‘Hakuna matata’: Tanzania calls on Turkish companies and investors

Bordered by Kenya and Uganda to the north; the Democratic Republic of the Congo, Rwanda and Burundi to the west and Zambia, Malawi and Mozambique to the south, Tanzania is nowadays on the verge of launching a campaign to attract foreign investors to the country, especially thanks to the pre-industrial policies of Jakaya Mrisho Kikwete, who became president in 2005.

Canada and the Scandinavian countries have been particularly interested in giving an affirmative answer to this country's invitation to benefit from its abundant minerals and agricultural potential. The country is also a door to the vast East African market.

Relations between this country and Turkey have accelerated since President Abdullah Gül's visit last February. They improved even further after Dr. Sander Gürbüz was appointed Turkey's ambassador to Tanzania. The ambassador was speaking to a group of Turkish reporters last Friday in Dar es Salaam during a meeting to promote schools opened by Turkish entrepreneurs in the country.

Tanzania has plentiful mineral deposits, especially of gold, Gürbüz noted. The ambassador said he talked with both President Gül and Foreign Minister Ahmet Davutoğlu before starting his tenure in Tanzania, adding that both had emphasized the significance of this country and wanted far better relations, a move that will leave both nations better off.

“We want to quickly increase the trade volume between Turkey and Tanzania to $400 million from its current annual level of $60 million,” he said. Turkey will offer to sign a free trade agreement with Tanzania, and a joint economy board meeting will be convened in the coming days, he underlined. In addition to these steps, inter-parliamentary friendship groups will be established, the ambassador said.

Tanzania's need for infrastructure investment is an excellent advantage, Gürbüz argued, citing as an example that “only 12 percent of houses in the country have access to electricity.”

“I recently spoke with the president of Zanzibar, a semi-autonomous part of Tanzania. He asked if Turkish contractors would be interested in building an airport. This country is really full of opportunities,” he said. Tanzania, which has the largest port in its region, will also be a passage point to the rest of East Africa, he said.

Politics is controlled by Tanzanians while trade is largely in the hands of Indians. The country is also a point of attraction for wealthy tourists from around the world. Zanzibar boasts 20 five-star hotels and 30 others serving in inland regions offering safari tours.

There is fierce competition between Indian and Chinese entrepreneurs nowadays in the Tanzanian market, Gürbüz said. “China constructed a stadium with a capacity of 60,000 and gifted it to this country. A total of 2,000 convicts were employed to build the stadium and released after construction came to an end. Tanzania gives work and residence permits to 10,000 Chinese nationals every year in return for such gifts and endowments.”

Dr. Sander Gürbüz

Gürbüz said he is also in talks with top Turkish Airlines (THY) officials to start flights to Tanzania. “I would like to thank them for showing such strong interest in this request and adjusting their schedule for next spring. We expect direct flights to Tanzania to start by April or May 2010,” he added.

Once the country becomes a THY destination, as planned, the ambassador believes mutual commercial relations will flourish at a much faster pace. “The Tanzanian Defense Ministry wants to build 100,000 houses for on-duty and retired soldiers. It is inviting us to participate in the project with proper financing conditions, such as 20 years of installments and low interest rates. Furthermore, they are about to launch a tender for the procurement of a thousand military vehicles. We are currently holding talks with Turkish producers on this issue. They harbor no prejudices about Turkey. On the contrary, they like Turks,” he said.