In strengthening trade ties Tanzania and Switzerland opened their joint Chamber of Commerce on February 27, 2023. PHOTO | COURTESY
Business journalist
Summary
· The areas agreed upon include value addition, increasing mineral trade volume, strengthening trade links, enhancing technology transfer, and strengthening air transport ties
Dar es Salaam. Tanzania and Switzerland have agreed on key issues to
boost bilateral trade, which currently stands at $415 million (about Sh954.5
billion).
The areas agreed upon include value
addition, increasing mineral trade volume, strengthening trade links, enhancing
technology transfer, and strengthening air transport ties., The Citizen
understands.
Going by the data from the Federal
Office for Customs and Border Security, trade volume between the two countries
decreased by $183.3 million (about Sh421.6 billion) last year compared to a
year before.
The trade volume fell from $598.3
million (about Sh1.4 trillion) in 2021 to $415 million (about Sh954.5 billion)
last year, a trend that calls for an intervention from both parties. The
Citizen’s efforts to establish the triggering factors for a downward trend
proved futile. Despite a downward trend, trade between the two is still in
favour of Tanzania, with last year’s exports to Switzerland being quoted at $376
million (about Sh864.8 billion), far above the comparable imports of $39
million (about Sh89.7 billion).
While Tanzania exports, among
others, minerals and agricultural products to Switzerland, the latter exports
to the formal, chemical, and pharmaceutical industries products such as
automatic data processing machines as well as machines, appliances and
electronics.
Tanzania Private Sector Foundation
(TPSF) chairperson Angelina Ngalula said in last week’s meeting with
Switzerland State Secretary for Economic Affairs Helene Artieda, they agreed
that value addition will increase the value of the country’s goods. Despite the
bilateral trade being in favour of Tanzania, Ms Ngalula said: “We still export
raw materials and import finished goods.”
This suggests that if Tanzania
embraces value addition, it will be in a better position to do even better. Ms
Ngalula also said that as long as minerals are in high demand in Switzerland,
the two countries agreed that more of the product should be exported.
On top of that, they agreed that
strengthening the air transport network between the two will stimulate the
economy through trade and tourism. Again, they said that since Switzerland is
technologically more advanced than Tanzania, technology transfer will shape the
country’s production of goods and services.
“Above all, we need to extend our
relations from development projects to strong trade ties,” concluded Ms
Ngalula.
The discussion on how to boost trade
came shortly after the official launch of the Switzerland–Tanzania Chamber of
Commerce (STCC), a part of wider efforts to boost trade between the two
countries. For her part, Ms Artieda, said the Chamber of Commerce could serve
as a platform for businesses from Switzerland and Tanzania to explore new
opportunities for growth and development.
She went on to say that the new
development could serve as an entry point for new investors and businesses
interested in Tanzania.
“The establishment of the
Swiss-Tanzania Chamber of Commerce is a crucial step towards our shared endeavour
of closer economic ties,” said Ms Artieda.
She went on to add: “The launch of
the chamber of commerce is a reflection of the growing significance of Tanzania
as a trade partner and destination for Swiss investment.” She commended the
concerted efforts made to improve the business environment in Tanzania and
attract foreign companies and foreign investments in the country.
“Good progress has been achieved
already, but we all know that more can and should be done in order to fully
unlock the country’s true potential for the greater good of all,” observed Ms
Artieda.
Speaking last week during the launch
of STCC, Ambassador of Switzerland to Tanzania Didier Chassot exuded his
optimism that STCC will promote economic cooperation and opportunities between
the two countries.
“I am optimistic the STCC will act
as a gateway for Swiss and Tanzanian businesses to spur investments to Tanzania
and advance economic relations,” asserted Mr Chassot.
The STCC will be a platform for
organisations to connect and exchange, develop business and investment
opportunities, and build and maintain economic bonds between the two countries.
Investment, Trade and Industry
deputy minister Exaud Kigahe urged the business communities of Tanzania and
Switzerland to use the just-launched chamber of commerce as a bridge to
facilitate win-win business between the two parties.
“With the inauguration of this
chamber of commerce, we hope the interests of companies and investors from both
countries will be well represented,” said Mr Kigahe at the unveiling of the
STCC here in the city. This, he added, will even attract more businesses and
make it easier for them to access the Tanzanian-Swiss markets, continuing to
strengthen economic cooperation.
He welcomed the Swiss companies to
come and invest in the sectors of manufacturing, tourism, agriculture,
fisheries, livestock, mineral processing, pharmaceuticals, and the blue
economy. “Tanzania is a good place for investment, and I am convinced Tanzania’s
commercial bonds with Switzerland have a promising future,” pointed out Mr
Kigahe. Switzerland and Tanzania have a long history of mutually fruitful
collaboration and people-to-people relations dating back nearly 100 years. Over
the decades, the two countries have developed strong partnerships through
political exchanges, development, and economic cooperation.
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