Tanzania, EU renew commitment on trade and investment

Dar es Salaam. Tanzania and the European Union (EU) have reaffirmed their commitment to strengthening economic cooperation, focusing on trade and investment as drivers of sustainable development.

This follows a high-level dialogue held in Dar es Salaam on Tuesday, December 10, 2024, and which brought together Tanzanian ministers and EU ambassadors to discuss strategies for deepening their partnership.

The Tanzania and European Union Partnership Dialogue marked a significant milestone in a relationship that has existed since 1960.

Co-chaired by Tanzania’s Deputy Minister for Foreign Affairs and East African Cooperation, Mr Cosato Chumi and the EU’s Managing Director for Africa at the European External Action Service, Ms Rita Laranjinha, the meeting covered various issues, including trade, governance, democracy and regional security.

Mr Chumi emphasised the importance of the partnership, noting that the EU remains one of Tanzania’s most significant economic and development partners.

“We expressed our commitment to enhancing access to EU markets for Tanzanian products and attracting more investment from the EU in strategic sectors such as renewable energy, industrialisation and infrastructure development,” he said.

Ms Laranjinha echoed this sentiment, highlighting the EU’s longstanding support for Tanzania’s development agenda.

“Over the last ten years, the EU has invested an estimated €3 billion (Sh8.3 trillion) in Tanzania, generating jobs and tax revenue. The EU’s private sector plays a vital role in sectors like tourism and infrastructure, supporting tens of thousands of local businesses,” she said.

The dialogue underscored the EU’s commitment to supporting Tanzania’s economic growth through trade and investment.

Read: EU envoy lists key areas of partnership with Tanzania

The EU is one of Tanzania’s largest trading partners and a major source of foreign direct investment.

Ms Laranjinha noted that the EU’s Global Gateway strategy would further strengthen ties, enabling significant investments in critical sectors in Tanzania.

In 2023, EU citizens made up 70 percent of the 400,000 tourists who visited Zanzibar, underlining the EU’s impact on Tanzania’s tourism sector. The EU is also a major private sector investor in Zanzibar, contributing significantly to the archipelago’s economy.

“The EU is committed to continuing its support and working at the technical level to address trading impediments. We welcome Tanzania’s acknowledgment of the Global Gateway as a game changer and will collaborate closely on its implementation,” said Ms Laranjinha said.

The dialogue also touched on the EU’s financial commitments to Tanzania’s development. Under the current Neighbourhood Development Cooperation Instrument, the EU has pledged €726 million (Sh2 trillion) for 2021-27, complemented by bilateral support from EU member states amounting to €1.2 billion for 2021-24.

These funds, according to Ms Laranjinha, will support Tanzania’s national development priorities, including the ongoing Five-Year Development Plan and Vision 2050.

The diplomat assured that additional regional funding would be available for 2024-27, opening opportunities for increased investments. “This will further strengthen Tanzania’s position as a regional hub for trade and investment,” she said.

Both parties acknowledged the importance of regional economic integration. Tanzania and the EU reaffirmed their commitment to boosting intra-regional trade and supporting East African Community (EAC) integration processes.

“The EAC is an important export market for Tanzania and further trade facilitation is a key objective of our cooperation,” said Mr Chumi.

Read: Tanzania moves to safeguard access to EU coffee market

He added that resolving trade and investment barriers would be vital for fostering economic growth and stability in the region.

On governance and democracy, the dialogue provided an opportunity to discuss recent developments in Tanzania, including the local government elections.

Ms Laranjinha emphasised the importance of inclusive, transparent and credible elections.

“The EU hopes that Tanzania will work towards a level playing field for all parties in the lead-up to the 2025 general election. This will be crucial for reinforcing democratic principles,” she noted.

Mr Chumi reiterated Tanzania’s commitment to improving governance under the leadership of President Samia Suluhu Hassan.

“We have highlighted the significant changes achieved through the 4Rs initiative, demonstrating our dedication to good governance and democracy,” he said.

As global and regional security challenges persist, Tanzania and the EU agreed to enhance dialogue on maritime security, organised crime and counterterrorism.

Ms Laranjinha welcomed Tanzania’s request for assistance under the European Peace Facility to support its peace and security initiatives in the Great Lakes region and Northern Mozambique.

“Our cooperation on security will address shared challenges and promote stability, which is essential for economic growth and development,” she said.

The dialogue concluded with both parties reiterating their commitment to multilateralism and sustainable development.