Tanzania and Guinea Bissau Forge Historic Alliance to Boost Cashew Farming, Trade, and Regional Growth
June 22, 2024
By Adonis Byemelwa
On June 22, 2024, in Dar es Salaam, Presidents Samia Suluhu Hassan and Umaro Sissoco Embaló witnessed the signing of a Cooperation Agreement. Foreign Ministers January Makamba and Carlos Pinto Pereira signed on behalf of Tanzania and Guinea-Bissau. Photo State House
Tanzania and Guinea Bissau are set to embark on a groundbreaking collaboration across multiple sectors, spanning cashew farming, health, education, and security. This strategic alliance was unveiled by President Samia Suluhu Hassan after a private meeting with Guinea Bissau’s President Umaro Embalo on June 22, 2024, during his pivotal two-day visit to Tanzania.
President Samia emphasized that as major cashew producers, both nations have decided to cooperate in agricultural research and the processing of cashews to enhance their market value. "Since our countries are major cashew producers, we have decided to start by collaborating in this area, particularly in research and processing," she said.
The two countries also signed a memorandum of understanding to cooperate in investment and trade. President Samia highlighted the importance of these partnerships, especially as Africa moves towards establishing a free trade area, expected to boost industrial growth and create new opportunities.
The collaboration extends to other sectors such as health, education, tourism, coastal management, and defense. President Samia noted the strategic advantage both countries have due to their extensive coastlines, which are favorable for business and provide access to landlocked nations.
In their discussions, the presidents addressed free investment zones, with President Embalo scheduled to visit Tanzania’s Export Processing Zones Authority (EPZA). They also agreed on the need to work with other nations to ensure agricultural products from both countries are sold at favorable prices.
President Samia expressed that this was President Embalo’s first visit to Tanzania and extended an invitation for her counterpart to visit Guinea Bissau. President Embalo highlighted the importance of African nations working together to achieve the continent's goals for 2063, aiming to shape the future of the world with Africa's abundant resources.
Emphasizing historical ties dating back to liberation movements, President Embalo called for strengthened relations.
He invited the Tanzanian private sector to explore opportunities in Guinea Bissau, describing it as a gateway to Western countries. He noted the enduring legacy of Tanzanian support during Guinea Bissau's fight for independence.
Likewise, President Embalo committed to promoting the Swahili language, announcing plans to send students to Tanzania for Swahili studies, and highlighting its role in uniting Africa.
This visit and the resulting agreements mark a significant step towards deepening the bonds between Tanzania and Guinea Bissau, setting a foundation for future collaboration and mutual growth.
Analysis by the African Export-Import Bank (Afreximbank) indicates that one of the main reasons intra-African trades remains low at around 15%, compared to Europe (59%), Asia (51%), and North America (37%), is the lack of access to trade and market information.
In a perfectly competitive world economy, a country's trade direction would likely be determined by supply and demand. However, empirical evidence shows systematic departures from this ideal, such as growing protectionism in industrial countries against third-party exports, particularly from Africa.
While nominal tariffs have been significantly lowered in these countries, thanks to various rounds of General Agreement on Tariffs and Trade (GATT) negotiations, non-tariff barriers have increased markedly.
These barriers limit the opportunities for developing countries to increase their exports, making it more challenging to earn the necessary foreign exchange to finance development and service debt.
According to the World Bank, Guinea Bissau's GDP growth rate in 2022 was 3.5%, with a gross domestic product of 1.634 billion USD and a GDP per capita of 775.83 USD. The country's gross national income stood at 4.675 billion PPP dollars, with a GNI per capita of 2,220 PPP dollars. Internet users comprised 35.2% of the population in 2021.
The visit of President Embalo to Tanzania signifies a meaningful partnership between two nations rich in natural beauty and resources, promising a brighter future through shared goals and cooperation.
