Prof Godius Kahyarara, the permanent secretary in the Ministry of Industry, Trade and Investment, remarked at the Nordic business forum yesterday that the strategy focuses on opening-up and increasing the country’s exports to European Union and Nordic zone markets.
The forum was examining how to strengthen participation in global value chains, dwelling on opportunities and challenges for the Nordic firms in the country, where the city think tank REPOA acted as secretariat, part of a series of events to celebrate the Nordic Week 2022.
The Tanzania Trade Development Authority (TanTrade) is helping to design the strategies, he said, noting that Tanzania needs to improve the quality of export products to find easier access in European markets. Currently, Tanzania exports most of its goods to Asia and within the East African Community (EAC) and the Southern Africa Development Community (SADC) zones, he said.
Signing ’open skies’ agreements would further boost exports as the facility permits increased travel and trade, with international cargo flights airlifting goods from Tanzania, he stated
Tanzanian businessmen can now sell at Dubai supermarkets in the United Arab Emirates (UAE) following agreements signed during the Dubai Expo, he explained.
Despite some challenges, Nordic countries are happy with on-going reforms to improve the business and investment climate, satisfied with the government’s decision to prioritize economic diplomacy, he further noted, underlying that this signals that the country is economically taking-off.
An improvement in the business climate has resulted in higher revenue collections by 20 per cent, with the Tanzania electronic window for investment set to cut bureaucracy. Potential investors will be able to get their documents processed, applying for permits online, he stated.
The aim is to have a one stop facilitation centre connected to 12 government agencies and institutions, including the National Identification Authority (NIDA), the Tanzania Revenue Authority (TRA), the Business Registrations and Licensing Agency (BRELA), the Tanzania Investment Centre (TIC), the Immigration Department as key ministerial offices for land, labour and employment issues
There is also access to the Tanzania Medicines and Medical Devices Authority (TMDA), Occupational Safety and Health Administration (OSHA), the Tanzania Bureau of Standards (TBS), the Tanzania Electricity Supply Co. (TANESCO) and the National Environment Management Council (NEMC).
Swedish ambassador Anders Sjöberg, speaking the Nordic states, said the forum was meant to provoke dialogue on leveraging participation in global value chains, and how Nordic firms can increase competitiveness in intra-regional trade in particular.
“Trade and investment are crucial for development and sustainable growth,” he stated, citing the vital role of the private sector. The government must allow businesses to grow and lead the way with bold changes, while enforcing rules and regulations that protect the broader interests of the citizens, the envoy intoned.
Nordic countries are ready to support the country’s transition efforts with sustainable development focus, identifying economic diplomacy as key priority illustrating this orientation, he declared.
Nordic firms operating in Tanzania are in a variety of sectors including energy, telecommunications, tourism, logistics, manufacturing and extractive industries.
Dr Donald Mmari, the REPOA executive director said the theme captures Tanzania’s medium term aspirations as reflected in the third five year development plan, stretching from 2021/2022 to 2025/2026.
To achieve the development targets, the government must improve efficiency by promoting policies that would attract investments and acquire modern technologies, the research driver asserted.
“The local economy is becoming more complex and interconnected through value chains,” he stated, pointing out the need for the public and private sectors to work together to ensure that local firms become competitive enough to benefit in the global value chains.
