Tanzania and Turkey have signed agreements aimed at eliminating double taxation and curbing tax evasion, in a move expected to strengthen bilateral trade and encourage greater investment flows between the two countries.
The agreements are designed to prevent income earned in one country from being taxed again in the other, a long-standing barrier that officials say has discouraged cross-border investment.
Tanzania’s Finance Minister Mussa Omar said the deal would help convert political goodwill into measurable economic outcomes, with both countries targeting $1 billion in annual bilateral trade.
He said a joint commission would oversee implementation of the agreements and explore new areas of cooperation in sectors including agriculture, energy, industry, tourism and skills development.
“Turning political commitments into concrete trade and investment outcomes is our priority,” Omar said.
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The agreements mark another step in strengthening economic ties between Tanzania and Turkey, which have expanded steadily in recent years following increased diplomatic engagement, including a visit by Tanzanian President Samia Suluhu Hassan to Ankara in 2024.
The absence of a double taxation agreement had previously been seen as a missing link in the broader investment framework between the two countries, despite a bilateral investment treaty signed in 2011.
Officials say removing that gap could improve investor confidence by reducing legal and fiscal uncertainty for businesses operating in both jurisdictions.
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Turkey has been expanding its commercial and development footprint in East Africa, with growing exports and infrastructure financing agreements.
According to the Observatory of Economic Complexity (OEC), Turkish exports to Tanzania reached nearly $251 million, driven by goods such as pesticides, iron products and processed cereal items.
Tanzanian exports to Turkey include unprocessed tobacco, fishing vessels and heavy construction equipment.
The two countries have also deepened cooperation in infrastructure development.
Turkey is supporting Tanzania’s ambitious Standard Gauge Railway (SGR) project through financing worth about $1.9 billion from Türk Eximbank, Turkey’s export credit agency.
The railway is a flagship infrastructure initiative aimed at improving regional connectivity, reducing transport costs and boosting trade across East Africa.
Tanzania has been implementing wide-ranging economic reforms in recent years to improve its business environment and attract foreign investment.
These include digitising tax and customs systems, simplifying company registration processes, and reforming land administration and commercial dispute resolution systems.
Economists say such reforms, combined with new tax treaties, can play a significant role in attracting long-term investment by reducing administrative barriers and improving regulatory predictability.
Bilateral trade between African and emerging Eurasian economies has been growing steadily as countries diversify partnerships beyond traditional Western and Asian economic blocs.
Analysts note that Turkey’s increasing involvement in African infrastructure and manufacturing projects reflects a broader strategy to expand its economic influence across the continent.
For Tanzania, officials say the new agreements are part of a broader effort to position the country as a regional investment hub in East Africa, leveraging improved infrastructure and regulatory reforms to attract foreign capital.
The joint commission established under the agreement is expected to begin work in the coming months, focusing on identifying priority investment projects and monitoring implementation of the tax framework.
