Tanzania Roundup: Trading partnerships, horticulture, police misconducts
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Alleged corruption in the police force
Tanzania is struggling with widespread theft within the government, with traffic police officers accused of using personal POS machines to divert funds meant for the government into their own pockets. The issue has gained attention from scholars and authorities, with President Samia Suluhu Hassan expressing concern. According to The Citizen, the theft, allegedly facilitated by security vulnerabilities in the payment system, has led to the dismissal and charges of several officers. Experts emphasize the need for strong system protection to prevent such embezzlement.
Hanging ferry services
Uncertainty looms over private sector involvement in Tanzania's Kigamboni ferry services as the government seeks collaboration with private entities. However, challenges such as unfavourable business conditions and differing perspectives on fare rates have hindered progress. The Citizen reports that discussions are ongoing to resolve obstacles and improve ferry transportation services in the region. The government and private sector stakeholders are being urged to engage in dialogue to overcome these issues and facilitate private-sector investment.
Tanzania is a trading partner with India
Tanzania has become India's second-largest trading partner in Africa, surpassing Nigeria. Trade between the two countries increased by over 20%, with Tanzania's exports to India growing by 25.9%. The trade gap between the two nations closed significantly. Major products traded include pigeon peas, avocados, and cashew nuts from Tanzania to India, and petroleum products, industrial machinery, and automobiles from India to Tanzania. According to Business Insider Africa, trade is expected to exceed $7 billion this fiscal year.
Accommodation investments
Tanzania's government announced 179 investment sites for accommodation facilities to meet the growing tourism sector. The country saw tourism receipts of USD 3,368.7 million in 2023 and aims to receive 5 million tourists annually by 2025. According to The Exchange, the World Bank suggests creating an enabling business environment for private sector investment to further boost the sector.
Booming horticulture industry
The UK has eliminated tariffs on cut flowers from East Africa, creating opportunities for Tanzania to become a major supplier. This move is part of a larger initiative to strengthen economic ties with Tanzania, with a focus on the growth of the horticulture sector. The UK's commitment to fair and free trade with Tanzania is evident in the removal of tariffs on flower imports. This is expected to have transformative impacts on the flower industry in Tanzania and enhance its competitive edge in the UK market. The Citizen reports that the UK's support, including through the BEST Dialogue and TradeMark Africa, has been instrumental in empowering Tanzania's horticultural industry. As a result, the value of Tanzania's horticultural exports has seen significant growth in the past five years.