- As an island on the Indian Ocean off the coast of East Africa, Zanzibar acts as a gateway for the United Arab Emirates (UAE) to the interior of Africa.
- Trade between Qatar and Tanzania amounted to $87.08 million last year compared with $77.5 million in 2021, a 12 per cent increase.
- Removal of double taxation will certainly help, as it will increase Direct Foreign Investment from the UAE to Zanzibar and Tanzania at large.
Trade between Qatar and Tanzania amounted to $87.08 million last year compared with $77.5 million in 2021, a 12 per cent increase. Moreover, Qatar’s exports to Tanzania have increased annually to 36.6 per cent, from $15.6 thousand in 1996 to $37.8 million in 2021.
A recent meeting between the President of Zanzibar, Dr Hussein Ali Mwinyi and Qatar’s First Vice-Chairman, Mohamed bin Twar Al Kuwari highlighted these figures. The two high-ranking officials met in Qatar. The Zanzibar president called on investors from the rich United Arab Emirates to invest in the island.
The president highlighted key investment opportunities on the island, including tourism, hospitality, real estate, and energy sectors. Local media quoted an official statement noting that; “the meeting discussed the bilateral relations between both countries in the commercial and economic fields and the means to enhance them.”
Dr Hussein Ali Mwinyi took the opportunity to highlight Zanzibar’s significant economic development over the past few years. He pointed out the need for increased sustainable investments from Qatar and the rest of the United Arab Emirates. Such investments can help the island maintain its current economic growth trajectory.
Zanzibar’s economic strategic positioning
Notably, Zanzibar has an economically strategic geographical location. Consequently, this positioning gives the island the membership benefits of several economic blocs. These include the Southern African Development Community (SADC), the East African Community (EAC) and, of course, the African Continental Free Trade Area (AfCFTA).
As an island on the Indian Ocean off the coast of East Africa, Zanzibar acts as a gateway for the United Arab Emirates (UAE) to the interior of Africa. A delegation of high-ranking officials from various economic authorities in Tanzania and Zanzibar, including the Zanzibar Investment Promotion Authority (ZIPA) and Tanzania Investment Centre, accompanied President Mwinyi to help make his economic investment case.
President Mwinyi added that Zanzibar is interested in developing conference tourism, especially with attractive tourist resorts and its interest in heritage. In response, Qatar’s Mohamed bin Twar Al Kuwari said Zanzibar is an important tourism destination for most of the UAE. He also acknowledged that Zanzibar offers a gateway to Africa’s interior and significant trade opportunities.
Read also: Tanzania, Qatar end double taxation inking trade and investment pact
Zanzibar-Qatar bilateral relations
President of Zanzibar, Dr Hussein Ali Mwinyi, and his delegation met Officials from the Qatar Chamber led by first vice-chairman Mohamed bin Towar al-Kuwari and board member Mohamed bin Ahmed al-Obaidli and deliberated on bilateral relations between the two countries.
The discussion table included matters about the commercial and economic fields, how to enhance them, and ways to develop trade relations between the two countries. On his part, Zanzibar President Mwinyi acknowledged Qatar’s great economic achievement and noted that it offers a great opportunity for Zanzibar to learn, adapt, and trade.
The president took the opportunity to invite Qatari businessmen to invest in Zanzibar in sectors including infrastructure, real estate, tourism, hospitality, agriculture, industry, and energy, all of which President Mwinyi said offers the UAE huge investment potential.
Qatar’s First Vice President Al-Kuwari noted that he is pleased with the investment opportunities in Zanzibar for Qatar and the UAE.
“Zanzibar is an important tourism destination. The time is appropriate to explore investment opportunities there to strengthen cooperation between both countries. Qatar Chamber supports this cooperation and is prepared to host a seminar highlighting the opportunities available in Zanzibar among Qatari investors,” al-Kuwari said.
MOU on the removal of double taxation
Notably, Tanzania and Qatar signed an MoU last year to end double taxation and strengthen trade and investment ties with the United Arab Emirates (UAE).
In last year’s meeting, Tanzania’s President Samia Hassan met with Qatar’s Finance Minister, Ali bin Ahmed Al Kuwari. The two leaders discussed the issue of scrapping double taxation for goods exported and imported between the two countries, a move that will help strengthen trade and investment.
In that deal, the two countries agreed to scrap double taxation, combat evasion to strengthen tax cooperation and increase trade and investment flow between the two countries.
Double taxation occurs when authorities and taxation officials in two countries charge tax on particular goods or services twice.
A previous article highlighting MoU between Qatar and Tanzania noted that double taxation could also occur in income taxation, especially in international trade and investment. For instance, a citizen from one country earns a profit from a business in another country, and they are charged income tax in their home country and again in the country where their business is situated.
By agreeing to remove double taxation, the countries also agree to remove barriers to bilateral investment and trade between one other.
Trade between Zanzibar and Qatar is growing tremendously. According to the United Nations COMTRADE database on international trade, Qatar’s exports to Zanzibar clocked $50.8 million in 2021. The report shows that Zanzibar’s exports to Qatar stood at $25.4 million to Qatar, half of the value it imported from Qatar in the same period.
This balance of trade does not favour Zanzibar, hence the ongoing efforts from the government to attempt to increase trade pacts. Removal of double taxation will certainly help, as it will increase Direct Foreign Investment from the UAE to Zanzibar and Tanzania at large.
