Tanzania, US sign MoU to boost trade through commercial dialogue

Dar es Salaam. The Tanzanian government and the US Embassy yesterday signed a memorandum of cooperation (MoU) for a commercial dialogue that will, among other things, improve regulatory and business climate reforms to boost trade between the two countries.

Minister for Industry and Trade, Ashantu Kijaji, said during the signing ceremony that business between the two countries has not been good because of the laws that govern trade and the business environment.

"The private sector should use this opportunity well, including stating areas that are challenging in doing business and having a dialogue with their counterparts to see what needs to be improved, especially as we know that Tanzania is endowed with many resources that have potential for investment in industries," she said.

Kijaji underscored the government's political will to host investors from the US to invest in industries that will add value and create jobs for the youth in Tanzania using the country's raw materials.

She said areas of dialogue that they have agreed on include the digital economy, market access that will enable businesses in Tanzania to export their products to the US and vice versa, regulatory and business climate reforms, trade exhibitions, and missions.

She said through the agreement, areas of focus include steps to develop small and medium-sized enterprises (SMEs) that have not been able to benefit from the African Growth and Opportunity Act (AGOA). In 2022, Tanzania's exports to the US were very low, she noted.

Kijaji said more efforts were needed to expand business and believed that the agreement would enlarge business between Tanzania and the US.

Meanwhile, speaking during the occasion, U.S. Ambassador to Tanzania Michael Battle said the commercial dialogue is a demonstration of the importance that Tanzania and the US government together place on growing the trade relationship between the two countries.

"At the heart of this commercial dialogue is the commitment by the governments to build a stronger, more robust, and equally beneficial trade relationship," he said.

Battle noted that the MoU underscores the pivotal roles of the public and private sectors in deepening the trade relationship. He said the agreement ensures that companies play a significant role by providing input and advice on how the two governments can better prepare, assist, and bolster the private sector to expand and conduct trade.

He explained that the commercial dialogue commits both countries to an annual meeting with senior-level government and private sector officials, where they will have the opportunity for face-to-face dialogues with both private and public stakeholders.

"This open dialogue gives us the tools to effectively identify challenges and implement solutions. It is the US strong belief that economic growth and good governance go hand in hand; strong economies beget strong democracies," he said.

Battle said the US-Tanzania bilateral relationship is broad and varied. The US invests in the people of Tanzania through engagements in health and education.

"The US is the number one source of tourists to Tanzania outside Africa; our companies are exporting high-quality goods that are improving the lives of Tanzanians all over the country, and Americans are benefiting from the products being exported from Tanzania to the US every day," he said.

The Confederation of Tanzania Industries (CTI) Chairman, Leodgar Tenga, said the private sector is happy to witness the agreement because it will develop trade partners that ensure products produced get markets.