Canadian Prime Minister Stephen Harper said Thursday that Canada and Tanzania have reached an accord on the bilateral Foreign Investment Promotion and Protection Agreement (FIPA).

Harper made the announcement at a joint press conference in the Parliament with Tanzanian President Jakaya Mrisho Kikwete, who arrived Wednesday on his first state visit to Canada.

"This new agreement with Tanzania will encourage investment between our two countries and better-protect Canadians that do business in Tanzania," Harper said.

The prime minister praised Tanzania as an economic growth leader in sub-Saharan Africa and a model of progressive governance.

He noted that the potential for increased Canadian investment in Tanzania is important, especially in such sectors as mining, oil and gas, and transportation.

Official statistics show that Canada's total cumulative mining assets in Tanzania were valued at 2.3 billion Canadian dollars (about 2.34 billion US dollars) in 2011.

Harper also announced six new initiatives that will support the health of mothers and children, poverty reduction, economic growth, good governance and accountability, and peacekeeping training in Tanzania.

The FIPA is a treaty designed to protect and promote Canadian investment abroad through legally binding provisions and on the other side to promote foreign investment in Canada.

Harper also said that he and Kikwete discussed current regional security concerns and showed Canada's support for Tanzania as it works with other African partners to promote peace in the region.

Canada and Tanzania have a modest, but growing trade relationship. In 2011, two-way merchandise trade reached 66.8 million Canadian dollars (68.14 million US dollars), up 20 percent year-on-year.