Kenyan Investments|Over 2B$ in Tanzania

[Kisumu Ndogo]

Kenyan Embassy in Tanzania

By PMPS
Posted Wednesday, September 2 2009 at 22:15

Kenyans’ investments in Tanzania have hit the Sh160.7 billion mark. A meeting between Prime Minister Raila Odinga and his Tanzanian counterpart Mizengo Peter Pinda was on Wednesday told that the investments by Kenyans had helped to create jobs in the neighbouring country.

And to strengthen the economic ties, the two leaders encouraged wananchi (citizens) from both countries to increase trade and investment opportunities.

More exports
Mr Odinga said exports from Kenya to Tanzania between 2007 and 2008 increased by 27 per cent while those from Tanzania to Kenya registered a 17 per cent growth. He encouraged Tanzanian investors and businesspeople to explore the Kenyan market as a way of closing the trade imbalance which is in favour of Kenya.

Mr Pinda said Tanzania encouraged the development of regional economic blocs, notably the East African Community, because it placed the region in a better position in global economic affairs.

However, he said 67 districts in Tanzania were experiencing severe drought and feared that this could have a negative effect on country’s economy which has been growing by five per cent.

Mr Odinga noted that considerable progress had been made in negotiations on the common market protocol to be signed at the East African Community summit in November where issues of land, usage of national identity cards and permanent residency had been addressed.

Mr Odinga praised presidents Mwai Kibaki and Jakaya Kikwete for their directive to revive the joint Permanent Commission of Cooperation, noting that the first session would take place in Arusha between September 5 and 6.

“The forum will enable a review of the status of our bilateral cooperation, seek ways of solving any challenges that may stand in the way, resolve the outstanding issues that have been identified and agree on the new areas for increased cooperation,” he added.

Mr Odinga briefed the Tanzanian Premier on the state of Kenya’s economy, noting that due to the post-election violence and other external factors, a GDP growth rate of 1.7 per cent was recorded in the country last year as opposed to 7.1 per cent in 2007.

He hastened to add that this year’s growth was projected at three per cent. Premier Pinda echoed the sentiments, saying a stronger economy in the East African region would attract international investments and mitigate the effects of drought, poverty and unemployment.

[Kisumu Ndogo]

KENYA LURES TANZANIAN TRADERS

In what appears to be Kenya’s attempt to cure the trade imbalance with Tanzania, the country’s High Commissioner to Tanzania, Njuguna Ngunjiri, has announced his willingness to assist Tanzanian investors to take up market opportunities in Kenya.

In order to cement bilateral ties between the two countries, the High Commission for Tanzania organised an exclusive trade exhibition and investment forum in Mwanza from December 9 to 12, 1999 where over 40 Kenyan firms displayed a wide range of industrial products. Mwanza located in Lake Victoria is the third biggest town in Tanzania

“We believe there is ample market for Tanzanian products in Kenya which can be fully exploited to increase the volume and value of exports into Kenya and we would accordingly urge the Tanzanian business community to exert their effort in this direction,” Ngunjiri said.

The remarks came after an abortive move to ratify the East African Co-operation (EAC) treaty in September, and were made at a news conference at Kenya’s chancery in Dar es Salaam.

September saw the third attempt to conclude the treaty, as Uganda and Tanzania have expressed reservations for the formation of a free trade area, arguing that with an advanced industrial and private sector, Kenya was likely to dominate the bloc. As a result, the 13th two day meeting of the Permanent Tripartite Commission resolved to postpone the adoption of the treaty to November, 1999, but even then the heads of states would not sign documents with the full common market clause.

The meeting, which was also attended by ministers, permanent secretaries, senior government officials from the three countries and the EAC secretariat, spelt out a four-year period within which a zero rate tariff for both internal and external trade should be attained in the region. It is within the four years after signing the general agreement in November that each country would then be expected to complete the sectoral protocols on a piecemeal approach.

Kenya, however, is reported to have wanted the term sized down but deferred with Uganda and Tanzania insisting strongly that the period was inevitable to put their house in order. Addressing the press in Dar Es Salaam in October, Kenya’s High Commissioner defended the imbalance as a historical development and “not imposed by malicious practices”, adding that differences would be bridged gradually as Tanzania’s manufacturing industry develops.

Statistics are already beginning to emerge in favour of Dar Es Salaam where Tanzanian exports to Nairobi increased threefold to Tshs. 21.57 billion in 1998 from Tshs. 7.8 billion in 1997, while Kenyan exports to Dar Es Salaam in the same period declined to Tshs 69.8 billion in 1998 down from 94.8 billion in 1997.

The figures which exclude voluminous cross-border smuggling and informal trade between the two countries, place Kenya as Tanzania’s largest market in Africa and the sixth in the world.

According to Ngunjiri, there are 48 Kenyan companies in Tanzania, 30 of which are engaged in manufacturing activities, financial tourism, natural resources and the service sector, among other things. The country is the second largest investor after the U.K.

http://www.times-publications.com/publications/corporate_africa/articles/kenya.html

[Kenguy]

Emmm...Isn't this in the wrong section?