It wants to focus on industrialisation, aviation—mainly cash-strapped Air Tanzania Company Limited (ATCL)—and infrastructure, especially railways and ports.
Dar es Salaam. China yesterday announced that it was targeting three major sectors that would attract billions of dollars as Beijing seeks to establish its economic ties with Dar es Salaam and other resource-rich African nations.
It wants to focus on industrialisation, aviation—mainly cash-strapped Air Tanzania Company Limited (ATCL)—and infrastructure, especially railways and ports.
Speaking with Mwananchi Communications Limited (MCL) senior editors yesterday, China’s ambassador to Tanzania, Dr Lu Youqing, said his country would mobilise investors to direct billions of dollars into the three key areas.
The envoy said the three key areas were vital in boosting Tanzania’s economy. Tanzania is among three African countries that have been selected for the pilot project. The other countries are Ethiopia and Kenya.
Beijing will specifically target manufacturing, agro-processing, construction and information and communication technology.
The big picture, according to the Chinese ambassador, is to make Tanzania an industrial hub in the eastern and southern Africa region. Without modern and reliable infrastructure, he said, it would be impossible for industrialisation to blossom in Tanzania. “All kinds of infrastructure in Tanzania are in poor condition,” Dr Youqing pointed out. “This has been one of the major hindrances to the country’s industrial development.”
According to the envoy, they are also interested in raising funds through Chinese investors to put into the standard gauge railway central line and they have asked the government for the feasibility study.
China is ready to support both the Tanzania Zambia Railway Authority (Tazara) and the Central Railway (TRL).
Dr Youqing added: “At Tazara, we are planning to improve both infrastructure and software, especially the company’s management. In doing so, we won’t interfere in the internal affairs of the two countries. We will let the countries propose new leaders and we are ready to give support.”
China is also keen to provide financial support of up to $10 million to rehabilitate the railway. Many development partners like the World Bank have reportedly shown an interest in helping to rehabilitate and revive the railway. “We hope they will fulfil their promises,” he added. “But if they don’t, Chinese companies will help.”
In the aviation sector, China is ready to bring in a joint venture company with Air Tanzania to revive the airline. The two sides have already agreed on share division. The two parties have agreed on 50-50 shares and the Chinese are ready to inject funds into the project after the government settles the ATC debt.
Tanzania would then suggest the amount of money required to revive the ailing airline and China would inject the cash. A Chinese company is currently building a maintenance centre for aircraft.
Dr Youqing added: “We will also donate an aircraft. Should there be a need to lease an aircraft or purchase spare parts, the Chinese government will provide a guarantee.”
China is also planning to support the construction of the Bagamoyo port to the tune of $10 billion that will go into port construction, an economic development zone and putting up support structures. Improving infrastructure in Bagamoyo is aimed at helping decongest Dar es Salaam City as many people will relocate and build offices in Bagamoyo.”
All these initiatives will proceed according to government plans and are not expected to interfere with the country’s internal affairs.
In improving manufacturing industries, China is focused on investing more in 10 major industries including processing of agricultural products, textile industries, Information and Communication Technology (ICT) and construction.
“In this area, we are looking forward to encouraging and mobilising Chinese companies to invest in these industries directly or through JVC.”
China believes that, by investing in capacity building in areas that support industrialisation, people will be able to get all the skills needed for industrial development.
In this area, the Chinese government will provide direct support to vocational training centres and help improve government capacity in industrial-related issues and it will set up a vocational training centre in Tanzania to help develop skills. “I believe that all these initiatives will lead to a solid foundation for industrialisation,” said Dr Youqing.
China’s total investment in Tanzania currently stands at $4 billion. It has also spent a total of $2 billion to support infrastructure projects.
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