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Bilateral Relation | Tanzania High Commission - New Delhi

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BILATERAL RELATIONS
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EP-15C, Chanakya Puri


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OVERVIEW
India and Tanzania are closely linked through diverse geographical, historical, cultural, political,
economic, commercial and other ties. Geographically both are neighbours across Indian Ocean.
Evidence shows that even before Vasco da Gama discovered the sea-route to India via Cape of
Good Hope (Cape Town), Indians and East Africans were in close contact with each other through
trade and cultural ties. It is said that fishermen off the coast of Tanganyika guided Vasco da Gama
in his exploration trip to India in 1498. Long time back, the Indian Ocean was a great highway of
commercial interaction, trade and navigation for Indians as well as peoples from the East African
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Coast. It is also said that Mahatma Gandhi, the father of the Indian nation, at the end of the 19th
Century stopped in Zanzibar and Dar es Salaam on his way to or from South Africa. Trade
relations in turn led to cultural interaction.
The close cultural contacts between India and East Africa, particularly Tanzania is clearly evident
from the fact that Kiswahili, the official language of Tanzania has a considerable mix of Indian
words.

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India established its Diplomatic Mission in Tanganyika in 1961, even before Tanganyika became
independent. Tanzania (by then known as Tanganyika) established its Diplomatic Mission in India
in 1962, immediately after Tanganyikas Independence in 1961. India-Tanzania relations have
traditionally been close and friendly, characterized by active bilateral cooperation and mutual
understanding, built upon the founding fathers of our two Nations. For many years, the political
relationship was driven largely by shared ideological commitments to Anti-Colonialism, AntiRacism, Socialism, South-South Cooperation and Non-Alignment Policies. The two countries and
its people continue to enjoy the long time warm relations to-date.
The First President of the United Republic of Tanzania Late Mwalimu Julius Nyerere is highly
reputed in India. He was conferred Jawaharlal Nehru Award for International Understanding for
1974 and in 1995 for International Gandhi Peace Prize.

Tanzania and India both initiated economic reform programmes around the same time, with
external relations designed to broaden their engagements in International Political and Economic
promotion of international business relationships and foreign investment. The old Indo-Tanzanian
political relationship has been advanced into a dynamic and successful relationship with greater
and diversified economic cooperation.

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EXCHANGE OF VISITS
Besides the exchanging visits of Foreign Ministers and other high level Government Dignitaries,
the two countries have also witnessed the exchange of visits of their high level Government and
Political Leaders as shown below:

TANZANIA HIGH LEVEL VISITS TO INDIA


No

Name

Year

1.

President Mwalimu J.K. Nyerere

1971,
1982,
1985,
1996

2.

First Vice President and President of Zanzibar,


Aboud Jumbe Mwinyi

1973,1977,1978

3.

Prime Minister Rashid Mfaume Kawawa

1975

4.

President Ali Hassan Mwinyi

1989,1993

5.

Prime Minister Edward M. Sokoine

1980

6.

President William Benjamin Mkapa

2002

7.

President of Zanzibar Amani A. Karume

2004

8.

Vice President Dr. Ali Mohamed Shein

March, 2008

9.

President Jakaya Mrisho Kikwete

April, 2008

1976,
1983,
1988,

1981,
1984,
1991,

(As Co-chair of the India-Africa Forum Summit)


10.

Prime Minister Mizengo Peter Pinda

September, 2009

11

1st Vice President of Zanzibar H.E. Seif Sharif


Hamad

September 2011

INDIA HIGH LEVEL VISITS TO TANZANIA


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No

Name

Year

1.

President V.V. Giri

1972

2.

Vice President Dr. G.S. Pathak

1974

3.

Vice President D.B. Jatti

1975

4.

Prime Minister Indira Gandhi

1976, 1980

5.

Prime Minister Rajiv Gandhi

1986

6.

President R. Venkataraman

1989

7.

Prime Minister I.K. Gujral

1997

8.

President Abdul Kalam

2004

9.

Dr. Manmohan Singh

2011

INDO-TANZANIA BILATERAL CO-OPERATION FRAMEWORK


The first Indo-Tanzania Trade Agreement was signed in 1966 and thereafter since 1975, India and
Tanzania agreed to widen up their interaction on economic, political and cultural relations through
a Joint Permanent Commission (JPC) and later through a Joint Trade Committee (JTC) as well.
Our two Governments have created several Institutional arrangements and Protocols for
facilitating Indo-Tanzania Cooperation and therefore, it is expected that both the Tanzanian and
Indian Public and Private Sectors will take full advantage of these arrangements to maximize in
fostering some Socio-Economic business programmes beneficial to both countries. Some of the
existing Bilateral Cooperation arrangements are as follows: Tanzania and India Governments formally interact on Economic, Political and Cultural issues
through the Joint Permanent Commission (JPC) and the Joint Trade Committee (JTC).
Tanzania and India signed a Double Taxation Avoidance Agreement (DTAA) for the first time in
1979, and a recently revised version of the Agreement has been signed in May 2011.
The two countries are currently finalizing negotiations on an Agreement on Bilateral Investment
Promotion and Protection (BIPPA).
Tanzania has since 2009 accessed the Duty Free and Tariff Preference (DFTP) Scheme recently
offered by India to Developing Countries for some specific commodities.
Following the decisions of the first Indo-Africa Forum Summit of April 2008, Tanzania is eligible to
access the USD 5.4 Bio. Line of Credit facility and USD 500 Mio. Grant Funds extended by India to
developing African Countries over a period of 5 years since 2008. To-date, Tanzania has already
accessed USD 289.56 Mio. of the Line of Credit funds, and is benefitting from the Grant Funds
through Capacity Building Programmes.
During the second Indo-Africa Forum Summit held in Addis Ababa Ethiopia from 20 25th May
2011, India announced another USD 5 Billion Line of Credit to Africa; an additional of USD 700
Million Grant Funds to establish new Institutions and Training Programmes and another USD 300
Million for development of a new Ethiopia Djibouti Railway Line.
Due to the friendship and cooperation which exists between our two countries, today a number of
ICT projects supported by the Government of India are ongoing in Tanzania and for many years
now, Tanzania is one of the largest beneficiaries under the Indian Technical and Economic
Cooperation (ITEC) Scholarship Programme and the Indian Council for Cultural Relations (ICCR)
Scholarship Programme.
Tanzania is also a beneficiary of the Indian Government supported Pan-African e-network project
covering African countries

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IMPORTANT BILATERAL AGREEMENTS


Joint Permanent Commission signed on 17th January, 1975. The Seventh JPC met in New Delhi
from 13th to 14th January 2009.
Agreement on Avoidance of Double Taxation and Prevention of Fiscal Evasion (1979). The 3rd
round of talks for review of the same was held in New Delhi from 28th-30th April 2009 and a new one
was signed in Dar es Salaam on 27 May 2011.
Agreement on Friendship and Technical, Economic and Scientific Cooperation (28th January 1966).
Air Services Agreement (1995) Talks were held in Dar-es-Salaam in April 2006 to update the
Agreement.
MOU for Cooperation in the field of Agriculture was signed on 16th December, 2002 during the visit
of President Benjamin William Mkapa to India.
Agreement in the field of Health & Medicine signed on 16th December, 2002 during the visit of
President Benjamin William Mkapa to India.
Exchange Program on Cooperation in the field of Higher Education signed on 27th April, 2003.
Trade Agreement was signed on 14 January 2000. Pursuant to the Agreement a Joint Trade
Committee was established. The second meeting of the JTC was held in New Delhi from 16th 18th
May, 2007.
MOU on Defense Cooperation signed on 1st October 2003 in New Delhi.
Duty Free Tariff Preference Scheme offered by India (Tanzania Accessed the scheme from 22nd
May, 2009).
Bilateral Investment Promotion Protection Agreement (BIPPA) The first negotiating meeting was held
in New Delhi in January, 2010. Final fine tuning of the Agreement still outstanding.
Recent announcements and signed agreements (During Hon. Manmohan Singh Visit to Tanzania
on May 2011)
India will avail US$ 100,000 Grant Money for school laboratory Equipments
India will avail US$ 10,000,000 Grant Money for Capacity building on Social and Education Sectors.
India promised to help establishing a Vocational training centre in Zanzibar
A line of Credit facility amounting to US$ 180 Million for water projects (Dar es Salaam and Coast) is
available to Tanzania.
India and Tanzania signed an agreement on Avoidance of double taxation and Prevention of Fiscal
Evasion with respect to taxes on Income.
India and Tanzania signed a Joint Action Plan between Small Scale Development Organisation
(SIDO Tanzania) and National Small Industries Corporation Ltd of (NSIC India).
Preliminary joint Venture Agreement between Apollo Hospitals and NSSF Tanzania for Building
Apollo hospital in Dare s salaam Tanzania was signed.
Also during the Indias Prime Minister Visit to Tanzania, the India-Tanzania Centre of Excellence in
Information and Communication Technology was inaugurated in Dar es Salaam at the Dar es Salaam
Institute of Technology.
MoU on cooperation between the Zanzibar Institute if Financial Administration (ZIFA) and the Indian
Institute of Applied Manpower Resources (IAMR).

NON GOVERNMENTAL AGREMENTS


Agreement on the Establishment of Joint Business Council between FICCI &ASSOCHAM, and the
Tanzania Chamber of Commerce, Industry & Agriculture TCCIA signed on 25th June 1997.
MOU between CII and the Confederation of Tanzanian Industries - CTI signed on 4th October 1996.
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Cooperation Agreement between Indian Merchants Chamber (IMC) and TCCIA signed on 11th
July, 1995.
MoU for establishing India-Tanzania Centre of Excellence in ICT at the Dar es Salaam Institute of
Technology signed on March, 2008.
MOU between the Indo-Africa Chambers of Commerce and Industry IACCI and the Zanzibar
National Chamber of Commerce Industry and Agriculture ZNCCIA signed on 28th April 2011

IMPORTANT RECENT DECISIONS IMPACTING DIRECTLY ON THE


TANZANIA-INDIA ECONOMIC RELATIONS
(i) Africa-India Forum Summit
During the first Africa-India Forum Summit which was held in New Delhi between 8th-9th April,
2008 and attended by: The Prime Minister of India;
Africa Heads of State and Government (under the Leadership of H.E. Jakaya Mrisho Kikwete, the
President of Tanzania and the then
Chairperson of AU);
Chairperson of the African Union Commission and;
The Heads of the various Regional Economic Communities (RECs) of Africa;
India announced the following decisions.
For the next five years, beginning 2008/2009 India will allocate an amount of US$5.4 Billion for
undertaking projects in Africa through extension of concessional lines of Credit. Tanzania is eligible to
access the Lines of Credit availed by India.
Over the next 5-6 years, India will allocate an amount of Grant money in excess of US$500 Million
for implementing projects in Africa focusing on human resources development and capacity building.
Tanzania is eligible to access the Grant Funds.
34 Least Developed Countries from Africa were declared to be eligible to access Duty Free Tariff
Preference Scheme (DFTP Scheme) for its exports to India. Tanzania is among these countries.
Products covered under the scheme include Cotton, Cocoa, Aluminum ores, Copper ores, Cashew
nuts, Cane sugar, Ready-made garments, Fish fillets and Non-industrial diamonds.
The second India-Africa Forum Summit was held in Addis Ababa in May, 2011 whereby India
announced the allocation of another USD 5 Billion line of Credit facility, USD 700 Million Grant
Money for Capacity Building Programmes and USD 300 Million for the development of a new EthiopiaDjibouti Railway Line.
(ii) Second Joint Trade Committee and Seventh Joint Permanent Commission (JPC)
Meetings:
During the 2nd Indo-Tanzania JTC meeting and 7th Indo-Tanzania JPC Meeting held in New Delhi
from 16th-18th May 2007 and 13th-14th January, 2009 respectively, India agreed to continue
supporting and cooperating with Tanzania in the areas of Trade and Industries including SMEs,
Agriculture, IT, Health, Education, Wildlife Management, Tourism, Water, Defense and Security.
The next JPC meeting is expected to be held in Tanzania before the end of year 2012.
(iii) Current Status of Indo-Tanzania Bilateral Trade, Investment, Tourism

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Trade
Tanzania and India are traditional Trading Partners for many decades in a variety of products. It is
gratifying to note that the Bilateral Trade Volume between India and Tanzania for the year 2010/11
has increased by about 55% compared to the previous year. In comparison to the year 2009/10
ranking, it is observed that during the year 2010/11 Tanzania remained at the same ranking as
Indias 5th Major Export destination and improved to become the 12th (from previously the15th)
Major Import Source to India from Africa.
However, despite this encouraging growth, there is still room for doing more business between our
two countries. The last JPC meeting of our two Governments which was held in January, 2009 had
set a target of reaching a total two-way trade volume of USD 1,500 Mio. by year 2012/13.

Investments
On investments, India is the biggest investor in Tanzania from Asia and is among the top 3
investors in Tanzania from all over the world by accumulated value for the period 1990-2010.
Records show that between1990-2008, companies with Indian interest have invested in Tanzania
in projects worth USD 1,217.57 Mio. (Source: Tanzania Investment Centre). Today, Indian
companies like Reliance Group, Bank of Baroda, TanzIndia Assurance Company, TATA Africa
Holdings (Tanzania) Ltd., Bharti Airtel, etc. are already doing business in Tanzania.
Notably, the Apollo Group of Hospitals (India) is in the Process of Signing the final Agreement soon
with NSSF (Tanzania) and Ministry of Health & Social Welfare (Tanzania) for establishing Apollo
Hospital facility in Dar es Salaam. The preliminary JV Agreement has already been signed in May
2011.
Investment opportunities exist in the areas of Agriculture, Agro-based Industries, Mining, Tourism,
Petroleum & Gas, Economic Infrastructure, Manufacturing, Natural Resources such as Fishing &
Forestry, Commercial Buildings & Estates Development, Financial Services, Human Resources
Development, ICT, and Health Services.

Tourism
A lot of Medical Tourism is taking place between Tanzania and India. Many Tanzanians come to
India for Medical Treatment, more than to any other foreign country until such time when Tanzania
develops adequate capacity of its own internal Medical Facilities.
Tanzania is endowed with many natural and cultural resources that have become a global
attraction for Tourists from different tourist market segments. The country is home to an estimated
20 per cent of Africas large mammals, with 25% of the countrys area set aside for conservation
purposes. Tanzania is also home to attractions like Mount Kilimanjaro and Mount Meru (the
highest and fifth-highest peaks in Africa), the Spice Islands of Zanzibar, the beautiful sea
beaches along the Indian Ocean Coast, Serengeti National Park (arguably the best known wildlife
sanctuary in the world), Ngorongoro Crater (the largest unbroken caldera in the world) and many
other attractions.
Unfortunately, to-date the number of Indian Tourists visiting Tanzania is still very low. Only about
19,100 Indian tourists visit Tanzania annually out of the nearly 1 million Tourists coming to
Tanzania every year.
Specific initiatives are now being undertaken to tap on the vast Indian Tourism Market. These,
among others, include the Tanzania Tourist Board appointing its representative in Mumbai since
July 2009 in order to create more awareness and facilitation to the Mumbai and the Indian Public in
general on the Tanzania Tourism.
Tanzania also has plans to carry out more and sustainable Tourism promotional activities in India
(and the entire Asian Region) in the near future. The target is to increase the number of Indian
Tourists visiting Tanzania to 100,000 per year in the next 2 years.
Tanzania is also in the final stages of appointing its Honorary Consul in Mumbai in order to
facilitate further promotion of Trade, Investment and Tourism activities and to ease the provision of
Consular Services.

INVESTMENT OPPORTUNITIES
Agribusiness

Extractive
Industries

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Infrastructure

Tourism

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In Addition To

Minerals Base

Power

Beach Tourism

Traditional Crops

Metals
Gemstones

ICT Backbone

Conference
Tourism

Horticulture
Floriculture
Deep Sea Fishing
And
Aquaculture
Sugar Ethanol
Palm Oil And
Jatropha

and

Gold
Tanzanite
Hydrocarbons:
Oil And Natural
Gas
Coal
Refining,
Processing,

Roads
network
covering
most
investment areas

Sports/Golf
Tourism

Functional Seaports

City Tourism

Airports
servicing
international flights
Financial institution
Health care centres
Education

Medical
Tourism
Historical
Tourism

Smelting, Cutting
And Polishing

Pyrethrum And
Artemisia Organic
Cotton

For more information visit the links below


Government of Tanzania
Zanzibar
Bank of Tanzania (BOT)
CRDB Bank
Tanzania Revenue Authority
Business Registrations And Licensing Agency (BRELA)
Energy and Water Utilities Regulatory Authority (EWURA)
Tanzania Investment Centre (TIC)
Zanzibar Investment
Tanzania Trade Development Authority
Commercial Court
Tanzania Petroleum Development Corporation
East African Community (EAC)
Tanzania Chamber of Commerce,Industry and Agriculture
Zanzibar National Chamber of Commerce, Industry and Agriculture

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