Reasons French firms want to invest in Tanzania

Dar es Salaam. The appetite of French companies to invest in Tanzania is growing, with 13 operators of Small and Medium Enterprises (SMEs) from France making a three-day visit in search of market and business opportunities in the East African nation.

The France ambassador in Tanzania, Mr Nabil Hajlaoui, said on Tuesday that during the visit that started on Monday this week (November 20, 2023), the SMEs conducted personalised and business-to-business meetings with their Tanzanian counterparts in both the public and private sectors. The delegation comprised those from the construction, healthcare, aeronautics, and services sectors.

He said the visit illustrates that French companies have a positive perception of Tanzania and the pro-business policies of President Samia Suluhu Hassan.

“SMEs are the core of the French business network. They are very dynamic and offer a wide range of products that can suit the demand in Tanzania,” he said.

“They are eager to engage with their Tanzanian counterparts to learn from them and improve their products to make them more suitable for the Tanzanian market,” added Ambassador Hajlaoui.

The 13 firms are accompanied by the French Public Investment Bank, Boifrance, whose main role is to finance companies at each stage of their growth through loans, guarantees, and equity.

Boifrance’s Regional Manager for Eastern, Southern, and Indian Oceans, Mr Mourad Chouiqa, said the bank is ready to connect businesses from Tanzania and France, especially through the export credit solution and credit guarantees.

“We have already financed projects here in Tanzania in logistics and agro-business, and we are willing to support and finance projects in the private or public sector,” he said.

Business France, a French government agency, was also part of the delegation to support companies in finding commercial partners in targeted markets, paving the way for them to sign trading agreements and generate sustainable export growth.

According to the Tanzania Trade Development Authority (Tantrade), the trade between Tanzania and France is in favour of France. By 2021, Tanzania will import an average of $80.14 million per year, and the main imports are machinery and mechanical appliances, parts of aircraft/spacecraft, petroleum oil lubricants, malt, plastics, smartcards, electrical machinery, and pharmaceutical products.

While the exports by 2021 were only $17.7 million, primarily agro-products.