M a r k e t N e w s

Tanzania: China Pacts to Bring Jobs Boom

Posted on : Saturday, 25th October 2014

MORE than 77,300 jobs are expected to be created in Tanzania once over 500 Chinese projects worth 2,490.21 million US dollars registered in the country until December last year become operational.

 
Opening the Third China and Tanzania Business Forum on Thursday, President Jakaya Kikwete expressed his government's commitment to woo more Chinese investments as data indicate trade volume between the two countries in the past two years reached 1,595.16 million US dollars.
 
"Although trade volume between the two countries has been on the increase, more needed to be done," said Mr Kikwete, adding that it was through increased trade investments that the countries could promote trade between them.
 
Of the total trade volume, China's exports to Tanzania were worth 1,099.42 million US dollars while imports from Tanzania amounted to 495.74 million US dollars.
 
"My government is most pleased that Chinese companies are amongst the top five investors, in terms of value of investments in Tanzania," noted Mr Kikwete.
 
He said up to the end of December last year the Tanzania Investment Centre had registered more than 522 Chinese projects with large inflows recorded in the manufacturing sector which accounted for 354 of the deals.
 
"Although oil and gas projects are the largest source of Foreign Direct Investment (FDI), manufacturing projects are just as valuable to the country if not more, as they have the propensity to generate more jobs," he explained.
 
He stressed that Tanzania offered many investment and trade opportunities while political and economic environment made the country an even more attractive incentive for Chinese companies.
 
He said Tanzania's economy grew by annual average of seven per cent in the last decade making the country among the seven fastest growing economies in Africa.
 
Quoting recent statistics, Mr Kikwete said Tanzania was leading the leading FDI destination in East Africa having received 1,872 US dollars last year, above Uganda (1,146 US dollars), Kenya (514 million US dollars), Rwanda 111 million US dollars and Burundi seven million US dollars. Moreover, Tanzania's inflation of 6.6 per cent is expected to go down to five per cent by June next year.
 
On their part, TIC Executive Director Juliet Kairuki emphasized that going forward; her institution will place greater focus on supporting already existing Chinese businesses and new projects to become operational.
 
She expressed pleasure in the fact that Tanzania Private Sector Foundation and China Africa Business Council have now signed an MOU to work together to promote business and investment between the private sector.
 
Ms Kairuki added that TIC will be partnering with China-Africa Development Fund, the Far-East nation's equity investment arm, to work with investors into Tanzania to advance their projects in a manner that will attract greater equity investment from the fund.
 
Meanwhile, President Kikwete, who is on a six-day state visit to China starting on Tuesday, on Thursday witnessed the signing of agreements and MoUs between Tanzanian and Chinese companies.
 
Meanwhile, President Kikwete on Thursday witnessed the signing of six agreements and Memoranda of Understanding between Tanzanian and Chinese firms for implementation of energy, infrastructure and real estate projects, among others.
 
The projects include the 12-kilometre Kikwete Friendship Highway that will stretch from Ukonga Banana in Ilala District to Chamazi, Temeke District in Dar es Salaam.
 
The project, estimated at 64.8 million US dollars, will be undertaken by China's Jiangyin Tianhe Gasses Group, which is also expected to set up an industrial park at Chamazi.
 
The Ilala Municipal Director, Mr Isaya Mngurumi, said after the signing ceremony that the project was currently at the designing stage.
 
The National Housing Corporation (NHC) signed MoUs with Poly Technologies Inc for investment of 200 million US dollars for Valhalla project located at Masaki in Dar es Salaam.
 
The NHC Director General, Mr Nehemiah Mchechu, also signed Strategic Partnership with China Railway Jianchang Engineering (CRJE) to jointly develop Salama Creek Satellite City at Uvumba in Temeke and construction of the 500 million US dollars Financial Square at Upanga in the city.
 
The president also witnessed the signing of an Mou between the Ministry of Energy and Minerals and TBEA Hengyang Transformer Company Limited for rural electrification and expansion of power distribution network.
 
Also sealed on Thursday was the financing and development of Mlandizi Industrial and Economic Park in Coast Region. The project will be undertaken by Jiansu Shenli Plastics Group at an estimated cost of 350 million US dollars.

Source : www.allafrica.com
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