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. TANZANIA• 25