The European Union (EU) has maintained its position as Tanzania’s largest trading partner, with two billion US dollar (over 4trn/-) trade volume last year, a new report has revealed.
According to the "European Investment in Tanzania: How European investment contributes to industrialisation and development in Tanzania 2016," report, the European companies also account for 68 per cent of the total Foreign Direct Investments in Tanzania.
Launching the report in Dar es Salaam yesterday, EU Head of Delegation to Tanzania and EAC, Ambassador Roeland van de Geer, noted that the EU companies were also the largest taxpayers, paying 1.1 billion US dollars (over 2tri/-) in domestic tax in 2014, about 25 per cent of the total taxes paid by large taxpayers in the country.
"This goes to show that the over 1,000 European companies and individuals from large multinational corporations to small individual tourism ventures play a significant part in the development of the Tanzanian economy," he said.
"This publication discusses the competitive edge that Tanzania has in trade, investment and production and the challenges that are currently faced. It also contains clear recommendations on the way forward. EU is committed to continue working with Tanzania and strengthening ties between our regions.
" The European companies have invested in energy, tourism, transport, banking, oil and gas, agriculture, mining, retail and trade, ICT, manufacturing and construction sectors. The envoy said the European private sector is well represented in almost all sectors of the Tanzania’s economy, with crucial impact on revenue collection and job creation.
"These are the best long term solutions for poverty reduction," he said. EU Business Group Chairman, Mr Morten Juul, noted at the launching ceremony that Tanzania offers peaceful and stable environment, abundant natural resources and favourable geographical location.
"There are ample opportunities for European investors to work alongside local investors to create an active and successful private sector and continue to build the economy," he said.
“We hope that through continued dialogue we can build an environment that further supports the EU investments in the country and we are willing to share our skills and experiences to address the current business impedi- Continues on Page 3 ments," said Mr Juul.