Envoy impressed by Sino-Tanzania bilateral relations
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E-mail China.org.cn, August 28, 2014
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Abdulrahaman A. Shimbo, Tanzanian Ambassador to China. |
This year Tanzania and China mark the 50th anniversary of bilateral relations. In China, the celebrations started in April, while in Dar es Salaam, the occasion was marked in June when China's Vice President Mr Li Yuanchao visited the country. The celebrations will climax in October when President Jakaya Kikwete visits China.
China.org.cn staff reporter interviewed Tanzanian Ambassador to China Lt. General ( rtd) Abdulrahman Shimbo in Beijing on the various aspects of Sino-Tan relations at 50 and the preparations for President Kikwete's visit. Exerpts:
Question: What are the highlights of President Jakaya Kikwete's visit to China in October?
Answer: In October, we expect to welcome President Kikwete here in China. His visit marks the climax of festivities to celebrate the 50th anniversary of diplomatic relations between the two friendly countries. Together with the promotional materials that we've made, including this year's coverage of animal migration in Serengeti, the visit will be covered by the media.
Next month, there will be a live coverage on China Cable Television (CCTV). We (Tanzania Embassy in Beijing) are planning the President's visit together with the Chinese Ministry of Foreign Affairs. When the schedule is ready, definitely we will advertise it and print some publications. We are hoping that he will be able to discuss a lot of issues, including bilateral relations. We would like this to include education and promotion of Chinese investments in Tanzania.
Q: What are the specific areas and projects that Tanzania wants to attract investment from China?
A: At present, China is the second largest investor after the UK. Chinese investments are expanding. I believe that in two years time, China will be the largest investor in Tanzania. Areas of investments include but not limited to energy, infrastructure, agriculture, health, tourism, environmental protection and education.
A lot of investments from China have focused on two large areas namely infrastructure, (the largest), and the energy sector. Tanzania and Africa as a whole lags behind in infrastructure and energy sectors. These are the areas that stalled our development. With lots of investments, thus, the government plans to open up the country to the world and help tap its natural resources. The aim is to boost the economy and the income of the people.
Q: If there will be investment in infrastructure, energy and education, are these all we need for development?
A: Unfortunately, energy is one of the major shortcomings in our country. We did not produce enough of it to attract investment in heavy industry, for example. Also, we did not have enough energy to run important sectors of development such as schools, factories, etc. We are now investing in energy, focusing on different sources. Topmost is gas. At present, we have a gas turbine right in the heart of Dar es Salaam that receives gas from Songo Songo.
A main pipeline is under construction with investment from China. This will transport natural gas from Mtwara to Dar es Salaam. The project will be completed this year, most probably this November. Gas turbines will be installed. Chinese companies have invested already in construction of gas turbines to produce electricity.
So in two years time, we should be able to increase electricity production of about 2,300 megawatts. This will be a huge boost from the current production capacity. The country is also investing in coal, wind and solar power, without forgetting our traditional [hydrogenation] areas. All these projects are being implemented concurrently.
There are contracts which have already been signed and [some] will be signed later. But it is worth mentioning that the investment in most of these areas comes from China. So it is the area we are addressing, and we hope once these are completed, we will attract a lot of investors into Tanzania from China, east and west.
Q: A couple of years ago China Foreign Direct Investments (FDIs) in Tanzania were not top on the list, but now they are, almost all of a sudden. How do you think of such a big jump?
A: There has been a leap forward, because of competition. Tanzania is opening up to allow more foreign investments. The country has a 25-year development plan from which the Vision 2025 was born. We have opened doors to foreign nations and China is among them. It was a stiff competition.
It was a stiff competition and China won a lot of investment opportunities. The country has several advantages. First; it is one of the friendliest countries of Tanzania. Secondly, China offers what Tanzania wants.
The country gets preferential and commercial loans with low interest rates. Also, Chinese companies are ready to take risks, while some [from western countries] are not ready to put themselves in such a situation.
The works of Chinese companies are completed in time and are of high quality. Investment also involves teaching local people to take over once the Chinese have left the country.
It's a win-win situation. Work that is done by most Chinese investors ensures that both sides gain from the investment. The investors are also able to take part of their profits back home.
We get reasonable prices on their products which don't interfere with our internal affairs. That is what made Chinese companies win the second position. What is worth noting also is the fact that the companies are investing in almost every sector .It is a fair competition and their [Chinese] conditions are very attractive.
Q: What is Tanzania's investment environment?
A: We are continuing to advertise on investment opportunities in Tanzania and we made it that Tanzania Investment Center (TIC) becomes the focal point of investment companies that are coming to Tanzania. The center has given out a booklet that shows the procedures to be followed when investing in Tanzania.
The investors when they come to Tanzania, they visit the center. They are able to do all their business in that center. They are able to meet all the people they want to invest and get all that information from that center. So it is one-stop center. They are meeting immigration officers there; they are meeting land officers, able to meet companies that they want to join partnership or anything. The center arranges the meetings for them hence able to complete their business there. If they want to visit the areas in which they want to invest, then they will be facilitated to be able to go to those areas.
If they want to lease a piece of land, the lease will be processed in that center. In short, they will be able to know which land is ready for investment and the conditions for that land. The center assists investors to shorten their time to negotiate and to move around the country without direct information that they need for their work. They also guarantee their investment. Investment in Tanzania is guaranteed [by law].
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