KEYNOTE ADDRESS BY HIS EXCELLENCY JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA, AT THE KENYA - TANZANIA BUSINESS FORUM IN NAIROBI, KENYA, 6TH OCTOBER 2015

KEYNOTE ADDRESS BY HIS EXCELLENCY JAKAYA MRISHO KIKWETE, PRESIDENT OF THE UNITED REPUBLIC OF

TANZANIA, AT THE KENYA - TANZANIA BUSINESS

FORUM IN NAIROBI, KENYA,

6^TH OCTOBER 2015

Ladies and Gentlemen;

I thank you President Uhuru Kenyatta for including this meeting in my itinerary and for what you have just said emphasizing the importance of promoting business relations between our two countries. I thank Mr. Kiprono Kittony the Chairman of the Kenya Chamber of Commerce and Industry for organising this important forum.   It will surely go a long way towards strengthening the overall relations between our two countries.

Doing Business in Tanzania

Ladies and Gentlemen;

We are gathered here this morning to discuss issues of bread and butter: Kenya – Tanzania investment and business opportunities and relationships.  Honestly, I don’t know what to tell you about the business opportunities in Tanzania or the business environment in Tanzania because some of you, if not many, are already doing business in Tanzania.  Our records show that Kenya is the fifth largest investor in Tanzania and the leading in Africa followed by South Africa.  There are 518 investment projects from Kenya worth USD1,685.49 million, employing 55,762 Tanzanians.     

Manufacturing accounts for 45 percent of the total value of Kenya’s investment while real estate accounts for 13 percent, tourism 12 percent and transport and logistics 11 percent. The remaining 19 percent is distributed in small portions among other sectors.

With regard to trade between our two countries, records show that we have been doing very well. Kenya’s exports to Tanzania increased from USD 301.5 million in 2009 to USD 333.6 million in 2013. During the same period Tanzania’s exports increased from USD 179.3 million in 2009 to USD227.1 million in 2013. I am told at this level of trade volume that our two countries account for nearly 90 percent of intra East African trade. This demonstrates in empirical terms how much our two countries need each other and how significant we are in the East African integration agenda. 

Mr. President;

Ladies and Gentlemen;

Let me state clearly and loudly that our two countries can do better than what we are doing at the moment. Tanzania can absorb more investment from Kenya sell more and vice versa. There are, in Tanzania, plenty of opportunities in oil and gas, energy manufacturing, agriculture, mining, tourism, real estate, transport, ICT, hearth care, education and several others which you may know better than me. Our two countries enjoy cordial relations which is good for business. Also, we are members of the East African Community one of whose main objectives is to promote trade and investments between member states. The EAC arrangements under the Customs Union, the Common Market and Monetary Union have opened the borders, for trade which is constantly making life easy for business in the East African region.

Since the socio–economic reforms which began in the mid 1980’s, Tanzania has been pursuing sound economic policies. As a result, there is strong macro-economic performance and stability for over two decades now.  On the average Tanzania’s economy grow at around 7 percent over the last decade and we expect a 7.3 percent growth this year. The GDP has trebled from USD 14.1billion in 2005 to USD 49.1 billion in 2014. And so, has the GDP per capita from USD 375 in 2005 to USD 1,066 in 2014.  The population of Tanzania is estimated to be around 48 million with a sizeable and a growing middle class. With more than 50 percent of the people below the age of 30 who have better access to primary and tertiary education there is an assured labour force and a market. Moreover, Tanzania’s membership of SADC and Kenya’s membership of COMESA, gives the Kenyan investor an extended market beyond the East African Community and COMESA. I gather only 4 of the 14 SADC member states are in COMESA.   

Mr. President;

Ladies and Gentlemen;

As we all know, Tanzania has enjoyed peace and stability since independence. We are a vibrant democracy and committed to advancing good governance, rule of law and human rights. The fight against corruption, terrorism, narcotic drugs, and other vices in society is unrelenting. We espouse friendly business policies and investments are safe. No more nationalization and investors are allowed to repatriate profits and dividends. The government stands ready to take more measures to improve the business environment. We are doing exactly that and more. There is regular consultation between the government and private sector under the auspices of the Tanzania National Business Council which I chair. This has proven to be very useful. Issues are discussed openly freely discussed and solutions found. 

Conclusion

Mr. President;

Ladies and Gentlemen;

I could go on and on since I have a lot to say, but allow me to conclude by expressing my sincere gratitude to the business community in Kenya for being valuable partners. I believe the discussions here today will further encourage Kenyan private sector to do more business with Tanzania. I whole heartedly welcome you to do so. Tanzania is more than ready to do business with you.

Please   come one, come all.

Thank you very much, Asanteni sana.