DAR ES SALAAM: THE bilateral trade between Tanzania and Brazil has reached 74.8 million US dollars (203.2bn/-) in a decade, reflecting a steady growth of economic ties between the two countries.
The increased trade volume is equivalent to 13 per cent increase in 12 years compared to the previous record of 66 million US dollars set in 2011.
The Ambassador of Brazil to Tanzania, Mr Gustavo Nogueira, said last Friday during the Brazil-Tanzania business seminar that despite the current figures, there is potential for further expansion of the bilateral trade.
“I’m confident that this trade mission will significantly contribute to furthering our countries’ shared goal of increasing bilateral trade and investment and ensuring mutual prosperity for our businesses and citizens.
“We believe that these countries have the opportunities to share with each other, to grow with each other, to learn from each other in a partnership among equals,” he said.
The main exports from Brazil to Tanzania are poultry meat, heavy construction vehicles and raw sugar while Tanzania exports vinyl polymers and also raw tobacco.
He said due to the Tanzania’s population of 65 million people, Brazil realises how crucial it will be for locals to promote its industrial base, to promote its manufacturing base, to create wealth in order to provide jobs and opportunities for its growing population.
He added that the country’s government efforts to improve the regional transport infrastructure of ports, roads and railways to further benefit from this geographic dividend, is vital for investment.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
“These important infrastructure projects will expand trade opportunities not just to East Africa and Southern Africa, but also to Asia, the Arab world and beyond,” Amb Gustavo added.
Minister for Industry and Trade Dr Selemani Jafo said the trade between the two countries remains relatively good, but need some improvement as the trade volume among the two countries remain low.
Last year, Tanzania export to Brazil was valued at 0.1 million US dollars while Brazil’s exports to the country were valued at 64.6 million US dollars.
“These statistics indicate that there is great work to be done to explore the existing potential to increase trade volume among us,” he said.
He underscored the government’s commitment to fostering business growth and enhancing investment opportunities.
ALSO READ: How can EAC enhance intra-trade, investments
Various initiatives to improve the country’s business environment have been conducted by the government including the recent launch of the Electronic Investment Window, a new Trade Policy for 2023 and the formation of the Presidential Commission on Tax Reforms to review and advise on tax issues.
“These initiatives are designed to promote business and improve the investment climate in the country, positioning the private sector as a central player in our economic activities,” he said.
The minister added that there should be a need to expand production beyond traditional ways to the value-added products with higher profit margins and to strengthen the country’s supply chain to ensure consistent product quality and timely delivery.
Source: allafrica.com
Share this news
This Year's Most Read News Stories
Zanzibar liquor importers face fresh hurdle despite court order
The liquor shortage in Zanzibar is far from over, even after a court order granted relief to the three importers.Continue Reading
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
Juma Haji Duni: A legacy of resilience and leadership in Zanzibar politics
The recurring inefficiency among some contractors could lead the government to favour foreign firms, sparking criticism from stakeholders advocating for local participationContinue Reading
