Following the establishment of the Tanzania-Pakistan Business Council, Pakistan has declared ambitions to spend US $1 billion in Tanzania over the next five years (TPBC).
The Asian country will invest in the agriculture, water, mining, education, health, port, solar energy, climate change, and solid waste management sectors as it aims to increase its role in the latter’s economy.
Shaidi Majeed, the head of the TPBC, claims that if the plan is carried out, Pakistan’s investments in Tanzania, which were valued at $490 million in 2020 according to figures from the Pakistan Embassy, will more than double.
Speaking at a conference called by the Welfare Association of Pakistanis (WAP) to honor Pakistan’s 75th anniversary of independence, Mr. Majeed said the $1 billion will be released gradually.
“30% of that sum will be made available in the form of grants to aid artisanal miners, as well as to assist with borehole drilling, the payment of school fees for underprivileged children, and the purchase of medication. The remaining 70%, or $700 million, would be invested directly between Tanzania and Pakistan through Public Private Partnerships (PPPs), the official said.
PPPs are a way for the government to get and put into place public services or infrastructure while utilizing the resources and know-how of the private sector.
In order to increase exports and provide jobs for Tanzanians, they want to develop fertilizer factories and companies that will process raw materials and make finished goods. 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 past year, with $155 million in new investments contributing to that growth,” 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.