KEYNOTE ADDRESS BY HIS EXCELLENCY JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF
TANZANIA, AT THE KENYA - TANZANIA BUSINESS
FORUM IN NAIROBI, KENYA,
6TH OCTOBER 2015
Ladies and Gentlemen;
I
thank you President Uhuru Kenyatta for including this meeting in my
itinerary and for what you have just said emphasizing the importance of
promoting business relations between our two countries. I thank Mr.
Kiprono Kittony the Chairman of the Kenya Chamber of Commerce and
Industry for organising this important forum. It will surely go a long
way towards strengthening the overall relations between our two
countries.
Doing Business in Tanzania
Ladies and Gentlemen;
We
are gathered here this morning to discuss issues of bread and butter:
Kenya – Tanzania investment and business opportunities and
relationships. Honestly, I don’t know what to tell you about the
business opportunities in Tanzania or the business environment in
Tanzania because some of you, if not many, are already doing business in
Tanzania. Our records show that Kenya is the fifth largest investor in
Tanzania and the leading in Africa followed by South Africa. There
are 518 investment projects from Kenya worth USD1,685.49 million,
employing 55,762 Tanzanians.
Manufacturing
accounts for 45 percent of the total value of Kenya’s investment while
real estate accounts for 13 percent, tourism 12 percent and transport
and logistics 11 percent. The remaining 19 percent is distributed in
small portions among other sectors.
With regard to trade between our two countries, records show that we have been doing very well. Kenya’s exports to
Tanzania increased from USD 301.5 million in 2009 to USD 333.6
million in 2013. During the same period Tanzania’s exports increased
from USD 179.3 million in 2009 to USD227.1 million in 2013. I am told at
this level of trade volume that our two countries account for nearly 90
percent of intra East African
trade. This demonstrates in empirical terms how much our two countries
need each other and how significant we are in the East African
integration agenda.
Mr. President;
Ladies and Gentlemen;
Let
me state clearly and loudly that our two countries can do better than
what we are doing at the moment. Tanzania can absorb more investment
from Kenya sell more and vice versa. There are, in Tanzania, plenty of
opportunities in oil and gas, energy manufacturing, agriculture, mining,
tourism, real estate, transport, ICT, hearth care, education and
several others which you may know better than me. Our two countries
enjoy cordial relations which is good for business. Also, we are members
of the East African Community one of whose main objectives is to
promote trade and investments between member states. The EAC
arrangements under the Customs Union, the Common Market and Monetary
Union have opened the borders, for trade which is constantly making life
easy for business in the East African region.
Since
the socio–economic reforms which began in the mid 1980’s, Tanzania has
been pursuing sound economic policies. As a result, there is strong
macro-economic performance and stability for over two decades now. On
the average Tanzania’s economy grow at around 7 percent over the last
decade and we expect a 7.3 percent growth this year. The GDP has trebled
from USD 14.1billion in 2005 to USD 49.1 billion in 2014. And so, has
the GDP per capita from USD 375 in 2005 to USD 1,066 in 2014. The
population of Tanzania is estimated to be around 48 million with a
sizeable and a growing middle class. With more than 50 percent of the
people below the age of 30 who have better access to primary and
tertiary education there is an assured labour force and a market.
Moreover, Tanzania’s membership of SADC and Kenya’s membership of
COMESA, gives the Kenyan investor an extended market beyond the East
African Community and COMESA. I gather only 4 of the 14 SADC member
states are in COMESA.
Mr. President;
Ladies and Gentlemen;
As we
all know, Tanzania has enjoyed peace and stability since independence.
We are a vibrant democracy and committed to advancing good governance,
rule of law and human rights. The fight against corruption, terrorism,
narcotic drugs, and other vices in society is unrelenting. We espouse
friendly business policies and investments are safe. No more
nationalization and investors are allowed to repatriate profits and
dividends. The government stands ready to take more measures to improve
the business environment. We are doing exactly that and more. There is
regular consultation between the government and private sector under the
auspices of the Tanzania National Business Council which I chair. This
has proven to be very useful. Issues are discussed openly freely
discussed and solutions found.
Conclusion
Mr. President;
Ladies and Gentlemen;
I
could go on and on since I have a lot to say, but allow me to conclude
by expressing my sincere gratitude to the business community in Kenya
for being valuable partners. I believe the discussions here today will
further encourage Kenyan private sector to do more business with
Tanzania. I whole heartedly welcome you to do so. Tanzania is more than
ready to do business with you.
Please come one, come all.
Thank you very much, Asanteni sana.
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