Tanzania Foreign Investment News (Page 23)

By The EastAfrican

South Korea is dangling market reorientation and technological expertise to gain access to African countries, joining a list of global powers wanting a slice of the continent’s resources.

But at the Korea-Africa Summit this week in Seoul, the Asian country steered clear of promising actual technology transfer to Africa, one of the things leaders gathered there had asked directly.

East African leaders — President William Ruto of Kenya, Samia Suluhu Hassan of Tanzania, Paul Kagame of Rwanda and Yoweri Museveni (represented by his Vice-President Jessica Alupo) — had requested technology cooperation, balanced trade and work on debt reduction through multilateral lenders among the issues they considered critical for their economies.

They arrived in Seoul praising South Korea’s technological advances, including the fact that the country is one of the biggest buyers of energy and has lately focused on semiconductor production, making it a sure market for Africa’s useful minerals in the energy transition business.

Read: Why South Korea wants a piece of Africa

But leaders had also been familiar with the criticism that most of the natural resources leaving Africa are never processed locally and technology is never bequeathed to locals.

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“I, therefore, call for a significant enhancement of technology transfer and knowledge exchange in order to empower our youth and spur inclusive economic development,” Kenya’s Ruto told the audience at the opening session on Tuesday.

Later, on Wednesday, during the Korea-Africa Business Summit, Ruto argued Korean firms can take advantage of Kenya’s desire to add 3GW of power to its grid from green resources, using their technology. “There is a huge opportunity for South Korean industries and investors to leverage the comparative advantages of Kenya and other African countries in clean energy by establishing reliable supply chain networks, decarbonising production and consumption and growing African and Korean economies.”

President Hassan also weighed in on clean energy, focusing on clean cooking.

“Increased investment in clean cooking solutions will not only lower emissions and reduce deforestation, but will also reduce respiratory-related deaths and empower women,” she said. “Investing in the clean cooking agenda in Africa also presents economic opportunities in terms of development of clean cooking solutions on the continent.”

Koreans, however, weren’t committed on technology transfer per se. They promised the Tech4Africa initiative aimed at supporting the education and training of Africa’s young population. They did pledge to strengthen cooperation in science and digital technology, as well as training opportunities, which they argue is useful for overall productivity of economies.

“We are committed to making efforts to share Korea’s expertise in the fields of digital government including the Customs e-Clearance system (Uni-Pass), the Korea ON-line E-Procurement system (Koneps), and the Korean Statistical Information Service (Kosis),” said a joint declaration between the two sides that also promised to enhance people-to-people exchanges.

African leaders had called for technology transfer, especially to enable countries to learn from Korea’s developed technology in robotics, biotechnology, artificial intelligence and related areas.

Read: South Korea agrees to lend billions to Tanzania, Ethiopia

“This summit serves to remind us that even more can be done. From artificial intelligence and robotics to small modular nuclear reactors, to driving the energy transition with critical raw materials, Africa and Korea should be working side-by-side,” said President Kagame.

President Museveni said the summit should be an opportunity for Africa to ‘mirror the economic progress that we see in Korea today’.

“The globalised economy is reliant on technology, a sector that the Republic of Korea has continued to excel in. We therefore look forward to the knowledge sharing and transferring from Korea.”

There is usually a problem with countries allowing technology transfer, which means that they have to bequeath the developing countries to copy and localise it.

Pradeep Mehta, Secretary-General of CUTS International, a lobby that monitors rules and policies on international trade, says developed nations are wary of copyright infringements.

“All developed countries are reluctant in tech transfer because of weak enforcement of IPR (intellectual property rights) regimes. AfCFTA should be the counterpart of foreign countries to negotiate trade and investment agreements with Africa,” he told The EastAfrican after the summit, referring to the Africa Continental Free Trade Area agreement, which seeks to open up markets on the continent.

“Effective IPR protection has to be pushed upwards. It is a gradual process in the Global South. Otherwise, tech transfer becomes difficult and foreign manufacturers find it more convenient to sell goods and services. This means that the value addition becomes more difficult thus industrialisation suffers.”

The AfCFTA itself has been adopted sluggishly in spite of coming into force three years ago. In Korea, AfCFTA Secretary-General Wamukele Mene signed an MoU with the Korea International Trade Agency to establish the Korea-Africa Economic Committee ‘to facilitate effective cooperation between the parties’.

“With the AfCFTA providing a unified framework for economic activity, we have the perfect platform to enhance our cooperation and create a brighter future for all,” Mene said.

The summit was the first ever at the level of heads of State or government. But there had been previous meetings between line ministers of agriculture and economy, signalling Korea’s focus areas for its investment.

Read: Ruto, Samia eye trade deals with South Korea

Seoul had said it was coming into the summit ‘series with a new model; that of human development and management, rather than just aid. They promised to double official development assistance (ODA) to $10 billion by 2030 and pump $14 billion to fund Korean companies’ investments in Africa.

To do that, they pledged to pursue bilateral arrangements with African countries, focusing on Economic Partnership Agreements, Trade and Investment Promotion Frameworks, Double Taxation Avoidance Agreements, and Investment Protection Agreements, which they said will “facilitate mutual access for each other’s products to their respective markets”.

Some countries like Tanzania, Kenya and Morocco have begun discussing EPAs with Korea. But whether they boost or undercut the continental free trade area agreement known as AfCTA will be a matter of wait-and-see.

“The best bet is to push for a collective African free trade agreement. The Republic of Korea has no free trade agreement with Africa, which make African agricultural products uncompetitive,” Ngovi Kitau, a former Kenyan ambassador to South Korea, told The EastAfrican. “Keep in mind that Korean population is similar to that of Kenya, 50 million. That limits demand for consumables.”

There was something to carry home, however. Uganda signed a $500 million loan to help finance infrastructure building in the country, Uganda’s Finance ministry said on Thursday. South Korea’s Exim Bank will provide the loan.

Kenya signed a $485 million concessional development funding, which includes $238 million for the implementation of the Konza Digital Media City Project which State House in Nairobi said will help provide “an excellent digital media and entertainment ecosystem for research, training and the propagation of new technologies”.

Koreans had been supporting Konza project through the Economic Innovation Partnership Programme and had helped start the Kenya Advanced Institute of Science and Technology (Kenya-Aist) mimicking the Korea Advanced Institute of Science and Technology.

He said Kenya-Aist is nearing completion and will be unveiled later this year. He invited President Yoon to Kenya during the official opening of the institute.

Reporting by Aggrey Mutambo and Apolinari Tairo

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By VINCENT OWINO

Rich countries and organisations that were previously sending grants to Africa as official development assistance (ODA) have now resorted to lending instead, worsening the debt crisis that African countries face, a new report shows.

The report titled ‘A world of Debt’ published by the United Nations Conference on Trade and Development (Unctad) reveals that the share ODA has given in form of loans instead of grants has increased by over six percent since 2012.

This has pushed countries that have traditionally relied on aid into a debt crisis, with many countries on the continent now spending more money on interest payment for their debts than vital sectors such as health or education.

“The decline in overall aid, the increasing use of loans and the sharp reduction in debt relief resources add further pressure on developing countries burdened by debt,” the UN agency said in the report published this week.

Read: Debt, pending bills batter Africa economies in 2024

Currently, it is estimated that about 34 percent, or one-third, of what comes to Africa as ODA are packaged as concessional loans and not grants as was the norm previously. In 2012, this was 28 percent, an indication that donors are increasingly resorting to lending instead of donating.

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This, added to the fact that the developing world are grappling with much higher interest payment on their sovereign loans, has contributed to a spiralling debt crisis impacting most countries on the continent currently.

According to the Unctad report, the world debt has exponentially grown over the last decade, rising from $50 trillion in 2010 to over $97 trillion as of 2023, yet, in developing countries, the rate of growth was twice as fast.

Africa’s debt, for instance, grew from an average of 30 percent as a ratio of gross domestic product (GDP) in 2010, to over 60 percent currently, while most developed countries have a debt-to-GDP ratio of less than 40 percent.

At the same time, debt servicing costs have skyrocketed over the decade, disproportionately affecting developing countries, with Africa now paying 9.8 times more interest on their sovereign bonds than developed countries like Germany, for instance.

“High borrowing costs increase the resources needed to pay creditors, which makes it difficult for developing countries to finance investments,” says the report.

According to the report, the high cost of debt service for Africa is impacting citizens as countries divert resources from crucial sectors such as health and education to pay their debt. Last year, a record 54 countries across the globe allocated at least 10 percent of their government revenues to interest payment alone. Half of these countries were African.

Data by Unctad shows that while countries on the continent now spend an average of $39 on health and $60 on education for each of their citizens, they spend about $70 per capita on interest payment.

In comparison, countries in Latin America spend $323 per citizen on healthcare, $364 per person on education and only $280 per capita on interest payment. Consequently, 768 million Africans, over half of the continent’s populace, live in countries that spend more on interest payment than on healthcare.

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By AGGREY MUTAMBO

African leaders gathering in Seoul on Tuesday agreed to ensure an organised, stable supply of minerals to South Korea, enabling the Asian country new entry to critical raw material for energy transition.

The assurance was provided in a joint declaration between leaders of South Korea and counterparts or representatives from 48 countries attending the Korea-Africa Summit.

Under the arrangement announced by Korean President Yoon Suk Yeol and Mauritanian counterpart Mohamed Ould Ghazouani as AU Chairperson, the two sides will launch a high-level dialogue through which to discuss the supply from Africa’s mineral-rich countries.

Those discussions will also decide how Korean firms can invest in the mineral extraction sectors and how to add value to the products.

“In this context, we agree to launch the Korea-Africa Critical Minerals Dialogue during this summit which will serve as an important institutional foundation for enhancing cooperation between Korea and Africa. In addition, we share a common view on enhancing cooperative efforts to ensure the stable supply of critical minerals and promote technology collaboration related to critical minerals on mutually agreed terms.”

Read: Why South Korea wants a piece of Africa

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Koreans called for this Summit, coming late to the party of other major world powers who have been securing similar arrangements. But Seoul said its bid was collaborative and will serve as a “a model example of sustainable development of global mineral resource.”

The promise to provide a new kind of arrangement for minerals in Africa sounded enticing for a continent that has often complained of exploitation. But Koreans were also short of what African leaders actually demanded.

In his speech, Kenya’s President William Ruto praised South Korea’s desire to invest in Africa, which he argued was necessary the Fourth Industrial Revolution. But he then repeated his pet subject: That Korea has to joined likeminded countries to iron out problems in the global financial architecture so that African countries can get cheaper credit.

“Africa’s rich natural resources and growing and increasingly youthful, skilled population present a significant opportunity for growth in agriculture, industry and trade,” Ruto told the audience that included 24 other heads of state and government from Africa.

He called on South Korea to enhance its contribution to the World Bank’s “concessional lending window to enable African countries to effectively respond to economic shocks and pursue developmental agendas.”

“We also urge Korea, working with the International Monetary Fund, to consider channelling Special Drawing Rights (SDRs) to the African Development Bank.”

This latter point was also raised by Dr Akinwumi Adesina, president of the AfDB, which he argued will “solidify the Korea-Africa relations.”

SDRs are some kind of asset reserve allocated to countries at the International Monetary Fund to enable them draw actual money on it in times of crisis. The problem is that SDRs are allocated more to a country if it is rich and may never need it.

“The IMF-approved $20 billion limit for SDR rechannelling for hybrid capital, channelled through the African Development Bank and other multilateral development banks, will deliver $80 billion of new financial support,” Dr Adesina said.

Read: Ruto, Samia eye trade deals with South Korea

The IMF had earlier allocated $20 billion worth of SDRs to multilateral lenders.

But South Korea dodged the bullet here. In the joint declaration, Seoul ensured the SDRs, debt and any pledges towards enhancing World Bank contribution for concessional lending was avoided. Instead, promised to double official development aid to Africa to $10 billion by 2030, and provide export financing of about $14 billion to Korean seeking trade and investment in Africa “as a catalyst for projects for cooperation with Africa. Most of that money will be disbursed through the through the expansion of Korean Economic Development Cooperation Fund (EDCF).

African leaders had called for technology transfer, especially to enable countries to learn from Korea’s developed technology in robotics, biotechnology, artificial intelligence and related areas, according to President Ruto.

This too, was omitted in the joint declaration, even though they pledged people-to-people exchanges including research cooperation. Instead, South Korea said it will “share expertise” in the fields such as Customs e-Clearance system (UNI-PASS), the Korea ON-line E-Procurement system (KONEPS), and the KOrean Statistical Information Service (KOSIS). It was unclear whether that will involve actual technology transfer.

Billed as the first bloc-wide summit with South Korea, they still pledged to pursue bilateral arrangements with African countries, focusing on Economic Partnership Agreements (EPAs), Trade and Investment Promotion Frameworks (TIPFs), Double Taxation Avoidance Agreements (DTAAs), and Investment Protection Agreements (IPAs) which they said will “facilitate mutual access for each other’s products to their respective markets.”

But with Africa’s exports sorely based on unprocessed minerals and agricultural products, the market in South Korea may yet depend on how fast these agreements are actually finalised. Some countries like Tanzania, Kenya and Morocco have begun discussing EPAs with Korea. But whether they boost or undercut the continental free trade area agreement known as AfCTA will be a matter of wait-and-see.

There was something to carry home, however. Tanzania secured a $2.5 billion loan facility from the EDCF, to be disbursed over the next five years. Kenya secures $238 million funding from the Korea Exim bank for a digital hub at Konza Technopolis in Machakos County. Part of the money is to also build a road link the planned city to the outside world.

Read: South Korea to host its first-ever Africa summit

Yet there were basic needs for African leaders too.

Tanzanian President Samia Suluhu welcomed Korea’s commitment to promote trade, investment and engagement among actors in the private sector, especially clean energy.

“Increased investment in clean cooking solutions will not only lower emissions and reduce deforestation, but will also reduce respiratory-related deaths and empower women” she said.

“Investing in the clean cooking agenda in Africa also presents economic opportunities in terms of development of clean cooking solutions on the continent.”

The joint declaration pledged to address cooking fuel as a longterm goal of preventing deforestation.

In the end, South Korea also pitched its defence and public security technology to Africans, seen as a wider tool to address security concerns on the continent. Some countries have already used the technology indirectly. For example, some security equipment imported from Turkey in Kenya actually use Korean technology.

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Sima mara ya kwanza kutolewa hukumu ya kutaka marekebisho ya sheria kuhusu adhabu ya kifo.Continue Reading

Having initiated democratic change, Tanzania’s president appears to be fighting a rearguard action by Magufulist hardliners.

After she succeeded the late John Magufuli as President of Tanzania in March 2021, Samia Suluhu Hassan began mitigating the authoritarianism of her predecessor. She restored basic civil rights, unbanning public rallies and loosening media controls, started consulting with opposition parties on necessary reforms, and proposed an inclusive ‘committee of experts’ to guide the long-delayed constitutional review process.

Samia also sacked Magufuli loyalists, including chief secretary Bashiru Ally, foreign affairs minister Palamagamba Kabudi, and spy chief Diwani Athumani Msuya, who had overseen the previous president’s crackdown on civil liberties. And she returned to the Cabinet people who had been sidelined by Magufuli, including January Makamba and Nape Nnauye.

But late last year her reforms appeared to stall, and Magufuli’s hardline supporters seemed to be making a comeback. She appointed some of them to key positions – such as Doto Biteko as Deputy Prime Minister – and reversed some reform moves. A key one was the long-expected review of the country’s constitution, which she postponed until after next year’s national elections.

Perhaps the appointment that bothered democratic reformists most was that in October 2023 of Paul Makonda – widely disliked by the opposition – to the role of ideology and publicity head in the ruling Chama Cha Mapinduzi (CCM) party. This year started more encouragingly with Makonda’s transfer from that more important post to the governorship of Arusha.

It is now becoming harder to read where the president is going. Some analysts say the hardliners are out again. Yet democratic reforms don’t seem to be going as far or as fast as they should before the local government elections in October this year and the national ones next year.

This week, for instance, two new political parties – the Independent People’s Party and Action for Human Justice (AHJ Wajamaa) – complained that the Office of the Registrar of Political Parties was stalling approval of their registration applications. These are small parties and perhaps inconsequential. But ISS Today was told the apparent stalling might be because the two parties’ leaders were CCM ‘Magufulist’ hardliners looking for an alternative route to power, having been frustrated by Samia within the CCM.

One insider said, perhaps hyperbolically, that the ruling party feared the new opposition parties ‘would do a Zuma on the CCM.’ This refers to the way former South African president Jacob Zuma formed a new party, uMkhonto weSizwe (MK). MK astonishingly played the decisive role in knocking the ruling African National Congress down from 57% to just 40% of last month’s national vote.

In early February this year, Tanzania’s Parliament made what were supposed to be sweeping electoral reforms by passing three bills: the National Election Commission Act, Presidential, Parliamentary and Local Government Elections Act, and Political Parties Affairs Laws (Amendment) Act. The bills were intended to make the National Electoral Commission independent rather than a branch of the executive.

Electoral reform is critical as the 2020 elections were widely deemed to have been manipulated. The reforms include changing the selection of electoral commissioners, who are now solely appointed by the president. An independent panel chaired by judges would in future manage selection.

The laws also open up the position of director of elections to all competent citizens. The selection panel would present a shortlist of three candidates to the president, who would select the director. The same process would apply to the chair and vice-chair of the National Electoral Commission.

The laws similarly open up the process for selecting electoral officials at lower levels, removing requirements that they are appointed from district governors, i.e. from the executive, which in effect largely means they are CCM deployees.

Tanzania’s Governance and Economic Policy Centre (GEPC) hailed Samia as ‘a democrat par excellence‘ for initiating these reforms. However, it cautioned that important gaps remained. These could only be bridged by reviving the stillborn full constitution review, as the electoral reform bills were not underpinned by the current constitution. One of the most important gaps is that election results are not subject to judicial review.

GEPC proposed other democratic reforms such as equal access of political parties to state media and restrictions on using the national security apparatus ‘to support a given political party or its candidates during elections’ (i.e. the CCM).

The country’s main opposition parties complained that despite the appearance of granting the National Electoral Commission independence, the new legislation still reserved the final decision over appointment of commissioners and the director of elections to the country’s president.

Nevertheless, says Zitto Kabwe, outgoing leader of the second largest opposition party, ACT-Wazalendo, through negotiations by his party and others, several improvements had been made to the bills – mainly to enhance the National Electoral Commission’s independence.

Kabwe told ISS Today he had recently explained to his party’s national executive committee that change is a process, not a one-day event. ‘Therefore, we must encourage ourselves that these changes are a very important step in our journey to demand free and fair elections and leave a lasting mark in our country through our party.’

ISS Researcher Nicodemus Minde suggests that Samia’s apparent inconsistencies were necessary strategic political manoeuvres to protect her from the Magufulists. Writing in The Conversation, he said they had won her support in her party and among the broader public. ‘Nonetheless, she could still face resistance from hardline factions within her party who may seek to undermine her in the 2025 general elections.’

Even so, appeasing the hardliners can all too often be a cover for shoring up one’s own power.

Peter Fabricius, Consultant, ISS Pretoria

Source: allafrica.com

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President Dr Samia Suluhu Hassan on Thursday evening realigned government executives including bringing new faces to the list.

According to the statement issued by Chief Secretary, Dr Moses Kusiluka, the Head of state has appointed Maswa East CCM legislator, Stanslaus Nyongo to become deputy Minister of State in the President Office (Planning and Inveatment).

President Samia also appointed Felister Mdemu to the post of deputy permanent secretary in the Ministry of Community Develeopment, Gender, Women and Special Groups in charge of gender issues and women.

Before her appointment, Ms Mdemu was asistant to the President (Community Development).

Also in the list include Amon Mpanju,who has been appointed to the post of deputy permanent secretary in the Ministry of Community Development, Gender, Women and Special Groups in charge of Community Development and Special Groups.

The Head of State has also appointed the Director of Presidential Communication, Zuhura Yunus as deputy permanent secretary in the Prime Minister’s Office (Labour, Youth, Employment and People with Disabilities).

The realignment also involves appointment and transfer of District commissioners. Mr Petro Itozya has been appointed to become Kisarawe District commissioner while Fatuma Nyangasa has been transfered from Kisarawe to Kondoa District.

Dr Hamis Mkanachi has been transfered from Kondoa District to Urambo District, replacing Elibarik Bajuta who will be asigned other duties. President Samia has also transfered Reuben Chongolo who was serving as Songwe District Administrative Secretary to Mufindi District.

Also Mr Frank Sichwale has been moved from Mufindi District to Songwe. The Head of State has also appointed and transfered District Executive Directors whereby she has appointed Musa Kitungi to become DED for Mafia District.

Kaleka Kasanga has been appointed DED for Shinyanga District.

Also Shaban Mpendu has been been appointed DED for Babati Town Council while Sigilinda Mdemu has been appointed DED for Mlele District Council.

President Samia also has transfered Upendo Mangali from Babati Town Council to become DED for Sumbawanga District Council.

Kisena Maguba has been transfered from Shinyanga District Council to become DED for Kigoma Municipal Council, replacing Mwantum Mgonja whose appointment has been revoked.

Moreover, the Head of State has transfered Teresia Irafay from Mlele District Council to Hanang’ DC.

The President has also appointed three High Court Judges. The appointed judges are Nehemia Mandia, Projestus Kahyoza and Marium Omary.

Source: allafrica.com

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President Samia Suluhu Hassan has concluded a sixday official and working visit to the Republic of Korea, leaving the government optimistic about future prospects.

The visit, described as a significant milestone in Tanzania-Korea relations, yielded valuable insights and agreements expected to enhance bilateral cooperation and bring tangible benefits to both nations.

According to government officials who accompanied President Samia, the visit marked the signing of a Framework Agreement with the Republic Korea, which will enable Tanzania to obtain soft loan worth 2.5bn US dollars (equivalent to 6.5tril/-) from the Economic Development Cooperation Fund (EDCF) over the next five years.

Speaking to journalists at the State House in Dar es Salaam, Permanent Secretary in the Ministry of Finance, Dr Natu Mwamba outlined the next steps following the agreement.

“We are now tasked with identifying projects for implementation,” she said. “Tanzania has traditionally received assistance from Republic of Korea in various sectors such as energy, transport, infrastructure, education, health, agriculture and water. The new projects could fall under these or other areas,” She noted.

Dr Mwamba explained that a systematic approach is being followed, involving the Planning Commission, which is responsible for initiating project proposals.

“These proposals are reviewed and refined, with contributions from Zanzibar through the Zanzibar Planning Commission, before being submitted to the Ministry of Finance for further evaluation and prioritisation.

Once finalised, the projects will be discussed with the Republic of Korea through a policy dialogue process, paving the way for mutually agreed-upon implementations,” she explained.

She added, “The selected projects will align with Tanzania’s priorities and development goals, focusing on areas such as skills and technology acquisition,” Sharing insights gained from the visit, Professor Kitila Mkumbo, Minister of State in the President’s Office (Planning and Investment), highlighted the Republic of Korea’s remarkable progress achieved through self-reliance and significant foreign investments.

He noted the growing presence of the Republic of Korean companies in overseas markets, particularly in Asia, and drew inspiration from their success.

“There is great potential to attract Korean investors to Tanzania, given the abundance of opportunities in the country,” he said.

Prof Mkumbo identified several key areas for collaboration, including agriculture, where Tanzania seeks to enhance productivity through mechanisation and agro-processing, leveraging Republic of Korea’s expertise.

He also mentioned the strategic focus on mineral resources, with Tanzania prioritising in-country mineral processing to add value before export.

“Trade promotion is another crucial area,” he added, “as Tanzania aims to expand trade with Republic of Korea by adding value to its agricultural, livestock, forestry and mineral products.” Several initiatives are underway to attract Republic of Korean investment to Tanzania.

The Tanzania Investment Centre (TIC) has signed an agreement with Generating Company Limited, a Republic of Korean firm, to provide information and develop programmes to attract Republic of Korean investment companies.

This is expected to boost Korean investment in Tanzania in the near future. Minister for Information, Communication and Information Technology, Nape Nnauye, highlighted the collaboration on startups.

The Tanzania Startups Association (TSA) accompanied the delegation and visited Pangyo Techno Valley (PTV), a hub for information technology, biotechnology, cultural technology, and fusion technology.

Mr Nnauye also mentioned ongoing discussions about establishing an ICT centre in Dodoma, similar to PTV, with Republic of Korea showing willingness to provide a loan for the project’s construction.

“Tanzania has selected Dar es Salaam, Dodoma, Arusha, Mwanza, and Mbeya as smart cities,” Nnauye noted.

“The delegation studied Korea’s smart city initiatives to gain insights for improving Tanzania’s own smart city efforts.” Industry and Trade Minister Dr Ashatu Kijaji explained that Tanzania and the Republic of Korea have signed an Economic Partnership Agreement (EPA) aimed at establishing a mutually beneficial trade network with partner nations.

This agreement covers a smaller scope compared to a traditional free trade agreement but emphasises the importance of product quality, continuity and rules of origin.

Dr Kijaji highlighted the Generalised System of Preferences (GSP), a World Trade Organisation initiative that promotes economic development by eliminating duties on 10,998 products when imported from designated beneficiary countries. Out of these, 1,126 are agricultural products.

However, Tanzania’s utilisation of this preferential scheme has been limited.

“We need to emphasise areas such as product quality, continuity and the rule of origin in our discussions to benefit fully from these opportunities,” she stressed.

“We desire that as we begin discussions in all sectors of the economy and production, we emphasise areas such as product quality, continuity and the rule of origin.” Dr Kijaji added. Dr Kijaji further said Tanzania contributes a little because of the product quality, and in the discussions that the government will initiate, they wish Republic of Korea to teach Tanzanians about standards so that they can produce products that meet global market criteria. Another issue, she said Tanzanians are grappling with is that many products lack a rule of origin.

“We have resources here, but what is preventing us from using them up to 80 per cent to produce our products?” she queried. “Another area is continuity, where we want to invite major investors so that when we start production, we can meet market demands,” she noted.

Source: allafrica.com

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