Chinese Company to Build New City, Financial Suburb in Tanzania

By Eric Ombok 

Kigamboni Satellite City

China Railway Jianchang Engineering Company Ltd. agreed to construct a $1 billion satellite city and $500 million financial district in Tanzania, the East African nation’s presidency said.

Under the accord signed with Tanzania’s National Housing Corp., Salama Creek Satellite city will be built in Uvumba, a district on the outskirts of the commercial capital, Dar es Salaam, the presidency said in an e-mailed statement.

The new financial services district will be in the suburb of Upanga, it said, without specifying how the projects will be funded.

The two agreements were among six whose signing was witnessed by Chinese President Xi Jinping and his Tanzanian counterpart Jakaya Kikwete, currently on a six-day state visit to the Asian nation, according to the statement.

Chinese investments in Tanzania, East Africa’s second-biggest economy, were estimated at more than $2.4 billion in 2013, China’s ambassador to the country, Lu Youqing, said in July.

http://www.bloomberg.com/