Why joint venture projects will define Tanzania's economic future

Dar es Salaam. Tanzania registered 61 percent of joint investment projects between September and December last year, thanks to the conducive business environment that now exists in the country.

The Tanzania Investment Centre (TIC) said on Friday, April 12, 2024, that joint ventures often enable growth without requiring Tanzania to borrow funds or look for foreign investors.

TIC said the biggest advantage of joint ventures was the facilitation of rapid business growth, increasing productivity, and generating great profits.

The new revelation was made by the TIC Executive Director, Mr Gilead Teri, when addressing a press conference on Friday, April 12, 2024.

The event was organised to present an incentive certificate for the joint investment project between Mwanza’s Tanzanite Hospital and ES Health Africa Pvt. Ltd. of India, which has injected $5 million, which is equivalent to Sh12.5 billion.

“We have witnessed significant strides in the investment involving the joint venture initiated by both Tanzanians and foreigners, which is a testament to the government's commitment to bolstering investments by facilitating partnerships with foreign investors,” he said.

“We congratulate the local hospital for identifying and seizing this opportunity,” added Mr Teri.

He emphasised that joint venture investments play a pivotal role in enhancing various services in the country and that the influx of expertise helps locals deliver top-tier services.

Consequently, Tanzanians anticipate that the Tanzanite Hospital will elevate the standard of its services, potentially serving as a haven for those currently seeking expensive medical treatment abroad.

“This centre presents an opportunity for a local project or business development partnership; there is a growing awareness in the healthcare sector, and we are currently in discussions with a cancer hospital in Mauritius to explore a joint venture project with a local hospital,” he said.

The chairman of Tanzanite Hospital, Mr Jared Awando, said: “Recently, President Samia Suluhu Hassan introduced health tourism, thus receiving an invitation from the TIC to visit India. Through the visit, we have secured a partnership that will enhance our health services.”

He elaborated that following the signing of the agreement in January this year, a group of nine specialist doctors from India arrived in the country on Thursday this week.

Furthermore, he said the specialists will offer different services locally instead of following the same abroad.

“Starting next week, the doctors will commence providing services. It's noteworthy that Tanzanians often spend significant sums seeking treatment abroad, including accommodation costs. However, we have decided to bring these services to make them easily accessible and affordable,” he insisted.

The ES Health Africa Pvt. Ltd. chairman, Mr Yash Shah, said half of their investment has been used for the procurement of medical equipment and bringing in new technology.

He expressed the company’s readiness to further invest in Tanzania to enhance the quality of healthcare services and the need for citizens to travel abroad for treatment.

“By offering services locally, we contribute to Tanzania's economic growth. Looking ahead, we are considering expanding our services and attracting more investments to Tanzania,” he concluded.