Historically, the European Union (EU), together with Switzerland and Norway (EU+SN), and Tanzania have enjoyed a robust economic relationship based upon steadily growing investment and trade, and strong diplomatic ties.
Total trade between Tanzania and the EU today stands at more than USD2b. According to the latest data, Foreign Direct Investment (FDI) from the EU+SN to Tanzania grew by 120% over 2009–2013, from USD1b to USD2.2b.
This increase is mainly due to a combination of new equity investment and reinvested earnings in the mining, manufacturing, oil and gas, power and finance sectors.
Additionally, the Tanzania Investment Centre (TIC) attributes the creation of approximately 95,000 jobs to EU+SN companies in Tanzania.
“European companies are also among those that have been most proactive in partnering with government and educational institutions to develop and train the Tanzanian workforce,” the study notes.
Almost half of the European investors in Tanzania are from the UK, 11% from Italy, 6% from Germany, and the remaining 36% are from other European countries.
According to a recent report on European investment in Tanzania by the European Commission, the EU is committed to continue working with Tanzania and to strengthen its relations with the country.
“There is no doubt that with an increasing population, valuable natural resources, vast arable land and a strategic location in East Africa, Tanzania will continue to attract further investments from Europe,” the report indicates.
“European investors stand ready to play their role of international investor reference partner in a dedicated forum for dialogue between the Government of Tanzania and the overall private sector in Tanzania.”