No.

Dar/Com/201/1/2012

May 30, 2014

Commercial & Economic Report for the Month of April, 2014

1. Country: United Republic of Tanzania
2.0. Trade with India:

Two-way bilateral trade for January-April, 2014 amounted to

US$ 1,140.59 million. Indias exports to Tanzania during the
period amounted to US $897.01 million while Indias imports
from Tanzania amounted to US $243.58 million. Compared
to January-April 2013, Tanzanias exports have decreased by
31%. Indias exports to Tanzania have increased by 68%
during this period. The balance of trade is in favour of India
by US$5653.43 million. India mainly exports petroleum
products, medicines, trucks and buses, sugar, iron & steel
items, tractors, motorcycles, wire & cable, cement, etc.
Imports from Tanzania are mainly commodities such as gold,
cashew nuts, spices (clove), pulses, precious stones, timber,
vegetable fats, cotton, cocoa beans, etc. The bilateral trade
figures are as under:
Year ending December
Details

3004

MEDICAMENTS OF
MIXED OR UNMIXED
PRODUCTS, FOR RETAIL
SALE

8702

PUBLIC-TRANSPORT
TYPE PASSENGER
MOTOR VEHICLES

1701

CANE OR BEET SUGAR

AND CHEMICALLY PURE
SUCROSE, IN SOLID
FORM

7208

102.23

44.50

97.40

13.22

2.48

13.87

8.97

1.55

12.90

HOT-ROLLED IRON OR
NON-ALLOY STEEL,
>=600MM WIDE

59.74

35.81

12.64

8704

MOTOR VEHICLES FOR

THE TRANSPORT OF
GOODS

26.09

6.95

9.63

7210

ROLLED IRON OR NONALLOY STEEL, >=600MM

WIDE, CLAD, PLATED
OR COATED

19.15

4.59

9.52

Jan Dec
2013

Jan-Apr.
2013

Jan-Apr.
2014

2,308.71

535.46

897.01

68%

752.17

355.41

243.58

-31%

8701

TRACTORS (EXCL.
TRACTORS OF 87.09)

10.38

3.72

9.43

Volume of Trade

3,060.88

890.87

1,140.59

27%

8711

24.62

5.44

7.77

Balance of Trade
[in favor of India]

1,556.54

180.05

653.43

MOTOCYCLES (INCL.
MOPEDS) AND CYCLES
FITTED WITH AN
AUXILIARY MOTOR

8544

INSULATED WIRE,
CABLE, ETC; OPTICAL
FIBRE CABLES

11.44

1.39

6.92

2523

PORTLAND CEMENT,
ALUMINOUS CEMENT,
PERSULPHATE CEMENT,
ETC

6.99

0.33

5.64

3817

MIXED ALKYLBENZENES
AND MIXED
ALKYLNAPHTHALENES,
NES

8.60

1.85

3.42

7214

IRON/STEEL BARS AND

RODS, FORGED, ETC
(INCL. TWISTED),
UNCOILED

3.38

0.53

3.02

7614

STRANDED WIRE,
CABLES... OF
ALUMINIUM, NOT
ELECTRICALLY
INSULATED

0.06

----

2.94

Imports from India

CIF Value
[US$ million]
Exports to India
FOB Value
[US$ million]

% Change

Source: Tanzania Revenue Authority

2.1. Figure of major commodities imported from India during

the period of January December 2013, Jan-Apr, 2013 and in
Jan-Apr, 2014 are as under:
Year ending December

HS
CODE

2710

COMMODITIES

PETROLEUM OILS AND

OILS OBTAINED FROM
BITUMINOUS
MINERALS,OTHER THAN
CRUDE

CIF Value (US$ Million)

Jan-Dec

Jan-Apr.

Jan-Apr.

2013

2013

2014

298.08

585.98

1,492.66

2.1. Cont

2.2. Main commodities exported by Tanzania to India:

Figures of major commodities exported by Tanzania during
January December, 2013, Jan-Apr, 2013 and Jan-Apr, 2014
are indicated below.

3003

MEDICAMENTS WITH
>=2 CONSTITUENTS
MIXED TOGETHER, NOT
FOR RETAIL SALE

5.57

1.51

2.93

4011

NEW PNEUMATIC
TYRES, OF RUBBER
TRACTORS (EXCL.
TRACTORS OF 87.09)

6.98

2.37

2.55

3204

SYNTHETIC ORGANIC
COLOURING MATTER
AND PREPARATIONS
AND PRODUCTS

7.15

1.96

2.54

7108

9018

INSTRUMENTS AND
APPLIANCES USED IN
MEDICAL, SURGICAL,
DENTAL... SCIENCES

5.55

1.25

2.36

3006

PHARMACEUTICAL
GOODS SPECIFIED IN
NOTE 3 TO THIS
CHAPTER

6.96

SCREWS, BOLTS, NUTS,

COACH-SCREWS,
SCREW BOOKS... OF
IRON OR STEEL

1.76

HYDROXIDES AND
PEROXIDES OF SODIUM
OR POTASSIUM

6.32

POLYMERS OF
PROPYLENE OR OF
OTHER OLEFINS, IN
PRIMARY FORMS

8.01

PETROLEUM JELLY;
PARAFFIN WAX... AND
OTHER MINERAL
WAXES, ETC

3.55

8523

PREPARED
UNRECORDED MEDIA
FOR SOUND OR
SIMILAR RECORDING

1.25

----

1.87

8714

PARTS AND
ACCESSORIES OF
VEHICLES OF 87.11 TO
87.13

5.25

1.57

1.83

7318

2815

3902

2712

0.48

0.68

2.02

2.25

0.94

Year ending December

HS
CODE

C O MM O D I T I E S

FOB Value (US$ Million)

Jan-Dec

Jan-Apr

Jan-Apr

2013

2013

2014

GOLD, UNWROUGHT OR IN
SEMI-MANUFACTURED FORMS,
OR IN POWDER FORM

428.14

211.42

117.22

0801

COCONUTS, BRAZIL NUTS AND

CASHEW NUTS, FRESH OR
DRIED

148.26

88.03

60.47

0907

CLOVES

22.30

3.69

19.32

0713

DRIED LEGUMINOUS
VEGETABLES, SHELLED

69.81

24.07

15.26

2616

PRECIOUS METAL ORES AND

CONCENTRATES

-----

-----

6.91

7103

PRECIOUS STONES (EXCL.

DIAMONDS) AND SEMIPRECIOUS STONES, NOT SET...

15.14

5.71

5.06

4407

WOOD SAWN OR CHIPPED

LENGTHWISE, SLICED OR
PEELED, >6MM THICK

15.61

6.37

4.99

2306

OIL-CAKE AND OTHER SOLID

RESIDUES, OF VEGETABLE FATS

14.01

4.41

3.86

0712

DRIED VEGETABLES, WHOLE,

CUT, SLICED, BROKEN OR IN
POWDER

2.16

1.52

2.63

5201

COTTON,NOT CARDED OR
COMBED

7.49

1.78

0.93

1801

COCOA BEANS

1.61

0.32

0.91

7801

UNWROUGHT LEAD

-----

-----

0.73

3201

TANNING EXTRACTS OF
VEGETABLE ORIGIN; TANNINS
AND OTHER DERIVATIVES

1.96

0.22

0.70

7404

COPPER WASTE AND SCRAP

2.13

0.89

0.51

7204

FERROUS WASTE AND SCRAP;

REMELTING SCRAP INGOTS OF
IRON OR STEEL

0.96

0.40

0.36

4104

LEATHER OF BOVINE OR
EQUINE ANIMALS, WITHOUT
HAIR ON

-----

-----

0.36

4403

WOOD IN THE ROUGH OR

ROUGHLY SQUARED

0.22

-----

0.35

2.32

2.27

2.18

2.17

1.91

[Source: Tanzania Revenue Authority]

Compared to the period of Jan-Apr, 2013 Indias export to

Tanzania in the period of Jan-Apr, 2014, increased primarily
on account of greater exports of petroleum products by 97%
(US$287.90 million) and increase in exports of medicines,
motor vehicles, sugar, tractors, cement, iron & steel items,
motorcycles, media recording items, pharmaceuticals,
chemicals and screws, bolts & nuts. Indias export of hotrolled iron & non-alloy steel and polymers fell in this period.

Page 2 of 10

2.2 Cont

5203

COTTON, CARDED OR
COMBED

1.42

5303

JUTE, ETC (EXCL. FLAX...),

NOT SPUN; TOW AND
WASTE OF THESE FIBRES

0.65

4106

GOAT OR KID SKIN

LEATHER, WITHOUT HAIR
ON

0.19

0.46

1,595.86

432.09

309.42

59.84

1,905.28

491.93

-1,286.44

-372.25

1,193.19

440.54

84.67

30.60

1,277.86

471.14

-1,108.52

-409.94

Imports - CIF Value

729.67

187.79

Exports - FOB Value

764.58

250.02

1,494.25

437.81

Tanzanias Balance of Trade

+34.91

+62.23

Imports - CIF Value

335.59

179.06

Exports - FOB Value

228.41

96.17

564.00

275.23

-107.18

-82.89

Imports - CIF Value

515.99

168.35

Exports - FOB Value

221.19

67.76

737.18

236.11

-294.80

-100.59

214.23

136.00

0.08

214.31

136.00

-214.15

-136.00

277.40

89.58

Exports - FOB Value

55.45

16.31

Volume of Trade

332.85

105.89

-221.95

-73.27

Imports - CIF Value

179.47

74.37

Exports - FOB Value

160.66

30.67

Volume of Trade

340.13

105.04

Tanzanias Balance of Trade

-18.81

-43.70

Imports - CIF Value

0.29

Exports - FOB Value

0.20

0.23

China
Volume of Trade
Tanzanias Balance of Trade

0.01

0.20

Imports - CIF Value

Exports - FOB Value
UAE
Volume of Trade

[Source: Tanzania Revenue Authority]

Compared to Jan-Apr, 2013, Indias imports from Tanzania in
Jan-Apr, 2014 decreased, primarily on account of decrease
in import of gold by 45% (US$94.20 million) and decrease in
import of cashew nuts, leguminous vegetables, timber and
cotton. There has been increase in import of cloves, precious
metal ores and dried vegetables.
3.0 Important Trade, Investment activities & Export
performance by other countries in Tanzania:

Tanzanias Balance of Trade

South Africa
Volume of Trade

Kenya

3.1 Trade: India remains the top bilateral trade partner of

Volume of Trade

Tanzania. Compared to Jan-Apr, 2013, volume of trade in

Jan-Apr, 2014 increased by 27%. Almost 22% of Tanzanias
total imports in this period were from India and 17% of her
exports were absorbed by India. Tanzanias principal export
destinations are South Africa, India, Kenya, Switzerland,
Congo, Democratic Republic of Congo, Japan, China, USA,
Uganda, Germany, UAE and Belgium. Tanzanias principal
import sources are India, Switzerland, UAE, China, South
Africa, Kenya, Japan, Andorra, Malaysia, United Kingdom
and Germany. Country wise trade figures for the year ended
December 2013 and for the month of Jan-Apr, 2014 are as
under.

Tanzanias Balance of Trade

COUNTRY

PARTICULARS

India

Exports - FOB Value

Andorra

Volume of Trade

Imports - CIF Value

243.58

Volume of Trade

3,060.88

1140.59

Tanzanias Balance of Trade

-1,556.54

-653.43

Imports - CIF Value

1,621.94

494.81

404.71

92.43

Volume of Trade

2,026.65

587.24

Tanzanias Balance of Trade

-1,217.23

-402.38

Switzerland

Imports - CIF Value

Tanzanias Balance of Trade

752.17

Exports - FOB Value

Tanzanias Balance of Trade

[Value in US$ million]

Jan-Apr.
2013
2014

897.01

Exports - FOB Value

Volume of Trade

Year ending December

2,308.71

Imports - CIF Value

Japan

United
Kingdom

Tanzanias Balance of Trade

Germany

Source: Tanzania Revenue Authority

Page 3 of 10

4.0. Global exports & imports of Tanzania:

05.0. Investment activities by various countries:

4.1. The principal export commodities (Values in US$

million)

5.1. Projects registration - ten leading countries for the year 2013
S/No.

Country

No. Of
Projects

No. Of
Employees

Value
(Mln. USD)

Item

Jan-Dec.
2013

Jan-Mar.
2014

China

91

13,608

989.09

Gold

1,732.9

426.7

United Kingdom

65

14,623

549.66

Manufactured goods

1,072.1

241.5

Netherlands

12

1,285

343.91

Fish & Fish Products

130.6

56.7

India

46

1,890

133.67

Cotton

111.7

4.7

Kenya

38

1,894

111.30

Tobacco

307.0

74.1

USA

23

8,569

108.36

Coffee

171.0

41.4

South Africa

15

559

44.03

German

11

214

6.83

Vegetable & oil seeds

517.6

114.2

88.5

17.2

Oman

171

6.79

162.4

61.4

10

Canada
10

299

6.22

Other Minerals
Cashew nuts

Source: Tanzania Investment Centre

Source: Bank of Tanzania

5.2. Projects registration - ten leading countries 1990 2013

[Cumulative]:
4.2. The principal import commodities (f.o.b Values in
US$ million)
Item

Jan-Dec.
2013

Jan-Mar.
2014

Oil

4,308.6

1,123.9

Other Consumer Goods

1,717.1

509.1

Machinery

1,340.5

305.2

Transport equipment

1,160.2

302.2

Building & construction

equipment
Food & foodstuffs

959.8

253.3

646.4

155.2

Industrial raw materials

736.6

228.1

Fertilizers

160.1

13.5

Source: Bank of Tanzania

No. Of
Projects

No. Of
Employees

United Kingdom

963

273,478

5,270.12

China

508

76,532

2,420.56

India

387

52,114

1,962.48

Kenya

377

52,003

1,596.66

Netherlands

167

14,760

1,271.33

USA

231

50,927

1,056.89

South Africa

215

20,531

722.87

Canada

198

25,579

541.33

Germany

149

14,861

318.70

10

Oman

39

1,625

222.61

S/No.

Country

Value
(Mln. USD)

Source: Tanzania Investment Centre

Page 4 of 10

5.3. Investment Activities during the month of April:

U.S. Firms to Invest in Sisal

Two American companies will invest US$ 10 million in sisal

and enable the sector produce biogas electricity and sugar
from sisal plants. Initial talks between Tanzania Sisal Board
(TSB) and the prospective investors have taken place after
preliminary research and cost analysis.

Chinese Firm in Housing project in Dar

DongXing International Real Estate Limited that made its way

into Tanzania two years ago has come up with the residential
project identified as "HUAFU" that will provide dwellers with a
larger than life housing experience. Dongxing International Ltd
main focus and vision for the future is to partner with local
investors and land developers to work in a joint venture to
provide affordable housing facilities.

A few Indian companies have acquired small to medium-sized

agricultural land for cultivation of food items including sugar and
pulses. Tata markets its brand of trucks, buses and recently
passenger vehicles vigorously in Tanzania and also sells chemicals
and pharmaceutical products from its own stock as well as those
sourced from other manufacturers. Recently, due to a GOI LOCs, a
large number of Escorts manufactured tractors and farm equipment
and Ashok Leyland commercial vehicles, can be seen in Tanzania.
Ashok Leyland Trucks and Buses purchased by Tanzania with the
help of Indias LOC, formed part of the parade during cerebration of
the 50th Anniversary of Union of Tanganyika and Zanzibar. The
Government of Tanzania has recently concluded a deal for purchase
of 60 tractors from India through SUMA JKT, a Government
organization, on behalf of farmers. Eicher has a presence in the
urban bus market, and Sonalika and Mahindra tractors are also
available in Tanzania. This has boosted the market share of these
two companies in this country. Three-wheeler vehicles of Bajaj and
TVS (commonly called Bajaji locally) can also be seen in Tanzania.
Security (safes, locks) and hair care products of Godrej are popular.

Koreans Intends to Invest in EPZA Projects

Tanzania expects to start getting investors from South Korea

in areas under the Export Processing Zones Authority (EPZA).
A group of potential investors from 22 firms in the Asian
nation recently visited the authority and learn about
opportunities available in Tanzania and benefits of investing
in EPZA areas. South Koreans also learnt about opportunities
in infrastructure development in areas of energy, water and
service provision in EPZA areas found in 20 regions in the
country.
6.0. Indian investment in Tanzania:
6.1. Projects and Presence of Indian Companies and brands
in Tanzania
Major Indian companies operating in Tanzania are Tata
Holdings (Tanzania) Ltd, Airtel, NMDC, Kamal Group, Greaves
Cotton and Tanzindia (insurance with significant share of
Indian PSEs). The Bank of Baroda and Bank of India which
made their re-entry into Tanzania in mid-2000 have recently
increased the number of branches in different cities of the
country. Canara Bank has submitted application for opening
their branch in Dar es Salaam. Their request is under
consideration of Bank of Tanzania (BoT). Reliance, through its
acquisition of GAPCO, a Mauritius-based petroleum products
company has a significant presence in Tanzanias downstream
sector and won quite a few contracts in 2013 for bulk supply
of petroleum products. Dubai and Aurangabad-based, Kamal
Group operates a small steel plant which has expanded its
capacity in 2013. It has acquired land of 300 acres for an EPZ
near Dar es Salaam, where ultimately it expects about 80
industrial units to be operational, including a gas-based
power plant and larger steel manufacturing units. NMDC
which has completed exploration work in four gold mining
fields, is preparing to start mining in the near future.

6.2. Investments with Indian interest from 1990 to December

2013 are as under:
Comp./
Institutions

Empment

204

23,431

1,034.81

Transport

30

4,307

282.40

Agriculture

29

18,398

190.12

Tourism

32

1,570

170.56

Construction

47

2,660

105.69

Services

25

713

91.85

Energy

225

52.80

Financial

82

14.68

Natural
Resources

446

10.20

10

Telecommunica
tion

127

7.31

11

Human
Resources

40

1.18

12

Broadcasting

28

0.61

13

Computer

86

0.27

386

52,113

1,962.48

S/No.

Sector

Manufacturing

Total

Value
[US$ Mln]

Source: Tanzania Investment Centre

Total investments with Indian interest from 1990 to

December 2013, amounted to US $1.962.5 billion.
Page 5 of 10

6.3. Investment opportunities in Tanzania

* Indo-Global

Potential exists for Indian investment/participation in projects

relating to exploration of oil, gas and other minerals,
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, working with small farmers for
cultivation of agricultural products, agro processing, gem
cutting and polishing and educational services. With
Agriculture first initiatives since 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 45km. from Dar es Salaam;
website:
http://www.kamalholding.com/kamal_epz/kamal_group.html.

* Reverse Buyer-Seller Meet for Leather Products during 3rd

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/

7.0.

Trade and Commercial Delegations During April:

7.1.

From India to Tanzania

* Senior officials of the Canara Bank visited Dar es Salaam

and met officials of Bank of Tanzania (BoT) to supervise the
process for opening of a branch of Canara Bank in Dar es
Salaam. The Canara Bank is availing the services of M/s Ernst
& Young for filing application with the BoT.
7.2.

Healthcare Summit & Expo 2014 on

Innovations and Advances; organized by the Government of
Andhra Pradesh, the Federation of AP Chamber of Commerce
and Industry, and the Indus Foundation. The Summit & Expo
2014 will be held at Taj Krishna and Taj Decca (Taj Group of
Hotels), Hyderabad, India from June 20 to 22, 2014.

th

and 4 July 2014, coinciding with the India International Leather

Fair (IILF), in Delhi, July 3-5, 2014.

9.0. Important International Trade Fairs/Exhibitions in April

--------------------------Nil ---------------------------------

10.0. Trade Enquires:

10.1. From India: During April, 2014 a total of 12 trade
enquiries from India were received and responded. The
enquiries sought information on importers of agro-products,
garments, electrical & electronic products, building materials,
scientific & laboratory equipments, and other consumer goods.
The enquiries are as under:
S/No
I

Looking for:
Importers
of
Rubber Conveyor
Belts.

II

(Mr. Girish Agarwal),

Ratnagarbha Jewels
Jaipur-23, Rajasthan India
Email:
support@ratnagarbha.com

Looking for:
Importers/dealers
of precious &
semi
precious
stones
and
jewelry.

III

(Dr. V. Mani),
M.D. Overseas Ltd
New Delhi-110001, India.
Mob: +91 9650966788
Email:
drmani.v@mdoverseas.com

Looking
for:
Exporters/supplie
rs of gold dore
bars.

IV

(Mr. Arvind Senta)

D.K. Exim
India.
Mob: +91 94264 40321
Email: senta.arvind@gmail.com

Looking for:
Importers of agroproducts,

8. 0. Trade Promotional Activities

8.1. Indian Business Forum (IBF) represents the interests of
businesses and professionals originating from India,
Tanzanian registered firms and individuals resident in the
country with business and professional interests in India, held
a meeting in Dar es Salaam on 11th April, 2014 to conduct
elections. The members of IBF were addressed by a senior
officer of the TRA.
8.2. The High Commission circulated information to the
Tanzania Chamber of Commerce, Industry and Agriculture
(TCCIA), Confederation of Tanzanian Industry (CTI) and
amongst business houses in Tanzania and is arranging
participation from Tanzania in the following events:

Enquiry

(Mr. Yuvraj Amar Dhawle),

Krishna Belts Pvt. Ltd,
Dist-Chhindwara, (M.P), India
Mob: +91 9545 466 444
Email: export@krishnabelts.com

From Tanzania to India

-------------- Nil --------------------------------

Company

Page 6 of 10

10.1. Cont...
V

VI

VII

VIII

IX

XI

XII

(Mr.
Raghavendra
Ghosarwadkar),
Power Engineering (India) Pvt
Ltd,
Pernem, Goa - 403512, India
Mob: +91 9326642244
Email:
raghavendra@paikane.com

Looking
for:
Importers
/
Dealers of wide
range of electrical
products.

(Mr. Juhi Agarwal)

Scan Holding Complex
New Delhi 110087, India.
Tel: +91 11 25279000
Email: scan@scanholdings.com

Looking for:
Importers
of
packaging
and
food products.

(Mr. Ganesh Mannar)

KHODAY GROUP
Bangalore 560 009, India.
Mob: +91 98450 20570
Email: gansmb@gmail.com

Looking for:
Importers
of
liquors:
Rum,
Brandy, Whisky &
Vodka.

(Mr. Naveen Kabra)

Shrinath Enterprises
Jaipur 302006, Rajasthan,
India.
Mob: +91 8233797555
Email: infoshrinath@gmail.com

Looking for:
Importers of agro
products.

(Mrs. Amisha Bhagat)

Kushal Chemicals
New Delhi 110034, India.
Mob: +91 9810058489
Email:
amishabhagat3@gmail.com

Looking for:
Importers
chemicals.

(Mr. Rahul Soni)

Soni polymers Pvt. Ltd
India.
Email:
rahulsoni@soniofficemate.com

Looking for:
Importers
stationary
products.

(Mr. Harshit Shah)

AMTECH ELECTRONIC (I) LTD
Gandhinagar-382028,
Gujarat, India.
Mob: +91 9909973775
Email:
exports@amtechelectronics.co
m

Looking for:
Importers
of
Variable
Frequence Drives,
Soft
Staters,
Active Harmonic
Filters, Medium
voltage
Drives
etc.

(Mr. V. K. Mittal)
Rainbow Enterprises
Ahmedabad, India.
Mob: +91 9825051029
Email:
rainbow.indialinks@gmail.com

Looking for:
Importers
of
spices-Garlic and
its products.

10.2. From Tanzania: During April 2014, no trade enquiry from

Tanzania received. However, some businessmen visited the
High Commission to get briefing on trade related issues.
11.0. Trade Complaints:
During April 2014, one trade complaint was received and
attended to. The High Commission communicated/referred
the matter to relevant authorities for settlement of the issue.

12.0 Important policy changes by the Government of

Tanzania
--------------------- Nil ---------------------

13.0. Major International Tenders issued & Bids invited

For roads constructions: For details regarding 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/

of

14.0.

Aid/Assistance Received:

World Bank Approved US$300 Million to Open up EA

Central Corridor
of

The World Bank board of directors has approved a US$300

million (Sh480 billion) loan to Tanzania to improve its railway
and road transport infrastructure. Provision of the money
according to the World Bank will help to support the countrys
effort to create a reliable open access railway infrastructure
on the Dar es Saalam-Isaka section of the East African Central
Corridor and to strengthen the countries rail agencies ability
to manage the infrastructure, the traffic operations, and the
network regulation.

Donors Promise Tanzania US$559 Million

The government will receive US$559 million (Tsh904 billion)

from donors as general budget support this fiscal year. The
amount is just an addition of US$ 9.2 million (Tsh15 billion) of
this year's (2013/2014) which totaled US$560 million (Tsh889
billion). Tanzania continues to receive one of the highest levels
of budget support in Africa. In 2012/2013 the donors provided
US$495 million (TSh842.5 billion). General budget support
levels rose steadily through the last decade and reached a peak
in 2009/2010, when it hit US$930 million.
Page 7 of 10

14.0. Cont...

AfDB Offers Tanzania US$52.5 Million for Training

The Board of Executive Directors of the African Development

Fund (AfDF), has approved a US$52.55 million (Tsh 85.68
billion) loan to finance a technical, vocational education and
training (TVET) and pay for the Teacher Education Project in
Tanzania. Its primary purpose is to help bridge the skills gap
and increase access to post-primary and post-secondary
education.

Japan Grants Tanzania U.S$3.69 Million for Projects

The Tanzanian Finance Ministry and the Japan International

Cooperation Agency (JICA) have signed a US$3,696,858
grant equivalent to Tsh 6 billion for the agricultural sector
development. The grant will be directed to boosting
farming in the country. Among other things the fund will
also help in procuring of fertilizers, promote irrigation
farming and improvement of seeds.

15.0. Economic Indicators of Tanzania

15.1. Gross Domestic Product: Tanzanias GDP growth for
the year 2010 was 6.0%; in 2011 was 6.4%, in 2012 was
6.9%. Tanzania achieved a growth rate of 7.0% in 2013.
Nominal GDP: In 2012 GDP was estimated at US$28.25
billion at current prices, of which Services (including
tourism) was 47.6%, Industry and Construction was 24.0%,
Agriculture 26.8%, and Fishing. 1.6%. (Nominal) GDP per
capita is US$622 (2012 est.)

15.2. Budget Trend 2006/7 2013/14:

Total
Budget
Fiscal Year

2006/7
2007/8
2008/9
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15

App. US$
(billion)

4.00
4.68
5.63
7.09
8.00
9.01
9.75
11.38
12.25

Re-current
Expenditure

Tanzanian government has projected to spend TSh19.6 trillion

(App. US$12.25 billion) in the 2014/15 financial year, which
would be an increase of TSh1.4 trillion (App. US$875 million)
over the just-ending years Budget. Out of the targeted spending,
TSh14.2 trillion (App. US$8.88 billion) will be on recurrent
expenditure, while TSh5.4 trillion (App. US$3.37 billion) will be
for development expenditure. Development partners are
expected to contribute Tsh3 trillion (App. US$1.88 billion), of
which Tsh1.0 trillion (App. US$625 million) will be issued as
grants and Tsh2.0 trillion (App. US$1.25 billion) as loans
specifically for implementation of development projects. In the
2014/2015 financial year, the government plans to borrow
Tsh4.275 trillion (App. US$2.67 billion) to fill the revenue gap.
The national priorities for this fiscal year are education, water,
infrastructure, energy and improvement of business
environment.
15.3.
Tanzanias revenue collection: Domestic revenue
collections in March 2013 amounted to Tsh. 942.9 billion (App.
US$589.31 million). Tax revenue amounted to Tsh. 905.2 billion
(App. US$565.75 million), accounted for 96% of the total
domestic revenue. According to an IFM team which visited
Tanzania recently, actual revenue collection in the first half of
the financial year 2013-14 has been less than that estimated in
the budget.

15.4. External Debt: At the end of March 2014, Tanzanias

external debt stock stood at US$ 13,907.1 million, an increase of
US$ 206.1 million and US$ 2,227.4 million from the amount
recorded at the end of preceding month and corresponding
period in 2013, respectively. The increase was on account of new
disbursements.
15.5. Tanzanias Trade Worldwide [US$ million]

Development
Expenditure

App. US$
(billion)

App. US$
(billion)

2.54
3.02
3.69
4.99
5.37
5.73
6.83
7.86
8.88

1.41
1.71
1.92
1.64
2.63
3.28
2.92
3.52
3.37

Years Ending December

Details

Imports
(CIF Value)
Exports
(FOB Value)

2012

2013

Jan-Apr.
2014

11,715.73

12,525.41

4,080.99

5,361.41

4,412.55

1,405.05

Volume of Trade

17,077.14

16,937.96

5,486.04

Balance of Trade
(Unfavorable)

-6,354.32

-8,112.86

-2675.94

Source: Tanzania Revenue Authority

Indias share in Tanzanias total imports, exports and volume of
trade are 22%, 17% and 21% respectively.
Page 8 of 10

15.6. Rate of Inflation: The inflation rate in the month of

April, 2014 increased slightly to 6.3% compared to 6.1% in
March, 2014. Food inflation in the month of April, 2014
decreased slightly to 7.8% compared to 7.9% in March 2014.
Non-food inflation in the month of April, 2014 decreased to
4.9% compared to 5.2% in March, 2014.
15.7. Exchange Rate: The end-period exchange rate of the
Tanzanian shilling (Tsh.) was Tsh. 1,641.34 per US dollar in
April 2014 and Tsh. 1,638.81 per US dollar in March, 2014.
The rate was Tsh. 1,583.12 per US dollar in April 2013.
15.8. Current Account Balance: During the year ending
March 2014 Current account deficit increased by 17.1% to
US$ 4,758.8 million compared to a deficit of US$ 4,065.5
million in the corresponding period in 2013.
15.9. Gross Official Reserves: As at the end of March, 2014
gross official reserves amounted to US$4,620.4 million,
sufficient to cover about 4.5 months of projected imports of
goods and services excluding those financed by foreign
direct investment.
15.10.
Strategic Grain Reserves: According to official
estimates, Tanzanias strategic grain reserve was about
199,472 tons at the end of March 2014, compared to
228,014 tons recorded in February 2014. On annual basis
the SGR stock increased by 332.2% from 46,153 tons
recorded in March 2013.

18.0 Others:
IMF Warns Tanzania over Borrowing Spree
Amid reports that Tanzania has been borrowing heavily in
recent years to finance its operations, the International
Monetary Fund (IMF) has warned the government on the
dangers of this tendency. The IMF cautioned that the current
trend of receiving short-term expensive loans was posing a
threat to the nations debt sustainability. However, the Bank of
Tanzania (BoT) says the current debt level, which is 33 per cent
of the GDP, is sustainable and the country is still creditworthy.

Value of Dar's Exports Declines

Low values for traditional and non-traditional exports were a
reason for the decline of 1.3 per cent export earnings to 8,609
million US dollars in the year ending January, 2014. The BoT
monthly economic review shows that the value of traditional
exports declined by 7.6 per cent. The decline was driven by a
fall in both export volumes and unit prices of some crops. With
exception of coffee, tea and cloves, all other traditional crops
declined in their export volumes mainly due to lower
production during the year. Meanwhile, coffee, cotton, tea and
cashew nut recorded a fall in the export unit prices. Much of
the decline was recorded in export value of gold the leading
nontraditional exports which declined by nearly 17 per cent.

Government Owes Contractors TSh400 Billion (App.

US$250 million)

Tanzanian Government owes contractors Sh400 billion (US$250

million), according to Contractors Association of Tanzania.
Contractors Association of Tanzania chairman Mr. Davis Batani,
said some of its members worked for municipal councils
projects but were yet to get the money for about two years.
Between 2012 and 2013 the government owed contractors
Sh600 billion (US$375 million). It paid them Sh200 billion, thus
leaving a debt of Sh400 billion.

16.0 Pending References from the Mission

------------------Nil------------------------

17. Monthly expenditure of the Commercial Budget

During the month of April 2014, the expenditure for
Commercial Wing was `10,12,203 equivalent to
US$16,496.14

Tanzania Set to Relax its Rules on Capital Controls

The Dar es Salaam Stock Exchange (DSE) is set for thriving

business and huge expansion as the government plans to
increase participation of foreign investors in the listed enquiries
and allow them to buy government bonds. President Jakaya
Kikwete has said that restrictions that bar non residents from
buying the nations bonds and block companies that are more
than 60 per cent owned by foreigners from trading on DSE will
be eased under east African Community (EAC) rules.

Page 9 of 10

18.0 Cont.

Tanzania to Attract Investors in Logistics Industry

According to a PricewaterhouseCoopers report, Tanzania is

among ten African countries offering enormous potential for
strategic investors in the transportation and logistics
industry. Tanzania is expected to become one of the fastestgrowing economies in the world with the key drivers being
the recent natural gas discoveries, regional integration
supported by an extension of transport infrastructure
networks, reforms to ease of doing business in the country
and long term stable democracy. Tanzania is already one of
sub Saharan Africas most rapidly growing economies. It has
registered a strong economic growth for over a decade with
levels of growth reaching 7 per cent last year and projected
to reach 7.3 per cent this year (2014). Recent discoveries of
natural gas offshore and broad number of planned
infrastructure projects are expected to further boost to the
economy. With estimated 46.5 trillion cubic feet of natural
gas reserves that is expected to rise to 200 trillion cubic feet
after the next two years, Tanzania is now firmly on the global
energy map as one of the hottest spot for the global energy
industry.

Tourist Arrivals from China Rise Three-Fold

Tanzanias share of Chinese tourists has grown steadily to

reach 13,000 in 2013. The number of tourist arrivals from
Beijing in 2012 was put at around 5,000, but effort to market
attractive tourists area paid off and the number rose sharply.
Tanzania is blessed with unique natural and cultural
attractions with 28 per cent of its land mass set aside as wild
life areas, forests, wetlands and protected land. Tanzania
game viewing experience is widely regarded as the best in
Africa.

Mtwara Cashew Farmers to Get Processing Plant

Cashew nut farmers are set to benefit from a processing

plant and a warehouse currently under construction in
Mtwara region. The plant will have capacity of shelling and
processing 30,000 tons of cashew nut per year. The plant will
be advantageous to farmers in southern regions as they will
command higher price after they will be processed before
being exported.

Bagamoyo Economic Zone Beckons Investors

More than 9,000 hectares set for industrial development in

Bagamoyo are ready for the planned industrial city
establishment and easing up of the cargo congestion at the Dar
es Salaam port. Both the feasibility and the master plans are
ready, and the World Bank (WB) has extended its assistance to
make the planned industrial drive of the country a reality.
Investors are being welcomed for port and airport
development, industries, commercial centres, tourism services,
communications industry (ICT parks), hotels, banks, education
and warehousing facilities. In March 2013, the visiting Chinese
President Xi Jinping, oversaw the signing of contracts worth
more than $10bn to be invested in the country and Bagamoyo
in particular for port development, economic development
zone, railways, road and airport construction. The EPZA Director
General said of the 9,000 hectares, 6,500 are solely under the
EPZA administration, while the remaining 2500 hectares are to
be developed jointly with China merchants Group (CMG), and
800 hectares are for the port development, while 1700 ha are
for port side industrial zone to back the port development by
cargo generation. In another development, 13 investors have
been issued with licenses by the EPZA on top of the six licenses
given six months ago. Of the 13 companies, six are wholly
owned by Tanzanians, while two of them are joint ventures and
five are foreign owned. Other companies include Super Power
Soap Industries (India).

Kenyan Oil Firm Wins Bulk Fuel Supply Tender

A Kenyan oil importer, GAPCO Kenya Limited, has won a tender

to supply petroleum products for local consumption and transit
for June this year under the country's Bulk Procurement System
(BPS). The Kenyan oil firm, a subsidiary of Gulf Africa Petroleum
Corporation, emerged the winner at the tender no. 22 that was
opened at the Petroleum Importation Coordinator's office in
Dar es Salaam. The company submitted the lowest premium at
US$ 36.048 per metric tonne. It will supply 253,744 metric
tonnes of petroleum products for delivery in June. Seven
companies had picked tender documents. Other bidders
included Augusta Energy SA, Addax Energy SA, Vitol SA,
Trafigura PTE LTD and Enoc Africa Ltd.

(Balvinder Humpal)
Deputy High Commissioner
High Commission of India, 82 Kinondoni Road, Dar-es Salaam, P.O.Box 2684, Dar es Salaam - Tanzania
Tel: +255-22-266-9047 / 2669040-2
Email couns@hcindiatz.org; comm@hcindiatz.org
Page 10 of 10