Finance Minister Khamis Mussa Omar (left) shakes hands with Citi Chief Executive Officer for Sub-Saharan Africa Akin Dawodu in London during Mr Omar’s visit that was aimed at strengthening cooperation with international financial institutions and investors. PHOTO | COURTESY
London. Finance Minister Khamis Mussa Omar has held talks with Citibank executives in London as Tanzania seeks to strengthen cooperation with international financial institutions and attract more investment.
The meeting, held recently, was led by Citi’s Sub-Saharan Africa Chief Executive Officer, Mr Akin Dawodu and focused on areas including sovereign credit ratings, the inaugural Eurobond, export credit agency (ECA) financing, infrastructure projects, capital market reforms and private sector investment mobilisation.
The discussions also reviewed the long-standing relationship between Tanzania and Citi, which dates back to the bank’s entry into the Tanzanian market in 1995.
Mr Omar briefed Citi executives on Tanzania’s economic progress, highlighting increased electricity generation capacity, modernisation of Dar es Salaam, Tanga and Mtwara ports, as well as expansion of aviation infrastructure.
He also outlined Tanzania Development Vision 2050, which targets a $1 trillion economy over the next 25 years, with about 70 percent of the required investment expected to come from the private sector.
The Minister further said negotiations on the liquefied natural gas (LNG) project, valued at approximately $42 billion, had substantially concluded, with agreement reached on the main framework.
He said the project is expected to proceed after resolving remaining internal issues among consortium partners.
On tax and business environment reforms, Mr Omar said President Hassan had established two Presidential Commissions—one on improving the business environment and another on the tax system.
He said the tax commission had submitted 284 recommendations that are currently under government review.
The Minister said future reforms would focus on widening the tax base, improving tax administration and strengthening domestic resource mobilisation rather than increasing the tax burden.
Recognising the growing areas of cooperation, Mr Omar proposed a structured strategic partnership framework with Citi covering sovereign capital markets, infrastructure financing, ECA financing, investor relations, domestic capital market development, private sector investment mobilisation and tax administration reforms.
Citi welcomed the proposal and reaffirmed its commitment to remain a long-term strategic partner in Tanzania’s economic development.
