UK to Support Tanzania in Job Creation and Trade

UK Tanzania

The United Kingdom (UK) will continue to support Tanzania’s economic development to provide a long-term solution to poverty, enhance job creation and trade in the country.

The announcement was made by Priti Patel, UK’s Secretary of State for International Development, at the African Union Summit in Addis Ababa on January 31st, 2016.

“We will work across Government to agree trade and investment deals that bring the benefits of trade to every corner of the world. And we will use our voice in the World Trade Organization to promote free trade as one of the bedrocks of global prosperity and stability. We are focusing investment in job creation across manufacturing, infrastructure and commercial agriculture to provide strong foundations for inclusive growth in the developing world,” Patel explained.

UK supports Tanzania to help:

  • improve Tanzania’s main port and regional trade gateway to allow port capacity to double by 2023 and develop the transport corridors that Tanzania and the region need;
  • connect more than 400,000 homes in Tanzania, Kenya and Uganda to solar power, providing 50 million hours of fume-free lighting a month and creating 2,500 jobs;
  • build over 1,230 km of rural roads. Rural communities now report better access to healthcare, schools and agricultural services.

Patel commented: “With the UK’s support, more people across Tanzania have the chance to get a job and build a brighter future for themselves and their families. The UK will continue to build this partnership between our two countries.”

UK Investments in Tanzania

The UK is the largest supplier of foreign direct investment (FDI) to Tanzania with 36% market share, followed by the US and China. British investments in Tanzania are spread out across multiple sectors, such as mining, manufacturing and agriculture.

At the end of 2015, the governments of the UK and Tanzania signed a Memorandum of Understanding (MoU) on social development representing a total investment of GBP110m.

The funds will be provided through the British Department for International Development (DFID) over the next 5 years.

Tanzania ranks fifth in the top five countries receiving UK’s aid through the DFID with 48 active projects totaling GBP178m, while Pakistan tops the list with 32 active projects totaling GBP368m.