high commission of india - pharmexcil

High Commission of India [United Republic of Tanzania, Dar es Salaam]

Commercial Wing Monthly Report

**************

No. Dar/Com/201/1/2012 21st June, 2012

Monthly Report for the Month of May, 2012

1. Name of the Country: United Republic of Tanzania

2. Trade with India:

India’s exports to Tanzania during the period of January – May, 2012 amounted to US $418.30 million while exports in 2011 [January – December] was US $1,564.95 million. India’s imports from Tanzania during the period of January – May, 2012 amounted to US $136.40 million; while in 2011 [January-December] the figure was US$208.00 million. Two-way bilateral trade from January – May, 2012 amounted to US$ 654.70 million. India mainly exports Machinery, Oil, Transport equipment, Building & construction equipment, Industrial raw materials, Food & foodstuffs, Fertilizers, pharmaceuticals and other Consumer Goods. Imports from Tanzania agricultural commodities i.e. Sisal, coffee, tea, cashew nuts, tobacco, cotton, cut flowers and minerals. The bilateral trade figures since 2008 are as under:

PARTICULARS Y e a r s e n d i n g D e c e m b e r

2008 2009 2010 2011 Jan-May 2012

Imports from India

CIF Value [US$ million] 859.73 772.87 895.01 1,564.95 418.30

Exports to India

FOB Value [US$ million] 171.82 187.58 226.19 208.00 136.40

Volume of Trade 1,031.55 960.45 1,121.2 1,772.95 654.70

Balance of Trade

[in favour of India] 687.91 585.29 668.82 1,356.95 281.90

[Source: Tanzania Revenue Authority]


3. Trade Promotional Activities

A 22 member delegation from Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council [CHEMEXCIL] conducted a BSM in Dar es Salaam on 28th February, 2012; at New Africa Hotel. About 50 local firms attended the business meeting. On 02nd March, 2012 a 12 member delegation from The Plastics Export Promotion Council [PLEXCONCIL] conducted BSM in Dar es Salaam; at New Africa Hotel. About 50 local firms met this Indian delegation to explore the possibilities of mutually beneficial business cooperation. During a period of January-May, 2012 Tanzanian delegations visited India for business meetings: “ELECRAMA-2012” Organised by Indian Electrical Equipment Manufacturing Association [IEEMA] in Mumbai, “INDIASOFT 2012”-Electronics and Computer Software Export Promotion Council [ESC] in Hyderabad and “India Engineering Sourcing Show 2012” prepared by EEPC India in Mumbai.

4. Trade and Commercial delegation

The following are visits of trade delegations from April 2011 - May, 2012:

i. From India to Tanzania

Month Delegation

2- 4 April, 2011 EEPC [Engineering Export Promotion Council] 4th April BSM-at New Africa Hotel

May 31- June 2, 2011

Dr. B.C. Gupta, Secretary, Department of Food & Public Distribution; shri Adhir Jha, Director (SDF); and Shri T. Jacob, Joint Secretary (Sugar & Sugar Administration): Attended the 39th International Sugar Organisation Council Session/37th MECAS meeting at Hotel Mount Meru, Arusha.

June 28-July 08, 2011

36 Indian Companies under ITPO-Participated in 35th Dar es Salaam international Trade Fair.

15-17 August, 2011

35 Indian companies Member of FICCI-Agribusiness delegation, conducted Roundtable on Agriculture- 16th August, 2011 at Golden Tulip Hotel, D’ Salaam.

September, 2011

3 persons delegation from Anjanaa Realtors Pvt. Ltd, -Visited Tanzania to meet SUMA JKT officials for discussion on agricultural activities [Expression of interest to carry out agricultural activities in SUMA JKT-owned land on lease bases]

02-06 Nov. 2011

WAPCOS’ 5- member delegation: Visited Tanzania for discussions in the Ministry of Water for the Extension of Existing Water Supply Schemes and Construction of New Water Supply Schemes in Dar es Salaam and Chalinze

22-27 Nov. 2011

Mr. Rana Som, CMD, NMDC visited Tanzania and had discussion with the Ministry of Energy and Minerals


01 Dec., 2011

Dr. Sunitha Raju, Chairperson (Research), India Institute of Foreign Trade. Held discussions with some government officials on agricultural investment in Tanzania.

14 Dec. 2011

Abhijeet Jayaswal, The Group Director, and Abdulrahman Khan, The Group Director of Overseas Operations: Held discussions on Mining and Power with various government officials and had time to explore investment opportunities.

23 Feb., 2012 Mr. G.P Singh of MODEX INTERNATIONAL AND Mr. Abhishek Jain

[Director] of BHARAT INDUSTRIES- Asked for appointment with Dealers of

Indian Motorcycles 2 & 3 wheelers and Minister for Agriculture for supplying of

Agro-diesel machinery respectively

27-29 Feb. 2012 A 22 Members delegation from Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council [CHEMEXCIL] conducted a BSM in Dar es Salaam on 28th February, 2012; at New Africa Hotel.

01-04 March, 2012

A 12 Member delegation from The Plastics Export Promotion Council of India [PLEXCONCIL], conducted a Business Meeting on 02nd March 2012 at New Africa Hotel.

ii. From Tanzania to India

Month Delegation State/Venue

2 – 4 Feb. 2011 “Tex-Trends India-2011” by textiles Export Promotion Council

Pragati Maidan, New Delhi

12-13 Oct. 2011

“India-Africa Business Partnership Summit” by FICCI Hyderabad

09-11 Nov. 2011

Reverse BSM-to coincide with the Trade show (POLYINDIA 2011) organized by the Department of Chemicals & Petrochemicals, Government of India, and the Government of Andhra Pradesh, along with CIPET and FICCI

Hitex, Hyderabad.

18-22 January, 2012

Tanzanian delegation went for “ELECRAMA-2012” Organised by Indian Electrical Equipment Manufacturing Association [IEEMA].

Mumbai

21-23 March, 2012

Tanzanian delegation went for “INDIASOFT 2012”-Electronics and Computer Software Export Promotion Council [ESC]

Hyderabad

22-24 March, 2012

Tanzanian delegation went for “India Engineering Sourcing Show 2012” prepared by EEPC India

Mumbai


5. Important International Trade Fairs/Exhibitions

In Tanzania, the major international trade fair is known as Dar es Salaam International Trade Fair [DITF), locally known as SABASABA. The fair is an annual event which organised by Tanzania Trade Development Authority; usually starts from 28th June to 08th July, every year. Indian companies have been participating very often under the umbrella of Indian Trade Promotion Organisation [ITPO]. In the 35th Dar es Salaam International trade Fair 2011, 36 Indian companies participated under the umbrella of India Trade Promotion Organization (ITPO) in coordination with the High Commission of India, Dar es Salaam. Business responses were very good. Instant sell of Indian products was well done and serious deals between Indian and Tanzanian companies were made. ITPO again is participating in the 36th Dar es Salaam International Trade Fair [DITF] 2012.

6. Important Trade, Investment activities & Export performance by

other countries in Tanzania

i. Trade: Tanzania’s principal export destinations are China, Switzerland, South Africa, Kenya and India. In 2011, India is the seventh largest importer. Tanzania’s principal import sources, India is doing better; others are China, South Africa, UAE, Japan, Switzerland, Singapore, Kenya, United Kingdom and Saudi Arabia. Country wise trade figures since 2008 are as under:

COUNTRY PARTICULARS

Y e a r s e n d i n g D e c e m b e r

2008 2009 2010 2011 Jan.-May.

2012

India

Imports - CIF Value [US$ million] 859.73 772.87 895.01 1,564.95 418.30

Exports - FOB Value [US$ million] 171.82 187.58 226.19 208.00 136.40

Volume of Trade 1031.55 960.45 1121.2 1,772.95 554.70

Tanzania’s Balance of Trade -687.91 -585.29 -668.82 -1,356.95 -281.90

China



Volume of Trade 974.61 1063.41 1533.03 1,732.64 619.14

Tanzania’s Balance of Trade -449.05 -320.73 -220.03 -380.00 -266.50

South Africa

Imports - CIF Value [US$ million] 790.99 686.62 771.72 988.15 396.70


Volume of Trade 1023.5 861.01 1203.18 1,840.94 839.30

Tanzania’s Balance of Trade -558.48 -512.23 -340.26 -135.36 45.90


Japan



Volume of Trade 489.45 590.22 785.2 848.99 307.37


Switzerland



Volume of Trade 754.56 611.83 1173.99 1,941.56 966.93

Tanzania’s Balance of Trade 479.04 342.65 50.55 -262.08 -268.13

Kenya



Volume of Trade 431.09 485.87 583.13 556.05 361.77

Tanzania’s Balance of Trade 35.25 -123.05 32.55 -122.63 -5.03

United Kingdom



Volume of Trade 229.84 214.51 240.56 320.73 180.64


USA



Volume of Trade 255.56 179.1 204 350.81 124.89


UAE



Volume of Trade 956.95 699.75 729.40 1,320.14 470.16

Tanzania’s Balance of Trade -825.39 -563.39 -614.94 -1,166.42 -388.82



i. Investment activities by other countries

[a] Projects registration - ten leading countries for the year 2011

S/No. Country No. Of Projects No. Of Employees Value (Mln. USD)

1 Dutch 18 2084 1,083.24

2 China 49 3146 282.23

3 United Kingdom 79 8673 258.97

4 India 51 9434 196.44

5 Turkey 11 619 122.06

6 USA 12 1717 111.95

7 South Africa 15 1329 67.24

8 Mauritius 8 594 60.27

9 Kenya 29 2004 50.24

10 Canada 23 1448 39.55

[Source: Tanzania Investment Centre]

[b] Japanese to Invest US$ 15 Million in EPZ Project: A Japanese firm, Nitori

Co. Limited plans to invest 15 million US dollars (over TZS 22bn/-) in the manufacture of furniture and ceramic ware under the Exports Processing Zones (EPZ) arrangement. The new investment that targets to supply to Europe and American markets will provide some 500 jobs for Tanzanians and boost the country's annual exports by 35 million US dollars (about 60bn/-).

[c] Norwegian Gas Company Plans Massive Investments:

Norwegian oil and gas giant Statoil, which recently announced huge discovery of proven five trillion cubic feet of gas off the Southern coastline, plans a multibillion dollar investment in liquefied natural gas plant (LNG) in the country over the next decade. Chief Executive Officer Helge Lund advised Tanzanians to put emphasis on science education for their children as potential geologists for Statoil, which would prefer having over 95 per cent of its workforce sourced locally. The company announced in February 2012 that it had encountered indications of natural gas in the Zafarani exploration well in the Block 2 licence offshore in Southern Tanzania. Industry analysts have described the new and largest ever discovery in the country as a potential catalyst for large scale natural gas developments in Tanzania.


7. Global exports & imports of Tanzania

i. The principal export commodities (Values in US$ million)

Item 2008 2009 2010 2011 April 2012

Jan.-Apr. 2012

Gold 898.8 1,076.10 1,467.30 2,226.4 160.8 710.1

Manufactured goods 595.1 497.6 963.9 861.5 88.0 303.2

Fish & Fish Products 142 127.6 141 137.7 17.0 59.8

Cotton 115.5 111.2 84 61.6 9.9 26.1

Tobacco 108.2 127.3 232.4 239.0 7.5 70.1

Coffee 100.1 111.7 101.7 142.6 14.3 75.3

Vegetable & oil seeds 283.5 310.6 349.1 347.1 58.4 146.3

Other Minerals 65.2 19.8 33.5 49.2 3.4 12.4

Cashew nuts 40.2 71.5 96.9 107.0 22.3 57.0

[Source: Bank of Tanzania]

ii. The principal import commodities (f.o.b Values in US$ million)

Item 2008 2009 2010 2011 April 2012

Jan.-Apr. 2012

Other Consumer Goods 966.7 1,050.20 1,247.50 1,519.9 111.8 482.3

Machinery 1,221.80 1,209.90 1,203.40 1,784.7 133.1 493.0

Oil 1,798.40 1,307.50 1,983.80 3,214.1 239.5 859.8

Transport equipment 776.4 741 901.1 1,005.7 76.4 316.0

Building & construction equipment

609.8 562.1 610.6 755.2 50.2 228.4

Industrial raw materials 522 467.9 602 731.3 98.0 264.4

Food & foodstuffs 285 341.9 461.6 600.9 64.3 219.1

Fertilizers 147.9 95.2 115 175.9 3.1 27.2

[Source: Bank of Tanzania]


8. Market prospects in respect of major items of Indian export

India is amongst the most favoured sources of supply of machinery, IT consumables, Chemicals and pharmaceutical products in Tanzania. Tanzania remains a promising market for Indian exports.

9. Trade Enquires

i. From India: During May, 2012 a total of 10 trade enquiries from India were received and replied. The enquiries were seeking for importers, distributors of agricultural products, Stationary and other consumer goods.

The enquiries from India during May, 2012 are as under:

S/No Company Enquiry Action taken

I (Shirish Chavan), International Stones India Pvt. Ltd India Tel: +91-4344 260672 Mob: +91 9362 846 306 Email: [email protected]

Importers of Natural Stones.

List of Tanzanian importers/contacts, useful websites, relevant authorities as well as chambers of commerce and industries were provided so that they could contact directly with their offers.

II (Ezhil Vendhan. K), Sterling Ventures India Tel: +91 4224280201 Mob: +91 9952260656 Email: [email protected]

Importers/Dealers of ketchup, pickle, pappad, male condoms, stationary paper plates and cups, mosquito coils etc.

III (P. Udayasankar), HMT (International) Ltd Bangalore – 560 032, India Email: [email protected]

Seek for importers engineering products and engineering projects.

IV (Nidhi Parwani), BLB Ltd New Delhi - 110001, India Tel: +91 11 2332 2835 Fax: +91 11 2335 2749 Email: [email protected]

Importers/Dealers of Rice and Maize.

mailto:[email protected]






V (K. Venkat), Venkatesh natural Food extracts Pvt. Ltd, Chhindwara (MP) - 480002, India. Mob: +91 9807235078 Email: [email protected]

Importers & Exporters of Food Processing raw materials and Herbal Extracts.

VI K P Group of Companies Ahmedabad – 380015, India. Tel: +91 79 26923570 Email: [email protected]

Importers/Dealers of pigments, dyes, pesticides and agro chemical products.

VII Fornax Overseas India Email: [email protected]

Importers/dealers of Tractors spare-parts and forging parts.

VIII (Ajay Gupta), Santa International New Delhi – 11024, India. Tel: +91 11 6581 8248 Mob: +91 9810673093 Email: [email protected]

Importers/dealers of Tractors & truck trailer spare parts.

IX (Aashaka Shah), Nexusneo Agro-Foods Exports Pvt. Ltd, Gujarat - 382007, India Tel: +91 79 23244557 Mob: +91 968 7642102 Email: [email protected]

Importers/dealers of agricultural commodities including pulses & spices.

X (Nimisha Darji), U Square Lifescience Pvt. Ltd, Ahmedabad, India. Mob: +91 972 7764735 Email: [email protected]

Importers/dealers of Pharmaceutical & Herbal products.










ii. From Tanzania: Mostly, Tanzanians come to the office of the High Commission to present their enquiries verbally. During May, 2012 4 trade enquiries from Tanzania were received and attended.

The enquiries from Tanzania during April 2012 are as under:

S/No Company Enquiry Action taken

I (Dr. Swai), Kilimanjaro Tanzania Mob: +255 784 290808 Email: [email protected]

Indian dealers/exporters of Turkey Birds.

List of Indian manufacturers/suppliers were provided as well as important websites which provide economic and business information in India so that they could contact directly with their offers.

II (Mr. Twaha Kachwamba), One Square Meter Co. Ltd P.O.Box 21033, Dar es Salaam Mob: +255 713 726 052 Email: [email protected]

Indian manufacturer/supplier of Cement.

III (Mr. Hesmant A. Mrema), Africa Rural Development Support Initiative Dar es Salaam Mob: +255 752 110 290 +255 715 301494 +255 774 3110 290 Email: [email protected] [email protected]

Indian Turn Key service providers; for sugar cane factory – Small, Medium and Large scales.

IV (Mr. John S.K. Mabonye ), Mount Handeni/Kilindi Mining Co. Ltd Tanga, Tanzania Mob:+255 718 554 996 +255 765 153662 +255 782 848228 Email: [email protected] [email protected]

Looking for an Indian company to join as partners in Gold mining in the company’s mining blocks which owned legally by the company.








10. Trade Complaints

S/No By Company Against Company Summary of the issue

Action taken

1. M/s. Escorts Limited Faridabad-121 003 Haryana, India Mob: +91 9811151389 Email: [email protected]

M/s. Tanzania Railways Limited P.O.Box 9061 Dar es Salaam Tanzania. Email: [email protected]

Non-payment of outstanding proceeds worth US $60,004.20 for consignment supplied.

The High Commission has written to the respondent for expeditious settlement.

2. M/s. Afro Garments Ltd, P.O.Box 1510, Moshi Tanzania. Tel: +255 27 2754309 Mob: +255 754 693896 Email: [email protected] (Tanzanian company)

M/s. Taj International, Street D-30, South Extension RDP 11 Dew Delhi-110049, India Mob: +91 9808654489 +91 9808654409 Email: [email protected] (Indian company)

Non-compliance to deliver consignment of 8,000 reams of double A-A4 white paper

The High Commission has written to the respondent to provide his comments in the matter, copy to Joint Secretary (FT-WANA).

3. M/s. Raj traders, Karnal Haryana-India Tel: +91 9215506614 +91 9034006614 Email: [email protected] (Indian company)

M/s. Al Raza Al Meer Co. Ltd, P.O.Box 2055, Dar es Salaam-Tanzania Mob: +255 716 767679 Email: [email protected] (Tanzanian company)

Non-compliance to deliver consignment of raw cow hides/skin while US $6,760 and TZS 1,290,000/= was paid.

The High Commission has written to the respondent to refund the money paid; copy to Tanzania Leather Association [LAT].











11. Indian investment in Tanzania

Investments with Indian interest from 1990 to December 2011 are as follows:

S/No. Sector No. of Companies/

Institutions Employment

Value

[US$ Million]

1 Manufacturing 167 21,665 943.47 2 Transport 17 3,119 211.71

3 Agriculture 23 13,231 180.34

4 Energy 5 287 56.91 5 Tourism 21 997 55.77

6 Construction 37 2,255 49.32 7 Services 23 668 22.10

8 Financial 3 82 14.68

9 Natural Resources 6 446 10.20 10 Human Resources 2 40 1.18

11 Broadcasting 2 28 0.61 12 Computer 1 86 0.27

Total investments with Indian interest from 1990 to December 2011, amounted to US$ 1.547 billion. Projects opened by Indian Companies in Tanzania recently are: M/s. Kamal Steel is developing an EPZ, approximately 45 km. away from Dar es Salaam of approximately 300 Acres with 80 industrial units; Bharti Airtel; in the acquisition of Zain’s African mobile operations, Tanzania with an estimated investment of US$150 million. Banco Products, is set to invest IR 3 billion (US$65 million) in a modern cement production. An Indian telecom infrastructure company, M/s. Microqual has been given the contract to construct 1400 telecom towers in Tanzania. They have proposed a Telecom Training Centre for imparting training / Training courses on 2G/3G Telecom Networks which include both classroom and on-site practical training to Tanzanians. The Progressive Construction Ltd was awarded the contract for upgrading of Namtumbo-Tanduru Road to Bitumen standard. The project is being funded by the African Development Bank. This is the first contract in Tanzania that is being awarded to an Indian company in the construction of roads. Others are Syngen Fuels and Agri Products (T) Ltd - deals with cultivation of rice and other crops in Morogoro and NMDC, which deals with mining of gold.


12. Status of ongoing major investments

Major investments are NMDC, which deals with mining of gold; Microqual which has been given the contract to construct 1400 telecom towers; Airtel that deals with mobile services; and Kamal Group, which is developing an EPZ. No abnormalities reported by the said companies.

13. Investment opportunities in Tanzania

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 “Agriculture first” initiatives in July 2009, investment opportunities opened up in agriculture farming as well. M/s. Kamal Steel, an Indian company, is also in the process of developing an EPZ, approximately 45 km. Away from Dar es Salaam; website: http://www.kamalholding.com/kamal_epz/kamal_group.html. For The Tanzanian Export Processing Zone Authority (EPZA) you can visit www.epza.co.tz. With regard to investment in Tanzania, TIC; http://www.tic.co.tz/ is the focal point for investors. It is the first point of call for potential investors; it is a “one stop facilitative centre for all investors”. For Investment Issues/Information/News in Tanzania visit: http://www.tanzaniainvest.com/

14. Status of trade and investment related issues taken up by the

mission with the Government of Tanzania

Efforts have been made by the Mission to ensure that Tanzania acceded to the Duty Free Tariff

Preference [DFTP]. The accession has been undertaken and the documentation is completed. Outreach

efforts by the Mission are underway to ensure that business communities utilize the facility.

15. Commercial & Economic Meetings & interactions

The mission has been maintaining close touch with officials of business institutions i.e. Tanzania

Investment Centre, Tanzania Chamber of Commerce Industry and Agriculture etc. Monthly

meetings with local business persons have been conducted. Business persons have been visiting

the Mission’s Business Centre for enquiries, advice and other assistances. The response has

been positive to the extent that India has been the leading exporter to Tanzania.

http://www.kamalholding.com/kamal_epz/kamal_group.html

http://www.epza.co.tz/

http://www.tic.co.tz/

http://www.tanzaniainvest.com/


16. Important policy changes by the Government of Tanzania

(i) Tanzania has banned the export of raw tanzanite gemstone:

The ban which came into force on July 2010 was taken to spur development of the local

processing industry. The policy has negatively affected the Jaipur gemstone manufacturing

industry. India's second largest city of Jaipur is the main importer of the mineral. Under the

revised legislation, the mining of gemstones will be reserved for locals but foreigners can enter

into joint ventures with Tanzanian nationals. Further, mining contracts will be reviewed every

five years, with specific areas set aside by the government to avert recurring conflicts with big

miners. Also, Tanzania will not issue new gemstone mining licences to foreign companies.

Current agreements with foreign mining companies remain unchanged.

(ii) Government will continue exporting hides, skin:

Tanzania will continue exporting hides and skin because the local tanning industry is unable to

process the raw material owing to low performance and inherent inefficiency. Currently, there

is a surplus of 1.5 metric tonnes of raw hides and skin above the capacity of the existing six

tanneries. The tanneries - Moshi Leather Industries, Tanzania Leather Industries, Afro Leather,

Kibaha Tannery, Himo Tanners and Salex Tanners – which can process 40 square feet of leather

operate at below 50 per cent. Tanzania can easily produce 2.8 million cattle hides, 3.8million

goat skin and 1.0m sheep skin a year.

(iii) Total Ban on Plastic Bags:

Tanzania will soon make a total ban on the manufacture and trade in all kinds of plastic bags.

The government is in the final stages of amending the Prohibition of Plastic Bags Regulations

2006, which would only need the Cabinet approval to effect the ban aiming at curbing the use

of disposable plastic bags that “have become a menace to the environment”. Key features

would include hefty fines and a prohibitive jail sentence for violators.

(iv) Government bans export of wild animals:

Tanzanian government has banned the capture, importation and exportation of wild animals

with effect from this December 2011, specifying that the order does not cover insects. A

December 9, 2011 Government Notice by the Natural Resources and Tourism ministry, requires

all licensed traders whose permits were still valid by August 18 this year to make sure that they

exported their animals within three months from the date of the notice.


17. Position of Tanzania on WTO

The Government of Tanzania believes that agreements, rules and disciplines that

emerge from future negotiations should be designed to level the playing field by

enhancing predictability, consistency and transparency in the system. They should

among other things include:

(i) Support efforts for building productive capacities and strengthening supply

capabilities;

(ii) Provide flexibility in the use of appropriate policy instruments to enhance the

process of growth and structural transformation of economies;

(iii) Improve market access for products of export interest to countries;

(iv) Advance regional integration objectives; and

(v) Define more clearly the terms and conditions of special and preferential treatment.

As regards the mandated negotiations, Tanzania acknowledges the vital role of the

agricultural and service sectors to its economic growth and development. In this light,

the ongoing reform and liberalization of international agriculture trade must lead to

improve access to world markets for all agricultural exports (primary and processed).

This should be achieved through:

(i) The elimination of tariff escalation/and tariff peaks;

(ii) Reduction in domestic support in the developed countries;

(iii) The elimination of export subsidies which displace agricultural exports of

developing countries or impact negatively on their domestic production; and

(iv) The obligation to formulate disciplines on export credits.

18. Major International Tenders issued & Bids invited in Tanzania

For roads constructions: Completed projects, ongoing projects, waiting for contract

signing, under procurements, ongoing design projects, completed designs waiting for financier

visit: http://www.tanroads.org/# [Projects]. For various tenders floated by the Tanzanian

government, visit: www.ppra.go.tz . For Medical/Pharmaceutical tenders visit: www.msd.or.tz

For Investment Issues/Information/News in Tanzania visit: http://www.tanzaniainvest.com/

http://www.tanroads.org/

http://www.ppra.go.tz/

http://www.msd.or.tz/

http://www.tanzaniainvest.com/


19. Aid/Assistance received by Tanzania

i. African Development Bank (AfDB) Gives Tanzania TZS 355 Billion/ - Loan for Roads:

The African Development Bank (AfDB) has extended a loan of TZS 354.56bn/- (UA 140.0 million) to Tanzania to finance construction of roads. The project involved upgrading of Dodoma-Babati road of 188km and the Tunduru-Mangaka-Mtambaswala road measuring 202km. Other contributors in the project are Japan International Cooperation Agency (JICA), which contributes TZS 157.4bn/- (UA 62.14 million) and the government of Tanzania that provide TZS 27bn/- (UA 10.64). The total cost of the project is TZS 538.88bn/- (AU 212.78 million).

20. Commercial, Economic and Political Report

i. Gross Domestic Product: Tanzania’s GDP growth for the year 2007 was 7.3%, 2008 was

7.4% and in 2009 was 5.0%, while growth in 2010 was 6.0%; in 2011 was 6.2% and in 2012 is expected to grow by 6.6%.

Nominal GDP: US$ 22.6 billion; Shares of GDP at Current Prices 2010 (est): Services (including tourism) 50.8%, Industry and Construction 22.6%, Agriculture and Fishing. 26.6%. [National Bureau of Statistics]

Tanzania’s GDP: Purchasing power parity US$ 62.22 billion (2010 est.)

Per capita (ppp) US$ 1,500 (2010 est.)

ii. Budget Trend 2006/7– 2011/12

Fiscal Year

Total budget Re-current Expenditure Development Expenditure

TZS (trillion)

App. US$ (billion)

TZS (trillion)

App. US$ (billion)

TZS (trillion)

App. US$ (billion)

2006/7 4.8 4.0 3.1 2.54 1.7 1.41

2007/8 6.0 4.68 3.866 3.020 2.2 1.71

2008/9 7.2 5.63 4.726 3.692 2.4 1.92

2009/10 9.51 7.09 6.69 4.992 2.2 1.64

2010/11 11.61 8.00 7.791 5.373 3.819 2.63

2011/12 13.52 9.01 8.60 5.73 4.92 3.28


The proposed TZS13.5 trillion [App. US$9 Billion] 2011/2012 Tanzania fiscal

budget, the primary beneficiaries will include investors in the country’s agricultural and industrial sectors. In order to attract investors to the Tanzania agriculture sector, VAT exemption has been announced on spare parts for the threshers, rice dryers and mills, planters, trailers and power tillers that are used in organized farming. Also there is an additional VAT exemption on the pellet poultry feed and raw materials that used in the manufacture of fishing nets. The government proposed to spend TZS11.1trillion [App. US$7.4 Billion] on recurrent and development programmes, with agriculture, energy, infrastructure, industry and financial sectors as the priority areas. Development partners were expected to contribute TZS3.92trn [App. US$2.61 Billion] through the basket fund and development projects. TZS869.4bn [App. US$579.6 million] out of it will be provided as loans.

iii. Tanzania’s Trade Worldwide [US$ million]

Details

Years (January - December)

2007 2008 2009 2010 2011 Jan. – May.

2012

Imports (CIF Value)

5,908.93 7,476.62 6,531.22 8,012.87 11,184.19 4,644.36

Exports (FOB Value)

1,938.01 2,889.60 2,758.92 3,820.93 4,552.86 2,221.30

Volume of Trade 7,846.94 10,366.22 9,290.14 11,833.80 15,737.05 6,865.66

Balance of Trade (Unfavourable)

-3,970.92 -4,587.02 -3,772.30 -4,191.94 -6,631.33 -2,423.06


iv. Rate of Inflation: The annual inflation rate in the month of May 2012 decreased to

18.2% compared to 18.7% in April 2012. Annual food inflation decreased to 24.5% in May 2012 compared to 24.7% in April 2012. The annual non-food inflation also decreased to 10.5% in May 2012; compared to 11.2% in April 2012.

v. Exchange Rate: The end-period exchange rate of the Tanzanian shilling (TZS) was TZS

1,586.65 per US dollar in May 2012 from TZS 1,584.22 per US dollar recorded in April 2012.

vi. External Debt: In April 2012, Tanzania’s external debt stock stood at US$ 9,934.6

million; 85.2% being disbursed outstanding debt (DOD) and 14.8% interest arrears. In April 2012, disbursements amounting to US $15.1 million, while external debt service amounted to US$ 8.8 million, of which US$ 4.5 million was principal and US $4.3 million interest payments.


vii. Current Account Balance: During the year ending April 2012, Current account deficit

more than doubled to US$ 5,461.7 million compared to a deficit of US$ 2,498.6 million in the corresponding period in 2011. The widening gap in the current account has partly translated into a deterioration of the overall balance of payments.

viii. Strategic Grain Reserves: According to official estimates, Tanzania’s strategic grain

reserve was about 105,245 tons at the end of April 2012, compared to 123,312 tons recorded in March 2012. On annual basis the SGR stock decreased by 51.2% from 215,662 tons recorded in April 2011.

ix. Tanzania’s revenue collection: Revenue collections in April 2012 amounted to TZS 504.0

billion (App. US $317.78 million). Tax revenue amounted to TZS 462.0 billion (App. US $291.30 million).

21. Pending References from the Mission

------------------Non-------------------------

22. Monthly expenditure of the Commercial Budget

In the month of April, 2012 the expenditure for Commercial Wing is US $

23. Others

[a] China to Up Support for Education Sector:

The Chinese government has pledged more support for education sector in terms of exchange of

expertise in an effort to bring about social economic development in the country. Deputy Head and

Political Counsellor of the embassy of the People’s Republic of China revealed that on29th may, 2012 at

the opening ceremony of Higher Education Fair sponsored by China Scholarship Council. Apart from

that, Chinese government has also promised to support Tanzania in building rural schools, establishing

laboratories in higher education institutions and training masters-level vocational teachers.

[b] Country Clinches Multi-Million Dollar Agriculture Deal:

The eight most industrialized countries have pledged 897 million US dollars support to Tanzania under

the new alliance to bolster agriculture and food security in Africa. The US made the largest single pledge

of 315 million dollars. Other pledges have been made by Britain, France, Germany, Japan and the

European Union.


[c] Rufiji Sugar Plant Takes Off Next Year:

More than 10,000 residents of Rufiji district in Coast region will be employed by a sugar plant that is

expected to take off in the district next year. 20 tractors and other farming equipment will be

dispatched from India for the development of sugarcane farms in Rufiji. The sugar factory will crush

125,000 tonnes of sugar annually. The project entails acquisition and registration of 12,000 hectares of

land suitable for sugarcane farming in Phase One of the project. The proposed project will involve

procurement of a complete sugar mill with distillery planned at 5,000 TCD for processing of sugarcane to

produce sugar and utilizing the sugar processing wastes to produce fuel ethanol. The wastes will also be

utilized to generate power in-house which will cater for all internal electricity requirements, selling

excess capacity to the national grid through Tanzania Electric Supply Company (Tanesco).

[d] Germany Pledges $231 Million to Tanzanian Government:

The German government is focusing on assisting the government of Tanzania in order to attain its 5

years "Mkukuta" strategic plan that will aim at ensuring that the majority of Tanzanians get better basic

services. Besides development projects they were also considering extending support to renewable

energy. A total of Tsh366 billion ($231m) will be given to support the government of Tanzania on various

development projects for the next three years. Part of the assistance will be channeled in the areas of

clean drinking water projects. About Tshs286b ($181m) will be allocated for financial cooperation which

will be implemented by Germany Development Bank. The Tshs80b ($51m) for technical cooperation will

be implemented by Organization for Development Cooperation (GIZ) whereby Tshs7.3b ($4m) will be

used for technical support to the National Audit Office of Tanzania.

[e] Delegates to Indian Ocean Rim Countries Discuss Security, Transport:

Nine senior delegates representing eighteen member countries have participated in the inauguration of

new office premises of the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) at its

headquarters in Mauritius. The IOR-ARC said the delegates were from Tanzania, Australia, Bangladesh,

India, Indonesia and Iran. Others were from Kenya, Mauritius, Madagascar, Malaysia, Mozambique,

Oman, Seychelles, South Africa, Sri Lanka, Thailand, United Arab Emirates and Yemen. During the

inauguration, a meeting aiming to review the action taken on decisions made by the last council of

Ministers in November 2011 in Bengaluru, India was held. During the meeting, members discussed

projects of mutual cooperation in six priority themes adopted at the last meeting of the council of

ministers in Bengaluru in November 2011. The projects were in the area of maritime security, trade and

investment, fishing industry, disaster management, tourism and capacity building. Mr K V Bhagirath,

Secretary General of IOR-ARC speaking on the occasion, welcomed the delegates of the countries of IOR-

ARC to the Secretariat. Mr Bhagirath is the immediate former Indian High Commissioner to Tanzania.

The meeting made many useful recommendations which will be put up before the Council of Ministers

when they meet in November 2012 in India.


[f] Tanzanian President Welcomes Foreign Agricultural Investors:

Tanzania has welcomed agro-business investors from around the world describing the move as

beneficial to small-scale farmers. President Jakaya Kikwete made the appeal at the 22nd World

Economic Forum, Grow Africa Forum adding that Tanzania is ready to do business. The Grow Africa

Investment Forum, convened jointly by the African Union, New Economic Partnership for African

Development and the World Economic Forum, engaged over 270 leaders including heads of state and

governments from Ethiopia, Rwanda and Tanzania, as well as leaders of African and global business,

international and donor agencies and farmers' organizations.

Kunal Roy

Counsellor & Head of Chancery High Commission of India

82 Kinondoni Road, Dar-es –Salaam Tel +255-22-266-9047, 2669040

Email [email protected]


high commission of india - pharmexcil

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