The Tanzania-Saudi Arabia Investment Forum, held from December 17 to 21 2024 in Riyadh, brought together approximately 70 Tanzanian and Saudi investors, fostering key discussions on bilateral trade and investment opportunities.
Organized by the Embassy of Tanzania in Saudi Arabia in collaboration with the Tanzania Investment Center (TIC) and the Zanzibar Investment Promotion Authority (ZIPA), the forum included Business-to-Business (B2B) and Government-to-Government (G2G) sessions.
The event culminated in agreements to explore strategic partnerships in agriculture, energy, manufacturing, and infrastructure, aiming to address the trade imbalance and boost economic collaboration between the two nations.
The forum featured high-ranking Tanzanian government officials, including Prof. Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, who opened the event.
Prof. Mkumbo highlighted the current trade imbalance, noting that while Saudi Arabia’s exports to Tanzania total US$ 52.3 billion, Tanzania’s exports to Saudi Arabia amount to only US$ 12.3 million.
He called for increased investment and trade partnerships, emphasizing Tanzania’s economic potential in agriculture, green energy, blue economy, mining, oil and gas, and digital innovation.
Tanzania’s Minister of Finance, Dr. Mwigulu Lameck Nchemba, participated in the forum alongside other ministers, advocating for strategic investments. Dr. Nchemba also held discussions with Sultan Al-Marshad, CEO of the Saudi Fund for Development (SFD), to review ongoing and potential collaboration.
Dr. Nchemba expressed gratitude for SFD’s contributions to Tanzania, including transformative projects such as the Same-Mwanga-Korogwe Water Project (US$ 25 million) and the Benako-Kyaka 220kV power line (US$ 105.4 million). The meeting resulted in the formation of a joint expert team to assess future projects.
SFD CEO Sultan Al-Marshad reaffirmed the Fund’s commitment to Tanzania, commending the progress on projects like the Standard Gauge Railway (SGR), which is expected to boost trade and connectivity in the Great Lakes region.
Tanzania-Saudi Relations
Tanzania and Saudi Arabia have shared over 40 years of diplomatic relations, characterized by mutual efforts to enhance trade and investment.
The Saudi Fund for Development has played a key role in Tanzania’s development by funding infrastructure, water, healthcare, and energy projects.
Major contributions include the Mnazi Mmoja Hospital expansion in Zanzibar (US$ 15 million) and rural road development (US$ 11.4 million).
In terms of trade, Saudi Arabia remains a significant export destination for Tanzania’s agricultural products but accounts for a disproportionate trade balance.
Saudi Arabia is a growing source of Foreign Direct Investment (FDI) globally, leveraging its sovereign wealth and economic reforms under Vision 2030.
