Tanzania-EU Business Forum Raises EUR 1 Billion of Investment to Tanzania

From 23 to 24 February 2023, the Tanzania-EU Business Forum took place in Dar-es-Salaam. The event took place right after a similar Kenya-EU Business Forum which took place in Nairobi from 21 to 22 February 2023. The main objective and theme of the Forum was to “Tap into Tanzania’s Investment Opportunities.”

The forum was an opportunity to explore business opportunities. The EU side was eager to showcase its comparative advantages and seize this opportunity to promote its #GlobalGateway initiative.

Approximately 1100 participants attended the Forum with 60% consisting of EU or Tanzanian entrepreneurs with 40% consisting of government officials, diplomats and representatives of regional institutions.

Dr Philip Mango, Vice-President of the United Republic of Tanzania, and Dr Hussein Mwinyi, President of Zanzibar, represented Tanzania and Zanzibar respectively. On the EU side, we had Mr Olivier Becht, French Minister for External Trade; Ms Helena Konig, Deputy Secretary-General of the European External Action Service; Mr Thomas Ostros, VP of the European Investment Bank; and Mr Aanti Karhunen, Director for Sustainable Finance of the European Commission, amongst others.

During the course of the Forum, several deals totaling EUR 1 billion were announced as follows:

• AFD, EU and AfDB agreed to finance the Kakono hydropower plant to the tune of EUR 296 million
• German firm Knauf will inject EUR 47 million to boost production capacity of gypsum
• EIB provided grants and guarantees up to EUR 270 million to Tanzanian banks: CRDB, NMB and KCB; and also made available a line of credit of EUR 80 million. This envelope of EUR 350 million will be matched by Tanzanian banks, unlocking EUR 700 million of funding targeted at #SME in Tanzania.
• FMO and Proparco will jointly lend EUR 115 million to NMB with the funds earmarked for financing the Tanzanian private sector
• EU will grant in support to Public and Private Finance, #BlueEconomy and Economic Studies amounting to EUR 166 million

In addition, a number of agreements were sealed to enhance connectivity. France and Tanzania signed an Air Service Agreement. The Port of Antwerp and Tanzania Port Authority also signed an MOU.