Bilateral Relations

relations

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 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.

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 Tanganyika’s 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, Anti-Racism, 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.

bi

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.

bilateral

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:

relations

TANZANIA HIGH LEVEL VISITS TO INDIA

No

Name

Year

1.

President Mwalimu J.K. Nyerere

1971, 1976, 1981, 1982, 1983, 1984, 1985, 1988, 1991, 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

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

April, 2008

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

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

kikwete

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 India’s 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.
  • » 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

 

aggrements

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 Ethiopia-Djibouti 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

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 India’s 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 Africa’s large mammals, with 25% of the country’s 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

Image Gallery

DAR-ES-SALAAM

Find more about Weather in Dar Es Salaam, Dar Es Salaam, Tanzania

© Copyright Tanzania High Commission - New Delhi 2010-2014. [Site Map]