Understanding Tanzania's Foreign Policy

Tanzania's foreign policy is centered on fostering international business relations and enhancing its economic standing. While the country does not frequently update its foreign policy initiatives on its official government website, it remains a keen player in the African regional and global economic arena, focusing on reducing costs and tapping into its vast labor market.

Primary Aims and Initiatives

The primary objectives of Tanzania's foreign policy are to develop international business interests and sustain economic gains. These initiatives aim to leverage the country's natural resources to boost economic growth and improve the living standards of its citizens. Tanzania's key strengths lie in its natural resources, including agriculture, mining, energy, and tourism. The country has 44 million hectares of arable land, of which only about 5% is currently under cultivation.

Natural Resources and Economic Opportunities

Tanzania's natural resources include diamonds, gemstones, gold, coal, iron, nickel, forest products, domesticated livestock, wildlife, fisheries, marine products, natural gas, and possibly oil. The primary exports in terms of value include tobacco and gold. Key imports are capital and consumer goods. The Government of Tanzania (GOT) has a favorable attitude towards foreign direct investment (FDI), and has achieved considerable success in attracting FDI.

Investment Facilitation Efforts

To facilitate foreign investment, Tanzania has several organizations and mechanisms in place, including the Tanzanian Investment Center (TIC), established under the Tanzanian Investment Act of 1997. TIC serves as the central point of contact for inquiries from investors, screens foreign investments, and facilitates project start-ups. It has been given the authority to manage Public Private Partnerships (PPPs) under 2010 PPP legislation, which sets a framework for Build-Operate-Transfer arrangements with private companies.

While filing with TIC is not mandatory, it offers incentives for joint ventures with Tanzanians and wholly owned foreign projects above USD 300,000. The review process typically takes up to 10 days and involves multiple GOT agencies, which are required by law to cooperate fully with TIC in facilitating foreign investment. Projects are not currently reviewed for anti-competition concerns, although TIC continues to improve investment facilitation services, provide joint venture opportunities, and disseminate investment information.

Challenges and Future Prospects

Despite its potential, Tanzania faces several challenges in maintaining and growing its economy. The country must ensure that business investments yield a net gain and do not simply replace one segment of economic growth that is declining. Additionally, there is a need to improve infrastructure, reduce bureaucratic hurdles, and create a more favorable investment climate.

Conclusion

In conclusion, Tanzania's foreign policy is driven by the goal of enhancing economic growth and attracting foreign direct investment. The country's natural resources and favorable attitude towards FDI offer significant opportunities for international businesses. Through the establishment of the Tanzanian Investment Center and the framework for Public Private Partnerships, Tanzania continues to work towards facilitating a more investment-friendly environment. As the country looks to the future, it aims to sustain its economic gains and continue its journey of development and prosperity.