Kenyans’ investment in Tanzania now at Sh160bn
Prime Minister Raila Odinga (right) introduces Kenyan Government officials Alfred Khang'ati (left) and Paul Otuoma (2nd left) to Tanzanian Prime Minister Migengo Peter Pinda who arrived in Nairobi on Wednesday for a two day visit. PHOTO/HEZRON NJOROGE
Kenyans’ investments in Tanzania have hit the Sh160.7 billion mark. A meeting between Prime Minister Raila Odinga and his Tanzanian counterpart Mizengo Peter Pinda was on Wednesday told that the investments by Kenyans had helped to create jobs in the neighbouring country.
And to strengthen the economic ties, the two leaders encouraged wananchi (citizens) from both countries to increase trade and investment opportunities.
More exports
Mr Odinga said exports from Kenya to Tanzania between 2007 and 2008 increased by 27 per cent while those from Tanzania to Kenya registered a 17 per cent growth.
He encouraged Tanzanian investors and businesspeople to explore the Kenyan market as a way of closing the trade imbalance which is in favour of Kenya.
Mr Pinda said Tanzania encouraged the development of regional economic blocs, notably the East African Community, because it placed the region in a better position in global economic affairs.
However, he said 67 districts in Tanzania were experiencing severe drought and feared that this could have a negative effect on country’s economy which has been growing by five per cent.
Mr Odinga noted that considerable progress had been made in negotiations on the common market protocol to be signed at the East African Community summit in November where issues of land, usage of national identity cards and permanent residency had been addressed.
Mr Odinga praised presidents Mwai Kibaki and Jakaya Kikwete for their directive to revive the joint Permanent Commission of Cooperation, noting that the first session would take place in Arusha between September 5 and 6.
“The forum will enable a review of the status of our bilateral cooperation, seek ways of solving any challenges that may stand in the way, resolve the outstanding issues that have been identified and agree on the new areas for increased cooperation,” he added.
Mr Odinga briefed the Tanzanian Premier on the state of Kenya’s economy, noting that due to the post-election violence and other external factors, a GDP growth rate of 1.7 per cent was recorded in the country last year as opposed to 7.1 per cent in 2007.
He hastened to add that this year’s growth was projected at three per cent. Premier Pinda echoed the sentiments, saying a stronger economy in the East African region would attract international investments and mitigate the effects of drought, poverty and unemployment.
