Tanzanian Shillings, Indian Rupees Now To Facilitate Trade Transactions Between The Two Countries

 

By Valentine Oforo

TANZANIA and India have agreed to increase the use of Tanzanian shillings and Indian rupees in the trade transactions involving Indian and Tanzanian firms.

 

According to Idian Prime Minister, Mr Narendra Modi, the development is projected to help increase trade volume between the two countries, but also, to cut down transaction costs.

Minister Modi revealed the crucial development in the trade relations between Tanzania and India during a joint press conference after an extensive conservation with President Samia Suluhu Hassan who is in India for a four –day state visit.

As per the Indian Foreign Trade Figures (FTF), for 2022/23, the value of trade between India and Tanzania reached at around USD6.7bn, doubling the figure recorded in Tanzania data for 2021/22 trade flows.

 

During the consecutive meeting, President Samia and Minister Modi agreed to solidify collaborations in the different sectors, including defense, energy,marine security as well as trade and investment, among others.

Moreover, with the longstanding bilateral ties background, the two countries are also looking forward to unearth and unlocking new potentials as well as fostering the existing trade and investment opportunities.

Indian is the third largest trading partner and the fifth largest source of foreign investments for Tanzania.

So far, the two countries have inked at least 14 Memorandum of Understanding (MoU) and one contract, whereby 10 MoU involve public institutions and five are based on the private sector.

 

President Samia has expressed delight for the move by India to support opening of an offshore campus of the Indian Institute of Technology (IIT), the Madras Campus in Zanzibar, being the maiden overseas campus in the Tanzania.

The bilateral ties between Tanzania and India were founded by the foubding President, Mwalimu Julius Nyerere and India Prime Minister Indira Gandhi during 1960s, while President Samia paid homage to India’s legendary nationalist leader Mahatma Gandhi, laying a wreath at the Rajghat Memorial in the Capital, New Delhi.