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Tanzania and Australia decided to strengthen their trade and investment relations over the weekend. Mr. Scott Morriss, the Australian Commercial Commissioner for Africa, visited Tanzania last week to promote commercial ties and increase Australia’s involvement in the mining and energy industries.
The Minerals Minister, Dr. Doto Biteko, and Mr. Morriss co-hosted a reception on Friday for Australian companies operating in Tanzania that offer mining, machinery, technology, and services.
Mr. Morriss praised the government’s initiatives to foster a favorable business climate and asserted that Tanzania has what it took to be the top investment location. “Australian firms are optimistic for the future of Tanzania’s mining industry. The Australian government is pleased to support their work in Tanzania, bringing global best practices to the sector,” he declared.
Mr. Morriss expressed his satisfaction at the advancement of significant, crucial mining projects in Tanzania by Australian businesses. In order to extract graphite and rare earth, the government inked contracts for $667 million (or around Sh1.6 trillion) in April with three Australian businesses: Evolution Energy Minerals, EcoGraf Ltd., and Peak Rare Earths.
Mr. Morriss claims that Australian businesses spent between $3 billion and $4 billion (about Sh7.2 trillion and Sh9.6 trillion) in Tanzania, resulting in the creation of thousands of employment and substantial financial benefits for the host nation.
According to him, there are currently about 16 Australian businesses that help Tanzanian mining operations follow international best practices through their knowledge and experience.
“Australia is working closely with Tanzania to achieve its ambition for the extractive sector to contribute at least 10 percent of Tanzania’s Gross Domestic Product (GDP) by 2025 from the current 9.7 percent,” Morriss said.
Doto Biteko, Tanzania’s minister of minerals, said that the country’s mining industry is flourishing. He emphasized that in order for Tanzania to achieve its goal of expanding the industry, more foreign investors still needed to travel there and make investments.
“Tanzania is always ready to welcome more Australian companies and other investors from all corners of the globe to come and invest in the mining sector,” Doto Biteko disclosed.
In order to build ties with the local community and deepen involvement, Mr. Morriss met with Australian investors and local partners in Tanzania last week.
He met with representatives of the World Bank, the International Finance Corporation (IFC), and the Tanzania Investment Centre (TIC).
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