Tanzania, Turkey sign double taxation agreement to boost trade, investment

TUESDAY May 5, 2026

By Adam Ihucha

The Tranquillity News Correspondent, Tanzania

The governments of Tanzania and Turkey have signed two agreements aimed at eliminating double taxation and preventing tax evasion on income, in a move expected to strengthen trade and investment ties between the two countries.

The agreements, known as Double Taxation Agreements (DTA), were signed in Dar es Salaam during a ceremony held at the Hyatt Regency Hotel, bringing together senior government officials and diplomats from both nations.

Speaking at the signing, Tanzania’s Minister of Finance Khamis Mussa Omar said the agreements mark Tanzania’s 13th such arrangement with international partners and are designed to enhance investor confidence by removing the risk of income being taxed in two jurisdictions.

“These agreements are a critical step in creating a more predictable and attractive investment climate,” he said, noting that when combined with Bilateral Investment Treaties (BITs), they serve as a powerful catalyst for economic growth.

Research, he added, shows that countries with robust double taxation frameworks tend to attract higher levels of Foreign Direct Investment (FDI), positioning Tanzania to draw more capital from Turkey and beyond.

What double taxation means for business

Double taxation occurs when the same income is taxed in two different countries—typically where a company operates and where it is headquartered.

This creates higher costs, legal uncertainty, and often discourages cross-border investment.

By eliminating this burden, DTAs lower the effective tax rate on international business operations, improve profit predictability, and reduce the risk of disputes between tax authorities.

For investors, this translates into clearer financial planning and stronger incentives to expand operations.

For Tanzania, the agreement is expected to make sectors such as manufacturing, tourism, logistics, and energy more attractive to Turkish firms.

For Turkey, it provides a more secure framework for companies seeking to expand into East Africa.

Closing a key gap

Although Tanzania and Turkey have maintained a Bilateral Investment Treaty since 2011, the absence of a double taxation agreement had been seen as a missing link in fully unlocking economic cooperation.

Mr Omar said the newly signed agreements send a clear signal to Turkish investors that Tanzania is open for business and committed to supporting cross-border investment.

Economic ties between the two countries have been steadily strengthening, particularly following the 2024 state visit to Turkey by Tanzania’s President, Samia Suluhu Hassan.

Trade between the two nations reached approximately $281.68 million, with Turkey exporting a larger share of goods.

Turkish exports to Tanzania largely include machinery, iron and steel products, textiles, electrical equipment, and construction materials.

Tanzania’s exports to Turkey, though smaller in volume, consist mainly of agricultural commodities such as tobacco, coffee, cashew nuts, as well as minerals and raw materials.

Investment flows and capital potential

Turkish investment in Tanzania has been growing steadily, particularly in construction, manufacturing, and infrastructure development, with several Turkish firms participating in major building and industrial projects.

While exact cumulative figures fluctuate, investment capital between the two countries is estimated in the hundreds of millions of dollars, with significant room for expansion.

Tanzania, with its strategic location and access to regional markets such as the East African Community and the Southern African Development Community, offers Turkish investors a gateway to a market of over 300 million people.

At the same time, Turkish expertise in industrial manufacturing, infrastructure, and technology presents opportunities for Tanzania to accelerate its industrialisation agenda.

Reform agenda and investment climate

Tanzania has in recent years embarked on a series of reforms aimed at improving the business environment.

These include simplifying business registration processes, digitising tax and customs systems, and reforming land, labour and dispute resolution frameworks.

According to the Finance Minister, these efforts are beginning to yield results, with Tanzania increasingly recognised as one of the leading investment destinations in Sub-Saharan Africa.

A long-standing diplomatic relationship

Officials say the agreements also reflect the depth of diplomatic ties between the two countries, which date back to 1963.

Said Shaib Mussa, Deputy Permanent Secretary in the Ministry of Foreign Affairs and East African Cooperation, described the signing as a key step in translating political agreements into tangible economic outcomes.

“The goal is to transform bilateral commitments into real results,” he said, pointing to a joint ambition to develop a $1 billion trade and investment partnership.

He added that the next phase would involve a Joint Commission meeting to review implementation, identify new priority areas, and deepen cooperation in strategic sectors such as manufacturing, agriculture, tourism, energy, and human capital development.

Strengthening economic diplomacy

Turkey’s Ambassador to Tanzania Bekir Gezer said the agreements would further strengthen both diplomatic and economic relations.

The signing ceremony was attended by senior officials from both governments, including representatives from the ministries of finance and foreign affairs, underscoring the growing importance of economic diplomacy in shaping bilateral relations.

Looking ahead

As global competition for investment intensifies, agreements such as these are increasingly seen as essential tools for unlocking cross-border economic potential.

The removal of double taxation is expected to accelerate joint ventures, reduce the cost of doing business, and encourage reinvestment of profits.

Analysts say this could be particularly significant in sectors such as agro-processing, tourism infrastructure, renewable energy and transport logistics.

For Tanzania, the deal represents another step in its broader strategy to position itself as a regional hub for trade and investment.

For Turkey, it offers expanded access to one of Africa’s fastest-growing economies.

And for both countries, it signals a shared commitment to turning long-standing diplomatic ties into measurable economic gains—with the potential to scale trade volumes well beyond current levels toward the $1 billion target in the coming years.