STATEMENT BY H.E. JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF
TANZANIA, INVESTMENT ROUNDTABLE LONDON, UNITED KINGDOM, JANUARY 15, 2006
Distinguished Guests;
Ladies and Gentlemen;
It gives me great pleasure to have this opportunity to discuss business
prospects between entrepreneurs of the United Kingdom and Tanzania at this
Tanzania Investment Roundtable. It is wonderful to be in this historic City of
London. My delegation and I, really appreciate the warm reception of the people
and the Government of the United Kingdom. Let me also take this opportunity to
thank Merrilll Lynch for organizing this Investment Roundtable and for hosting
us here this afternoon.
Ladies and Gentlemen;
The United Kingdom and Tanzania enjoy excellent political, economic and trading
relations. We have very warm and friendly political and
//diplomatic relations.
diplomatic relations. The United Kingdom is Tanzania largest foreign investor
nation. At the same time the UK is one of the largest development assistance
donors to Tanzania development endeavors. I am in the UK to cement those
relations. During my visit I will meet Prime Minister Tony Blair, the Rt. Hon.
Gordon Brown, the Rt. Hon. Margaret Beckett and the Rt. Hon. Hillary Benn with a
view to consolidating the cordial relations that happily exist between our two
friendly countries.
Ladies and Gentlemen;
Strengthening business and investment ties is also an important objective of my
visit to this great nation. This historic investors roundtable is designed to
advance our economic and trading relations. It is for this reason that I am also
accompanied by a relatively large Tanzania Business group. They are here to
engage their UK counterparts in discussions and forge serious business
relationships.
I am glad that you have had time to discuss the modalities of cooperation
between you. I am told you will continue after I have left. I come to talk to
you this afternoon to reinforce that message
//of desire to work together
of desire to work together for the mutual benefit of the British and Tanzania
businessmen and women. I am here to assure you that this cooperation is
something I cherish and support.
So, I anticipate that you are going to have productive interactions as I am
aware that the Tanzania businessmen have come here with the genuine desire
including trying to enhance your appetite in various investment opportunities in
Tanzania.
Ladies and Gentlemen;
I understand that you have already received an overview of what investment and
trading opportunities Tanzania has to offer from the Tanzanian Ministers and the
Directors General of Tanzania Investment Centre and the Zanzibar Investment
Promotion Authority. I trust also that your Tanzanian counterparts have briefed
you a lot more. I am here to assure you that the Tanzanian Government is firmly
committed to pursue policies that encourage private sector participation in a
manner that is both easy and profitable to do business in Tanzania.
//Ladies and Gentlemen;
Ladies and Gentlemen;
We in Government know, in this regard, our responsibility of creating a
conductive environment for doing business in our country. We have been trying
our best to do just that with considerable success. Tanzania has enjoyed 45
years of uninterrupted peace and political stability. We are very particular
about maintaining those policies and measures which have afforded us the
stability and peace.
We are a democratic nation and we are determined to see democratic values and
culture taking roots in the country. We have had smooth succession and transfer
of power in Tanzania. I am the fourth president and very much a product of that
culture. The government and the people of Tanzania are quite keen on maintaining
the social and political policies that promote democracy, peace, harmony and
concord.
We are also serious about the pursuit of the main tenets of good governance. In
this regard observing the principle of rule of law, respect for
//human rights and curbing graft
human rights and curbing graft and corruption in public service are matters
that we give particular attention. We know very well that the absence of
political stability, good governance and peace scares away investments and
trade.
Ladies and Gentlemen;
We are fully aware of the critical importance of micro-economic stability and
sound fiscal policies. I am proud to inform this august audience that Tanzania
has for past decade, enjoyed a stable micro-economic environment.
The fiscal and financial policies are not only sound but predictable as well.
The Tanzanian economy has been growing at above 5 per cent over the last decade
or so. In fact, in December, 2005 we recorded a 6.8 percent growth rate but fell
to 5.9 per cent in December, 2006 due to the effects of the severest drought
ever experienced since independence. Inflation has
//remained at single digit
remained at single digit for almost over five years now. In fact, in June,
2005 it was 4.5 per cent but rose to 6.2 per cent in December, 2006 again due to
food shortages because of the drought and high oil prices.
We are determined to get back to our targets of above 6 per cent growth of the
economy and to 4.5 per cent inflation this year. Fortunately, for us the rains
have been miraculously good this season. Agriculture will bounce back and as
well as the performance of the manufacturing and service sectors since the power
crisis is over.
Hydropower generation has returned to normalcy after the good rains filled up
the dams. There are no more power cuts to the relief of all of us. However, we
are taking stock to draw lessons from the crisis particularly the way we handled
it. It is the third time we have experienced this problem. We would like this to
be the last.
//Ladies and Gentlemen;
Ladies and Gentlemen;
We have decided therefore, to diversify sources of power generation to spread
the risk and create a broad based safety net. We plan to increase generation
from natural gas and coal. Fortunately these resources do exist in sizeable
quantity in Tanzania.
We are also giving serious consideration to the development of the Stiegler’s
Gorge the largest hydropower potential site in the country.
So, Ladies and Gentlemen, the crisis has created tremendous investment
opportunity in the energy sector. I would like to take this opportunity to
invite you to seriously consider investing in this sector.
Attractive Business Environment
Ladies and Gentlemen;
I would also like to mention to you that if you choose Tanzania as your
investment and trading destination you are assured of an attractive and ever
//improving business environment.
improving business environment. Tanzania offers as competitive fiscal incentives
as one would find in any of the destinations on this planet.
Besides that we are quite keen on continuing to improve on the business
environment to make our country more attractive a destination. Consequently, we
been proactive in taking measures aimed at reducing the cost of doing and
improving the business environment as a whole. We are undertaking a number of
reforms and improvement measures.
In this regard, Ladies and Gentlemen, we have been implementing two important
programs. The first one is called the Business Environment Strengthening for
Tanzania and the second one is the Blue Book. Besides we have been taking
serious note of the observations being made regularly in by the World Bank’s
annual report on Doing Business.
Indeed, the efforts being expended by us in this regard, have began to pay
dividends.
//The business environment
The business environment is improving and the cost of doing business is steadily
coming down. Our efforts have been recognized and acknowledged by many.
Tanzania Offers Plenty
Ladies and Gentlemen;
What does Tanzania have to offer to the British investor or businessman? I don’t
know what is it that I would say that a UK investor does not know? The UK and
Tanzania have a relationship that spans close to 90 years now. Moreover as you
may have been told the UK to date is our biggest source of foreign investments.
So you know what Tanzania has to offer.
But, like a preacher who cannot create new verse in the holy scriptures, bear
with me when I tell you what may you already know. Again like preachers who
differ in the art of presentation, I hope you may find my style more appealing.
// Ladies and Gentlemen;
Ladies and Gentlemen;
Tanzania is a land with plenty of opportunities to the British investor. If
asked to prioritize in terms of sectors, I can’t. All the sectors are important,
all of them are lucrative and all have much to offer.
Mining
Ladies and Gentlemen;
There are abundant natural resources to exploit. There are plenty of mineral
resources in Tanzania. Mention almost any mineral Tanzania has it. For some
minerals Tanzania is blessed to have abundant reserves. I would like to
recognize gold, gemstones, precious metals and a list of industrial minerals. In
gold mineralization Tanzania is third to South Africa and Ghana in Africa.
However, Tanzania is leading in terms of attracting more foreign investments in
mineral exploration underscoring the significance of the mining sector in
Tanzania. We are an emerging market. You never know what position we may hold in
the few years to come when the on-going exploration matures into exploitation.
In gemstones there is diamond and many precious stones such as ruby, emeralds
and the beautiful rare stone Tanzanite found only in Tanzania.
//There is plenty of coal,
There is plenty of coal, iron ore, nickel and cobalt yet to be touched. So
those of you who an interested in investing in the mineral business you are very
welcome. You will not regret both in terms of resource availability and the
fiscal packages associated with mining in Tanzania.
I would like to make a special mention of oil and gas exploration in Tanzania.
There are prospects for oil and gas in the country. So far there has been
sizeable gas finds in two places at Songo Songo in Kilwa District and at Mnazi
Bay in Mtwara District. There is a lot of exploration activity that is going on,
on shore, in shallow waters and in deep sea. There are few more blocks to
allocate in the three prospective areas. Please come and try your luck. You
never know you could be the lucky one to strike the black gold.
Agriculture
Agriculture is another sector that offers plenty of opportunity to the investor.
Tanzania has 44 million hectares or 100 million acres of arable
//land of which
land of which only 6 per cent is under use now. Fortunately most parts of the
country receive good rains and many areas are well watered in terms of rivers,
lakes and ground water. Besides that, Tanzania is blessed with good climatic
conditions. All the earths climatic zones do exist so one can grow tropical
crops, as well as temperate and semi temperate crops.
Ladies and Gentlemen;
Allow me to mention two types of crops that we are now keenly promoting. These
are cut-flowers and bio-fuel plants. Please come and join hands with us. There
is land and we are ready to offer government support.
Manufacturing
Ladies and Gentlemen;
Tanzania is implementing a development strategy famously known as
//Vision 2025.
Vision 2025. The target is to diversify the Tanzanian economy and build a
substantial industrial sector so that by 2025 Tanzania becomes a middle income
country.
In pursuit of that goal we have decided to establish Export Processing Zones and
Special Economic Zones to act as ponds for attracting investments for the
manufacturing and service industry. We offer the most attractive incentives in
these ponds. Please come and make use of these facilities for our mutual
benefit.
Service Sectors
Ladies and Gentlemen;
Opportunities abound in the service sector as well. I see tourism, trade,
transport, telecommunications and information and communications technology as
sub sectors I would implore you to give special attention.
In tourism, there is the business of marketing Tanzania as a premium tourist
destination. There is also the business of sending tourists to
//Tanzania.
Tanzania. There is as well the business related to tourist infrastructure
like the construction of hotels in towns and at the tourist sites like beaches
and game parks. With regards to hotels there are sites in game and beaches
parks, we encourage you to take interest and build first class hotels.
In trade there is the whole aspect of making Tanzania a trading hub for the
region. Tanzania borders landlocked countries like Rwanda, Burundi, Malawi,
Zambia, Uganda as well as Eastern DRC which use Tanzanian territory for their
import and export trade. Many people from these countries source a lot of goods
and services from Tanzania. That’s why I see a lot of prospects in someone
making Tanzania a hub for his or her regional business. There is almost a
captive market to benefit from. Besides trade, there are huge prospects in
transportation business especially in freight to move goods to and from these
nations.
//Ladies and Gentlemen;
Ladies and Gentlemen;
The information and communications technology is a new area of business with a
lot of prospects. It is just beginning and growing at a very fast pace. There is
big demand for all services related to ICT. Please take interest in this
sub-sector too. You will not regret.
The financial services sub-sector is another area that presents good business
opportunities. There are already several banks and insurance companies majority
of which are foreign. There is still a lot of room for the various components of
the financial services for one to invest in and make huge benefits.
Guarantees
I know, Ladies and Gentlemen, in the minds of an investor or a business man
availability of the market and guarantees of protection of his or her investment
is very critical. I would like to assure you that when one invests in Tanzania
there is big market to benefit from.
//We are part
We are part of the East African Community with Kenya, Uganda, Burundi and
Rwanda. There is a market outreach of 100 million people with a duty free
arrangement for goods and services produced in a member state like Tanzania.
There is also the 300 million people market of the Southern African Development
Community with 14 other countries like South Africa, Angola, Namibia, Zimbabwe,
Lesotho. Swaziland, Botswana, Zambia, Malawi, Mozambique, the DRC, Mauritius and
Madagascar. Here too preferential trade arrangements are being worked out.
Besides these markets, there is the US, Canada, China, Japan, EU markets where
Tanzanian produced goods enjoy preferential treatment. Duty free and quota free
entry. So, please come and take advantage of these benefits.
Ladies and Gentlemen;
With regards to protection of investments I want to give you the
//assurance that your investments
assurance that your investments are safe in Tanzania. There is no more
nationalization. Have no fear, there has been a transformation of both ideology
and policy. We are pursuing market based policies and promotion of the private
sector is a cardinal policy and a major preoccupation. The fact that I travel
with the private sector representatives wherever I go these days is testimony to
the changed times and policies.
Tanzania subscribes to known instruments and mechanisms for protection of
investments. We have an investment promotion and protection agreement with the
Government of the United Kingdom. There is also the agreement on avoidance of
double taxation.
At the multilateral level Tanzania is a member of MIGA the World Bank’s
investment guarantee agency. At the same time we are members of the Centre for
Settlement of Investment Disputes that is based in Geneva. All these underscore
our commitment to guaranteeing the protection of your investments and
businesses.
//Ladies and Gentlemen;
Ladies and Gentlemen;
Things are pretty fine with us. Tanzania is a unique investment destination with
unique opportunities. I hope I have wetted your appetite enough to convince you
to join hands with us in doing business in Tanzania. I extend a warm welcome to
you. Come one, come all. We will be there to receive you with open arms. Looking
forward to meeting you in Tanzania soon. I conclude full of anticipation for
hearing the good news from this historic meeting. Best of luck.
I thank you for your kind attention! And I wish you fruitful discussions!
Tanzania,
is a country on the east coast of east Africa. 
