Mauritius and Tanzania, two dynamic economies in Africa, are poised for strengthening economic and bilateral relations, presenting vast opportunities for cooperation in trade and investment. The partnership between the two countries is based on shared objectives of economic growth, regional integration, and sustainable development. Both countries, strategically positioned in the Indian Ocean and East Africa, are key players in their respective regions, making their collaboration essential for the growth of Africa’s economy.
Economic Potential and Trade Relations
Mauritius, a small island nation known for its well-diversified economy, has long been recognized as a financial hub and a gateway to Africa. Its vibrant sectors, including real estate & property development, hospitality & tourism industry, financial services, manufacturing, healthcare, ICT/BPO, education, logistics & freeport, and emerging industries such as energy, ocean economy and bioeconomy have been instrumental enabling the country to become resilient and thriving. With a highly skilled workforce and a strong export-oriented economy, Mauritius has become a magnet for foreign direct investment (FDI).
Tanzania, on the other hand, is one of East Africa’s most resource-rich countries. As a large producer of agricultural commodities, minerals, and natural gas, Tanzania has shown significant economic growth in recent years. The Tanzania National Development Vision 2050 has opened up new sectors for investment and collaboration. With its growing infrastructure, strong agricultural sector, and rich natural resources, Tanzania presents an ideal destination for Mauritian investors.
While the economic relationship between the two countries has been relatively modest, there is significant untapped potential.
Total exports to Tanzania in 2023 stood at MUR 475 million whereas domestic exports represent merely MUR 25 million.
In 2022 & 2023, there was an exceptional re-export of water tube boilers (HS code 84021100) to Tanzania to the tune of MUR 207 million and MUR 383 million respectively.
In 2023, main domestic exports from Mauritius included products such as white sugar, toothpaste, soap, detergents and textile/garments. It is worth noting that white sugar represents nearly 55% of domestic exports.
On the other hand, imports from Tanzania stood at MUR 526 million in 2024, mainly comprising frozen fish, fish fillet and related products, representing more than 70% of import. Cotton represents 26% of the total imports from Tanzania and other products include precious stones, metal items, ceramic products vegetable seeds and nuts.
Export Potential for Mauritian Products in Tanzania (non-exhaustive list)
- Textile
- Sugar
- Packaging
- Soap & Detergent
- Medical Devices
Success stories of Mauritian Companies in Tanzania:
- Alteo acquired TPC (MIWA Sugar) in 2000. Situated in Northern Tanzania, about 50km south of Mount Kilimanjaro, TPC is one of the largest sugar estates in Tanzania with 8,000 ha under cane cultivation. TPC also operates a power plant that supplies steam and electricity to the sugar factory and the extensive field irrigation network. Surplus energy is exported to the Tanzanian national grid.
- MCFI has been one among the pioneers of trade relations with Tanzania and has been exporting fertilizers to Tanzania for the past 20 years.
- In 2014, MUA embarked on an ambitious regional expansion plan and acquired Phoenix of Tanzania. With a distribution network encompassing 9 branches, over 50 agents and two sales points, it is well-positioned to service the market with its portfolio of innovative of short-term insurance products.
Challenges and Areas for Growth
While the potential for Mauritius-Tanzania cooperation is promising, several challenges must be addressed to unlock these prospects fully. These include:
- Logistics / connectivity Hurdles: The absence of direct maritime and air links could impede the flow of goods and tourists. Addressing these gaps would require concerted efforts to improve transportation connectivity.
- Policy Alignment: Both governments will need to align their policies to further promote investment and trade. By addressing regulatory frameworks and removing bureaucratic barriers, Mauritius and Tanzania could make it easier for businesses to collaborate.
The Mauritius-Tanzania partnership holds immense promise for the future. With both nations focused on economic growth, sustainability, and regional integration, the two countries are well-positioned to deepen their bilateral relations and harness their combined potential.
Way Forward
In the spirit of strengthening institutional collaboration, Mr. Gilead Teri, Executive Director of the Tanzania Investment Centre (TIC) paid a courtesy visit to the Economic Development Board during his visit to Mauritius in December 2024.
The meeting provided an excellent platform for both TIC and Economic Development Board Mauritius (EDB) to further consolidate the excellent working relationship between the two institutions.
Mr. Vinay Guddye, Director of Financial Services at EDB provided an overview of EDB, its diversified economy and sectors and the rising prominence of the real estate sector.
He further underlined the robustness of the Mauritius IFC which is transitioning from an accounting/ advisory centric to an investment decision making jurisdiction for Asia & Africa. Moreover, he underscored the role of Mauritius can play to help plugging the financing gap for infrastructure projects across the continent which stands around USD 300 million and unleash Africa’s full potential.
Discussions also focused on capacity building and sharing of knowledge between TIC which will trigger a new momentum in investment and trade between our two countries.
The Executive Director of TIC invited EDB to coordinate a private sector delegation led by a Minister to Tanzania in 2025.
