Tanzania bilateral cooperations are set to grow stronger with more investment deals to be penned.
On Friday, the Vice Chairman of the National People’s Congress of China Mr. Cai Dafeng remarked that China is adamant of flexing its wings in the East African nation with an increase in foreign direct investments. While having a meeting with Tanzania Prime Minister, Kassim Majaliwa, the Mr. Dafeng assured Tanzania of more investments from their trading partner in the coming years.
Tanzania – China relations have grown over the years from political to economic. Their partnership sees the former being more on the receiving end as it continues to welcome more foreign investments in its business environment, to build a sustainable economy. The government has set up a business regulatory framework with luring incentives to attract potential investors.
The East Asian country has lent grants and loans to facilitate the finance of projects in the country such as Mwalimu Nyerere International Centre. This year, Tanzania and China signed a $64.4 million grant for infrastructure projects. The financial aids have eased the burden on government shoulders to fund projects from their budget.
Last year, Chinese investments in Tanzania amounted to $2.5 billion, over ten times the 2011’s of $282 million. In the same year, U.S investments in Tanzania surged to record a 2.8 percent from 2016, to reach $1.4 billion. The two powerhouses continue to contend for more FDI in Africa as they tap into the wealth of resources and untapped investment opportunities in the continent.
More Chinese investors are anticipated to swarm in Tanzania, the second largest economy in East Africa – Kenya top’s the list. As the tourism industry continues to show potential, reaping benefits for the government and economy, Tanzania has stepped its efforts to lure more tourist from China, currently the largest tourism market in the world.
China exported $1.5 billion worth of goods to Tanzania in 2017, while Tanzania exported $142 million worth of goods to China. Their trade relations continue to grow stronger with more business deals.
Source: The Exchange