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India anticipates a surge in trade with Tanzania, surpassing USD 7 billion annually, following President Samia Suluhu Hassan’s recent visit to the country. India’s High Commissioner to Tanzania highlighted the anticipated growth during a press briefing at the embassy in Dar es Salaam.
The elevation of the bilateral relationship from a standard diplomatic one to a strategic partnership is expected to fuel this economic expansion. In 2021, India-Tanzania trade stood at USD 2.5 billion. It reached USD 4.5 billion in the following year and $6.4 billion in the last fiscal year. With the new strategic partnership, India expects it to hit $7 billion, stated the High Commissioner.
President Samia’s visit marked the first by a Tanzanian Head of State to India in eight years, with the last Indian Head of State visiting Tanzania in 2016. The strategic partnership is expected to enhance communication and increase high-level visits between the two nations.
In strategic relations, each country will have its own priority areas that will be taken seriously, Tanzania joins Nigeria, South Africa, and Egypt as African countries with strong ties with India. Beyond boosting trade, President Samia’s visit is expected to elevate Indian investments in Tanzania, with both governments committed to facilitating this growth. Indian government, cannot increase business or trade unless it enables Indian businessmen to do so and continue to motivate more people to do business involving both the countries.
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The High Commissioner cited avocados as an example of a product with significant trade potential between the two countries. India has removed the tax on avocados from Tanzania, but transportation remains a challenge due to reliance on air freight, making the product expensive and limiting quantities. Tanzanian avocados are shipped through Mombasa, Kenya, due to infrastructure limitations at the Dar es Salaam port. Ongoing port rehabilitation, including cold storage facilities, will make shipping easier and cheaper, boosting trade.
With enhanced trade and investment opportunities, the India-Tanzania strategic partnership holds immense promise for both countries.
