Monday, February 4, 2013

Pinda challenges Tanzania business people to seek for outside investments

PRIME Minister Mizengo Pinda has thrown a challenge to Tanzania business community wishing them to open up avenues for their business products outside the country so as to get an acclaim of international status, just the same way as foreigners does here in Tanzania. The Premier gave the concern in Dar es Salaam recently at the occasion of the launching ceremony of the first ever BEKO Grunding showroom, the leading Turkish home appliance showroom in Tanzania which has opened its doors to potential buyers of such products in the country. He said that it’s high time for Tanzania local business companies to open showrooms for Tanzania products, and added that, by help of the Ministry of Trade, Industries and Marketing and Tanzania Chamber of Commerce Industries and Agriculture (TCCIA) in collaboration with Tanzania Investment Centre (TIC) all of which can give guidance to businessmen to establish areas of interest. In his earlier speech, the Premier has assured Tanzanians that, the opening of BEKO showroom in the country is a strong sign of the continuously intensifying commercial and economic relations between the government of Tanzania and that one of Turkey. “Tanzania considers Turkey as one of its trading partner as the two countries have enhanced strong ties  with new trade and investment which currently is growing considerably” he said adding that more than seven bilateral agreements are in place forming the basis for cooperation. One of the agreements the premier noted include agreement on trade cooperation which the two countries have already signed. The trade and economic relations between the two countries was given impetus by the strong political will of both sides which was concretized by an exchange of visits at the highest level in 2009 and 2010 respectively when Presidents Abdullah Gul of Turkey and Jakaya Kikwete of Tanzania met resulting into the re-establishment of Turkish Embassy office in Dar es Salaam. He noted that, the building relations is coming up with the bilateral trade volume nearing $ 200 million, hiking off from $ 30 million just within 8 years’ time since 2004 and added that, the two countries are aiming further to promote bilateral development concepts. The decision to have a showroom was initiated in collaboration with the Chairman of Modern Holdings (EA) Ltd, Anselm Minja, the company which is the sole distributor of BEKO grunding products in Tanzania and East Africa region. BEKO Grunding company is one of the top Turkish home Electronics producers and part of the Turkish giant companies which has worldwide prominence. It accounts for about 11 percent of the total exports of Turkey in 2011.          

Tanzania's Prime Minister Mr. Mizengo Pinda.

It is also a top quality brand in home appliances which produces world class goods in its 14 production plants in five different countries. In Tanzania the company has started with home appliances and electrical goods like fridges, cookers, air conditioners, heaters, Television sets, computers and many others. But soon the company expects to advance to other more equipment than home appliances. Elaborating the existing trade bilateral relations with the Turkish government, he said that, Turkey’s exports to Tanzania in 2011 were $ 170.7 million compared to $ 89.3 million in 2010. The top export categories for 2011 were Iron and Steel, Petroleum products and related materials, Manufactures of metals, Paperboards and articles of paper pulp. On the other side of Tanzania, he elaborated that Tanzania’s exports to Turkey reached $ 21.7 million in 2011, this is an increased of 52.0 percent compared to $ 14.3 million in 2010. The top five export categories the Premier mentioned for 2011 were, Tobacco and tobacco manufacturers, Transport equipment, Crude animals and vegetable materials, Textile yarn, Fabrics made up articles and related products. He also noted that, the trade surplus of goods with Turkey was $ 148.9 million in 2011, this is almost 50 percent increase from $ 75.3 million in 2010.   “Tanzania is determined to develop her bilateral relations with Turkish government in every field for investments in a range of areas which includes, agribusiness, infrastructure, energy, horticulture and extraction and processing of iron” he said urging Turkish investors to invest in all these areas for their choice. He has also called upon Turkish companies to open more showrooms for Turkish products in Tanzania not only in Dar e Salaam city, but also in cities like Arusha, Mwanza, Mbeya and Dodoma. However, he said adding that, Tanzania is still having challenges facing trade sector in general. He clarified such challenges that includes clearing of goods at Tanzania Port Authority (TPA), Taxation issues under Tanzania Revenue Authority (TRA) and many others, but as a government, his office is striving very hard to remove the impeding obstacles as well as to make sure that, the government creates a conducive working environment to all investors doing business in the country.

No comments: