China promotes investment in Tanzania
- By He Shan
0 Comment(s)
Print
E-mail China.org.cn, August 28, 2014
|
|
|
Abdulrahaman A. Shimbo, Tanzanian Ambassador to China. [China.org.cn] |
As China and Tanzania celebrate the 50th anniversary of the establishment of diplomatic relations between the two countries, China is set to overtake the UK to become the largest investor in Tanzania.
By the end of 2013, China had invested more than US$2.5 billion in Tanzania, with nearly 500 Chinese companies doing business in the country. This amount makes China the second largest investor in the East African nation, behind the UK.
"Chinese investment is growing more. I believe that in two years' time, China will be the first highest investor in Tanzania," Abdulrahaman A. Shimbo, Tanzanian Ambassador to China, told China.org.cn.
Tanzania has worked hard to improve its investment environment and revved up efforts to address the country's electricity shortage, which was considered one of biggest obstacles to running a business in the country.
During President Xi Jinping's three-nation Africa tour last year, China signed 16 trade, cultural and diplomatic agreements with Tanzania, worth about $12 billion in total. The visit was a great boost to the economic ties between the two countries.
Xi's visit paved the way for China to fund and build the US$10 billion Bagamoyo Port and other infrastructure projects. The port, scheduled to be completed by 2017, will be able to handle 20 times more cargo than the port in Dar es Salaam and will be the largest port in Africa.
Yet, in the face of the massive influx of Chinese capital to the country, some have voiced fears about China's long-time trade imbalance with Tanzania and its rising demand for raw materials.
Commenting on the trade imbalance, Mr. Shibo's estimated that the existing trade surplus in China's favor will be addressed within about four years, as China will import more goods from Tanzania, especially minerals, gas and agricultural products.
Mr. Shimbo termed China's investment in Africa a "win-win situation," in which Chinese companies not only secure projects, but also offer on-the-job training to local people to hone their skills and technologies.
The ambassador said China has several advantages in making investments in Tanzania. He said China offers what Tanzania wants and grants preferential loans.
"Chinese companies are ready to take risks, and their investment involves teaching and training people," he said.
"Their investment does not interfere with the local political situation and internal affairs."
He also added that Chinese companies win projects with reasonable prices.
According to Imara Equity Research, Chinese investment has not only boosted Tanzania's economic growth, but has also directly created more than 150,000 jobs.
Tanzania has lagged behind in infrastructure and energy production, and Tanzania has opened up their country with the intention of wooing foreign capital to tap its natural resources.
"Infrastructure and energy are the areas that made our development slow down most. With lots of investments pouring into these areas, the government plans to open up the country and to tap its natural resources," said the ambassador.
Chinese companies have been widely involved in the infrastructure and energy sectors in Tanzania. China has invested in scores of energy facilities, including the construction of gas turbines in Dar es Salaam. It also financed a pipeline that will transport natural gas from Mtwara to Tanzania's commercial capital, Dar es Salaam.
With the heavy investment in those projects, electricity production will be scaled up to 2,300 mega watts, a big boost over current production levels, according to the ambassador.
The ambassador said energy and infrastructure, among other improvements, will boost the economy of Tanzania and increase the income of the people of Tanzania.
Go to Forum >>0 Comment(s)