The India Tanzania Investment Forum recently hosted the President of Tanzania in New Delhi, marking an upgrade in the bilateral relationship between the two countries to a strategic partnership. The visit culminated in the signing of six key agreements designed to enhance cooperation across various critical sectors, including digital technology, culture, sports, maritime industries, and white shipping information.
Key Agreements and Initiatives
The newly formed agreements provide a foundation for technological and cultural exchange between India and Tanzania, an essential step for strengthening their strategic partnership. Measures are being taken to promote trade between the Indian Rupee and Tanzanian Shilling, with authorized Indian banks opening Special Rupee Vostro Accounts of correspondent banks in Tanzania. This mechanism aims to ensure sustainable currency trade.
Additionally, a five-year defense roadmap has been established. This plan identifies military training, maritime collaboration, capacity building, and the defense industry as key areas for cooperation. Both nations have expressed their commitment to enhancing maritime security in the Indian Ocean region, exemplified by the successful joint Exclusive Economic Zone (EEZ) surveillance exercise conducted in July 2023.
Furthermore, Tanzanian President Samia Suluhu Hassan received an honorary doctorate from Jawaharlal Nehru University in Delhi, making her the first female recipient recognized for promoting economic diplomacy, regional integration, and multilateralism between India and Tanzania. In a significant development, Tanzania also announced its decision to join the International Big Cat Alliance and the Global Biofuel Alliance.
Tanzania – A Brief Overview
Located in East Africa, Tanzania is the largest country in the region and one of the top 10 worldwide with the most international borders. It includes the islands of Zanzibar, Pemba, and Mafia. Dar es Salaam serves as the administrative capital while Dodoma is the legislative hub. The Tanzanian shilling is the national currency.
Geographically, Tanzania boasts a diverse array of landforms. The north houses part of Lake Victoria – the source of the River Nile, and the world-renowned Ngorongoro Crater, the largest intact volcanic caldera in the world. This area is also home to Mount Meru, an active volcano, and Mount Kilimanjaro, Africa’s highest peak. Lake Tanganyika, the world’s second deepest lake, is located in the west, while the east has coastal lowlands that run along the Indian Ocean.
India – Tanzania Cooperation: A Closer Look
India views Tanzania as a vital partner in the Indo-Pacific region, a sentiment that extends to its role in India-Africa relations. Economically, India serves as the primary destination for Tanzanian exports, with a total two-way trade worth USD 6.4 billion in 2022-23.
As the fifth-largest investor in Tanzania, Indian exports include petroleum products, pharmaceutical items, machinery, nuclear reactors, boilers, and electrical or electronic equipment. Conversely, Tanzanian exports to India mainly comprise gold ore, cashew nuts, spices, ores and metal scrap, and gemstones.
