John Baird: Canada's freedom agenda - Diplomat Magazine

TRADE WINDS|DIPLOMATICATanzania: trade and tourism are on the riseBy Alex Crescent MassindaIam grateful for this opportunity tocomment on the main aspects of relationsbetween Canada and Tanzania,and I will touch on three: trade, investmentand tourism.With respect to trade, our two countrieshave close and long relations. Since 2009,Tanzania has been one of 20 countries, andonly seven from Africa, that are prioritypartners in development co-operationand principal beneficiaries of Canadianassistance. Since 2004, we have had a tradeagreement that permits duty-free accessinto Canada for most goods produced inTanzania.But the level of trade between the twocountries is still minimal. According to officialfigures, Canadian exports to Tanzaniain 2009 were worth $52.4 million; mainlyin textile products and heavy machinery.For a major trading country, and comparedto what Canada exports elsewhere, this isvery little. And exports from Tanzania toCanada (excluding minerals) in the sameperiod were far lower — worth a mere$3 million. These were mainly vegetableproducts. The main drag on Tanzania’spart is lack of capacity to assure reliableproduction and to supply a market that isso far away. Producers in Tanzania preferto sell to countries in the Middle East,Southeast Asia and Europe; and buyers inCanada prefer to source from Asia, LatinAmerica or even West Africa.To overcome this challenge, we havetaken steps to encourage investors fromacross the globe, including Canada, toinvest in sectors of our economy that offerhigh returns. These include agriculture,agro-processing, lapidary and manufacturing.Through the Tanzania InvestmentCentre (TIC) and Export Processing Zones(EPZA), we have mechanisms and incentiveswhich, coupled with a sizable skilledA leopard on the plains of the Serengeti in Tanzania.and semi-skilled labour force and low productioncosts, ease the process and cost ofinvesting in Tanzania. End products fromEPZA can then be exported to Canada atcompetitive rates.For their part, investments are estimatedat more than $2 billion with Canadianmining companies among the largestforeign investors in Tanzania. Despite persistentchallenges of inadequate powersupply and infrastructure constraints, weoffer comparatively attractive and competitiveterms to investors.Two developments will improve thesituation. Firstly, we have a new miningact with impartial, consistent and predictablelegal provisions for the protectionof interests of all stakeholders. This willincrease harmony and trust and promotebusiness. Secondly, negotiations for aForeign Investment Promotion and ProtectionAgreement (FIPA) between our twocountries are nearly completed. Whenconcluded, FIPA will create a frameworkof legally binding rights and obligationsfor the protection of investors’ interests,and thus attract more Canadian investors.And there are other potential areas ofinvestment in Tanzania apart from mining.In the 1970s and the 1980s, Canadaprovided extensive technical assistanceto Tanzania in the sectors of agricultureand infrastructure, especially the railwaysystem. Right now, boosting agriculturaloutput and reviving railways are amongpriority areas in our development plans.Some of the experts who were involvedthen are still active in the same or relatedfields here. They have good knowledge ofour problems and needs, and such assetscould be utilized now in the pursuit of ourobjectives. Such people could also be thechannels and catalysts to drum up Canadianinterest in investing in these sectors.Finally, Tanzania offers a unique combinationof tourist attractions. From exoticZanzibar to the spectacular NgorongoroCrater, from the Plains of Serengeti teemingwith wildlife in their millions to thesight of snow in the tropics on the summitof Mt. Kilimanjaro, the highest free-standingmountain in the world, we have it allin abundance and in a combination unlikeanywhere else on earth.My mission is to make these gems ofnature known as widely as possible inCanada so as to tap into the tourist markethere on a higher scale. And we aresucceeding. For example, between 2005and 2008, Canadian tourists to Tanzaniaincreased by 50 percent from 11,000 to16,500. There was a slight dip in 2009 and2010 due to the economic crises and theiradverse effects on the global tourism industry,but we expect numbers this year toexceed the 2008 level.Our focus and interest go beyond attractingtourists from Canada. Tourism is amajor sector in our economy. Last year, wehad about 800,000 tourists and we expectthis number to rise to 1.2 million by 2015.This surge will create more investmentopportunities in the hospitality industry,and I believe that Canadian firms are wellplaced to join in.Alex Crescent Massinda is Tanzania’shigh commissioner to Canada. Reachhim at contact@tzrepottawa.ca or 613-232-1509 ext. 24.LUKAPdiplomat and international canada 29