Tanzania: South African president expected in Tanzania for NEPAD Talks

By Bonny Apunyu, SomaliNet New

South African president Thabo Mbeki is expected in the Tanzanian city of Dar es Salaam on Thursday to discuss with his Tanzanian counterpart Jakaya Mrisho Kikwete, the outcome of the joint bilateral inter-ministerial Presidential Economic Commission, set up after a meeting in 2003.

South Africa and Tanzania in 1998 signed a memorandum of understanding on cooperation in the industry and trade sectors, with a view to devising ways of creating a favorable business environment.

Tanzania’s Minister of Industry, Trade and Marketing Basil Mramba said yesterday in Dar es Salaam that the African presidents will discuss the Mtwara, central and Tanga development corridors, which have been identified as regional New Partnership for African Development (NEPAD) priority programmes.

The Tanzanian minister said the Presidential Economic Commission would open more opportunities for both investors and exporters through facilitation of increased job creation, skill development and technology transfer.

Meanwhile, Tanzania is rated as a premier investment destination for South African business people.  Currently, there are more than 150 South African companies economically active in Tanzania.

Mramba said that available statistics indicated that investment flows from South Africa had reached USD 467million between 1990 and 2006, accounting for 10 percent of the total investment flows to Tanzania.

South Africa’s exports to Tanzania are increasing compared to the latter`s. The meeting will look for ways of balancing trade between the two countries.

Acording to Mramba, net value of exports from South Africa to Tanzania had grown from 54bn/- to 236bn/- between 1997 and 2004. Imports from South Africa are predominantly in the form of machinery, mechanical appliances, paper, rubber products, vehicles, iron, steel, services and technology, he said.

At the same occasion, the South African Minister for Trade and Industry Mandisi Mpahlwa said that in order to promote the economy, investments must be tilted heavily towards infrastructure.

“If the infrastructure of a particular country is poor, the economy is also likely to be poor,” said Mpahlwa.-Guardian