The Government of Tanzania has signed two key agreements with Turkey to eliminate double taxation and curb tax evasion, in a strategic move expected to accelerate investment flows and expand bilateral trade between the two countries.
The agreements, signed in Dar es Salaam, are part of a broader push to unlock a planned one-billion-dollar joint trade and investment framework, while positioning Tanzania as a more competitive destination for foreign capital.
Finance Minister Khamis Mussa Omar said the agreements commonly known as Double Taxation Agreements (DTAs) will remove uncertainty for investors by ensuring that income is not taxed in both jurisdictions.
“This is a critical step in strengthening investor confidence and creating a predictable tax environment,” he said, noting that Tanzania has now signed 13 such agreements with different countries.
He added that when combined with Bilateral Investment Treaties (BITs), DTAs act as a powerful catalyst for economic growth by facilitating cross-border investments and boosting trade volumes.
The move also closes a long-standing gap in Tanzania-Turkey economic relations. Despite the existence of an investment protection agreement since 2011, the absence of a DTA had limited the full potential of bilateral business engagement.
The new agreements come amid growing economic ties, particularly following the 2024 state visit by President Samia Suluhu Hassan to Turkey.
Trade between the two countries has already reached 281.68 million US dollars, with Turkey exporting a larger share.
Analysts say the new tax framework could help rebalance trade by encouraging more Tanzanian exports while attracting Turkish investments into key sectors.
Omar pointed to ongoing reforms aimed at improving the business climate, including digitalisation of tax and customs systems, simplified business registration, and legal reforms in land management, labour and dispute resolution.
“These reforms are already delivering results, with Tanzania increasingly recognised among top investment destinations in Sub-Saharan Africa,” he said.
Deputy Permanent Secretary in the Ministry of Foreign Affairs and East African Cooperation, Said Shaib Mussa, said the agreements reflect deepening relations between the two nations, which date back to 1963.
He said the focus now is on translating diplomatic goodwill into measurable economic outcomes through structured cooperation.
“The next phase will involve a Joint Commission meeting to assess implementation, identify new opportunities and strengthen collaboration in strategic sectors such as industry, agriculture, tourism, energy and skills development,” he said.
Turkey’s Ambassador to Tanzania, Bekir Gezer, said the agreements will further reinforce economic diplomacy between the two countries and open new avenues for business partnerships.
The signing ceremony brought together senior government officials and technical experts from both sides, underscoring a shared commitment to deepening economic cooperation and unlocking long-term growth opportunities.
