By Manish Chand

The two countries signed a double taxation avoidance agreement to promote greater investment and two more pacts in areas of health care and small-scale industries after wide-ranging talks between Prime Minister Manmohan Singh and Tanzanian President Jakaya Kikwete in this bustling coastal city.

"India, on its part, is ready to partner Tanzania in its nation-building efforts. We will focus on areas such as agriculture, small and medium industries, health care and human resource development," Manmohan Singh, who is currently on a two-day visit to Tanzania, East Africa's economic hub, at a joint press conference with Kikwete.

"Indian investment and technology can help Tanzania to become the industrial and technological hub of East Africa and its engine of growth," he said while announcing $180 million lines of credit for water supply projects in Tanzania. He also announced a fresh grant of $10 million for a slew of capacity building projects in the social and educational sectors. Another $1 million has been pledged for Zanzibar, a semi-autonomous province of Tanzania.

Seeking to forge an all-encompassing partnership with this country of 42 million people, Manmohan Singh voiced his concerns on security issues. "Terrorism and piracy are two major problems we both face. We have decided to intensify consultations and coordination to combat such threats."

The two leaders also underlined the urgent need for UN reforms, with Kikwete reiterating his country's support for India's claim for a permanent seat in the UN Security Council.

(Manish Chand can be contacted at [email protected])