Pakistan to invest US $1bn in Tanzania

Pakistan has announced plans to invest US $1billion in Tanzania during the next five years, following the launch of the Tanzania-Pakistan Business Council (TPBC).

The Asian nation which seeks to up its involvement in various sectors of the latter’s economy will invest in agriculture, water, mining, education, health, port, solar energy, climate change and solid waste management sectors.

According to TPBC chairman Shaidi Majeed, realisation of the plan would mean that Pakistan will more than double the value of its investments in Tanzania which stood at $490 million in 2020, according to data from the Pakistan Embassy.

Public Private Partnerships

Speaking in a meeting convened under the auspices of the Welfare Association of Pakistanis (WAP) as part of the celebrations to mark 75th Independence Day of Pakistan, Mr Majeed said the $1 billion will be released in phases depending on government priorities.

“30% of that amount will be released in form of grants to support artisanal miners as well as to help in drilling of boreholes; paying school fees for the needy children and medication. The remaining 70% which translates into $700 million – would come in form of direct investment that would involve Public Private Partnerships (PPPs) between Tanzania and Pakistan,” he said.

PPPs are a mechanism for the government to procure and implement public infrastructure or services using the resources and expertise of the private sector.

“The government in collaboration with Pakistan officials is currently preparing a document that will guide the partnership. The Pakistan work plan is to use 30% of the said amount to support mining projects, education, water and health,” he said.

Once the funds are approved they expect to establish fertilizer factories and industries to process raw materials and produce final products to boost export and create job opportunities for Tanzanians. Gracing the event, Pakistan High Commissioner to Tanzania Mohammed Bihan said trade between Tanzania and Pakistan has been on the increase during the past years.

“We have witnessed a 70% rise in trade volume during the past one year which was contributed by $155 million of new investments during that period,” he said.

The value of trade between the two countries stood at $233 million during the fiscal year 2021/22, from $163 million during the preceding year.