Tanzania-EU Business Forum: Team Europe raises 1 billion EUR investment in Tanzania
Global Gateway: Team Europe raises 1 billion EUR investment at the Tanzania-EU Business Forum
Communiqué of the EU Delegation to Tanzania and the East African Community
Dar-es-Salaam, 2 March 2023
The first ever Tanzania-European Union (EU) Business Forum took place on 23 and 24 February 2023 in Dar-es-Salaam. The forum was held back-to-back with the Kenya-EU Business Forum in Nairobi (21 and 22 February 2023).
During two days, the Tanzania-EU Business Forum showcased the comparative advantage for EU businesses to invest in Tanzania. It presented various opportunities for investment, facilitated discussions among business peers, government officials and political leaders of both Tanzania and the EU and provided a platform for effective private-public dialogue to further improve the business environment.
The Business Forum was also a stepping stone for the roll-out of the Global Gateway, the EU strategic external investment package, that aims to support a strong, inclusive and sustainable growth by accelerating the green transition, the digital transformation and decent jobs creation. During those two days, Governments officials and companies CEOs from Tanzania Mainland and Zanzibar discussed with representatives of Team Europe – EU, its Member States, European Financial Institutions and of course EU private sector – how to realise Tanzanian strategic vision for development and the expected contribution of the Global Gateway.
The Business Forum, officially opened by H.E. Dr. Philip Mango, Vice-President of the United Republic of Tanzania, and closed by H.E. Dr. Hussein Mwinyi, President of Zanzibar, was covered by 87 representatives of national and European media houses. It gathered approximately 1,100 participants over the two days, 60% of which came from the EU and Tanzanian private sector, the rest being from the Government of Tanzania, EU embassies and financial institutions. High-level representatives from the EU included French State Minister for external trade, Mr. Olivier Becht, Deputy Secretary General of the European External Action Service, Ms. Helena König, Vice-President of the European Investment Bank, Mr. Thomas Östros, and Director for Sustainable Finance of the European Commission – International Partnerships, Mr. Antti Karhunen.
To “tap into Tanzania’s investment opportunities” – overall theme of the Business Forum –, discussions of interest to all participants took place in plenary (e.g. Tanzania as an investment destination, enabling business environment); other interactions unfolded in breakout sessions, by sector (agriculture, energy, manufacturing, connectivity, construction, transport & logistics), by crosscutting topic (bankable projects, public-private partnerships, digitalisation, skills development, finance for investment) or by nature of companies (willing to invest in Mainland, in Zanzibar or grow as a Tanzanian firm). The Business Forum also allowed for ‘Business-to-Government’ engagement, where European and Tanzanian firms met decision-makers from the Government, in particular Ministers, or Tanzanian ambassadors posted in the EU for companies willing to export and access the EU market. Additionally, Business-to-Business (B2B) meetings were available throughout the Business Forum and led to almost 500 meetings scheduled through the dedicated B2B application.
The highlight of the Business Forum was the signing of seven Tanzania-EU deals in two ceremonies:
- On day 1 for infrastructures: an Air Service Agreement between the Republic of France and the Tanzania Civil Aviation Authority; a Memorandum of Understanding between the Port of Antwerp (Belgium) and the Tanzania Port Authority; an agreement between the French Development Agency (AFD), the EU and the African Development Bank to invest in the construction of a hydropower plant in Kakono, Kagera Region; and the announcement of an investment by the German company Knauf Gypsum to triple its current production capacity,
- On day 2 for the banking sector: credit lines of the European Investment Bank, supported with grants and guarantees from the EU, to local partner banks (CRDB, NMB and KCB) for onward lending to Tanzania private sector; FMO and Proparco (respectively Dutch and French development banks) loan to NMB for on-lending to Tanzania private sector; and a new investment to NMB from FMO, with EU guarantee, for lending to women and youth.
Within those two days, Team Europe announced close to 1 billion euros (2.5 trillion Tanzanian Shillings) of investments to Tanzania.
In his closing remarks, H.E. Manfredo Fanti, Ambassador of the EU to Tanzania and the East African Community, summarised the findings of the different discussions, highlighting that, following recent improvements in the business environment and the launch of the EU Global Gateway strategy, conditions are conducive for investing “now” in Tanzania. He also reported the importance of focusing on skills development, digital technologies and access to energy, supported by effective partnerships between public and private actors. Such issues will be followed up as the Tanzania-EU engagement will continue. Work is under way to prepare roadmaps in selected priority sectors with a view to more in-depth public-private dialogues. Also, smaller and more targeted Tanzania-EU Business Forums are being considered, for example on Energy or Blue Economy, given the interest expressed during the Business Forum. For more information and updates: www.eu-tzbf.com.
Details on the amount of 1 billion euros (2.5 trillion Tanzanian Shillings) announced as EU investments to Tanzania read as follows:
- Agreement between the French Development Agency (AFD), the EU and the African Development Bank to invest in the construction of a hydropower plant in Kakono, Kagera Region: 296 million euros (740 billion Tanzanian Shillings),
- Investment by the German company Knauf Gypsum to triple current production capacity: 47 million euros (118 billion Tanzanian Shillings),
- Credit lines of the European Investment Bank, supported with grants and guarantees from the EU, to CRDB, NMB and KCB: 270 million euros (675 billion Tanzanian Shillings), and upcoming credit lines to local partner banks: 80 million euros (200 billion Tanzanian Shillings). This 350 million euros envelope will be matched by the same contribution for the local banks involved, thus doubling the amount available to Tanzanian MSMEs,
- FMO and Proparco (respectively Dutch and French development banks) loan to NMB for on lending to Tanzania private sector: 115 million euros (288 billion Tanzanian Shillings),
- New investment to NMB from FMO, with EU guarantee, for lending to women and youth: 10 million euros (25 billion Tanzanian Shillings),
- EU grants in support to public and private finance, blue economy and studies, as commissioned by European Commissioner Ms. Urpilainen and Minister of Finance and Planning Hon. Nchemba and to be contracted in the coming months: 166 million euros (415 billion Tanzanian Shillings),
- Other agreements with no amounts announced: Air Service Agreement between the Republic of France and the Tanzania Civil Aviation Authority; Memorandum of Understanding between the Port of Antwerp (Belgium) and the Tanzania Port Authority.