• Agreement signed on May 14, 2025, to prevent income double taxation

• Deal aims to attract Czech investment in Tanzanian manufacturing

• Trade between both countries reached $20 million in 2023

Tanzania and the Czech Republic signed an agreement on May 14, 2025, to eliminate income double taxation and prevent tax evasion, aiming to ease cross-border business activity and strengthen bilateral investment.

The deal is expected to support entrepreneurs and investors from both countries and improve Tanzania’s investment appeal, particularly in the manufacturing and industrial sectors.

Finance Minister Dr. Mwigulu Nchemba said this is a key milestone in President Samia Suluhu Hassan’s agenda to open Tanzania’s economy. He highlighted investment opportunities in automotive, aerospace, electrical equipment, and machinery, with expectations for growth in job creation and industrial development.

The agreement builds on longstanding bilateral ties dating back to the 1960s. Cooperation between the two countries has recently expanded, especially in health, education, and security, following talks held in January 2025.

Czech firms such as Škoda Group, Tatra, and Zbrojovka are already involved in Tanzanian projects, including railway upgrades, electrification, and aeronautics development. These partnerships include technology transfer and local skills development.

Trade between Tanzania and the Czech Republic reached $20 million in 2023, according to the International Trade Centre (ITC). Citing OECD data, Nchemba said countries with tax treaties in place attract up to 30% more foreign direct investment than those without such agreements.