In order to increase its involvement in all facets of Tanzania’s economy, Pakistan plans to invest $1 billion there over the course of the next five years.
According to TPBC chairman Shaidi Majeed, the plan, which comes less than a month after the establishment of the Tanzania-Pakistan Business Council (TPBC), will benefit the sectors of agriculture, water, mining, education, health, port, solar energy, combating climate change, and solid waste management.
If the plan comes to fruition, Pakistan’s investments in Tanzania, which were worth $490 million in 2020, will more than double, according to figures from the Pakistan Embassy.
Mr. Majeed said the $1 billion will be disbursed in stages based on government objectives at a meeting called by the Welfare Association of Pakistanis (WAP) as part of the celebrations to honour Pakistan’s 75th Independence Day.
A third of that sum, he said, “would be given in the form of grants to support artisanal miners as well as to help with borehole digging, paying school fees for the needy children, and medication.”
The remaining 70%, or $700 million, would be invested directly between Tanzania and Pakistan through Public Private Partnerships (PPPs), which would total direct investment.
PPPs are a way for the government to use resources and expertise of the private sector to acquire and deliver public services or infrastructure.
“The administration is presently drafting a document that will serve as the partnership’s guiding principle in consultation with Pakistani officials. According to the Pakistani work plan, 30 percent of the aforementioned sum will be used to fund water, education, health, and mining initiatives.
He claims that if the funds are authorised, they plan to set up fertiliser factories and businesses to transform raw materials into finished goods, enhance exports, and give Tanzanians work possibilities.
Mohammed Bihan, the Pakistani High Commissioner to Tanzania, welcomed the gathering and noted that recent years have seen an increase in trade between Tanzania and Pakistan.
“We have seen a 70% increase in trade volume over the last year, which was driven by $155 million in new investments,” he said.
During the fiscal year 2021/22, the value of trade between the two nations increased to $233 million from $163 million the year before.
He claimed that Tanzania’s political stability, favourable business prospects, and strong leadership were the main reasons behind this.
Pakistan would aim to rank among the top foreign investors in Tanzania if the funds were deployed as intended.
