26 June 2014

Tanzania: Turkish Investors Eye Agriculture, Construction Sectors Projects

MORE Turkish investments are likely to flow into the country this year, thanks to Foreign Affairs and International Cooperation Minister, Bernard Membe and his Turkish counterpart, Ahmet Davutoglu's efforts to strengthen bilateral trade.

Mr Membe visited Turkey earlier this year while Mr Davutoglu was in the country earlier this month. The two Foreign Affairs Ministers have boosted trade and investment between the two countries, Turkey and Tanzania Chamber of Commerce Chairperson, Esra Eristi has said.

Ms Eristi told 'Daily News' in Dar es Salaam that Turkish business people are interested in the fast growing construction and agriculture sectors.

"One Turkish construction equipment company has already started selling its products in Tanzania," Ms Eristi who is also Managing Director of Aydin Logistics named the company as Hidromek.

Ms Eristi paid tribute to Minister Membe and Davutoglu for encouraging interaction between local and Turkish business people a move which has greatly helped to boost bilateral trade and investment flows from Ankara to Dar es Salaam.

"We have now formally established this chamber so that Turkish companies operating in Tanzania can have a platform to advance their investment plans," she noted. According to Tanzania Investment Centre records, there were 25 Turkish companies that had invested in Tanzania by last January.

Aydin Logistics is a subsidiary of Istanbul based port operator and cargo handling equipment company, Ozuaydin Crane and Port Management Incorporation founded by businessman, Mehmet Aydin.

Since 2012 when it started operating in the country, the Turkish company has invested over 3m US dollars (over 5bn/-) employing more than 30 people.

Mr Aydin has pledged to invest 25m US dollars in the next three years through heavy duty cargo handling and construction equipment. Hidromek which is headquartered in Ankara where its manufacturing and assembly plants are located, introduced its products in the country this year.

"We hope to put some of the Hidromek equipment on display at Sabasaba this month," said Eristi. Dar es Salaam's International Trade Fair is due to start next Saturday and end on July 8 this year.

Hidromek currently exports its backhoe loaders and excavators to more than 50 countries in 5 continents through its distribution network of more than 100 outlets worldwide.

"Together with its 1,400 employees, Hidromek's net sales in 2012 reached approximately 342 million US dollars making it the 115th largest industrial manufacturer in Turkey," the company which acquired the motor grader business of Japanese Mitsubishi Heavy Industries, Ltd last November.

Bilateral trade between Dar es Salaam and Ankara has increased from a paltry 63 million US dollars in 2009 to 183 billion US dollars in 2013. Bilateral relations have strengthened since the opening of Turkish embassy in Tanzania since five years ago.

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