Interview with H.E. GRACE ALFRED OLOTU. Ambassador of United Republic of Tanzania to the Nordic Countries, Baltic States & Ukraine
You have been the Ambassador of Tanzania to the Nordic countries, Baltic States and Ukraine since 2021. What challenges have you faced and what have you been able to achieve?
As you know, I am the Ambassador of the United Republic of Tanzania, accredited to 9 countries i.e., the Nordic Countries, Baltic States and Ukraine. All these countries are essential in implementing our economic diplomacy. At the same time, we have Tanzanians (Tanzanian Diaspora) living in these countries. Reaching out to them while implementing economic diplomacy, could be a challenge.
On 11 June 2022, the government of Tanzania signed a liquefied natural gas (LNG) framework agreement with the UK’s Shell and Norway’s Equinor that is expected to kick-start construction of a $30-$40 billion LNG export terminal to commercialize the country’s deepwater offshore gas reserves. The plant will be built in the southern coastal town of Lindi. The deal signed by the three parties is fundamental to the Tanzanian government. LNG exports will transform Tanzania’s economy considering today’s geopolitical realignment of energy trade and the opening of new market opportunities. The Embassy has been at the forefront of this project. As Ambassador, this is one of my great achievements so far.
H.E. GRACE ALFRED OLOTU
Ambassador of United Republic of Tanzania to the Nordic Countries, Baltic States & Ukraine
Some African nationals whose embassies are not in Finland face difficulty in processing their country’s passports. What’s the case of Tanzanians in Finland?
Like in any other nation, a Passport is one of the very sensitive documents issued by the government to its citizens to allow them to travel outside the country for various purposes. Tanzania’s government issues various types of passports and other travel documents like Emergency Travel Documents (ETDs). The applications of these documents are done online. However, to complete the application, the applicant has to take the trouble of travelling to Stockholm for biometrics which is only done at the Embassy.
What are the investment opportunities available for foreign investors who want to invest in Tanzania?
Tanzania government welcome investors who want to invest in the following investment opportunities/sectors: –
a. Pharmaceutical and Medical Equipment. The investor can have opportunities to invest in the establishment of pharmaceutical or/and medical equipment plants.
b. Edible Oil. Investors can invest in larger-scale farming of oil seeds to address the supply gap; establishment of oil seeds processing facilities and establishment of refineries.
c. Cotton and Textile. Available opportunities are value addition from field to factory; ginning, spinning and weaving; textile and garments.
d. Real Estate. Available opportunities are the construction of housing estates residential apartments, office buildings, conference and banquet facilities, shopping malls, movie theatres and entertainment facilities and real estate properties.
e. Livestock and Leather Industry:
Available opportunities are raising and fattening, live animal trading, slaughtering, meat processing, leather processing, retailing and marketing.
f. Fishing and Aquaculture. Fishing ports and fishing in the EEZ. Building fishing processing factories and fishing boat building yards. Investing in Commercial fishing.
g. Mining and Metals. Investment in establishing smelting plants and gold refinery plants.
h. Oil and Gas. Available opportunities are, investment in upstream projects including exploration of oil and gas onshore and offshore; downstream oil and gas investment projects such as transportation and storage facilities; transportation and distribution of natural gas for compressed natural gas, industries and households.
i. Tourism and Leisure: Available opportunities are like building tourist hotels, lodges, golf courses and eco-tourism facilities, conference tourism, air or ground transport and tour operations and trophy hunting.
j. Agriculture and Agro-business: Available opportunities are rehabilitation and expansion of existing processing industries; a joint venture with existing Processors; construction and operation of New Processing Industries and Construction of Industrial Parks.
k. Infrastructure Network: Available opportunities are the construction of airports, rails and port construction/rehabilitation projects that are under the PPP Model; the power generation sector using hydro, natural gas, coal, uranium, and renewable resources; inland container depots and extended railway lines; and Private operators on SGR for transportation of cargo and passengers.
In addition, the fiscal and non-fiscal incentives for investors are very attractive. For instance, for the fiscal incentives, the government offers an exemption on project capital goods – zero import duty on capital goods and zero import duty on raw materials. On non-fiscal incentives, while there is an automatic immigration quota, the government offers unconditional (free repatriation) transferability of funds of any currency of USD 500,000 for Normal Foreign Investors and USD 50,000,000 for Strategic Foreign Investors.
You were invited by the Finnish government to discuss the implementation of the Finland Africa strategy which was launched two years ago to diversify and deepen Finland’s ties with African countries. How best can this be achieved?
There were several strategies put forward by both the Finnish Government and African Ambassadors during the discussion. Among them are, first, to strengthen political and economic partnerships with African countries. Second, to promote sustainable economic growth and structural change and boost trade and investments for the mutual interest of both Finland and African countries. There is also a growing importance of African presence in the global market. In this case, development cooperation remains key to this relationship.
In March 2018, the African Union established the African Continental Free Trade Area (AfCFTA). A flagship project of Agenda 2063 aimed at creating a single African Market for goods and services, facilitated by the free movement of persons and capital. This is aimed at deepening economic integration, promoting and attaining sustainable and inclusive socio-economic development, industrialization, agricultural development, food security and structural transformation and inclusive human development. This will make it possible for Finland to cooperate with African countries in a business environment that is favourable for both parties. I think these are very important strategies in diversifying and deepening the political and economic partnership with African countries and African actors. As you are aware, Tanzania like any other African nation, has moved away from being a recipient of aid and put more emphasis on trade and investment cooperation, which align with Finnish policy on aid.
According to the International Monetary Fund (IMF), Tanzania is projected to overtake Kenya as East Africa’s largest economy in 10 years. What are the key reasons?
According to the International Monetary Fund (IMF), Tanzania’s economy, which now stands at $85.4 billion (Sh200 trillion), is set to grow into a $136 billion economy by 2028. In contrast, Kenya’s economy, which is the largest in East Africa at $118.1 billion, will be a $151 billion economy by 2028. However, based on the economic outlook provided by the IMF and banking on the GDP growth trends of the two countries, Tanzania will outpace Kenya’s economic growth and will have a larger economy in the next 10 years.
I am not an economist, but the Government is implementing the National Five-Year Development Plan 2016/17 – 2020/2021, which aims at nurturing industrialization for economic transformation and human development. Under this plan, there are going to be top mega projects in Tanzania which, when they become operational, will have a positive impact on our economy and hence,
Tanzania will be East Africa’s largest economy. Some of these projects are: –
a. Bagamoyo Port. Tanzania is in agreement with China and Oman to construct Bagamoyo port which is now being developed along with 190 industries built throughout a 1,700-hectare special economic zone adjacent to the port.
At a cost of US $11bn, this mega infrastructure project is designed to become Africa’s largest port. The port should be able to handle 20 million containers annually once it’s fully completed by 2045. The project will position Tanzania as a regional economic powerhouse.
b. East African Crude Oil Pipeline (EACOP). The East African Crude Oil Pipeline (EACOP), also known as Uganda–Tanzania Crude Oil Pipeline (UTCOP) is constructing a crude oil pipeline from Uganda to the coast region of Tanga, Tanzania.
The pipeline, with a planned capacity of 216,000 barrels of crude oil per day, once completed, will boost the economy of Tanzania.
c. Tanzania SGR project. Tanzania will become the third country in East
Africa to start enjoying modern railway services after Kenya and Ethiopia.
Kenya was the first country in the region to start the construction of an SGR line, completing over 500km between Mombasa and Nairobi, and also inaugurating its passenger services in June 2017. As for us, the Government is constructing a new electric railway line using domestic resources from Dar es Salaam – Morogoro – Dodoma about 700 Km. The whole project covers a distance of about 2,707 Km, with three branches from Dar es Salaam – Tabora-Kigoma (1,251 km); Tabora – Mwanza (379 km) and Kaliua – Mpanda (210 km). The project is expected to improve the transportation of cargo and passengers in the central corridor. It is expected to reduce time and freight for cargo destined for countries like Rwanda, Burundi, Uganda and DRC.
d. Liquefied Natural Gas (LNG). The LNG project worth US $30 to 40bn has become the most valuable project in the region. Once completed, the LNG plant is expected to contribute about 7% towards the country’s economic growth.
e. New International Airport in Dodoma. The project is part of a plan to expand the East African nation’s infrastructure. It will be built in Msalato, 12 km from Dodoma. It will include a passenger terminal, runway and related infrastructure.
The new airport project which will take approximately four years for construction, will have a capacity to handle 1 million passengers annually.
Tanzania-Burundi Standard Gauge Railway (SGR) Project.
This is a planned 282 kilometres long SGR Line that will stretch from the western Tanzanian town of Uvinza to the Burundian capital of Gitega. According to an agreement signed back in 2020 for the implementation of the project by the governments of Tanzania and Burundi, the project will reduce transportation costs, fast-track industrialization, and improve the overall regional economy upon completion. Tanzania-Burundi SGR Line will ferry more than a million tons of cargo between the two East African countries, and help to transport more than 3 million tons of minerals from Burundi to Tanzania each year.
Tanzania is Finland’s longest-running and largest development cooperation partner. What factors are responsible for the strong cooperation?
Indeed, Finland is Tanzania’s longest-standing development partner. This cooperation has made a huge impact on the development of various sectors in Tanzania. The current development cooperation is governed by the country
Strategy for Development Cooperation (2016 – 2019) Through this Strategy the two countries have worked together in strengthening the country’s economic base; promoting job creation in the innovation and forest sectors and consolidating public finance management, taxation capacity and good governance. Approximately 52 million euros were committed to the implementation of the strategy in line with the Tanzania Five-Year Development Plan for 2016 – 2021. Trade between Tanzania and Finland has remained fairly modest. Exports to Finland consist mainly of coffee and tea. Imports to Tanzania are composed of machinery, fertilizers, and electronics. Finnish companies operating in Tanzania vary widely in size, and the total number of established companies is still low. There is a mutual interest in increasing trade and investment between the countries. The main factor responsible for the strong cooperation is the longstanding bilateral relations between the countries. The two countries have continued to nurture these relations to what they are today.
Mention top tourist attractions in Tanzania for Finnish tourists.
Tanzania is home to some of Africa’s most famous national parks and natural attractions, including majestic Mount Kilimanjaro. Top tourist attractions in
Tanzania are: –
a. Mount Kilimanjaro, Africa’s highest peak (5,895m) is Tanzania’s most iconic image. Mount Kilimanjaro National Park, unlike other parks in northern Tanzania, is not visited for the wildlife but for the chance to stand in awe of this beautiful snow-capped mountain and, for many, to climb to the summit. Mount Kilimanjaro can be climbed at any time, although the best period is from late June to October, during the dry season.
b. Serengeti National Park is a vast treeless plain with millions of animals living here or passing through in search of fresh grasslands. It’s most famous for the annual wildebeest migration but you can also see the Big Five here, and nearly 500 species of birds have been recorded in Serengeti National Park. As the second largest national park in Tanzania, Serengeti attracts tens of thousands of tourists each year. The best months for wildlife viewing in Serengeti National Park are between June and September. The annual migration of over 1.5 million wildebeest and hundreds of thousands of zebras and gazelle takes place in May or early June. This migration is one of the most impressive natural events and the primary draw for many tourists.
c. The island of Zanzibar, also called Unguja, is a major holiday destination in Tanzania and is known for its beautiful beaches. Part of the Zanzibar archipelago, which consists of the islands of Zanzibar and Pemba, this island has some of the best beaches in the world. The surf varies depending on what side of the island you are on, but visitors will find soft white sand and clear shallow water, along with traditional boats lining the shore. The historic city of Stone Town, known for old Arabian townhouses, narrow alleyways, and a busy port, is located in the heart of Zanzibar.
d. Ngorongoro Conservation Area is home to the famous volcanic Ngorongoro Crater and is one of Tanzania’s most popular wildlife viewing areas. This huge volcanic crater has a permanent supply of water, which draws thousands of animals who stay in this area rather than migrate. Visitors come here primarily for viewing large animals and bird watching. Thousands of animals can be seen on the crater floor, including lions, elephants, rhinos, Thomson’s gazelles, and buffaloes, but wildebeests and zebras account for over half of the animals that call the Ngorongoro Crater home. Bird watching is superb, especially around Lake Migadi, which attracts flocks of flamingoes to the shallows. Hippos are content to submerge themselves during the day and then graze in the nearby grass in the evening.
e. Lake Manyara National Park is comprised of forest, woodland, grasslands, and swamps. Two-thirds of the park is covered by water and Lake Manyara is host to thousands of flamingoes, at certain times of year, as well as other diverse bird life. The highlight of Lake Manyara Park is the large population of elephants, tree-climbing lions, and hippos, which can be observed at a much closer range than in other parks. This park is also home to the largest concentration of baboons in the world.
f. Mafia Island draws divers and snorkelers from around the world to the undersea world protected by the Mafia Island Marine Park. The best months for diving are October to March but the best weather on Mafia Island is May to October. March and April are months of heavy rain. Mafia Island Marine Park has coral gardens, an abundant variety of fish, and a relaxed diving atmosphere. Countless birds and over 400 species of fish can be seen in the area. Mafia Island is also a traditional breeding site for the green turtle, which are unfortunately endangered. Mafia is also a desirable location for deep-sea fishing, especially tuna, marlin, sailfish and other big-game fish.
g. Tarangire National Park, established in 1970, is a fantastic area for wildlife viewing. It is best visited in the dry season from July to September when the animals gather along the river. During the dry season, Tarangire National Park has one of the highest concentrations of migratory wildlife. Wildebeest, zebra, buffalo, impala, gazelle, hartebeest, and eland crowd
the lagoons. The park is also known for its large population of elephants, and the baobab trees that dot the grassy landscape.
How does the embassy relate to the people of Tanzania in Finland?
We have Diaspora in Finland who came for studies and later decided to settle there. The Embassy collaborates with them in activities like Tanzania Day, Cultural Day etc. The Embassy also engages and makes them well-informed on what is going on in Tanzania, including informing them of the availability of job and investment opportunities back in Tanzania. Since the Embassy is based in Stockholm, therefore, it communicates with them by phone, and email.
