India signed a line of credit of USD92m for the improvement of water supply in Zanzibar.
The agreement was signed during the visit of the Indian Prime Minister Narendra Modi to Tanzania on July 10th 2016.
He announced that India will consider additional financing of USD500m for other water projects across Tanzania.
This follows the countries’ aim to strengthen bilateral relations across various sectors including agriculture, food security, trade, natural gas, health, education, industry, and communications.
For this, India and Tanzania signed 4 additional Memorandums of Understanding (MoU) including:
- MoU on water resource management and development
- MoU for establishment of vocational training center in Zanzibar
- MoU on visa waiver for diplomatic and official passport holders
- MoU between the National Small Industries Corporation (NSIC) of India and the Small Industries Development Organization (SIDO) of Tanzania
India is a leading trading partner of Tanzania. In 2015, the total bilateral trade turnover between India and Tanzania amounted to USD2.4b.
India’s exports were worth USD1.3b, and Tanzania’s exports were worth USD1.2b.
Tanzania’s exports to India constituted about 19% of the country’s global exports. Tanzania’s imports from India constituted about 9% of its global imports.
Tanzania’s major imports from India include petroleum products, pharmaceuticals, motor vehicles, two/three-wheelers, wires and cables, sugar, electrical machinery/equipment, yarn, apparel & clothing, articles of iron & steel, etc.
Tanzania’s major exports to India include gold, cashew nuts, pulses, timber, spices (mainly cloves), ores and metal scrap, gemstones, etc.