cape Town), Indians and East Africans were in close contact with each other throughtrade and cultural ties. It is said that fishermen off the coast of Tanganyika guided Vasco da Gamain his exploration trip to India in 1498. Long time back, the Indian Ocean was a great highway ofcommercial interaction, trade and navigation for Indians as well as peoples from the East African

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Coast. It is also said that Mahatma Gandhi, the father of the Indian nation, at the end of the 19thCentury stopped in Zanzibar and Dar es Salaam on his way to or from South Africa. Traderelations in turn led to cultural interaction.

The close cultural contacts between India and East Africa, particularly Tanzania is clearly evidentfrom the fact that Kiswahili, the official language of Tanzania has a considerable mix of Indianwords.

India established its Diplomatic Mission in Tanganyika in 1961, even before Tanganyika becameindependent. Tanzania (by then known as Tanganyika) established its Diplomatic Mission in Indiain 1962, immediately after Tanganyikas Independence in 1961. India-Tanzania relations havetraditionally been close and friendly, characterized by active bilateral cooperation and mutualunderstanding, built upon the founding fathers of our two Nations. For many years, the politicalrelationship was driven largely by shared ideological commitments to Anti-Colonialism, Anti-Racism, Socialism, South-South Cooperation and Non-Alignment Policies. The two countries andits people continue to enjoy the long time warm relations to-date.

The First President of the United Republic of Tanzania Late Mwalimu Julius Nyerere is highlyreputed in India. He was conferred Jawaharlal Nehru Award for International Understanding for1974 and in 1995 for International Gandhi Peace Prize.

Tanzania and India both initiated economic reform programmes around the same time, withexternal relations designed to broaden their engagements in International Political and Economicpromotion of international business relationships and foreign investment. The old Indo-Tanzanianpolitical relationship has been advanced into a dynamic and successful relationship with greaterand diversified economic cooperation.

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EXCHANGE OF VISITS

Besides the exchanging visits of Foreign Ministers and other high level Government Dignitaries,the two countries have also witnessed the exchange of visits of their high level Government andPolitical Leaders as shown below:

TANZANIA HIGH LEVEL VISITS TO INDIA

No Name Year

1. President Mwalimu J.K. Nyerere 1971, 1976, 1981,

1982, 1983, 1984,

1985, 1988, 1991,

1996

2. First Vice President and President of Zanzibar,Aboud Jumbe Mwinyi

1973,1977,1978

3. Prime Minister Rashid Mfaume Kawawa 1975

4. President Ali Hassan Mwinyi 1989,1993

5. Prime Minister Edward M. Sokoine 1980

6. President William Benjamin Mkapa 2002

7. President of Zanzibar Amani A. Karume 2004

8. Vice President Dr. Ali Mohamed Shein March, 2008

9. President Jakaya Mrisho Kikwete

(As Co-chair of the India-Africa Forum Summit)

April, 2008

10. Prime Minister Mizengo Peter Pinda September, 2009

11 1st Vice President of Zanzibar H.E. Seif Sharif

Hamad

September 2011

INDIA HIGH LEVEL VISITS TO TANZANIA


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No Name Year

1. President V.V. Giri 1972

2. Vice President Dr. G.S. Pathak 1974

3. Vice President D.B. Jatti 1975

4. Prime Minister Indira Gandhi 1976, 1980

5. Prime Minister Rajiv Gandhi 1986

6. President R. Venkataraman 1989

7. Prime Minister I.K. Gujral 1997

8. President Abdul Kalam 2004

9. Dr. Manmohan Singh 2011

INDO-TANZANIA BILATERAL CO-OPERATION FRAMEWORK

The first Indo-Tanzania Trade Agreement was signed in 1966 and thereafter since 1975, India andTanzania agreed to widen up their interaction on economic, political and cultural relations througha Joint Permanent Commission (JPC) and later through a Joint Trade Committee (JTC) as well.

Our two Governments have created several Institutional arrangements and Protocols forfacilitating Indo-Tanzania Cooperation and therefore, it is expected that both the Tanzanian andIndian Public and Private Sectors will take full advantage of these arrangements to maximize infostering some Socio-Economic business programmes beneficial to both countries. Some of theexisting Bilateral Cooperation arrangements are as follows:-

Tanzania and India Governments formally interact on Economic, Political and Cultural issuesthrough the Joint Permanent Commission (JPC) and the Joint Trade Committee (JTC). Tanzania and India signed a Double Taxation Avoidance Agreement (DTAA) for the first time in1979, and a recently revised version of the Agreement has been signed in May 2011. The two countries are currently finalizing negotiations on an Agreement on Bilateral InvestmentPromotion and Protection (BIPPA). Tanzania has since 2009 accessed the Duty Free and Tariff Preference (DFTP) Scheme recently

offered by India to Developing Countries for some specific commodities. Following the decisions of the first Indo-Africa Forum Summit of April 2008, Tanzania is eligible toaccess the USD 5.4 Bio. Line of Credit facility and USD 500 Mio. Grant Funds extended by India todeveloping African Countries over a period of 5 years since 2008. To-date, Tanzania has alreadyaccessed USD 289.56 Mio. of the Line of Credit funds, and is benefitting from the Grant Fundsthrough Capacity Building Programmes. During the second Indo-Africa Forum Summit held in Addis Ababa Ethiopia from 20 25th May2011, India announced another USD 5 Billion Line of Credit to Africa; an additional of USD 700Million Grant Funds to establish new Institutions and Training Programmes and another USD 300Million for development of a new Ethiopia Djibouti Railway Line.

Due to the friendship and cooperation which exists between our two countries, today a number ofICT projects supported by the Government of India are ongoing in Tanzania and for many yearsnow, Tanzania is one of the largest beneficiaries under the Indian Technical and EconomicCooperation (ITEC) Scholarship Programme and the Indian Council for Cultural Relations (ICCR)Scholarship Programme.

Tanzania is also a beneficiary of the Indian Government supported Pan-African e-network projectcovering African countries


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IMPORTANT BILATERAL AGREEMENTS

Joint Permanent Commission signed on 17th January, 1975. The Seventh JPC met in New Delhifrom 13th to 14th January 2009. Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion (1979). The 3rdround of talks for review of the same was held in New Delhi from 28th-30th April 2009 and a new onewas signed in Dar es Salaam on 27 May 2011.Agreement on Friendship and Technical, Economic and Scientific Cooperat ion (28th January 1966). Air Services Agreement (1995) Talks were held in Dar-es-Salaam in April 2006 to update theAgreement.MOU for Cooperation in the field of Agriculture was signed on 16th December, 2002 during the visitof President Benjamin William Mkapa to India. Agreement in the field of Health & Medicine signed on 16th December, 2002 during the visit ofPresident Benjamin William Mkapa to India.Exchange Program on Cooperation in the field of Higher Education signed on 27th April, 2003. Trade Agreement was signed on 14 January 2000. Pursuant to the Agreement a Joint TradeCommittee was established. The second meeting of the JTC was held in New Delhi from 16th 18thMay, 2007. MOU on Defense Cooperation signed on 1st October 2003 in New Delhi. Duty Free Tariff Preference Scheme offered by India (Tanzania Accessed the scheme from 22ndMay, 2009). Bilateral Investment Promotion Protection Agreement (BIPPA) The first negotiating meeting was heldin New Delhi in January, 2010. Final fine tuning of the Agreement still outstanding. Recent announcements and signed agreements (During Hon. Manmohan Singh Visit to Tanzaniaon May 2011) India will avail US$ 100,000 Grant Money for school laboratory Equipments India will avail US$ 10,000,000 Grant Money for Capacity building on Social and Education Sectors. India promised to help establishing a Vocational training centre in ZanzibarA line of Credit facility amounting to US$ 180 Million for water projects (Dar es Salaam and Coast) isavailable to Tanzania. India and Tanzania signed an agreement on Avoidance of double taxation and Prevention of FiscalEvasion with respect to taxes on Income. India and Tanzania signed a Joint Action Plan between Small Scale Development Organisation

(SIDO Tanzania) and National Small Industries Corporation Ltd of (NSIC India). Preliminary joint Venture Agreement between Apollo Hospitals and NSSF Tanzania for BuildingApollo hospital in Dare s salaam Tanzania was signed.Also dur ing the Indias Prime Minister Visit to Tanzania, the India-Tanzania Centre of Excellence inInformation and Communication Technology was inaugurated in Dar es Salaam at the Dar es SalaamInstitute of Technology. MoU on cooperation between the Zanzibar Institute if Financial Administration (ZIFA) and the IndianInstitute of Applied Manpower Resources (IAMR).

NON GOVERNMENTAL AGREMENTS

Agreement on the Establishment of Joint Business Council between FICCI &ASSOCHAM, and theTanzania Chamber of Commerce, Industry & Agriculture TCCIA signed on 25th June 1997. MOU between CII and the Confederation of Tanzanian Industries - CTI signed on 4th October 1996.


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Cooperation Agreement between Indian Merchants Chamber (IMC) and TCCIA signed on 11thJuly, 1995. MoU for establishing India-Tanzania Centre of Excellence in ICT at the Dar es Salaam Institute ofTechnology signed on March, 2008. MOU between the Indo-Africa Chambers of Commerce and Industry IACCI and the ZanzibarNational Chamber of Commerce Industry and Agriculture ZNCCIA signed on 28th April 2011

IMPORTANT RECENT DECISIONS IMPACTING DIRECTLY ON THE

TANZANIA-INDIA ECONOMIC RELATIONS

(i)Africa-India Forum SummitDuring the first Africa-India Forum Summit which was held in New Delhi between 8th-9th April,2008 and attended by:-

The Prime Minister of India;

Africa Heads of State and Government (under the Leadership of H.E. Jakaya Mrisho Kikwete, thePresident of Tanzania and the then Chairperson of AU); Chairperson of the African Union Commission and; The Heads of the various Regional Economic Communities (RECs) of Africa;

India announced the following decisions.

For the next five years, beginning 2008/2009 India will allocate an amount of US$5.4 Billion forundertaking projects in Africa through extension of concessional lines of Credit. Tanzania is eligible toaccess the Lines of Credit availed by India. Over the next 5-6 years, India will allocate an amount of Grant money in excess of US$500 Millionfor implementing projects in Africa focusing on human resources development and capacity building.Tanzania is eligible to access the Grant Funds. 34 Least Developed Countries from Africa were declared to be eligible to access Duty Free TariffPreference Scheme (DFTP Scheme) for its exports to India. Tanzania is among these countries.Products covered under the scheme include Cotton, Cocoa, Aluminum ores, Copper ores, Cashewnuts, Cane sugar, Ready-made garments, Fish fillets and Non-industrial diamonds. The second India-Africa Forum Summit was held in Addis Ababa in May, 2011 whereby Indiaannounced the allocation of another USD 5 Billion line of Credit facility, USD 700 Million GrantMoney for Capacity Building Programmes and USD 300 Million for the development of a new Ethiopia-Djibouti Railway Line.

(ii) Second Joint Trade Committee and Seventh Joint Permanent Commission (JPC)Meetings:During the 2nd Indo-Tanzania JTC meeting and 7th Indo-Tanzania JPC Meeting held in New Delhifrom 16th-18th May 2007 and 13th-14th January, 2009 respectively, India agreed to continuesupporting and cooperating with Tanzania in the areas of Trade and Industries including SMEs,Agriculture, IT, Health, Education, Wildlife Management, Tourism, Water, Defense and Security.The next JPC meeting is expected to be held in Tanzania before the end of year 2012.

(iii) Current Status of Indo-Tanzania Bilateral Trade, Investment, Tourism


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Trade

Tanzania and India are traditional Trading Partners for many decades in a variety of products. It isgratifying to note that the Bilateral Trade Volume between India and Tanzania for the year 2010/11has increased by about 55% compared to the previous year. In comparison to the year 2009/10ranking, it is observed that during the year 2010/11 Tanzania remained at the same ranking asIndias 5th Major Export destination and improved to become the 12th (from previously the15th)Major Import Source to India from Africa.

However, despite this encouraging growth, there is still room for doing more business between ourtwo countries. The last JPC meeting of our two Governments which was held in January, 2009 had

set a target of reaching a total two-way trade volume of USD 1,500 Mio. by year 2012/13.

Investments

On investments, India is the biggest investor in Tanzania from Asia and is among the top 3investors in Tanzania from all over the world by accumulated value for the period 1990-2010.Records show that between1990-2008, companies with Indian interest have invested in Tanzaniain projects worth USD 1,217.57 Mio. (Source: Tanzania Investment Centre). Today, Indiancompanies like Reliance Group, Bank of Baroda, TanzIndia Assurance Company, TATA AfricaHoldings (Tanzania) Ltd., Bharti Airtel, etc. are already doing business in Tanzania.

Notably, the Apollo Group of Hospitals (India) is in the Process of Signing the final Agreement soonwith NSSF (Tanzania) and Ministry of Health & Social Welfare (Tanzania) for establishing ApolloHospital facility in Dar es Salaam. The preliminary JV Agreement has already been signed in May2011.

Investment opportunities exist in the areas of Agriculture, Agro-based Industries, Mining, Tourism,Petroleum & Gas, Economic Infrastructure, Manufacturing, Natural Resources such as Fishing &Forestry, Commercial Buildings & Estates Development, Financial Services, Human ResourcesDevelopment, ICT, and Health Services.

Tourism

A lot of Medical Tourism is taking place between Tanzania and India. Many Tanzanians come toIndia for Medical Treatment, more than to any other foreign country until such time when Tanzaniadevelops adequate capacity of its own internal Medical Facilities.

Tanzania is endowed with many natural and cultural resources that have become a globalattraction for Tourists from different tourist market segments. The country is home to an estimated

20 per cent of Africas large mammals, with 25% of the countrys area set aside for conservationpurposes. Tanzania is also home to attractions like Mount Kilimanjaro and Mount Meru (thehighest and fifth-highest peaks in Africa), the Spice Islands of Zanzibar, the beautiful seabeaches along the Indian Ocean Coast, Serengeti National Park (arguably the best known wildlifesanctuary in the world), Ngorongoro Crater (the largest unbroken caldera in the world) and manyother attractions.

Unfortunately, to-date the number of Indian Tourists visiting Tanzania is still very low. Only about19,100 Indian tourists visit Tanzania annually out of the nearly 1 million Tourists coming toTanzania every year.

Specific initiatives are now being undertaken to tap on the vast Indian Tourism Market. These,among others, include the Tanzania Tourist Board appointing its representative in Mumbai sinceJuly 2009 in order to create more awareness and facilitation to the Mumbai and the Indian Public ingeneral on the Tanzania Tourism.

Tanzania also has plans to carry out more and sustainable Tourism promotional activities in India(and the entire Asian Region) in the near future. The target is to increase the number of IndianTourists visiting Tanzania to 100,000 per year in the next 2 years.

Tanzania is also in the final stages of appointing its Honorary Consul in Mumbai in order tofacilitate further promotion of Trade, Investment and Tourism activities and to ease the provision ofConsular Services.

INVESTMENT OPPORTUNITIES

Agribusiness Extractive

Industries

Infrastructure Tourism


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In Addition To

Traditional Crops

Horticulture

Floriculture

Deep Sea Fishing

And

Aquaculture

Sugar Ethanol

Palm Oil And

Jatropha

Pyrethrum And

Artemisia Organic

Cotton

Minerals Base

Metals and

Gemstones

Gold

Tanzanite

Hydrocarbons:

Oil And NaturalGas

Coal Refining,

Processing,

Smelting, Cutting

And Polishing

Power

ICT Backbone

Roads network

covering most

investment areas

Functional Seaports

Airports servicing

international flightsFinancial institution

Health care centres

Education

Beach Tourism

Conference

Tourism

Sports/Golf

Tourism

City Tourism

Medical

TourismHistorical

Tourism

For more information visit the links below

Government of Tanzania

Zanzibar

Bank of Tanzania (BOT)

CRDB Bank

Tanzania R evenue Authority

Business Reg istrations And Licensing Agency (BRELA)

Energy and Water Utilities Regulatory Authority (EWURA)

Tanzania Investment Centre (TIC)

Zanzibar Investment

Tanzania Trade Development Authority

Commercial Court

Tanzania Petroleum Development Corporation

East African Community (EAC)

Tanzania Chamber of Commerce,Industry and Agriculture

Zanzibar National Chamber of Commerce, Industry and Agriculture

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11/21/14 09:17

1 INR =

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