What you need to know:
- In April this year, the government signed contracts worth $667 million (about Sh1.6 trillion) with three Australian companies---Evolution Energy Minerals, EcoGraf Ltd and Peak Rare Earths--- to mine graphite and rare earths.
Dar es Salaam. Tanzania and Australia over the weekend agreed to boost trade and investment ties.
The Australian Trade Commissioner to Africa, Mr Scott Morriss, was in Tanzania last week to strengthen trade relations and boost Australia’s engagement in the mining and energy sectors.
On Friday, Mr Morriss co-hosted a reception with the Minerals minister, Dr Doto Biteko, for Australian businesses in Tanzania, including those providing mining, equipment, technology and services.
Commending the government’s efforts in creating a conducive business environment, Mr Morriss said Tanzania had what it takes to be considered the best destination for investment.
“Australian firms are optimistic for the future of Tanzania’s mining industry. The Australian government is pleased to support their work in Tanzania, bringing global best practice to the sector,” he promised.
Mr Morriss said he was pleased to see Australian companies are progressing major critical mineral projects in Tanzania.
In April this year, the government signed contracts worth $667 million (about Sh1.6 trillion) with three Australian companies---Evolution Energy Minerals, EcoGraf Ltd and Peak Rare Earths--- to mine graphite and rare earths.
According to Mr Morriss, Australian companies have invested between $3 billion (about Sh7.2 trillion) and $4 billion (about Sh9.6 trillion) in Tanzania, creating thousands of jobs and providing significant revenue to host countries.
There are around 16 active Australian companies which support – through their expertise and experience – global best practice mining in Tanzania, he added.
“Australia is working closely with Tanzania to achieve its ambition for the extractive sector to contribute at least 10 percent of Tanzania’s Gross Domestic Product (GDP) by 2025 from the current 9.7 percent,” said Mr Morriss.
Minerals minister Doto Biteko said Tanzania's mining sector is growing strength to strength.
However, Dr Biteko expounded, Tanzania still needed more investors to come and invest as an ambition for the country to grow the sector.
“Tanzania is always ready to welcome more Australian companies and other investors from all corners of the globe to come and invest in the mining sector,” he noted.
He said the country’s target to contribute 10 percent to the GDP come 2025 could not be met unless the Foreign Direct Investment comes to the country.
The Australian Honorary Consul in Tanzania, Ms Anna Rabin said: “Australia is reinvigorating ties with Africa. We were pleased recently to re-open the Australian Consulate here in Tanzania.”
“Our two countries have a lot in common, particularly as globally attractive mining destinations. We look forward to growing this partnership for the mutual benefit of Australia and Tanzania.”
Last week Mr Morriss also met Australian investors and local partners in Tanzania to strengthen engagement and promote Australian government partnerships.
He held meetings with officials of the Tanzania Investment Centre (TIC), the World Bank and the International Finance Corporation (IFC).