Prime Minister Manmohan Singh today announced a new line of credit (LoC) of $180 million for Tanzania. The two countries also signed a double-taxation avoidance treaty and agreed to work together to curb piracy and terrorism.
On the last day of his official engagements in Africa, Manmohan Singh pitched for greater economic cooperation between the two countries and offered an LoC of $180 million for a drinking water supply project in the capital. He also announced a fresh grant of $10 million for capacity building projects in the social and educational sectors.
“India, on its part, is ready to partner Tanzania in its nation-building efforts. We will focus on areas like agriculture, small and medium industries, healthcare and human resource development,” Manmohan Singh said at the joint press conference. The two sides also agreed to facilitate the process of diversifying and increasing the investment of Indian companies operating on Tanzanian soil.
The two countries also signed a double-taxation avoidance treaty, which Tanzanian President Jakaya Mrisho Kikwete said was important for bilateral trade. While Singh called for increasing Indian investment in Tanzania, the Tanzanian president said he wanted India to help in manufacturing, information technology, textiles, tractors and irrigation equipment. “We want India to invest in information and communication technology,” Kikwete said. The two sides also signed a joint action plan for the small and medium industries. Indian investment in Tanzania currently stands at $1.3 billion.
Later in the day, Singh also inaugurated the Dar es Salaam institute of technology.
The two countries also endorsed India's bid for a permanent seat in the United Nations Security Council. “India deserves it,” Kikwete said, adding, “Whenever the Security Council is expanded, you cannot leave out India.”
Singh invited the Tanzanian president to visit, a proposal Kikwete accepted.
After the bilateral talks, Singh said India and Tanzania would intensify consultations and coordination to combat piracy and terror threats. Speaking on the the problems faced due to pirates, Kikwete said, “Insurance costs are going up. Ships are taking longer routes, and so, transportation costs too, are rising.” He said during the past few months, there were 27 attacks on ships within Tanzania's territorial waters.
