Habari za Uwekezaji toka nje (UTN)/ Foreign Direct Investment news (FDIs)

[Geza Ulole]

Foreign Direct Investments (FDIs) have been a pinnacle for Economic growth of many countries in Africa. Tanzania, after its painful microeconomic reforms of 1980s has managed to woo investors from abroad to inject capitals for various projects in mining, tourism, agriculture, construction and real estate that have consistently boosted the economy and offered the needed growth. This thread aims at highlighting the current investments that are taking place in Tanzania

[Geza Ulole]

27th July 11
Flow of FDI into Tanzania picks up
The Guardian Reporter

Tanzania has taken second position in foreign direct investment (FDI) performance in East Africa, with Uganda maintaining the lead due to discovery of oil, according to the World Investment Report-2011.

The report, entitled “Non-Equity Modes of International Production and Development” was officially released yesterday in Dar es Salaam at a ceremony graced by the Acting Executive Director of the Tanzania Investment Centre (TIC), Raymond Mbilinyi.

Tanzania secured USD 700m last year, up from USD 645m in 2009, while Uganda got USD 846m up from USD 816m in 2009.

In his remarks, Mbilinyi said: “With the discovery of oil, Uganda has clearly led investment inflows followed by Tanzania.”

According to the report, FDI flows in EAC in different years were as follows: Tanzania (USD 679m) in 2008, USD 645m in 2009, and USD 700m in 2010: Kenya-USD 96m in 2008, USD 141m in 2009, and USD 133m in 2010: Uganda-USD 729m in 2008, USD 816m in 2009, and USD 846m.

FDI trend in other EAC countries was as follows; Rwanda-USD 103m in 2008, USD 119m in 2009, and USD 42m in 2010, and Burundi-USD 14m in 2008, USD 10m in 2009, and USD 14m in 2010.

The TIC official, quoting the report explained: “2010 was notable in that, for the first time, developing and transition economies absorbed more than half of global FDI inflows, some USD 642 billion or 52 per cent of global FDI flows.”

As international production and recently, international consumption shift to developing and transition economies, he said, Transnational Corporations (TNCs) were increasingly investing in both efficiency—and market-seeking projects in the respective countries.

He noted that the report, which examined recent trends in FDI flows and policies globally, coincided with the launch of Tanzania’s five-year Development Plan (2011/12-2015/2016) by President Jakaya Kikwete in Dodoma on June 7, 2011, adding: “This report is an important tool towards the implementation of the five core priorities of the plan.”

“The major challenge ahead of world governments, including Tanzania’s, “is to make investment work towards achieving the Millennium Development Goals (MDGs),” Mbilinyi said. For his part, United Nations Industrial Development Organization (UNIDO) Country’s Representative, Emmanuel Kalenzi described FDI as a key component of the world’s growth engine, saying if well coupled with a thriving domestic investment, “can indeed provide a unique driver for economic transformation.”

However, he said, the post-crisis recovery in FDI has been slow in taking off and unevenly spread, with especially the poorest countries still in “FDI recession.”

According to the UNIDO boss, many uncertainties still haunt investors in the global economy.

National and international policy developments were sending mixed messages to the investment community, he noted, adding that investment policymaking was becoming more “complex, with international production evolving and with blurring boundaries between FDI, no-equity modes and trade.”

The report warns that the risk of investment protectionism has increased as restrictive investment measures and administrative procedures have accumulated over the past few years.

“Investment policies increasingly interact with industrial policy strategies, and are more and more shared by voluntary corporate social responsibility standards,” stated the report.
THE GUARDIAN
http://www.ippmedia.com/frontend/fun...le.php?l=31624

[Geza Ulole]

British direct investments in Tanzania on the rise: Diplomat Send to a friend
Monday, 30 January 2012 21:46

[A bottling line in a brewery plant. British firms in the country have invested in manufacturing, energy, agriculture and education sectors. PHOTO | FILE]

By Zephania Ubwani
The Citizen Bureau Chief
Arusha. Direct investments by British firms to Tanzania are increasing rapidly while UK government aid to the latter for this year is estimated at $250 million, according to the High Commissioner, Ms Diane Corner.

The latest entrants in the investment arena include Heritage Rukwa which was among the three foreign companies that last week signed an agreement with the Tanzania government to explore oil and gas.
Another is a British firm, Diageo, which now has a controlling stake in the Serengeti Breweries Limited (SBL), she said in an interview in Arusha on Friday.

She added that Africa Barrick Gold, which operates four gold mines in the country, has injected about $3 billion in investment, making it the only single largest investor in Tanzania.

Ms Corner said besides direct aid; the UK was also supporting development projects in Tanzania through the European Union (EU), the African Development Bank (AfDB) and the International Monetary Fund.

"It's important for us to understand what is going on. Thousands are employed by British firms in Tanzania besides opening up the country's products for export markets," she stated, citing the new SBL plant in Moshi in which Diageo injected $ 50m.

Priority of assistance in the social services has been given to the education sector, she told reporters at the end of her two day visit to Arusha to meet British investors and heads of business institutions.

Institutions she visited include the East African Business Council and Trade-Mark East Africa, a non-governmental organisation established two years ago to strengthen trade links in the region, especially through improved intra-regional infrastructure.

She also visited British investors engaged in farming and the beverage industry as well as the A to Z Textile Company, which manufactures treated mosquito nets for the African market.

There are 70 firms run by British nationals in the northern regions of Arusha, Manyara and Kilimanjaro who have formed a network on how to work with the Tanzanian government to improve the business climate. According to her, there are also 70 members of the British investors' network operating in Dar es Salaam and its environs. These include Aggreko emergency power generation firm, currently involved in a 100MW project. She said her government was generally satisfied with the current business climate in Tanzania.
http://www.thecitizen.co.tz/business...-rise-diplomat

MY TAKE
There are people where yaping at EABL ina-own Serengeti Brew while technically all of the breweries i.e. EABL and Serengeti Brew are owned by Diageo plc! I thing the High Commissioner statement clarifies issues here!

[Geza Ulole]

Tanzania Daily News (Dar es Salaam)
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Tanzania: More Chinese Investors Eye Nation
12 March 2012

Comment

THE government through the Tanzania Investment Centre (TIC) has signed a Memorandum of Understanding with the China Council for the Promotion of International Trade (CCPIT), Zhejiang Sub-council for the mutual benefit of both countries.

The agreement that seeks to improve business and investment relationship between Tanzania and China's Zhejiang Province was reached at the Tanzania-Zhejiang Business Forum held in Dar es Salaam over the weekend.

About 80 Zhejiang Province business persons have attended the forum. So far, over 20 companies from the Chinese province have investments in Tanzania while about six Tanzanian companies invest in that province. The TIC Acting Executive Director, Mr Raymond Mbilinyi said the agreement would greatly improve business and investment relationship between Tanzania and Zhejiang Province.

"The agreement is very important as it encourages investments for the mutual benefit of the two parts," he told journalists. He explained that among the agreements reached was construction of a state-of-the-art platform logistic centre at Kurasini area in Dar es Salaam that will help act as a regional business hub also serving neighbouring countries.

According to Mr Mbilinyi, a delegation from Zhejiang Province will participate in this year's Dar es Salaam International Trade Fair while business delegation from Tanzania will visit the province later this year.

Also among the agreed things in the MoU was the acquisition of Urafiki Textile Mills by an investor from the Province who will now control 51 per cent shares. More details of the deal will be known later. Speaking during the event, the Minister of State, Prime Minister's Office, Investment and Empowerment, Dr Mary Nagu said: "I wish to strongly call upon the business community from Zhejiang to seriously consider investing in Tanzania."

In a speech read on her behalf by the Minister for Transport, Mr Omari Nundu, Dr Nagu reassured the Chinese business community that Tanzania is an attractive and ideal investment destination in whatever interests them and that numerous investment opportunities will prove to be mutually beneficial to economies of both countries.

Emphasizing the importance of enhancing greater economic ties between Tanzania and China; the Minister said currently, business cooperation between Tanzania and China is gaining momentum with China being one of the top-ten countries that have invested in Tanzania.

Explaining further, she said that between 1990 and 2011 TIC registered investments with Chinese interest worth US$ 868 Million in various sectors including agriculture, manufacturing, tourism, construction, services and trade.

"The flow of Foreign Direct Investments (FDI) from China was still very minimal," she said, while calling upon the forum to discuss the mechanisms for boosting Tanzania's share in the Chinese concessionary funds such as the China-Africa Development Fund and find a way of accessing such funds.

Dr Nagu noted that in her efforts to attract more investments, the government is committed to play the role of a facilitator for the private sector to effectively function as the engine of economic growth.

The minister thanked the Vice-Governor of Zhejiang Province and members of the delegation for choosing Tanzania as one of the few African countries to visit and explore investment opportunities. The Zhejiang Province vice-Governor, Dr Gong Zheng said Zhejiang-Tanzanian trade and investment maintained great momentum and both sides have witnessed the economic complementarities and great trade potential.

He said Zhejiang CCPIT has been committed to promoting the business exchanges between Zhejiang Province and the rest of the world. Zhejiang is located in the Southern wing of the Yangtze River Delta regions on the southeastern coasts of China, bordering Shanghai, the country's largest city, in the north. It has long been known for its flourishing economy with regional characteristics.
http://allafrica.com/stories/201203120788.html

[tanzan]

March 14, 2012 2:37 pm by Keyur Patel


Everyone is talking up Africa’s potential for growth – but in a continent with more than a billion people, where should foreign companies focus their attention?

According to research by Frontier Strategy Group, Africa will have 73 cities of 1-5m people by 2025. Matthew Spivack, head of MENA research, picks out five top urban markets across the continent – and five up-and-coming prospects. Some are very well-known; others may surprise you.

First, the ‘Big 5′ - cities which are broadly politically and economically-stable, and already major FDI destinations. They are:

- Accra, Ghana
- Johannesburg, South Africa
- Lagos, Nigeria
- Luanda, Angola
- Nairobi, Kenya

No major surprises here. Johannesburg is the biggest city in sub-Saharan Africa’s leading economy, and, as Frontier notes, is reaching the size of a large European city. Its nominal ‘GDP’ output is $51bn; Munich, in Germany, has a GDP of $64bn.

Lagos has a smaller economy, at $40bn – but that is expected to jump when Nigeria rebases its economic statistics this year. By 2015, Frontier says, “risk-weighted business opportunities in Lagos will far outpace that of the city’s nearest competitor” (Johannesburg).

It’s the ‘Next 5′ – large cities with rapidly expanding economies, but serious business climate deficiencies – that offer some of the biggest potential rewards – provided multinationals can stomach the risks. They are:

- Addis Ababa, Ethiopia
- Dar es Salaam, Tanzania
- Ibadan, Nigeria
- Kinshasa, Congo-DRC
- Mombasa, Kenya

Some of the world’s largest companies have already made inroads into these economies. Diaego, one of the world’s largest brewing companies, paid $225m for Ethiopia’s state-owned brewer Meta Abo last year, to tap into Addis Ababa’s growing consumer market. What’s more, the African Union is headquartered in the city, making it the political capital of Africa, Frontier says. That’s a bit of a stretch, but the business buzz in Addis is undeniable.

Fellow beer group Heineken is spending $325m in Kinshasa, Congo’s capital. Frontier says: “while poverty and an underdeveloped infrastructure reduce market size in Kinshasa, staggering population growth and consistently higheconomic growth means the city of 10 million cannot remain ignored by many MNCs.”

Dar es Salaam, Tanzania’s largest city, arguably offers the best investment prospects of all. Taking into account its size, short-term stability and growth, Frontier ranks it as the third best risk-weighted business opportunity in all of Africa by 2015.

An emerging trade hub in east Africa, it is increasingly handling more cargo than Mombasa, the region’s other sea trade centre. And Japanese carmaker Honda Motor has recently shown an interest, teaming up with a Tanzanian company and preparing to build an assembly plant to expand sales in the city.

There are risks to expanding in all of these markets, of course – Frontier highlights the usual concerns about infrastructure, corruption, and regulation. But Africa is the fastest growing and most rapidly urbanising region in the world. The risks of staying out could be greater still.

http://blogs.ft.com/beyond-brics/201...#ixzz1pA8atM2u

[kiligoland]

Originally Posted by tanzan

Dar es Salaam, Tanzania’s largest city, arguably offers the best investment prospects of all. Taking into account its size, short-term stability and growth, Frontier ranks it as the third best risk-weighted business opportunity in all of Africa by 2015.

An emerging trade hub in east Africa, it is increasingly handling more cargo than Mombasa, the region’s other sea trade centre. And Japanese carmaker Honda Motor has recently shown an interest, teaming up with a Tanzanian company and preparing to build an assembly plant to expand sales in the city.

[Dhuks]

Originally Posted by tanzan

March 14, 2012 2:37 pm by Keyur Patel


Everyone is talking up Africa’s potential for growth – but in a continent with more than a billion people, where should foreign companies focus their attention?

According to research by Frontier Strategy Group, Africa will have 73 cities of 1-5m people by 2025. Matthew Spivack, head of MENA research, picks out five top urban markets across the continent – and five up-and-coming prospects. Some are very well-known; others may surprise you.

First, the ‘Big 5′ - cities which are broadly politically and economically-stable, and already major FDI destinations. They are:

- Accra, Ghana
- Johannesburg, South Africa
- Lagos, Nigeria
- Luanda, Angola
- Nairobi, Kenya

No major surprises here. Johannesburg is the biggest city in sub-Saharan Africa’s leading economy, and, as Frontier notes, is reaching the size of a large European city. Its nominal ‘GDP’ output is $51bn; Munich, in Germany, has a GDP of $64bn.

Lagos has a smaller economy, at $40bn – but that is expected to jump when Nigeria rebases its economic statistics this year. By 2015, Frontier says, “risk-weighted business opportunities in Lagos will far outpace that of the city’s nearest competitor” (Johannesburg).

It’s the ‘Next 5′ – large cities with rapidly expanding economies, but serious business climate deficiencies – that offer some of the biggest potential rewards – provided multinationals can stomach the risks. They are:

- Addis Ababa, Ethiopia
- Dar es Salaam, Tanzania
- Ibadan, Nigeria
- Kinshasa, Congo-DRC
- Mombasa, Kenya
Some of the world’s largest companies have already made inroads into these economies. Diaego, one of the world’s largest brewing companies, paid $225m for Ethiopia’s state-owned brewer Meta Abo last year, to tap into Addis Ababa’s growing consumer market. What’s more, the African Union is headquartered in the city, making it the political capital of Africa, Frontier says. That’s a bit of a stretch, but the business buzz in Addis is undeniable.

Fellow beer group Heineken is spending $325m in Kinshasa, Congo’s capital. Frontier says: “while poverty and an underdeveloped infrastructure reduce market size in Kinshasa, staggering population growth and consistently higheconomic growth means the city of 10 million cannot remain ignored by many MNCs.”

Dar es Salaam, Tanzania’s largest city, arguably offers the best investment prospects of all. Taking into account its size, short-term stability and growth, Frontier ranks it as the third best risk-weighted business opportunity in all of Africa by 2015.

An emerging trade hub in east Africa, it is increasingly handling more cargo than Mombasa, the region’s other sea trade centre. And Japanese carmaker Honda Motor has recently shown an interest, teaming up with a Tanzanian company and preparing to build an assembly plant to expand sales in the city

There are risks to expanding in all of these markets, of course – Frontier highlights the usual concerns about infrastructure, corruption, and regulation. But Africa is the fastest growing and most rapidly urbanising region in the world. The risks of staying out could be greater still.

http://blogs.ft.com/beyond-brics/201...#ixzz1pA8atM2u

[Geza Ulole]

7th July 12
Dar attracts $1.1bn FDI, leads in EAC
Correspondent

Tanzania took the lead in attracting Foreign Direct Investment (FDI) in the East African region during the past 12 months, attracting a record $1.1 billion (Sh1.76 trillion), the World Investment Report shows.

According to the report launched in Dar es Salaam yesterday, between June 2011 and June 2012, Tanzania overtook Kenya—the region’s biggest economy—indicating the high confidence among foreign investors about Tanzania.

The latest World Investment Report (WIR) by the United Nations Conference on Trade and Development (UNCTAD) focusing on the past twelve months ending in June, this year shows that for the past three years, Tanzania has attracted about 47 percent of all FDI flows in the five East African countries.

Tanzania is East Africa’s second biggest economy behind Kenya, thus attracting more funds by foreign investment flows looks encouraging.

“ European countries are leading in FDI flows, and in East Africa Tanzania is the leading country in receiving such capital as we managed to attract more than $1.095 billion in the past year and for the past three years inflows have been rising annually,” said Tanzania Investment Center (TIC) Executive Director Raymond Mbilinyi during the launching of the report.

Exploration and discoveries of the natural gas was singled out by the TIC Executive Director to be the main factor placing the country in a better position to attract investments compared to neighbouring countries.

Also, the communication sector, service industries including hotels, financial institutions and the education sector are areas attracting more investors into the country.

Speaking during the event, the United Nation Resident Coordinator Alberic Kacou said it’s important to connect the investment policy framework to the overall development strategy, for example MKUKUTA.

“It’s important to ensure that foreign investment supports sustainable development and the quest for in countries like Tanzania where a sizeable population is left out of the development process. Investment must have strong incentive to do so as these objectives are fundamental in sustaining growth and development, equity, peace and security,” the UNDP envoy noted.

The UN Resident Coordinator advised that mobilizing investment and ensuring that it includes sustainable development should be the objective of all countries.

The proposed investment framework would be particularly relevant for Tanzania not only because investments are primarily a tool for sustained growth, but also because of the recent paradigm shift in achieving development targets under Vision 2025, he remarked.

“We need to ensure continued investment policy relevance and effectiveness. Implementation would be key in this respect, this is the area where Tanzania needs to pay special attention as it is somewhat languid in policy implementation in key areas such as foreign investment,” he said.

Kacou said the investment challenge always remains at the national level,, urging policymakers in Tanzania to use the proposed Investment Policy Framework for sustainable Development so as to benefit the people of this country.

The said framework is useful as it has gone through numerous consultations comprehensively and by individual parts with experts, academics and development practitioners, he stated.

The WIR 2012 finds that investment flows climbed 16 per cent in 2011, but economic uncertainty around the world is now making itself felt.

Nearly half of global FDI or 45 percent in 2011 went to developing countries, a new record high, rising by 11 per cent on earlier flows and increasing during 2011 by 25 per cent.

FDI attraction top ten countries in 2011 were China, Belgium, Singapore, Luxembourg, Ireland, Chile, Kazakhastan, Mongolia, Turkmenistan, Lebanon, the report said, singling out the Congo as the last in FDI flow growth.

Global foreign direct investment (FDI) inflows rose 16 per cent in 2011, surpassing the 2005–2007 pre-crisis level for the first time, despite the continuing effects of the global financial and economic crisis and the current debt crisis in Europe, UNCTAD’s annual survey of investment trends reports.

Resurgence of economic uncertainty and the possibility of lower growth rates in major emerging markets risk undercutting FDI in 2012, the report contends. UNCTAD predicts the growth rate of FDI will slow in 2012, with flows levelling off at around $1.6 trillion. Leading indicators are suggestive of this trend, with the value of both cross-border mergers and acquisitions and greenfield investments retreating in the first five months of 2012, it was noted.

UNCTAD projections for the medium term based on macroeconomic fundamentals show FDI flows increasing at a moderate but steady pace, reaching $1.8 trillion in 2013 and $1.9 trillion in 2014, barring any macroeconomic shocks. Investor uncertainty on the course of economic events for this period is still high, with UNCTAD’s annual survey of executives of transnational corporations (TNCs) finding that roughly half of respondents are either neutral or undecided about the state of the global investment climate in 2012.

The World Investment Report 2012 also finds that developing economies continued to account for nearly half of global FDI (45 per cent) in 2011 as their inflows reached a new record high, rising 11 per cent to $684 billion (see table). Inflows to transition economies accounted for another 6 per cent. They increased during 2011 by 25 per cent.

Rising FDI to these economies was driven by a strong increase in flows to Asia and better-than-average growth in Latin America and the Caribbean and the transition economies. Flows to Africa, in contrast, continued to decline in 2011. The poorest countries remained in FDI recession, with flows to the least developed countries retreating 11 per cent to $15 billion. FDI is projected to continue to rise in both developing and transition economies overall, reaching, respectively, $720 billion and $100 billion in 2012, and increasing to between $760 billion–$930 billion for developing countries and $110 billion–$150 billion for transition economies by 2014.

FDI from developed countries rose sharply in 2011 – by 25 per cent – to reach $1.24 trillion. All three major developed-economy investor blocs – the European Union, North America and Japan – contributed to this increase. FDI from the United States was driven by a record level of reinvested earnings, as TNCs built on their foreign cash holdings. The rise in FDI outflows from the European Union was driven by cross-border mergers and acquisitions.

An appreciating yen improved the purchasing power of Japanese TNCs, resulting in a doubling of their FDI outflows, with net purchases of mergers and acquisitions in North America.
THE GUARDIAN
http://www.ippmedia.com/frontend/fun...le.php?l=43376

[Geza Ulole]

13th August 12
Nigerian owned cement factory in Mtwara to produce 2m tons
Correspondent
Over two million tons of cement are now to be produced every year, thanks to a massive investment by a Nigerian tycoon, Aliko Dangote through the Tanzania Investment Centre (TIC).

TIC Acting Executive Director, Raymond Mbilinyi made the revelation at the weekend during his tour to the production plant in Mtwara. He says the investment will create over 400 jobs and help boost the Southern region’s economy and the whole country at large.

Expounding on the project, said to be up and running in eighteen months, Mbilinyi said that apart from creating employment, the factory will stimulate trade and create a multiplier rippling effect to the entire economy.
“Statistics show we had cement deficit of one million tons in 2011…” the acting director said hinting on the highly profitable and growing construction industry. He noted that the conducive investment climate created by the government in collaboration with the private sector is fueling Tanzanian development.

Mtwara Regional Commissioner, Joseph Simbakalia commented on the regions reception of the plant saying it was ‘welcomed’ and that it adds up to Mtwara’s contribution to the nation’s coffers.

Simbakalia said the region has a lot of investment potential yet to be utilized and called for more investors to take advantage of these opportunities. He expressed recognition of government help through the TIC.

THE GUARDIAN
http://www.ippmedia.com/frontend/fun...le.php?l=44720

[Geza Ulole]

Tanzania foreign income hits Tshs 7.7 trillion mark
Monday, 15 October 2012 08:23 Leonard Magomba
DAR ES SALAAM, TANZANIA - The government of Tanzania has said its economy has been growing at an average rate of 6.9% in the second quarter of 2012, thanks to the better performance of the Foreign Direct Investment (FDI).
In order to attract investments in the country, the Minister for Lands, Housing and Human Settlements Development, Prof Anna Tibaijuka said in Dar es Salaam that the government had to enact in order to woo investors in the country.
She said the act provided incentives for foreign investment in the country with the purpose of enhancing FDI. "So far, a total of Tshs 7,691.3bn has been invested in Tanzania in various sectors," Prof Tibaijuka said in a speech read on her behalf by her deputy, Mr Goodluck Ole Medeye.
However, Prof Tibaijuka noted there has been little foreign direct investment in the housing sector compared to other sectors such as ICT, telecommunication, mining, gas and fuel.
Basing on recent statistics, Tibaijuka said, Tanzania economy has been growing at an average rate of 6.7% from 2000 to 2011. "This is encouraging to note that our economy is continuing to grow strongly as envisaged by the fact that real GDP grew by 6.4% in 2011 and 6.9% in the second quarter of 2012."
Prof Tibaijuka told East African Business Week that with rapid growth in FDI in the offshore gas sector, even stronger growth is projected in 2012 and beyond.
Inflation rose in 2011 due to higher global oil prices and surge in regional and global food prices. However, she said, "With tight fiscal and monetary policies, and slowing of food prices, headline inflation has gradually begun to fall."
She said credit to the private sector grew from 7.4% of GDP in 2003 to 16.2% towards the end of 2008. "Currently, it is 19.7% of GDP as of July 2012."
"Outstanding percentage of bank's portfolio of credit to building and construction was 3.4% in June 2011 and 4.2% in June 2012, she said, adding overall market interest rates declined with increased competition in the banking sector and available liquidity in the market."
The government securities market has been vibrant with many participants making the interest rates responding to the market conditions, she said. Tanzania has been implementing financial sector reforms since 1990 with the assistance from the World Bank and other development partners.
Notable achievements of financial sector reforms include enactment of Mortgage Finance Act and the Unit Titles Act both of 2008. The Mortgage Finance (Special Provisions) Act amended several sections in Land Act, Land Registration Act and Civil Procedure Act that were hindering housing market development.
The Unit Titles Act, 2008 provides for division of buildings into units, co-ownership and management of such structures.
On his side, the Bank of Tanzania's Deputy Governor, Mr Lila Mlala said that while the mortgage sector remains small, developments in many countries suggest that the reality on the ground is changing.
"There are key constraints to the mortgage market in Tanzania both from the demand side and the supply side, such as low level of income, access to long term funds, high prices, limited supply, credit risk due absence of historical information, high interest rates, property registration," Mlala said.
Bank of Tanzania prudential framework for microfinance institutions gives these institutions a solid base for becoming more active in the financial sector, benefiting the population at the lower end of the income distribution, he said.
To make more viable, the central bank is encouraging increased private sector credit, currently projected to grow by 20% in the 2012/13 fiscal year.
http://www.busiweek.com/news/105-tan...&print=1&page=

[Geza Ulole]

Turkish investors focus on Tanzania’s agriculture, mining and construction sectors
By In2EastAfrica Reporter


More Turkish investors coming to Tanzania have shown interest in areas of agriculture, mining and construction sectors.


Turkish Ambassador to Tanzania, Mr Ali Davatoglu, addresses a press conference on Friday about the Turkish export products exhibition scheduled to start at the Mwalimu Julius Nyerere Fair Grounds in Dar es Salaam next Thursday. He is flanked by the International Sales Director, Mr Nuvit Becan.

Turkish Ambassador to Tanzania, Ali Davutoglu said in Dar es Salaam yesterday ahead of the Tanzania Turkish Export Products Exhibition for 2012 where 40 Turkish companies will take part. The Exhibition, to start on November 29 to December 1, he said, will strengthen economic relations and trade partnerships.

On the official list of the 40 companies, they include those with interests in oil, food and beverages, tyres, kitchen ware, textiles, telecommunication, iron, agro chemicals and construction materials.

Ambassador Davutoglu therefore advised local businessmen to use the available resources effectively so as to achieve the country’s social-economic objectives. The Ambassador said the Turkish government had also expressed readiness to invest in Tanzania’s key sectors of agriculture, mining, textile and tourism to stimulate the country’s economic growth.

Briefing reporters on the Turkish export products, Turkish Ambassador said there would be 40 Turkish companies participating in this exhibition from various sectors – textile, telecommunications, construction, agricultural machines, cosmetics, prefabricated buildings, steel structures, living containers, bee-keeping products and water dispensers.

Others include cooling units, flake ice machine, cold room, shock-unit, baby diapers, mono-grade and multi-grade engine oils, fuel treatment additives, food, high density electric cables, energy transfer lines, PVC insulated cables, plastic house-wares, PVC pipes and fittings, outdoor furniture, synthetic grass carpet (artificial turf), diesel engine generator, brush cutter and water pump generators.

“We believe that we have the potential to further increase and diversify commercial contacts and cooperation in various sectors, especially textile, agriculture, tourism, mining, energy, infrastructure and construction in which Turkish firms are very successful,” he said.

He encouraged Turkish business people to explore investment possibilities in Tanzania. Gurbuz said having good relations with Tanzania would give them a chance to establish many projects and businesses, which would be an advantage to Tanzanians themselves.

“We are planning to establish the Turkish university in Tanzania and it will be of significant importance to students because we will be providing scholarships for the students, who failed to pay fees,” he noted.

The Turkish government is also providing an increased number of scholarships to Tanzanian students to study in Turkey (high school, university, masters, PhD). He said 35 to 45 scholarships were offered to students in high schools and universities in Tanzania every year.

The Ambassador also said Tanzanian business people should continue exchanging ideas, on doing business and enabling the business people to participate in trade fairs to get new ideas, products, technologies and plan establishing a business forum with East Africa Community (EAC).

The head of Turkey international trade Mr Nuvit Becan re-affirmed his country’s commitment to improve business relations and praised the role of the private sector in the creation of jobs and contributing to the growth of the economy region.

Source Tanzania Daily News
http://in2eastafrica.net/turkish-inv...ction-sectors/