Good Investment Laws Attract Chinese Investors

BY ABDUEL ELINAZA, 16 JUNE 2014

Beijing — CHINESE provinces are lining up to visit Tanzania to explore areas of investment particularly energy, manufacturing, ICT, and mining industries, it was said.

The Tanzania's mission in China said the delegations of various powerful China provinces would start visiting the country from now on and its time for Tanzanians to take advantage of the unfolding opportunities.

The Tanzania's Ambassador to China, Lieutenant General (rtd), Abdulrahaman Shimbo, said the provinces were attracted by long time relations between the two countries and good investment laws and policies.

"If we failed to grab this it will be an opportunity lost, we need skilled people like you graduates to take the lead," the envoy said when awarding certificates of recognition to 32 graduates at the Embassy.

"The challenge," Ambassador Shimbo told the students,"is the availability of skills and you are needed most this time around." The Ambassador, who flew to Tanzania ahead of China's Vice President, Mr Li Yuanchao, Visit, did not mention the provinces but said they were ready to be in the country for FDIs expeditions.

Currently, China is scaling down its over capacity industries in the area of cement and coal firing to electricity plants and encouraging outbound investments.

Already, a business delegation from Guangdong Province, China economic powerhouse, was scheduled to visit Tanzania in the next half of this year under the umbrella of the China-Africa Countries Trade Promotion Association (CACTPA). Tanzania, according to business community in Guangzhou, the capital city of Guangdong, is the destination of choice due to the country's peace, political stability and low labour costs coupled by economic steady economic growth.

The China-Africa Countries Trade Promotion Association (CACTPA), Guangdong Branch, Honorary President Mr Zhi Sheng Wu told 'Daily News' plan to visit Tanzania seeking to explore business opportunities. "Tanzania is among six countries in Africa that we will visit this year to foster trades and investments ties," Mr Zhi said adding "the visit is planned mid this year." Mr Zhi, who is also Deputy Manager, Guangdong Avic Tianxu Henyuan Energy Saving Technology, said Tanzania is among one of the Guangdong Province biggest trading partner so the visit has paramount importance.

China FDIs to Tanzania, according to Tanzania's Embassy in China, last year were around 2.0 billion US dollars and are projected to reach around 3.0 billion US dollars in this year. Earlier, the Ambassador said this year the FDIs expected to raise by 50 per cent hence assisting bridging the trade deficit between China and Tanzania where last year was 3.7 billion US dollars in favour of Beijing while Dar es Salaam share was 600 million US dollars. Trade deficit between Tanzania and China in favour of China is natural when comparing the level of development, the market and industrial exports of China to the world market.

http://allafrica.com/stories/201406160608.html