Diplomatist Special Report - Tanzania Tanzania 2018 | Page 25

products, chemicals including agro-chemicals, rubber items
including tyres, cotton fabrics, etc. Tanzania’s major exports
to India include gold, cashew nuts, pulses and lentils, cloves,
timber, gemstones, silver, etc. Items with potential that India
has not penetrated in the Tanzanian market are white goods,
household electrical and electronic items, mobile handsets,
building materials, shoes and other leather goods, capital
goods for textiles, cement and power plants, etc.
Indian Companies and Brands in Tanzania
Major Indian companies and brands in Tanzania are
Bank of Baroda, Bank of India, Tata (vehicles, steel), Airtel,
Tanzindia Insurance (Indian PSU insurance companies are
its main shareholders), Kamal Group (steel, SEZ, power),
Apollo Hospitals, Ashok Leyland (trucks and buses),
Eicher (buses), Escorts (tractors), Mahindra (tractors and
vehicles), Sonalika (tractors), Swaraj (tractors) Bajaj (three-
wheelers), TVS (three-wheelers), Godrej (security products),
Kirloskar, Wintech Elevators, United Phosphorous (agro-
chemicals), etc. All major and medium-sized pharmaceutical
manufacturers from India are present in Tanzania through
their distributors and stockists and direct supplies to the
government distribution system. Large and medium Indian
infrastructure companies like KEC (power transmission),
Jain Irrigation (water supply), Megha Engineering (water),
Afcons (water), L&T (water) and WAPCOS (water and
power consultancy) are involved in multilateral and LOC
funded projects in Tanzania. A number of Indian IT and ICT
companies are involved in commercial projects also.
Trade and Investment Opportunities for Indians in
Tanzania
Tanzania is an attractive market for Indian exports and
investments beca use it is at an initial stage of the development
process, with vibrant economic growth, growing size of
the consuming middle class, and relative social peace
and political stability. Tanzania is primarily a producer of
basic commodities like various agricultural products and
minerals like gold, silver, coal, iron ore, potash, precious
and semi-precious stones, etc. Manufactured items are
limited due to lack of infrastructure, technology, suitable
manpower and limited size of the market. Many basic and
sophisticated consumer goods and almost all capital goods
and services have to be imported. In terms of investment,
production and processing of agricultural commodities
like rice, wheat, maize, sugar, pulses, cashew, spices, tea
and coffee; forest products like sisal and timber; poultry
farming and processing; dairy farming and products; minerals
exploration and production; tourism services and hospitality
industry; fi nancial and banking services; engineering and
accountancy services; real estate and civil construction
industry; automobile and tractors and other farm equipment
assembly and sales; hospital services and medical care, IT and
ICT development and training, educational institutes, etc, are
some of the areas of interest to India. Tanzania with its vast
territory and abundant natural resources can also be a base
for Indian investors wanting to produce or process products
for export, like meat and leather.
Integration of Markets in Eastern and Southern Africa
Another aspect of signifi cance from the Indian perspective
is the economic integration of the EAC, comprising of
Burundi, Kenya, Rwanda, South Sudan, Tanzania, and
Uganda. The EAC’s total population is 173 million and
combined GDP is about $ 170 billion. The EAC integration
process includes the formation of a common market, a
customs union, a single currency and eventually a political
federation. Currently, common market integration is at an
advanced stage though non-tariff barriers continue to nag
the process. A unifi ed market in East Africa is an eventuality
Indian businesses will have to factor in, with its opportunities
and challenges, including harmonisation of regulatory
standards and customs duties. The African Economic
Community currently comprising of three regional groupings
EAC, SADC, and COMESA is still evolving.
East Africa via the EAC is witnessing one of the fastest
economic integration processes in the African continent.
Tanzania and Kenya are the economic and political drivers
of East Africa which, geographically, are the closest points
of entry to Africa from the Indian Ocean side. Hence, India’s
growing ties with Africa will necessarily be advanced through
these two countries, which make it imperative for India
to nurture and strengthen its warm and friendly relations
with Tanzania.
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