EU to inject $574m in women-led businesses in Tanzania

Tanzania's Vice President Phillip Isdor Mpango speaks during the Tanzania-EU Business Forum in Dar es Salaam on February 23, 2023. PHOTO | BEATRICE MATERU | NMG

By BEATRICE MATERU

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The European Union, through the Europe Investment Bank, has entered into an

investment deal with Tanzania that will unlock over $574.4 million worth new business investments in women-led businesses and the blue economy agenda.

The investment is meant to facilitate businesses and projects in different areas including electricity, clean energy, regional airports, Dar es Salaam port, clean water around Lake Victoria and the blue economy agenda in Zanzibar.

This was revealed by the bank’s Vice President Thomas Östro during the opening ceremony of the Tanzania-EU Business Forum on Thursday in Dar es Salaam.

“After a seven-year gap, it is great to be back in Tanzania. These new investments are specifically targeted to support the blue economy and dedicated to finance women-led businesses and entrepreneurs. My colleagues and I are also looking forward to discuss further investment and business opportunities in Tanzania,” he said.

Tanzania also used the platform to market its potential investment areas of agriculture, tourism, the energy sector, manufacturing, logistics and technology to European businesses in a joint business forum with the EU.

“Tanzania is a de facto gateway to and from landlocked countries, making it a strategic investment hub. We welcome investors in our potential investment areas including agriculture, tourism, logistics and energy sector including oil and gas exploration in Zanzibar, different power sources such as wind and water. ICT is also another area posing potential investment for the EU,” noted Tanzania's Vice President Phillip Isdor Mpango.

The EU-Tanzanian Business Forum brought together high-level dignitaries and businesses from across the host country and various European countries. The forum was jointly organised by the European Union in Tanzania, together with the government of Tanzania, in cooperation with the EU member states and the Tanzanian private sector.

“Tanzania values very highly the good and cooperative relations we have had with the European Union since the 1970s and the support we have been getting from EU to complement our development efforts,” said Dr Mpango.

Data shows that Tanzania has so far received support and investment from the EU to a tune of more than $1 billion.

“But special mention goes to the vaccine support we received from EU which was much needed,” added Dr Mpango

Tanzania signed three investment deals with European Union institutions including an MoU on air service agreement between France and the Tanzania Civil Aviation Agency.

The air service agreement will allow the airlines of both countries to increase the number of flights between them.

Air France will benefit from it as it plans to increase the number of flights to Tanzania with the incoming inauguration of a direct flight between Dar es Salaam and Paris in June 2023.