High Commission of India Dar es Salaam

No. Dar/Com/201/1/2009 14 December, 2009

Economic and Commercial Report for the month of November 2009

1. Gross Domestic Product: Tanzania’s GDP growth for the year 2007 was estimated at 7.3%, 2008, was 7.4% and projected growth for 2009 is 5.0%, compared to the 6.2% in 2006 and the 6.9% in 2005.

Shares of GDP at Current Prices 2008: Services 52.1%, Industry and Construction 21.0%, Agriculture and Fishing. 26.9%. [National Bureau of Statistics]

Tanzania’s GDP: Purchasing power parity US$ 56.22 billion (2008 est.) Per capita (ppp) US$ 1,400 (2008 est.)

2. Budget Trend 2006 – 2009

Fiscal Year Re-current Development Expenditure Total budget Expenditure Tshs App. US$ Tshs App. US$ Tshs App. US$ % (trillion) (billion) (trillion) (billion) (trillion) (billion) 2006/7 4.8 4.0 3.1 2.54 1.7 1.41 (35%) 2007/8 6.0 4.68 3.866 3.020 2.2 1.71 (36%) 2008/9 7.2 5.63 4.726 3.692 2.4 1.92 (33%) 2009/10 9.51 7.09 6.69 4.992 2.2 1.64 (29%)

3. Rate of Inflation: The annual inflation rate in the month of September 2009 remained the same as in August 2009, i.e, 12.1% and 11.6% in September 2008. Annual food inflation decreased to 17.3% in September 2009 compared to 18.9% in August 2009 and 13.4% in September 2008. The annual non-food inflation increased to 4.4% in September 2009 compared to 2.0% in August 2009.

4. Exchange Rate: The end-period exchange rate of the Tanzanian shilling (TSh) was TSh 1,308.82 per US dollar in September 2009 from TSh 1,319.34 per US dollar recorded in August 2009, and TSh 1,159.49 per US dollar in September 2008.

5. External Debt: Tanzania’s external debt was US$ 7,474.8 million at the end of September 2009, compared to US$ 7,357.8 million registered at the end of previous month. Out of the total external debt stock, US$ 5,932.8 million (79.4%) was disbursed outstanding debt and the remaining balance of US$ 1,541.9 million (20.6%) was interest arrears. During September 2009, external debt service payments amounted to US$ 4.0 million, out of which principal payment was US$ 3.3 million and interest payment amounted to US$ 0.7 million.

6. Current Account Balance: On a year-to-year basis, Tanzania’s current account deficit for the year ending September 2009 was US$ 2,060.7 million, a decrease of 30.2% compared with a deficit of US$ 2,950.4 million for the year ending September 2008, owing to a significant increase in exports of goods coupled with a decline in import bill. During the review period, still imports outweighed the exports of goods and services: while imports were US$ 7,456.2 million, exports were US$ 4,606.6 million.

7. Strategic Grain Reserves: According to official estimates, Tanzania’s strategic grain reserve was about 110,278 tons at the end of September 2009, compared to 93,231 tons recorded in August 2009. On annual basis the SGR stock increased by 7.9% from 102,225 tons recorded in September 2008, this mainly due to purchase of grains from domestic market to replenish food reserves.

8. Tanzania’s revenue collection: Tanzania’s monthly tax revenue collections amounted to Tsh 408.5 billion (App. US$314 million), while non-tax revenue collection was Tsh 18.1 billion (App. US$14 million), in September 2009 compared to Tsh 147 billion (App. US$90.5 million) tax revenue collection in December 2005 when the Kikwete government took office.

9. Foreign Trade: Latest available figures pertaining to export and imports of merchandise goods are given below (source-Bank of Tanzania):

(Figures in millions of US Dollar) Year ending Sept. % nnual Item 2005 2006 2007 2008 2008 2009 change Exports 1,462.81 1,686.7 2,006.6 2,608.5 2,476.1 2,671.7 7.9% increase Imports 2,839.08 3,864.1 4,826.9 6,327.9 6,253.8 5,769.0 7.8% decrease Trade 1,376.29 2,177.4 2,820.4 3,719.4 3,777.7 3,097.3 18.0% deficit decrease

[Source: Bank of Tanzania]

10. Trade with 10 major countries

Tanzania’s principal export destinations: Switzerland, China, Kenya, South Africa, and India-fifth largest importer.

Tanzania’s exports (US$ millions)

Tanzania’s Tanzania’s Tanzania’s Tanzania’s Tanzania’s Tanzania’s country exports exports exports exports exports exports 2004 2005 2006 2007 2008 July 2009 Switzerland 29.79 115.64 242.24 422.53 616.80 291.20 China 71.16 92.14 115.54 156.35 262.78 247.70 Kenya 84.51 80.03 85.05 106.38 233.17 115.73 South Africa 114.99 278.34 159.49 190.59 232.51 96.09 India 101.69 64.18 56.56 78.65 171.82 98.13 Netherlands 60.33 96.89 81.83 98.31 157.89 65.09 Japan 64.97 71.88 65.87 63.43 146.54 111.82 DRC 124.04 53.80 Italy 67.33 37.23 Germany 33.24 77.81 101.09 97.90 65.89 24.93 UAE 17.70 35.16 38.06 89.26 65.78 35.27 United 469.65 119.97 47.20 29.47 64.80 17.30 Kingdom

[Source: Tanzania Revenue Authority]

Tanzania’s trade in services

11. In September 2009, Tanzania’s export of services decreased slightly to US$ 201.0 million compared to US$ 212.1 million mainly due to a decrease in receipts from transportation and other business services. For the year ending September 2009, services receipts decreased by 2.6% over the previous year’s level to US$ 1,934.9 million following a significant drop in transportation receipt.

(Figures in millions of US Dollar)

Year ending Sept. % annual Item 2004 2005 2006 2007 2008 2008 2009 change Service 2.6% Exports 944.1 1072.7 1,446.4 1,697.0 1,998.5 1,987.6 1,934.9 decrease

Service 972.1 1162.9 1,282.1 1,479.4 1,633.0 1,547.1 1,687.3 9.1% Imports increase

Service 43.8% trade -28.0 -90.2 +164.3 +217.6 +365.5 +440.5 +247.6 decrease balance

[Source: Bank of Tanzania]

12. Tanzania’s principal import sources as of July, 2009: India is leading

Tanzania’s Imports (US$ millions)

Tanzania’s Tanzania’s Tanzania’s Tanzania’s Tanzania’s Tanzania’s country imports imports imports imports imports imports 2004 2005 2006 2007 2008 July 2009 India 218.29 191.21 237.02 512.41 859.73 389.29 UAE 186.56 205.54 500.11 781.68 891.17 380.41 South Africa 282.99 403.52 545.72 593.12 790.99 368.86 China 173.21 223.62 308.40 415.82 711.83 340.11 Japan 182.44 209.77 250.78 262.44 342.91 234.56 Kenya 131.47 173.12 154.53 101.45 197.92 163.00 Germany 76.07 89.59 151.41 156.09 210.63 143.60 United 111.43 124.54 157.18 171.31 165.04 111.13 Kingdom Saudi Arabia 54.45 43.82 252.81 220.88 257.72 110.55 Singapore 13.41 254.29 438.36 102.55

[Source: Tanzania Revenue Authority]

13. The principal export commodities

(Values in US$ million; figure in bracket indicates % share of the commodity)

Year Item 2005 2006 2007 2008 ending Sept. 2009 Gold 641.7 737.1 762.9 898.8 906.8 (41.9%) (43.7%) (38.0%) (32.5%) (33.9%) Manufactured 156.06 195.6 309.2 595.1 571.8 goods (10.2%) (11.6%) (15.4%) (21.5%) (21.4%) Fish & Fish 146.88 138.3 137.7 142.0 147.8 Products (9.6%) (8.2%) (6.9%) (5.1%) (5.5%) Cotton 111.69 55.7 66.4 115.5 111.4 (7.3%) (3.3%) (3.3%) (4.2%) (4.2%) Tobacco 81.09 65.8 72.8 108.2 160.4 (5.3%) (3.9%) (3.6%) (4.0%) (6.0%) Coffee 74.97 60.7 98.1 100.1 120.8 (4.9%) (3.6%) (4.9%) (3.6%) (4.5%) Vegetable& 62.73 47.2 214.2 283.5 341.0 oil seeds (4.1%) (2.8%) (5.0%) (7.6%) (6.4%) Other 50.49 50.6 94.6 65.2 18.2 Minerals (3.3%) (3%) (6.2%) (3.2%) (1.2%) Cashew nuts 45.90 38.8 13.2 40.2 51.5 (3%) (2.3%) (0.7%) (1.5%) (1.9%) [Source: Bank of Tanzania]

14. The principal import commodities

(f.o.b Values in US$ million; figure in bracket indicates % share of the commodity)

year 2005 2006 2007 2008 ending Sept. 2009 Other 585.42 602.8 793.3 966.7 1,036.6 Consumer (22%) (15.6%) (7.0%) (5.0%) (18.0%) Goods Machinery 532.20 722.4 842.2 1,221.8 1,194.8 (20%) (18.7%) (19.4%) (21.6%) (20.7%) Oil 510.91 1146.5 1,505.3 1,798.4 1,344.5 (19.2%) (29.7%) (34.7%) (31.9%) (23.3%) Transport 290.05 374.8 479.9 776.4 734.4 equipment (10.9%) (9.7%) (11.1%) (13.8%) (12.7%) Building & 258.12 338.0 416.6 609.8 536.9 construction (9.7%) (8.7%) (9.6%) (10.8%) (9.3%) equipment Industrial 255.46 376.5 428.7 522.0 468.9 raw (9.6%) (9.7%) (9.9%) (9.2%) (8.1%) materials Food & 167.64 249.2 301.3 285.0 334.0 foodstuffs (6.3%) (6.5%) (7.0%) (5.0%) (5.8%) Fertilizers 63.86 53.9 59.1 147.9 118.7 (2.4%) (1.4%) (1.4%) (2.6%) (2.1%)

[Source: Bank of Tanzania]

15. India-Tanzania Bilateral Trade

India’s exports US$ 512.40 million in 2007, representing about 116% increase from US$ 237.0 million in 2006; however, there was significant increase in the year 2008 and it stood at US$ 859.73. As of July 2009, India ranked as the largest source of import at US$ 389.29 closely followed by UAE at US$ 380.41. Principal commodities: Exports –Petroleum products, iron & steel, pharmaceuticals, engineering goods, motor vehicles, cotton textiles, electric apparatus, Organic Chemicals, consumer goods, and garments. Imports from Tanzania were US$78.65 Million in 2007 compared to US$56.56 million in 2006; in 2008 it stood at US$171.82. Principal commodities of Imports were raw cashew nuts, gemstones, raw cotton, pulses and timber. (Figures in million US dollars)

2002 2003 2004 2005 2006 2007 2008 2009 As of July Imports from India 106.8 169.5 218.3 191.2 237.0 512.40 859.73 389.29 Exports to India 64.4 73.2 101.7 64.2 56.6 78.65 171.82 98.13 Trade Volume 171.2 242.7 320.0 255.4 293.6 591.05 1,031.55 487.42 Trade Balance in favour of India 42.4 96.3 116.6 127.0 180.4 433.75 687.91 291.16

[Source: Tanzania Revenue Authority]

Major categories of service trade

Exports

16. Tourism: For the one-year period ending September 2009, Tanzania’s service receipts in the tourism sector amounted to US$1,232.6 million compared with US$1,221.6 million in the year ending September 2008.

17. Transportation: During the year ending September 2009, transportation receipts decreased to a total of US$321.0 million compared with US$ 391.7 million in the previous year.

Imports 18. On annual basis, service payments increased by 10.2% to US$ 1,705.5 million in the year ending September 2009, largely due to increase in payments of freight, and travel services.

Major investments in Tanzania

19. Tanzania Investment Centre (TIC) in 2008 registered 871 projects worth US$6,680 million (Tsh8.6 trillion), creating 109,521 jobs in the year. 450 projects were wholly owned by local investors while 213 projects were joint ventures. In 2007, the centre registered 701 projects worth US$5,715 million (Tsh7.35 trillion) which created 103,958 jobs in the year. The United Kingdom continued to lead among countries with more investment in 2007 with 59 projects; China 40; USA 27; Kenya 25; Germany 21; South Africa 19; Netherlands and India 16 projects each. In terms of value India is the second (US$1,016 million) while the United Kingdom is leading (US$1,055.25 million). Major areas of investment were: tourism, natural resources, energy, manufacturing, telecom, banking and insurance, transportation and infrastructure.

Target sectors which TIC promotes for investment are agribusiness, extractive industries, infrastructure and tourism. In the agribusiness sector, in addition to traditional crops are horticulture, floriculture, fish and aquaculture, sugar ethanol, palm oil and jatropha, pyrethrum and Artemisia as well as organic cotton. Another area that the TIC is interested to attract FDI is that of setting up Import substitution industries. Such as fertilizer production plants, agricultural machinery plants, and other farm implements such as tractors and ploughs. Establishment of factories for packaging material for various agricultural commodities is highly encouraged and the state offers strategic incentives to attract such investments into the country. In the extractive industries sector the emphasis are on minerals-base metals and gemstones, gold, Tanzanite, hydrocarbons (oil and natural gas) and Coal. Refining, processing, smelting, cutting and polishing. In the infrastructure sector the focus are on power, ICT Backbone, roads, seaports as well as airports. In the Tourism sector the much welcomed investments are on Beach tourism, conference tourism, sports/golf tourism, city tourism, medical tourism as well as historical tourism.

20. Tanzania is a seeker of foreign investment and is not a major investor abroad.

Developments in business and investment during the month of November 2009

21. Tanzania, South Africa Firm in US$20 Million mining equipment Venture

South Africa-based Elgin Engineering and the state-owned Tanzania State Mining Corporation (Stamico) are jointly constructing a US$20 million mining equipment manufacturing facility. The facility, to be the largest of its kind in the East African region, will produce mining dig, sugar milling and shipping equipment when it commences operations in May, 2010.

According to Stamico, the Tanzanian government is funding the project, with assistance from its development partners. The construction of the first phase of the plant in Dodoma, central Tanzania, has started and is expected to be completed in January, 2010. Stamico and Elgin will also jointly design, construct and operate two engineering workshops in Dodoma. Elgin will also run a machine repair workshop at the current Stamico premises and a full-scale engineering works and training centre for small-scale miners on a plot of land owned by Stamico. The two firms have already signed a memorandum of understanding for the plant, which is expected to employ more than 300 people and reduce the cost of hiring mining equipment from overseas.

22. British Oil Firm Lands Lucrative Deal in Virgin Basin

British firm Solo Oil will spend US$10.7 million to fund a buyout agreed upon with Aminex for a 12.5 per cent interest in the Likonde-1 well in Southern Tanzania. The transaction will see Tullow Oil owning 50 per cent of Likonde-1, Aminex 37.5 per cent and Solo Oil 12.5 per cent. Likonde-1 is the first well scheduled to be drilled under the Ruvuma Production Sharing Agreement in south-eastern Tanzania, with spud ding likely in about two months.

Under the terms of the farm-out agreement, Solo Oil will reimburse Aminex for 12.5 per cent of pre-drilling costs amounting to US$1.25 million and pay 18.75 per cent of the drilling cost of Likonde-1 (US$3.4 million). According to Mr Lenigas, chairman of Solo Oil, participation in the agreement will cost Solo Oil an estimated $4.5 million. The balance, which is expected to exceed US$ 3 million, is expected to be used to strengthen the company's balance sheet and for general working capital.

The Ruvuma PSA covers approximately 12,000 square kilometres, of which 80 per cent is onshore. Within the PSA are two specific, adjoining licence areas, Lindi and Mtwara. The Likonde prospect, an anticlinal structure associated with a strike slip fault, is thought to have the potential of producing 500 million barrels of oil.

23. Country to Set Up a New Company to Import Oil

A new state-owned firm is set to enter the lucrative Tanzanian oil marketing business which, since its liberalisation in 1999, has been in the hands of the private sector. The Commercial Petroleum Company of Tanzania Ltd, which will be a subsidiary of Tanzania Petroleum Development Corporation (TPDC), set up to specifically importing bulk oil into the country, will start a new era in the oil sub-sector, whose operators have been accused of forming price cartels and fuel adulteration.

Besides the oil business, TPDC also spearheads Tanzania's efforts to introduce the first ever natural gas compression plant to power motor vehicles and for domestic use. The shift is expected to halve both the cost and dependence on charcoal and petroleum products, hence reducing gas emissions and the cost of living. Until June 2009, the country had saved more than US$1 billion from the use of natural gas in electricity generation and industrial production.

According to Mr Kilagane the pilot project had targeted to provide compressed natural gas to 30,000 households and 8,000 cars in Dar es Salaam, before it spreads across the country during the second phase which is pegged on availability of funds. The project will greatly reduce the country's reliance on imported liquefied petroleum gas, petrol and diesel for both cooking and running cars. Investment/Business developments in East Africa during the month of November 2009

24. East Africa Business Council (EABC) commends the signing of common market protocol

The five East African Heads of States signed an EAC Common Market Protocol in Arusha on 20 November 2009. The signing of the CMP is yet another milestone of the integration process of the east African countries.

Following the signing of the Common Market Protocol, President Museveni of Uganda extended invitation to other EAC Members to partner with Uganda in drilling the oil that was discovered in Uganda recently. The outgoing Chairman of the EAC Heads of States Summit, Rwandan President Paul Kagame said that the successful negotiations and conclusion of the Protocol were the major achievement during his stewardship. The incoming Chairman of the EAC President Kikwete said that with the signing of the CMP, the region has made a big leap forward in its integration process.

The Member States of the EAC were mandated to ratify the Common Market Protocol by July 2010.

25. Trade between East Africa and China doubles in two years - Kagame

President Paul Kagame on November 08, 2009 addressed the opening ceremony of the fourth Forum on China-Africa Cooperation held in Sharm el-Sheikh, Egypt where he said trade between East African countries and China had grown by over 200 per cent since 2007.

President Kagame in his capacity as Chairman of the East African Community said that the forum was an occasion for China and Africa to reflect together on the tremendous trade and investment opportunities available, and to take advantage of ongoing regional integration from which both China and Africa can benefit. Kagame said trade between East African countries and China had grown by over 200 per cent from 2007 to the present. He said in Rwanda alone, business with China had quadrupled in the last four years. Kagame called on African leaders, governments and especially members of the private sector to play a leading role in continuously engaging to articulate Africa's development priorities in the partnership with China. Direct Chinese investment in Africa soared from US$491million in 2003 to US$7.8billion in 2008. Trade between the two has increased tenfold since the start of the decade. 26. Imports threaten EAC cement producers

Influx of cheap cement imports from countries with lower production costs could have negative impact on the local cement industry, the Executive Director of East African Business Council, Charles Mbogori said. Although EAC Common External Tariff (CET) is classified in three tariff bands of zero percent for raw materials, 10 percent for intermediate goods and 25 percent for finished products, goods considered sensitive often attract a higher tariff. Cement was considered a sensitive product with tariff set at 55 percent in 2005, which was to reduce at rate of 5 percent per year capping it at 35 percent in 2009.

At the onset of the EAC in 2004, cement producers negotiated the CET for cement, and agreed that cement was to be considered a sensitive product due to its capital intensive investment requirement. However, in June 2008, the sensitive status was removed with import duty being reduced from 40 percent to 25 percent under the EAC CET. The reduction of import tariff on cement has led to an influx of cheap cement imports from low cost cement producers such as India, China, and Pakistan sold at 50 percent to 60 percent less than the domestic market price since producers in these countries enjoy lower production cost.

However, according to East African Cement Producers Association (EACPA), the local industry has capacity to meet local demand. The current production capacity for cement in East Africa is 9.5 million metric tonnes against a demand of 6 million metric tonnes.

East Africa Business Council (EABC) is an apex body of business associations in Kenya, Uganda, Tanzania, Rwanda, and Burundi with the aim of promoting Private Sector's regional and global competitiveness in Trade and Investment. Founded in 1997, EABC has been actively involved in lobbying on behalf of the private sector to ensure that issues affecting the private sector in East Africa are properly addressed.

27. USA Provides US$333 Million to Fight Malaria

Tanzania, Kenya and Uganda are among the five East, Central and Western African countries which are going to benefit from the US government global funds US $336 million to battle malaria. The Global Fund to fight Aids, Tuberculosis and Malaria has given out this money to Tanzania, Kenya, Uganda, Nigeria and Ethiopia to purchase more than 50 million long-lasting insecticide treated nets in the next few months.

The funds are expected to pay for 26 million long-lasting insecticide treated nets in Nigeria, 11 million in Ethiopia, 7.3 million in Uganda, 4.8 million in Tanzania, and 1 million in Kenya. Global Fund-supported programmes have distributed 88 million insecticide-treated bed nets worldwide. 68.4 million of these bed nets were distributed in Africa continent that contains about 90 percent of malaria deaths.

Each day approximately 2,200 Africans die from malaria, 85 per cent being children under 5 years of age. Malaria has been estimated to cost Africa more than US$12billion every year in lost gross domestic product (GDP), even though it could be controlled for a fraction of that sum.

28. Chinese power firm makes Kenya entry

A Chinese energy firm has chosen Kenya as its entry point into East Africa, where it expects to invest millions of dollars in the next three years. Gnangdong-based TBEA has entered into a partnership with a local energy firm, Muringa Holdings, through which it will initially spend Ksh600 million (US$80 million) on power generation and transmission in the region. Wei Hua, TBEA’s international business co-ordinator, said the company wanted to tap into Kenya’s unexploited potential in power production. Once it is established in the country, TBEA will venture further into the region, beginning with Uganda, where its Kenyan partner, Muringa Holdings, is already working with the Uganda Energy Regulatory Authority. The managing director of Muringa, Gursharn Brar, said that the two firms have forwarded a funding proposal to the Chinese government.

TBEA, a manufacturer of electric power transformation and transmission equipment, will use Chinese technology not only to generate but also use power since the current usage leads to a lot of wastage.

Muringa will undertake power projects in Eastern, Central, Rift Valley, Western and Coast provinces. The projects involve construction of 132kV lines and several sub-stations. A public enterprise owned 50-50 by the China government and the public, TBEA is among the largest power companies in China, controlling 12 per cent of the country’s huge energy sector. TBEA reported a turnover of Ksh150 billion (US$2 billion) last year (2008) while Muringa registered Ksh250 million (US$3 million) and has a workforce of about 150 people.

India’s investment interests

29. In a period of 1990 – 2007, investments with Indian interest cost US$1,022.67million which employed about 20,685 people. Potential exists for Indian investment/participation in projects relating to development of IT and telecom systems, power generation - gas, hydel as well as coal based, power transmission, construction-roads, bridges, ports, hospitals and infrastructure development, mining, agro processing, gem cutting and polishing, educational services, railways. With the “Agriculture first” initiatives in July 2009 investment opportunities opened up in agriculture farming as well.

Major agreements proposed/ finalised during November 2009:

30. Egypt pledges to assist Tanzania in irrigation farming

President Jakaya Kikwete on November 11, 2009 completed his two-day official tour of Egypt by visiting a modern private-owned farm in the northern party of the capital, Cairo. Kikwete started his tour in Egypt after attending a one-day China-Africa co-operation meeting in the city of Sharm-El-Sheikh, before arriving in Cairo where he met with Egyptian leader President Hosni Mubarak. At the meeting Mubarak pledged to offer training on irrigation farming, modern farming techniques and drilling of water wells. The two leaders also agreed to resume a co- operation commission between the two countries in a bid to improve business relations.

31. WHO, EC Give Help to Tanzania

The World Health Organisation and the European Commission have handed over several facilities to the Government in efforts to improve health services and save lives of thousands of Tanzanians. The facilities, worth TSh 1.3 billion (US$985,718), include 14 ambulances, five pick- up trucks, five motorcycles, communication equipment, blood bank and basic delivery equipment.

32. Russians resited to Invest in Agro Industry

Tanzania has called for increased investments from Russia in the areas of agro-processing and manufacturing as a means of improving bilateral trade and economic ties between the two countries. The minister for Industries, Trade and Marketing, Dr Mary Nagu, resited a visiting Russian business delegation that trade between the two countries was dismal despite sharing some similar ideological backgrounds. The minister said Russian investments in Tanzania will improve trade relations between the two countries and help to reduce the trade imbalance that has remained in favour of Russia over the years.

Statistics indicate that between 2004 and 2008 exports from Tanzania to Russia grew from Sh1.41 billion (App. US$ 1 million) to Sh5.985 billion (App. US$ 5.5 million). During the same period Russian exports to Tanzania grew from Sh2.3 billion (App. US$ 2 million) to Sh87.82 billion (App. 80 million). Russian companies showcased their products and services at the forum. They included manufacturers of equipment for agriculture, gas and oil exploration, mining, trains and airplanes. Tanzanian business and investments promotion agencies such as the Tanzania Investment Centre, the Export Processing Zones Authority, the Private Sector Foundation and the Chamber of Commerce Industries and Agriculture used the forum to promote Tanzania's investments and business opportunities to their Russian counterparts.

33. Germany grants Tanzania 147 million Euros

Germany has given Tanzania a grant of 147million Euros (Tsh 291billion) to support water, health programmes and the local government for the coming two years. According to the technical and financial agreements signed on 25 November 2009 by the Germany’s Ambassador to Tanzania, Guido Herz, and the Permanent Secretary to the Treasury, Mr Ramadhani Khijjah, 44 million Euros would be allocated for water development programme and another 44 million Euro will be provided to support the ‘Tanzanian German programme for health’ and the rehabilitation of decentralized health infrastructure. Out of the grant, 28 million Euros will support decentralization and the local government and one million Euros will be invested in a study and expert fund.

The bilateral development cooperation between Tanzania and the Federal Republic of Germany started way back in the 1960’s. Over the last five decades, the German bilateral cooperation with Tanzania had amounted to almost € 1.6 billion (Tsh2.88 trillion/-). Tanzania is the largest beneficiary of German development cooperation in sub-Saharan Africa.

34. South Korea extends loan of US$50 million for Rice Project

South Korea, through the Korean Economic Development Fund, has extended a US$50 million (about TSh65 billion) loan to the Rufiji Basin Development Authority (Rubada). The loan is meant to help Rubada undertake a rice-farming project in the Rufiji Basin. Rubada director general Aloyce Masanja said on 25 November 2009 in Dar es Salaam that the project would be jointly implemented by his agency, the Korea Rural Community Cooperation (KRCC), and a Korean machinery company, Kukje, which specialises in manufacturing food processing machinery.

The project will be undertaken in the four blocks of the Rufiji Basin, which are Ikwiriri, Mkongo, Delta and Ruaruke. About 100,000 hectares of land have been set aside for modern rice farming under the project. Mr Masanja said implementation of the three-component project would start in the current financial year after the signing of the partnership agreement between Tanzania and Korea. The three components are agricultural production, which would focus on rice production, establishment of an agro-processing industry that will focus on food, oil and fruits processing, and the establishment of an assembly plant for manufacturing agricultural machinery.

Kukje export official Peter Kim said the joint undertaking of the project aimed to enable local farmers engage in modern rice farming to meet domestic food demand and be able to effectively compete with their external counterparts. He said machinery to be imported under the project would include power tillers and rice planting, separating and harvesting equipment as well as automatic packing ones. He said investing in the Rufiji Basin would pay off because of the easy access to local and regional markets. China - Tanzania

35. Chinese to Build Ultra-Modern Sports Centre In Mbulu-Arusha

Tanzanian government in collaboration with the Government of China expects to build an ultra-modern sports centre in Mbulu district to promote sports. The facility to be known as "High Altitude Sports Centre Mbulu" will cost Tsh.10 billion (App. US$7.6 million) on completion. The MP who is also a minister in the Prime Minister's Office - Policy and Good Governance, Mr. Phillip Sanka Marmo said that the project was part of cultural cooperation between China and Tanzania and its Construction work is expected to start soon.

36. Chinese Bank to Help TIB to Develop Credit Line for Farmers

The Bank of China has started negotiations with the Tanzania Investment Bank to help it develop credit line for farmers. The Deputy Minister for Finance, Mr Omar Yussuf Mzee said on 25 November 2009 that the Chinese bank has a vast experience in extending loans to farmers and it is expected that the move will enhance the TIB services to the farmers.

India - Tanzania

37. Indian Company Eyes More African Markets

Pristine Global Pvt has invested US$100,000 to expand its business in Tanzania, Malawi and Senegal. The company's executive director in India, Mr Gurvinder Toor, said in Dar es Salaam while introducing Weston products such as TVs, LCDs (Zylo 20), CTVs, DVDs and washers (Sumo) onto the Tanzanian market on 17 November 2009.

Pristine's business interests range from recycled clothing to consumer appliances. During the introduction of Pristine products in Dar es Salaam, Indian high commissioner Kocheril Bhagirath expressed appreciation on business relationships between the two economies. Pristine Global Tanzania executive director Yashu Garg noted that the company was also setting up a dedicated customer care centre to provide after-sales services.

38. Tanzanian Railways Limited (TRL) workers went on strike

The workers of the TRL in a statement mentioned that they would not continue to work under the current management on account of 60 days notice it served to the Government of Tanzania for termination of the contract which effectively expires on 9 November 2009. The statement added that the workers will not stop working at the same time will not receive orders from the present management as their contract between the TRL and the employees terminated on 9 November as per the notice served by RITES India. The workers also urged the Government of Tanzania to terminate its contract with RITES of India expressing their distrust on the Tanzanian Ministry of Infrastructure Developing in handling the issue. The statement added that the Minister of Infrastructure Development had failed to keep the obligation to the TRL workers with regard to their welfare.

39. Indian delegation visited Tanzania A delegation from Indian Electrical and Electronics Manufacturers Association (IEEMA), visited Tanzania on November, 2009 for promotion of ELECRAMA 2010. On November 25, the delegation conducted Road show in New Africa Hotel in Dar es Salaam. The Road Show was conducted to elicit visit of Tanzanian business houses to Elecrama 2010 to be held in January, 2010 in Mumbai.

40. Trade Disputes/Complaints

S/No By Company Against Company Summary of Action taken the issue I. M/s. Hotel Traventine Ltd, M/s. Suyesh Pet Refund Claim of The issue was P.O.Box 6550, international Pvt Ltd, US$ 50, 000 forwarded to Dar es Salaam. No 2, Shri Arihant Co- with 10% Joint Secretary Tel: +255 774 290 229 / +255 op, Housing Society Ltd interest over (FT-WANA), 786 760 763 Sector-1, Plot No. 123 breach of Ministry of Fax: +255 22 2171007 RDP 11 KANDIVALI (W), contract for Commerce, New Email: Mumbai - India failure of Delhi on August [email protected] / Tel: +91 22 32622874 / supplying of Pet 24, 2009 for [email protected] +91 98 20053369 blow moulding further action; Fax: +91 22 28699682 machines and Still remain un- Email: accessories. resolved. The (Tanzanian company) [email protected] complainant still pressurising for (Indian company) solution.

2. M/s. Kahama Oil Mills Ltd, M/s. Shamma Global Non compliance The issue was P.O.Box 253, Shinyanga Ltd, with the already forwarded to Tel: +255 28 2710658 K.K. Nagar, TamilNadu, accepted Joint Secretary Mob: +255 784 905907 India. business (FT-WANA), [email protected] Tel: +91 452 4514130 contract of Ministry of ; [email protected] Fax: +91 452 4524131 purchasing Commerce, New 2,000 bales of Delhi for further cotton worth action; Still (Tanzanian company) (Indian company) US$335,146.33 remain un- resolved. The complainant still pressurising for solution.

41. Business Enquiries from India to Tanzania

From January, 2009 to November, 2009, a total of 198 trade enquiries from India were received and replied. Most of the enquiries were seeking for importers, distributors of electric & electronic products, building materials, gemstone & jewellery, agricultural products, pharmaceuticals, chemicals & agro-chemicals, textiles and other consumer goods.

Some of the enquiries from India during the moth of November, 2009 are as follows: S/N Company Enquiry Action taken o I Gayatri Global, 106, 2nd Floor, Classic Centre, List of Buyers/ Importers of 575 M.G. Road, Indore – Agro-products List of Tanzanian 452001 (M.P), India importers/contacts, [email protected] useful websites, II Yamuna Power & relevant authorities as Infrastructure Ltd, well as chambers of 909 Narain Manzil, 23 List/Contacts of Electrical commerce and Barakhamba Road, Contractors. industries were New Delhi – 110001, India provided so that they sachinmalhotra@yamunapowe could contact directly r.com with their offers. III Sameer Soi, Buyers/Importers of Cement India. [email protected] IV Suncity Stones Creation, Buyers/importers of Natural Jodhpur, (RAJ), India. stone & Stone Handcrafts [email protected] V Parijat Industries (India) Pvt List of registered Ltd, chemicals/Agro-chemicals in Fax: 91 11 44638097-98 Tanzania as well as list of [email protected] importers of Agro-chemicals m VI Anne (Mark Overseas), India. Importers of Building material [email protected] & Agro-products

VII Trima International, God’s Mercy, Importers/Distributors of New No. 3, Old No. E-135, Agricultural & Food 6th Avenue, Besant Nagar, processing machineries. Chennai – 600 090, India. [email protected] VIII South Electric Company Pvt. Ltd, C-5, st Floor, Unity Buildings, Importers of electrical items J.C. Road, Bangalore 560 002, India. [email protected] IX ZYG Pharma Pvt. Ltd, 405-408, Navbharat Estates, 4th Floor, B wing Importers/Distributors of Zakaria Bunder Road, Sewree Pharmaceuticals (West) Mumbai 400 015, India [email protected] m X Ashok Dheri (SR. Vice President – Exports), Importers/Distributors of Usha Shriram, India. electrical appliances. [email protected]

42. Business Enquiries from Tanzania to India

Mostly, Tanzanians are coming to the office of the High Commission to present their enquiries verbally. From January, 2009 to November, 2009, a total of 64 trade enquiries from Tanzania were received and attended. Most of the enquiries were seeking for suppliers of machinery, building materials, agricultural products, pharmaceuticals, chemicals & agro- chemicals, textiles and other consumer goods. Some are seeking for the Indian importers of gemstone and tiles.

Some of the enquiries from Tanzania during the moths of August - November, 2009 are as follows:

S/No Company Enquiry Action taken I KOFA General Traders, Printers/Suppliers of P.O.Box 6824, Dar es Salaam various educational Mob: +255-715 030923/773 030923 books II Andrew Enosy Suppliers of Jaws P.O.Box 54133, Dar es Salaam, stone Crusher from Mob: +255 755 373952 India +255 655 373952

III Mr. Stephen Sayo Manufacturers/Supp African Group of Industries, liers of plastic bags P.O.Box 65365, Dar es Salaam machinery IV Joshua Chacha, Suppliers of food P.O.Box 20842, Dar es Salaam flavour from India List of Indian Mob: +255 719 847595 manufacturers/suppliers/impor +255 716 055090 ters, chambers of commerce were provided as well as V Mr. Felix Konga Indian important websites which Konga Industries Ltd, Manufacturers/Supp provide economic and business P.O.Box 16621, Dar es Salaam liers of Water information in India so that Mob: +255 713 560 758 purification they could contact directly with +255 767 560 758 machineries their offers. Email: [email protected]

VI Ms. Kitty Narraidu, Indian Group Business Development Manufacturers of Manager, agricultural City Garden Group, equipment. P.O.Box 5896, Dar es Salaam [email protected]

VII Mr. Mosses Sagika Importers of Oil Dar es Salaam seeds. [email protected]

VIII Mrs. Hawa Nneka Indian M/s. Hzaline Investment, Manufacturers of P.O.Box 40601, Dar es Salaam edible oil/coconut [email protected] machinery

IX Mr. Julius Mziray, Indian textiles Dar es Salaam manufacturers/suppl [email protected], iers [email protected] X Eng. Cosmas L.M. Massawe, Indian P.O.Box 60500, Dar es Salaam manufacturers of [email protected], electric motors [email protected] XI Al-Asbahi Transport Co. Ltd Indian P.O.Box 6460, Dar es Salaam Manufacturers/suppl [email protected] / iers of stainless steel [email protected] kitchen sink

43. Trade Promotion – Buyer Seller Meet & Trade Fairs

Several Indian business promotion councils have been forwarding invitations of Buyer Seller Meet and Trade Fairs to the High Commission so as to be circulated to local (Tanzanian) business houses and chambers of Commerce in order that buyers/importers from Tanzania could attend/participate to the respective events in India. The following were circulated to the relevant local business chambers/authorities:

S/No. Event Focus on Prepared by VII Reverse Buyer Seller Meet in Mumbai Synthetic and rayon Synthetic and Textiles during 27th – 29th January, 2010 textile items Export Promotion Council (SRTEPC) VIII The 16th edition of ‘Tex-Styles India’ Fair Fabrics, yarns, fibers, India Trade at Pragat Maidan, New Delhi; 24th – treads, home Promotion 27th February, 2010 furnishings etc. Organisation IX FICCI FRAMES 2010, March 16 – 18, Media & 2010, in Mumbai-India Entertainment, e.g. Films, FICCI Broadcast (TV & Radio), etc. X ELECRAMA 2010, Exhibition in January Capabilities & Indian Electrical and 20th -24th 2010 in Mumbai – India. opportunities Electronics offered by India Manufacturers to the World of Association Electrical and (IEEMA) Industrial Electronics.

N .J. Gangte Counsellor & Head of Chancery High Commission of India 82 Kinondoni Road, Dar-es –Salaam Tel +255-22-266-9047, 2669040 Fax +255-22-266-9043, Email [email protected]