Tanzania: President Kikwete says 'happy with Chinese investments'

Written by Simon Mmmbando

THE Tanzania Government has said it would continue attracting Chinese investments just as it does with investors from other countries.  This is despite ridicule heaped from some quarters about Chinese investments in Tanzania and across Africa. Responding to a Canadian journalist who wondered why Tanzania was receiving aid and investments from China – a country he said was undemocratic, President Jakaya Kikwete said there are rules and guidelines for investments. “Tanzania will not turn down any direct investments from China since there are rules and regulations directing investments in Tanzania. What is important is that the concerned countries meet the said regulations and guideline regardless of where such firms come from and whether such countries are democratic or not,” he said. Kikwete got the question during a news briefing he held along with Canadian Prime Minister Stephen Harper at Parliament buildings in Ottawa. According to Kikwete, there are a number of Western companies that have invested in China like Toyota. In fact, three big Toyota industries with a turnover of more than 600,000 cars per year are situated in China. This, according to the president, is another indication that investment does not take into consideration democracy per se since Toyota is company from Japan. Kikwete did not see the logic of the questions since even Chinese firms have heavily invested in Western Countries. In fact, China is among the leading investors in Africa and across the world since its economy is fast moving to developed status and hence posing a threat to Western countries that were traditionally on top of everybody else. The country is now among the best in technology and hence enabled it to manufacture all sorts of things ranging from simple to most sophisticated, durable and the breakable alike, but this depends on the client’s pocket and needs. China-Tanzania trade increased steadily in recent years. In 2011, the total trade volume between the two countries reached US$2.15 billion, a 30 per cent increase when compared to 2010. Of the $2.15 billion, China's imports stood at US$488 million, increasing by 20 per cent, and China’s exports reached $1.66 billion, rising by 33 per cent. Major products exported from Tanzania to China are cashew nuts, sisal and sesame. Since July 2010, the Government of China granted to Tanzania duty exemption treatment for 60 per cent of Tanzania’s products to China, a move to encourage Tanzania increase exports to China. Tanzania Investment Center (TIC) statistics show that by late 2010, there were more than 300 Chinese companies registered in Tanzania, with total registered capital of about US$868 million. Chinese investments covered various fields including agriculture, construction, manufacturing, transportation, telecommunications, services, natural resources and tourism. Investments by Chinese companies mainly focus on the manufacturing field, which takes up over 70 per cent of the total. Chinese companies have created more than 60,000 working opportunities and trained many skilled technicians. Most construction works especially roads are now handled by Chinese companies, TIC reports affirm.