Friday, May 27, 2011

India announces USD 180 mn new line of credit for Tanzania

India has announced a new line of credit of USD 180 mn for Tanzania and signed a pact on avoidance of double taxation as the two countries agreed to intensify cooperation to combat terrorism and piracy and work closely for comprehensive UN reforms.On a three-day visit in Tanzania, Prime Minister Manmohan Singh said after wide-ranging discussions with Tanzanian President Jakaya Kikwete that the new line of credit will be for water supply projects in country's capital Dar es Salaam.

Singh is in Tanzania on the second leg of his two-nation tour of Africa that had also taken him to Ethiopia.Addressing a joint press conference with Kikwete on Friday, Singh voiced concern over the two major problems of terrorism and piracy both countries faced and said they have decided to intensify consultations and coordination to combat such threats.
Kikwete felt that threats from piracy had never abated in the region and said it was agreed that there should be stronger collaboration through intelligence-sharing and other mechanisms. He noted there had been 27 attacks on ships on the territorial waters of Tanzania.
On the issue of UN reforms, Kikwete reaffirmed Tanzania's support for India's candidature for permanent membership. "We support India's bid for a permanent seat in the Security Council."
"India deserves it," he said going on to add that "whenever the Security Council is expanded, you cannot leave out India".At the same time, he said African with 53 nations as UN members too cannot be ignored. "To be left out will be continuance of a major deficit," he noted.
On its part, India has backed Africa's aspirations to get on board the Security Council as a permanent member.The Indian and Tanzanian sides in all signed three agreements in the presence of Singh and Kikwete.A Joint Action Plan was inked between the National Small Industries Corporation of India and the Small Industries Developemnt Organisation of Tanzania for cooperation in the field of micro, small and medium enterprises.An accord on Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income was among the agreements initialled.
Kikwete clarified that the agreement was not related to tax evasion but a "standard" procedure between two countries doing business."There could be some fishy, unscrupulous elements"but they will be taken care of," he said.
A joint venture agreement was signed between the Apollo Hospitals and the Tanzanian government for setting up a super specialty hospital in Dar es Salaam.Apollo chief Dr Pratap Reddy said consultations were underway for setting up an upto 500-bed hospital at an estimated cost of USD 100 million.Kikwete said Tanzania doctors and nurses will also be trained by Apollo to make specialised treatment available in this country.He said Tanzania has yet to develop capacity for treatment of heart diseases besides cancer, kidney and other problems.
Kikwete said the problems of terrorism and piracy also brought with it other problems like insurance companies steeply hiking their premiums for ships bringing goods to Tanzania.
Ships are also taking longer routes to avoid Somali pirates there by enhancing transportation costs.
On his part, Singh who is on his first visit to this country as Prime Minister, said India was ready to partner Tanzania in its nation-building efforts."We will focus on areas such as agriculture, small and medium industries, healthcare, human resource development and agriculture. Describing Tanzania as an important trading partner of India in the region, Singh noted that many Indian companies operating in this country were keen to diversify and increase their investments. The two leaders have agreed to facilitate this process.
"Indian investment and technology can help Tanzania to become the industrial and technological hub of East Africa and its engine of growth," he said.Singh invited Kikwete to visit India which was readily accepted by the Tanzanian leader. Dates for the visit will be worked out through diplomatic channels.
Kikwete said there was tremendous scope for substantially increasing the existing total USD 1.3 billion investments by Indian companies in this country.He said areas such as education, agriculture, health, information and communication technologies and manufacturing offered immense potential to Indian investors.
The Prime Minister and the Tanzanian President also jointly launched the Dar es Salaam Institute of Technology which promote higher education.
Singh will return to Delhi on Saturday night.

Courtesy : DDN

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