Posted: August 17, 2019
South Africa and Tanzania to Prioritise Red Tape that Hinder Trade
|The business sector from both South Africa and Tanzania committed to working together in order to prioritise and find solutions that will eliminate red tape that hinder investment and trade. The commitment emanated during the Tanzania-South Africa business forum that was hosted in Dar es Salaam, Tanzania.
The business forum which was held on the sidelines of the State Visit by President Cyril Ramaphosa to Tanzania was meant to encourage the private sector from both countries to explore and discuss opportunities for future partnership and investment in different sectors.
The Executive Director of Tanzania Investment Centre, Mr Geoffrey Mwambe said there were a lot of investment opportunities that can be explored by both countries and accelerate intra-trade, but red tapes and bureaucracy still remains a major challenge.
“Both countries need the private sector to grow the economy and create sustainable jobs, therefore, it is very important that government create an environment that will make it easy for businesspeople to foster these relationships and form trade partnership,” said Mwambe.
Speaking at the same forum, the head of Solomon Mahlangu Freedom College (SOMAFCO) Trust Mr Tlholohelo Mohlathe said that South Africa brought along business partners who were ready to make concrete investment proposals to be implemented in partnership with Tanzanian entrepreneurs.
“The businesses that we brought to Tanzania are looking invest in projects that will impact and change people’s lives. These companies supported by the Development Bank of Southern Africa (DBSA), our state owned Development Finance Institutions, are seeking to support Tanzania’s President John Magufuli’s inspirational drive to develop Tanzania’s infrastructure such as energy, ports, rail and road. One of the companies is already training Tanzanian train conductors in South Africa. Others want to invest in cashew nut processing factories and renewable energy,” said Mohlathe.
Mohlathe also said SOMAFCO is currently working with global consulting engineering firm Aurecon to launch a precinct project that will not only preserve and promote South Africa and Tanzania heritage, but also contribute to unlocking the economic potential and implement projects that will contribute towards the attainment of higher and sustainable growth economic growth in Morogoro and other parts of Tanzania.
Earlier President Cyril Ramaphosa together with his Tanzanian counterpart, John Magufuli addressed the Business Forum.
Last year South Africa’s export to Tanzania amounted to R5.8 billion, whereas imports from Tanzania amounted to R479 million. South Africa exports to Tanzania are predominantly in the areas of manufacturing, machinery, mechanical appliances, paper, rubber products, vehicles, iron, steel, and including services and technology. On the other hand, imports from Tanzania are mainly gold, coffee, cashew nuts, and cotton. There are over 170 South African companies operating in Tanzania across all sectors of the economy.