[UAH] Dar’s moment as Obama group jets in - News - www.theeastafrican.co.ke
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Tanzania is set to reap the dividends of its massive natural gas deposits with the visit of US President Barack Obama and his entourage of 1,200 investors, many of whom are said to be interested in energy.
The US is also believed to be interested in securing the green light to set up a base for drone flights over the entire East African region.
Prof Ibrahim Lipumba, former Uganda government economic advisor, told The EastAfrican that the US is seeking to invest in gas and oil while negotiating the protection of its investments in the country.
Prof Lipumba, who is also the chairman of the opposition party Civic United Front (CUF), says that while President Obama will be visiting energy and gas investments as part of his agenda to promote power investments in Africa, Tanzania should use this opportunity to negotiate for more investments.
The US government and Tanzania are also expected to sign a Foreign Investment Promotion and Protection Agreement (FIPA) to strengthen economic ties between the two countries and help US firms invest with greater confidence in the Tanzanian market.
Fipa is a treaty designed to protect and promote investment abroad through legally binding provisions, as well as to promote inward foreign investment.
The agreement will ensure greater protection against discriminatory and arbitrary practices, and enhance market predictability.
President Obama is expected to address the business community as well as visit projects funded by the US Millennium Challenge Corporation (MCC).
The US through the MCC has been funding a number of projects in the country including the construction of a hydroelectric power dam in Kwimba district in Shinyanga and the Symbion LCC power plant in Dar es Salaam.
The Tanzania government in 2008 secured Tsh120.7 trillion ($750 million) from the MCC to facilitate poverty reduction through economic growth in Tanzania, in which $6.62 million was awarded to a Turkish firm — Kuanta Insaat Elektronik Taahht — for upgrading the Mafia Island airport.
The Turkish firm is the same construction company that has been getting contracts from the Pentagon for construction of its military bases, including a US Air Force project in Shindand, Afghanistan.
By Rosemary Mirondo and Hellen Nachilongo
http://www.theeastafrican.co.ke/news/Dar-moment-as-Obama-group-jets-in/-/2558/1898900/-/8ojl27/-/index.html
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