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India’s Relationship with Tanzania

Ahana Banerjee
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Commentary

Speaking at the banquet hosted by the President of Tanzania, during his 2011 visit to Tanzania Prime Minister Manmohan Singh, said:
Our two countries belong to different continents but for centuries we have been neighbours across the Indian Ocean. Maritime trade and people to people exchanges have drawn us closer. We have shared historical experiences. Today we seek to build a modern and dynamic partnership on the strength of these traditional bonds.1

These traditional ties and the spirit of mutual cooperation between Tanzania and India have been consistently reinforced through various international co-operations such as the Non Aligned Movement (NAM) and later through the various initiatives of South-South Cooperation. The most recent example of such South-South solidarity was the 2008 India – Africa summit hosted by India to advance and strengthen the ties between India and Sub-Saharan Africa where President Jakaya Mrisho Kikwete, of Tanzania was co-chair. The traditional ties between India and Tanzania have their historical roots in the migration of Indian traders to East Africa. The colonial dimension played a significant role in migratory patterns. It should be noted that Indian traders, mostly settled in the other British colonies of Kenya and Uganda and the British protectorate of Zanzibar. Tanzania or Tanganyika, which was then a German colony, did not become a prime destination, till the beginning of the 20th century. Migration to Tanzania gained momentum after the end of the First World War, when Tanzania was granted to Britain as a mandated territory. Increasing commercial linkages between India and East Africa formed the base of India and Tanzania relations during this period of colonisation. A survey of Asiatic Indians Resident Abroad in 1921 showed that of the total of 65,000 Indians resident in East Africa, Tanzania (15,000) came second only to Kenya (23,000) in terms of the number of Indian residents2. Other estimates state, that about 100,000 Indians were settled in Tanzania and Zanzibar by the end of the 19th century3. The variations in the estimates notwithstanding, the increasing interaction between Tanzania and India became clear by the first quarter of the 20th Century. Indians in Tanzania played a crucial role, not only in its economy, but also in its politics and became a distinctive part of the country’s social fabric.

Later, after the independence of Tanzania in 1960, and the inclusion of Zanzibar as a semi-autonomous region, the Indian Diaspora began to constitute a significant demographic element in the country. A recent article in the Economist highlighted that Indian businessmen have been a presence in East Africa, including Tanzania, for over a century. This has resulted in an amalgamation of cultures to a degree, wherein Indians have ceased to be ‘outsiders;’ instead the migrants and traders have become part of the country4. These ties further the cause of SouthSouth solidarity, a fact which was made manifest by the shared ideology of Nehru and Nyerere regarding the Non-Aligned Movement and the common need for increased economic and developmental cooperation.

The official diplomatic ties between India and Tanzania can be traced back to Tanzanian independence. The Indian High Commission was set up in Dar-es-Salaam on November 19, 19615. Other diplomatic offices include the Consulate General of India in Zanzibar, set up on October 23, 19746. Cooperation between India and Tanzania was largely driven by ideological factors, which made way for economic and technological cooperation formalised through agreements and Memorandum of Understandings (MoU). Through the 1960s and 1970s India and Tanzania signed multiple agreements on cooperation, which included: the Agreement on Friendship and Technical, Economic and Scientific Cooperation (1966); and the Trade Agreements of 1972. In the 1990s, the agreements signed included: an MoU on Technical Cooperation in the field of Posts and Telecommunications (1996); and an agreement on the establishment of Joint Business Council (1997). The 2000s witnessed even more vigorous cooperation when no less than 13 Agreements (including MOUs) were signed. The issues covered in these MOUs range from defence to health, trade and loan waivers to commercial agreements like the Double Taxation Avoidance Agreement (DTAA) and Letters of Intent on cooperation in mining and steel sectors. In addition to the agreements, India has cemented its relations with Tanzania through multiple high level visits, business community interactions and investments7. More recently the relations between the two countries were further strengthened by the visit of the Indian minister of state for external affairs, Preneet Kaur. This visit confirmed India’s partnership with Tanzania in certain critical spheres, such as, development projects, water augmentation and farm equipment8.

The traditional ties, ideological commonalities and diplomatic efforts have had significant economic impact. Between 2005 and 2012, India’s exports to Tanzania went up from $191.21 million to $880.63 million. The exports from Tanzania to India, in the same period went up from $64.18 million to $480.10 million9. This shows that both trading partners are stepping up their investment and trade relations with each other. In other words, the India and Tanzania economic relations have yielded mutual benefit.

In addition to the booming trade, India and Tanzania have also strengthened their relations through cooperation in human resources, health, education and infrastructure, among other areas. India in the recent years has granted multiple ‘Lines of Credit’ to Tanzania, the most recent of which amounted to, $178.125 million, which was signed in 201210. In addition to such lines of credit, a number of Indian corporations have been investing heavily into Tanzania. These corporations include the likes of Oil and Natural Gas Corporation, India’s biggest oil explorer, which in August 2012 purchased a 10 per cent stake in a Mozambican offshore gas field for $2.6 billion. The ONGC stated that “the field has the potential to become one of the world’s largest.”11 This shows that the India Tanzania relations are seen as an opportunity for advancement, by both countries, and is not restricted to the governmental level alone.

In 2011, Tanzanian President J.M. Kikwete said that he looked towards India for technology and investment1212, indicating that increased cooperation was on the cards. However, the real core of India’s relation with Tanzania lies in its people to people relations. The role of People of Indian Origin (PIO) and other Indian settlers is crucial in strengthening the historical bond shared by these countries across the Indian Ocean.

The years to come will require increased movement of trade, capital and human resources from both India to Tanzania as well as vice versa. The flow of human capital and trade has laid the foundation for a relationship which continues to have a great scope for growth.

Keywords: Iran, Islamic State (IS)
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