Tanzania and Oman ink bold investment agreement

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  • Oman has a GDP of 5.6 according to IMF estimates
  • Tanzania-Oman relates run back to the 19th century
  • Oman is an oil and gas-dependent economy

Tanzania-Oman relations landscape just got a shot in the arm as President Samia Suluhu Hassan, and the Sultanate of Oman signed several memoranda of Understanding (MoUs) within the field of tourism, energy, natural resources, and higher education, training and national museums. The signing took part in Oman on June 13.

The signing took place before President Samia witnessed the historic moment. According to information from Oman News Agency, a trilateral MoU was also signed between the Oman Chamber of Commerce and Industry (OCCI), Tanzania Chamber of Commerce, industry and Agriculture (TCCIA) and Zanzibar National Chamber of Commerce (ZNCC).

Further, the agency noted that a memorandum was signed between Oman Investment Authority (OIA) and Zanzibar Investment Promotion Authority (ZIPA).

Oman, an oil and gas-driven economy, is forging partnerships through the Oman society for Petroleum Services (OPAL) and the Association of Tanzania Oil and Gas Service Providers (ATOGS).

Also, the Sultanate signed private MoUs between Oman Airports Management Company and Kilimanjaro International Airport, the Al Bashayer Meat company and the National Company for Live Animals, and the Oman Food Investment Holding Company (OFIC) and the Tanzanian Horticultural Association.

Tanzania is now ascending towards scoring more points for Foreign Direct Investment (FDI) from every nation willing to partner. President Samia’s administration has demonstrated remarkable abilities in forging meaningful economic ties with various countries within and outside the region.

On the other end, Sayyid Badr Hamad Al Busaidi, Foreign Minister, told Oman News Agency that an investment fund between the Sultanate of Oman and Tanzania was established. The fund will invest in projects of value to the two countries in various fields, including agriculture, fishing and mining.

READ: Tanzania project to transform East Africa’s LNG sector

Tanzania and Oman have been developing their relationship for decades

Tanzania Oman relations

According to IMF estimates, Oman, with a projected GDP of 5.6, has very historical and extended relations dating back to the 19th century. According to the Embassy of the United Republic of Tanzania in Muscat, Sultanate of Oman, this relationship is extraordinary as Oman is the only country outside Africa where Swahili is spoken as the first language, and its people have blood relations with the people of Tanzania.

The recent agreement is another fruitful effort Tanzania makes to build strong ties with Oman.

“The two parties reiterated their mutual firm and sincere desire to strengthen bilateral relations and encourage them to broader horizons in all fields and levels in a way that serves the mutual benefit of the two countries and their friendly peoples. During the talks, issues regarding bilateral relations and ways to develop them were discussed, especially those related to economic cooperation in various fields,” according to Oman Observer.

Further, the Oman Observer pointed out that the present MoU is an output of President Samia’s response to the cordial invitation extended by His Majesty Sultan Haitham bin Tarik, the Sultan of Oman. Hence, President Samia brought a delegate of high-level government officials for a state visit of three days.

However, the two heads of state exchanged positive words in the spirit of kinship and friendship while bolstering mutual firm and sincere desire to strengthen bilateral relations—extending the mutual benefits to crucial sectors such as economic fields.

The two sides expressed their satisfaction with the role played by the Oman Investment Authority (OIA) through existing projects in Tanzania and the part of the Ministry of Heritage and Tourism through the restoration of historical and archaeological sites in Zanzibar and the advanced stages that these works have reached.

Sayyid Badr forecasts trade exchange between the two countries will increase, especially after Oman and Tanzania signed several memoranda of understanding today, in addition to existing agreements between Oman Investment Authority (OIA) and the concerned Tanzanian authority.

He added that the two countries would later sign MoUs in various economic, investment, energy and tourism fields with a work programme set for those agreements (Oman News Agency).

READ: Tanzania primed for East Africa’s LNG investments

Regarding the recent $30 billion LNG’s Host Gov Agreement recently signed by Hon. January Makamba and witnessed by Her Excellency President Samia Suluhu, the joint partnership with Oman will build Technical skills & capacity and Human Capital Development training, which aims to enhance the competencies and work ethics of Tanzanians.

From August 3rd to 4th, The Tanzania Energy Congress (TEC) will be held in Dar es Salaam to address such joint projects and to harness the investment potential in the country.

 

President Samia witnessing the HGA signing ceremony in Dar es Salaam by the Minister of Energy and oil and gas companies, Shell and ExxonMobil, and Ophir Energy.

Industry standards, knowledge transfer, information exchange, as well as the development of Tanzanian Oil & Gas Technical expertise are the goals of the ATOGS-ZAOGS-OPAL alliance. Developing Local Content is an ongoing process that seeks to drive change for Tanzania’s energy arena.

Read: African Startup League: Competition for funding over 10,000 startups every year

Padili Mikomangwa is an environmentalist based in Tanzania. . He is passionate about helping communities be aware of critical issues cutting across, environmental economics and natural resources management. He holds a bachelors degree in Geography and Environmental Studies from University of Dar es Salaam, Tanzania.

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