European Investment in Tanzania: How European investment contributes to industrialisation and development in Tanzania

27.10.2016
Tanzania

Wednesday 26th October, 2016; Dar es Salaam: The European Union Ambassador to Tanzanian and the East African Community, Mr Roeland van de Geer, hosted an event jointly with the Board of Directors of the European Business Group (EUBG) to celebrate the launch of the report European Investment in Tanzania: How European investment contributes to industrialisation and development in Tanzania. The event was attended by the European Union heads of mission, the ambassadors of Switzerland and Norway, Representatives from multilateral organisations, members of the Government and the members of the EUBG.

The report is a joint effort between the European Union who funded the report, the European Union Business Group whose members provided expertise and input for the report, and the Government of Tanzania who requested the study through Development Financing.

The study aims to bring data together that shows the value, diversity, and reach of European investment in Tanzania. It includes a number of exemplary case studies which show how the best of European technology and industrial development is supporting Tanzanian growth in almost all sectors of the economy. European innovation and capital is connecting people to mobile networks, building key infrastructure in Tanzania, and investing in mining, retail, tourism, oil and gas and so much more.

The EUBG and its members are committed to working with the Government of Tanzania and the Tanzanian 5 year Development Plan.

For example, the report shows that the European Union remains Tanzania's largest trading partner with a total of USD 2 billion in trade in 2015. European firms also represent 68% of total Foreign Direct Investment flows in Tanzania in 2012 (USD 1.2 billion). European companies which are large taxpayers paid USD 1.1 billion in domestic taxes in 2014, accounting for 25% of the taxes paid by large taxpayers in Tanzania that year. This goes to show that the over 1000 European companies and individuals, from large multinational corporations to small individual tourism ventures, play a significant part in the development of the Tanzanian economy. This study shows the diversity of investment, jobs, and economic growth that European companies bring to Tanzania. All of these activities generate jobs and revenue for the people of Tanzania – in addition to what is provided in development financing from the EU.

EU Ambassador Roeland van de Geer noted in his speech that: "This publication discusses the competitive edge that Tanzania has in trade, investment and production and the challenges that it currently faces. It also contains clear recommendations on the way forward. The EU is committed to continue working with Tanzania and the East African Community and to strengthen the ties between our regions."

The chairman of the European Union Business Group, Mr. Morten Juul, noted in his speech that: "Tanzania offers a peaceful and stable environment, abundant natural resources and a favourable geographical location. There are ample opportunities for European investors to work alongside local investors to create an active and successful private sector and continue to build the economy. We hope that through continued dialogue we can build an environment which supports further EU investment in the country and are ready and willing to share our skills and experience in order to resolve challenges within the current business environment. "

 

 

Background Note

The Report describes the European investment in 11 sectors of the economy (agriculture, mining, upstream oil and gas, manufacturing, construction and real estate, power sector, information and communication technology, banking and finance, transport and logistics, tourism, retail and trade).

The countries in scope for this Market Study of European investment in Tanzania include the 28 member states of the European Union (EU)[1], plus the affiliated European Free Trade Association (EFTA)[2] countries of which Norway and Switzerland (EU+SN) are active in Tanzania.

For the purposes of this study, our definition of an 'EU+SN investor in Tanzania' draws directly on the OECD Benchmark Definition of Foreign Direct Investment.[3] Following the OECD definition, a European investor in Tanzania is therefore any Tanzanian-registered business entity whose Ultimate Investing Country (UIC) is one of the EU+SN countries.

 

For more information please contact:

Pamela Kanora – EU Press & Information Officer

Pamela.KANORA@eeas.europa.eu /0754 323 245

Rose Blackie – EUBG Executive Director

rose.blackie@eubgtz.com /0752 441 797

 


[1] For reference, the list of EU members is as follows: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.

[2] Norway and Switzerland were among the founding Member States of EFTA in 1960. Iceland joined EFTA in 1970, followed by Liechtenstein in 1991. Norway, Iceland (from 1994) and Liechtenstein (from 1995) are also parties to the European Economic Area (EEA) Agreement with the European Union, while Switzerland has signed a set of bilateral agreements with the EU.

[3] A full explanation of the OECD definition is available here:   http://www.oecd.org/daf/inv/investmentstatisticsandanalysis/40193734.pdf


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