Jorg Herrera, the deputy head of mission, Embassy of the Federal Republic of Germany in the country, said in an interview midweek that initiatives are expected to be made by either side in one or other direction.
The business delegation expressed the view that Tanzania has a conducive environment for investment with its political stability, moderate climate as well as proximity to many countries in the East Africa regional market.
He apart from that, Tanzania has a high degree of investment security because of unparalleled political stability that is strife-free without ethnic division; democratic rule that respects diversity of opinion and a strong tradition of constitutionality and rule of law.
Investment guarantees and settlement of disputes figured in preliminary discussions, noting however that investments in Tanzania are guaranteed against political risks like nationalization and expropriation, he said.
Trading with Tanzania implies that one is trading with literary all countries in the East Africa market zone, which facilitates maximum turnover for industrial or other productive facilities, the deputy head of mission further noted.
“Despite the fact that there is a good environment, the country lacks skilled personnel which poses a major challenge to investors coming into the country,” he stated.
“As a result investors incur unnecessary costs of training personnel in order to work and operate machines and other needs,” he elaborated.
Tanzania had made commendable efforts to create a conducive environment for investors to come and invest smoothly, contrary to what existed before, the diplomat noted.
Foreign businesses operating in Tanzania can obtain credit from domestic financial institutions up to limits set out by the Bank of Tanzania. Credit is chiefly obtained in major banks like Standard Chartered, ABSA Group trading as National Bank of Commerce, Barclays, Citibank, Stanbic and Exim which have invested in Tanzania.
“Lucrative investment opportunities in infrastructure, potential privatization and value-adding facilities, as the local market is an effective entry point and gateway for trade into eastern, southern and central Africa,” he said.
Tanzania is an emerging economy with a high growth potential. Whilst the economy is relatively diversified, a range of opportunities remain untapped in many sectors.
These investment opportunities are ranged in two categories, the lead sectors and the priority sectors, where the lead sectors include agriculture and agro-based industries, mining, petroleum and gas, tourism and infrastructure.
The priority sectors include energy, manufacturing, chemical industries, natural resources (fishing & forestry), construction and real estate development, management consultancy, human resource development (hospitals, health centers and educational facilities), radio and television broadcasting and export oriented projects.
“These categories and their respective investment opportunities have been detailed by the Tanzania Investment Centre (TIC), the primary state agency assigned to coordinate, encourage, promote and facilitate investment in Tanzania,” the diplomat added.