Analysts: Samia’s France visit vital

PRESIDENT Samia Suluhu Hassan's working visit in France is projected to open-up more investment opportunities to French based companies in Tanzania and boost the volume of trade between the two countries, analysts have said.

Data released by the Chief Government Spokesperson, Mr. Gerson Msigwa, recently indicated that in 2020 the balance of trade between France and Tanzania reached up to 150 million US dollars (equivalent to 343bn/).

The analysts revealed the president's decision to carry out visits in foreign countries was placing Tanzania in a good position in terms of strengthening its economic diplomacy, among many other crucial spheres.

An economist-cum-banker, Dr. Hildebrand Shayo said France rolled out the red carpet for President Samia, noting that Tanzania is geographically positioned not only as a source of raw materials, but a destination to invest through Foreign Direct Investments (FDIs).

"With the Democratic Republic of Congo (DRC) likely to be admitted to the East African Community and, given Tanzania' services to the land linked nations... France and their investors will increase investments to Tanzania and enter in the coming market with ease," said Dr. Shayo.

He further noted that during her consultations with the French Business Confederation, President Samia assured the investors that the business environment that previously was seen, as an obstacle has been improved and Tanzania was ready to provide support to investors to settle and set up more businesses internally.

Dr. Shayo, however, noted that the two leaders appealed to investors to make use of trade opportunities that will continue to grow and keep pace with the newly signed contracts to help execute and complete ongoing strategic projects going on in Tanzania.

"Even though both nations face similar challenges, in recovering from effects of COVID-19 pandemic, Tanzania stands in a better position to gain more from capital injections through concessions loans and more importantly, through job creation opportunities that will be created locally, when projects and new investments take off in addition to the ones already on the ground," stated Dr. Shayo.

He was of the view that although learning and catching up instantly might be challenging, but with a clear mindset and ability to learn quickly will give the Tanzanian business community an upper hand.

He added that: "If Tanzanian business community will fail to close trade deals with French based companies, then it will be our own challenge, adding that in business deals there are gives and takes."

A development and political analyst, Dr. Hezron Makundi said generally the president's visit to France has recorded major achievements, including the signing of six agreements aimed at strengthening trade, investments and bilateral relations between the two countries.

He underscored among such areas including financing the development for the implementation of strategic priority projects in Tanzania, a concessional loan agreement worth 178 million euros (about 469.1bn/-) to finance the construction of the Bus Rapid Transit (BRT) project phase 5 in Dar es Salaam, and a concessional loan amounting to 80 million euros (208.6bn/-) to support the Tanzania Agriculture Development Bank (TADB) meet its short- and long-term lending goals to support farmers with much lower interest loans.

Also, the inking of a grant agreement for 1 million euros (equivalent to 2.6bn/-) to further support the activities of the TADB, as well as two agreements between Tanzania-France cooperation in the areas of blue economy and maritime safety.

According to him, by taking part at the One Ocean Summit, President Samia got an opportunity to influence policy taking into account the strategic positioning of Tanzania linking it to the Indian Ocean.

On his part, a political analyst, Mr. Deus Kibamba, indicated that economic diplomacy leverages collective gains into economic gains, pointing out that for a longtime Tanzanians have wished the country's popularity in political and liberation spheres would also benefit the country economically.

"We are now turning this balance into economic benefits as the country's main agenda by embarking on all the potentials by enhancing relations with other nations," noted Mr. Kibamba.

Similarly, University of Dar es Salaam (UDSM) Economics Lecturer, Prof. Humphrey Moshi, backed the view that the president's visit is helping the country to extend its scope of trade and investment, economic diplomacy, which are promising.

"We depend on each other, taking into account the new world order of globalisation and multilateralism... The President's move is placing Tanzania in a good position," said Prof. Moshi.