…PM says Sino-Tan industrial park accelerates investment drive
COAST REGION, Kibaha : TANZANIA’S investment journey continues to blossom with the 3 billion US dollars (around 8tri/) Sino-Tan Industrial Park investment at Kwala area in Coast Region significantly bolstering the country’s industrial drive.
The largest industrial park, which will possess over 200 factories in East and Central Africa, is expected to attract investors in a wide range of sectors and would generate a whooping 1.3tri/- revenue each year upon its completion in 2025.
Prime Minister Kassim Majaliwa has cited the Sino-Tan Industrial Park investment projects as a clear manifestation of the impact of Chinese projects in stimulating economic development, jobs and improving the livelihoods of Tanzanians.
He lured Chinese companies to come and invest in Tanzania, stressing on the availability of friendly policies and environment for doing business in the country.
Mr Majaliwa noted this during the Tanzania- China Investment Forum, which convened in Dar es Salaam, on Monday after the visit of a delegation of 120 Chinese investors from Zhejian enterprises at Sino-Tan Industrial Park in Kwala area of Kibaha District, Coast Region.
He said that for a decade China and Tanzania have enjoyed deep roots traditional friendship, which has witnessed very strong diplomatic relations proven through diplomatic missions among other ventures.
“Cumulative figures between the period of 1997 and April 2023 shows that China is leading with investment worth over 10 billion US dollars. A total of 1, 134 projects were registered with the Tanzania Investment Centre (TIC), a great potential in employment creation,” he said.
According to him, ten years ago, China was among six countries with the largest investment in Tanzania behind the United Kingdom, United States, South Africa and Kenya.
However, the latest figure from TIC shows that China moved in second place by 2012 before taking the first slot two years ago, becoming the largest foreign investor in the country.
During the visit at the industrial park to get a clear picture and understanding of the area, the Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo, said the facility will massively spur the country’s economic growth.
The investment is implemented in line with Tanzania’s Vision 2025, which focuses on an industrial-driven economy.
“Once completed, the establishment is going to create more than 100,000 jobs, responding to the unemployment crisis currently facing the country,” Prof Mkumbo said, noting that among many industries, there will be those using leather materials, including shoes and clothes manufacturers.
He noted that 17 regions in the country engage in the production of cotton but 80 per cent of the cash crop is exported outside the country in a raw form.
The establishment of industries in the Kwala area will see the country’s cotton being used internally in the development of Tanzania’s industrial sector in fulfillment of President Samia Suluhu Hassan’s aspiration of seeing the sector grow and bring development to the country and people, said the minister.
He added that the establishment of a shoe factory at the industrial park will contribute to create synergies between the livestock and industrial sectors in the country.
Prof Mkumbo noted that over 80 per cent of medicine and medical supplies in the country are being procured outside the country, noting that production of medicines will also be featured at the industrial park.
Such will help to service Tanzania’s essential medicine needs as well as neighbouring East African Community (EAC) and other countries in the Southern part of Africa.
Among other industries that will be put up at the park involve manufacturing of building materials and among others.
He welcomed the investors from China to come and invest at the industrial park, noting that the relationship between the two countries was quite beneficial for mutual interest, extending appreciation to the Chinese partners for their unwavering support which involves industrialising Tanzania.
For his part, the Chairman of the Tanzania Investment Centre (TIC) Board, Dr Binilith Mahenge said that the industrial park execution is being implemented in a 2,500-acre land in phases.
He noted that currently, it is in the first phase whereby 500 acres are undergoing construction.
“The developer will create 2,000 jobs and 50,000 indirect jobs, whereas the operator 10,000 direct jobs and 250 indirect jobs,” noted Dr Mahenge.
He expressed government commitment to support the investors deal with any challenges that they will come across.
The Chairman of Sinotan Industrial Park, Mr Janson Huang pledged to support President Samia’s aspiration of attracting investors in Tanzania, noting that they will back the effort taking into account that the country has conducive business and is considered as a beckon of peace.
The Deputy Minister for Industry and Trade, Mr Exaud Kigahe, also noted some of the benefits that will come with the investment including skills development for the youth who will work at the industries.
Also, generation of taxes which will enable accessibility of critical services across the country and corporate social responsibility to the public.