TANZANIA: CANADA FINDS DAR VIABLE INVESTMENT DESTINATION

CEO of the President Delivery Bureau (PDB), Mr Omary Issa

TANZANIA offers attractive investment potentials for Canadian investors with keen interest in mining, oil and gas sectors, according to Canadian International Trade Minister Ed Fast.

The minister, who is leading a high powered Canadian trade mission visiting the country, said in Dar es Salaam that Tanzania features prominently among the North American economic giant's list of trading partners.

"Canadian mining companies are among the largest foreign investors in Tanzania today," he said.

Canadian companies held cumulative mining assets of 2.45 billion US dollars (about 4 trillion/-) in 2012, making Tanzania its fourth largest destination of mining assets in Africa.

"The mining sector is one with strong Canadian capabilities for which opportunities exist for companies to engage in exploration activities and supply of equipment and services for up, mid and down-stream activities," he said.

The trade mission is on a mission to raise the profile of Canadian companies as well as increasing awareness of Canadian knowledge and expertise in the mining, oil and gas, power and renewable energy sectors.

Opportunities exist for Canadian companies to continue investing in the sectors and to provide mining equipment and services to the growing sector.

Mr Fast pointed out that Tanzania has been identified as an emerging market with specific opportunities for Canadian businesses in the Global Markets Action Plan.

Mr Fast said the Canada trade missions are about opening doors and developing long-term trade and investment opportunities in foreign markets for Canadian businesses, including small and medium-sized enterprises, women, youth, Aboriginal entrepreneurs and new exporters.

They build prestige and credibility for Canada while helping exporters to position themselves in foreign markets.

The Chief Executive Officer of the President Delivery Bureau (PDB), Mr Omary Issa, challenged local business people to explore export opportunities offered by Canada.

In the framework of Canada's Market Access Initiative for Least Developed Countries, Tanzania has duty-free access to the Canadian market for almost all commodities.

Statistics show that the two-way merchandise trade between Tanzania and Canada is modest and has increased to 84.7 million US dollars in 2013 up by 47 per cent over the last 5 years.

Mr Issa said creating enabling business environment for the small and medium enterprises (SMEs) is of paramount importance because of the capacities and potentials in creating huge number of jobs to Tanzanians.

Next month, the government will launch an initiative on improving business environment with SMEs being the most beneficiaries. It will focus in addressing trade barriers, which contribute to high cost of doing business for example poor infrastructures, bureaucratic regulations, corruptions.

Tanzania is estimated to have over 3 million SMEs, thus providing huge potentials to create more jobs instead of depending on multinational companies, which are capital intensive.

According to the PDB chief, the initiative will succeed through the implementation of the PPP, because the private sector has massive resources which could be channelled to the joint projects.

It is expected that before the year ends, a new legislation on PPP will be ready as the current one is in the process of being amended.