Tanzania, India target $10 billion trade

Dar es Salaam. Tanzania and India have renewed their commitment to strengthening economic relations, setting a target to grow bilateral trade from the current $7 billion to $10 billion in the near future.

The ambitious goal was announced yesterday during the Tanzania– India Business Forum held in Dar es Salaam, which brought together senior government officials, investors, and business leaders from both countries.

Deputy Minister for Industry and Trade Exaud Kigahe said the government is undertaking comprehensive economic reforms and implementing strategic initiatives to attract investment and boost trade volumes.

“Our vision is to double our trade volume with India,” said Mr Kigahe. “This is not just an ambition. It is a concrete plan supported by policy reforms and sectoral commitment.” He cited measures already undertaken, including the scrapping of 378 nuisance taxes, streamlining regulatory processes, and the establishment of the Tanzania Special Economic Zones Authority (Tiseza) to oversee and facilitate investment.

“These reforms are transforming the business environment and positioning Tanzania as an increasingly attractive destination for foreign investors,” he noted.

Mr Kigahe also outlined key priority sectors for Indian investment, including ICT, agro-processing, pharmaceuticals, automotive manufacturing, and infrastructure development.

He stressed Tanzania’s strategic geographical advantage as a trade gateway to East and Southern Africa.

Tanzania’s High Commissioner to India, Ms Anisa Mbega, revealed that cumulative Indian foreign direct investment (FDI) into Tanzania stood at $4.1 billion between 1997 and 2025.

She identified tourism, services, and manufacturing as core sectors of interest. “India accounts for over 85 percent of Tanzania’s pharmaceutical imports and 60 percent of our medical equipment,” she said.

“We are now calling on Indian pharmaceutical companies to invest locally and support Tanzania’s vision to become a regional hub for health tourism.”

She also welcomed the recently launched direct flight between Mumbai and Tanzania, describing it as a vital link to enhance business and people-to-people exchanges.

Speaking at the same forum, Tiseza acting director general, Mr George Mukono, said special economic zones located in Dar es Salaam, Bagamoyo, Dodoma, and Mwanza offer a range of incentives and simplified procedures for investors targeting regional markets.

He acknowledged India’s growing role in Tanzania’s development and encouraged joint ventures in manufacturing, ICT, and healthcare sectors.