MINISTER for Foreign Affairs and
International Cooperation Dr Augustine Mahiga (left) and his UAE
counterpart Ms Reem Ebrahim Al Hashimy, sign a joint agreement on air
transport in Abu Dhabi( file photo).
SINCE the United Arab Emirates (UAE) and Tanzania established their diplomatic relations in 1974, the two countries have been maintaining robust, evolving ties.
Basically, UAE is among Tanzania’s top five import partners headed by China representing 12 per cent of total imports, followed by Switzerland (8.8 per cent), South Africa (8.5 per cent), UAE (8.4 per cent), and India (7.6 per cent).
For the past four years since his appointment in 2014, Mbarouk Nassor Mbarouk as the Ambassador Extraordinary Plenipotentiary of the United Republic of Tanzania to the United Arab Emirates, the bilateral trade relation between Tanzania and the UAE has been excellent and a strong bond has been formed between the two states considering the New Tanzania Foreign Policy of Economic Diplomacy. In 2015, during his interview with The Gulf Today, the ambassador pointed out the great role of the Tanzanian embassy in facilitating trade particularly in the energy sector.
“At the Embassy and at our Consulate in Dubai, we play the role of a facilitator. We disseminate information on tenders, licensing rounds announced, technical meetings and exhibitions being organized in both countries.
We also announced the fourth licensing round for the exploration blocks in offshore Tanzania for gas exploration for companies in the UAE to participate in the bidding process. Here, we invited institutions and companies from Tanzania to participate in the World Future Forum held in Abu Dhabi,” said the ambassador.
UAE is Tanzania’s primary trade and investment partner in the Gulf Cooperation Council (GCC) followed by Oman. From 2003 to 2016, UAE’s direct accumulative investment in the Tanzania rose to USD 991.5million.
The trade balance between UAE and Tanzania stands at around USD2billion annually. In 2013 Tanzania imported $1.14 billion worth of goods from the UAE with 53 per cent of that being refined petroleum products; while in 2013 the UAE imported $85 million worth of goods from Tanzania, mainly agriculture products. Exports from Tanzania to UAE recorded USD 84.6 million representing 62.9 per cent of the total sent to GCC in 2013 up from USD 15.5 million representing 41.16 per cent of the total sent to GCC in 2003 according to the Massachusetts Institute of Technology (MIT).
Tanzania’s Foreign Direct Investment (FDIs) especially in the Petroleum and Gas sector remains strong as several foreign establishments are focusing their attention towards the country that has become a potential investment destination.
It can be remembered that, in 2014 Emirates National Oil Company (ENOC) Africa won a competitive tender to import fuel as a part of the Petroleum Bulk Procurement System (BPS) and is preparing to expand its Tanzania oil program in future.
ENOC Africa takes note of the steadily increasing trend of economic development of Tanzania in the next few years, and recognizes the need for state-of-the-art storage facilities, at industry affordable costs for the wholesalers, in the region,” the ENOC Africa Managing Director, Arshid Esmail was quoted as saying.
Another sector whereby UAE has invested in Tanzania is transport. Various Emirate airlines operate from the UAE to Tanzania. Currently, two airlines namely: Emirates and Flydubai operates from Dubai. But in 2014, Etihad Cargo, a UAE airline and freight carrier, began a weekly freight service to Julius Nyerere International Airport in Dar es Salaam.
The Airbus 330-200 freighter that can carry up to 64 tonnes is also used for weekly flights on the Abu- Dhabi–Dar es Salaam–Nairobi– Abu-Dhabi route. Etihad Cargo is expecting in future to capitalize on the import and export demand of Tanzania by importing more manufactured items such as electronics, medical equipment and some food items to Tanzania.
Likewise in 2015, Etihad Airways, UAE national airline, started its direct daily flights to Tanzania’s commercial capital, Dar es Salaam to tap the growing flow of business and leisure travelers between East Africa, the Indian Subcontinent and China. The new route from Abu Dhabi to Dar es Salaam which became the 117th airline’s destination in the world, 11thin Africa and the Indian Ocean started to operate.
These UAE air links are vital for the Tanzanian economy as they facilitate business and bring in tourists. In December 20th 2016, the United Arab Emirates (UAE) and Tanzania signed an Air Transport agreement and a Memorandum of Understanding (MoU) for enhanced cooperation in tourism development.
According to the air transport agreement, the two nations signed to allow international commercial air transport services between their territories. The agreements were signed at the first ministerial meeting of the UAE-Tanzania joint higher committee in Abu Dhabi on December 20th, 2016.
At the meeting, the two countries also recognized the importance of concluding negotiations regarding the agreement on promotion and protection of investment and the agreement on avoidance of double taxation on income.
The latest diplomatic meeting was co-chaired by the UAE Minister of State for International Cooperation, Ms Reem Ibrahim Al Hashemi, alongside Tanzania’s Minister of Foreign Affairs and East African Cooperation, Ambassador, Dr Augustine Mahiga.
“Barriers that hinder free flow of investment between the two trading partners should be removed,” said Mr Al Hashemi. Tourism is one of Tanzania’s largest foreign exchange earner and today is almost the number one sector of the economy.
The government expects to make the sector the top contributor to GDP by 2025. The Gulf countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE are potential tourist markets for Tanzania. These GCC countries have a large expatriate population that forms an interesting potential market for Tanzania and they are relatively close and easily accessible, both by air and sea besides land. In fact, there are a lot of investment opportunities in the local tourism sector.
Investors from UAE are therefore encouraged to invest in accommodation facilities in protected areas and major cities and towns located near tourist attractions. (Continues tomorrow)
- Mohamed Mansour is an Assistant Lecturer at the Department of Geography and Regional Economy, and a PhD candidate in Economics at Patrice Lumumba University in Moscow. Email: mohamedmansour350@ gmail.com; Mob:+255719945141
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