THE decision by China to waive a portion of Tanzania’s debt worth 31.4bn/- and provide duty free treatment of 98 per cent tariff line goods is a clear indication that the cooperation between the two countries remains intact, analysts have observed.
They also called upon Tanzanians to make better use of the opportunities, which are being created by the government in a bid to upgrade their living standards and boost the national economy.
The analysts made the statement, while commenting on the state visit of President Samia Suluhu Hassan to China between November 2 and 4, in response to the invitation from her Chinese counterpart, Xi Jinping.
During her visit, President Samia and her host Xi held official talks before witnessing the signing of 15 strategic agreements aimed at bolstering bilateral cooperation, trade, and investment between the two countries.
The two leaders also pledged to continue supporting each other on issues involving sovereignty, territorial integrity and other core interests. Speaking on the move, an economist lecturing at the University of Dar es Salaam (UDSM), Prof Humphrey Moshi said that the agreements and decisions by the government of China will help to improve economies of individuals upon effective utilisation of the opportunities.
“China is a strategic development partner of Tanzania, the existing bilateral ties are crucial to me for effective realisation of the desirable targets,” he said.
The pundit also suggested the need of the two countries to emphasise coop
eration in the agricultural sector and Information and communication Technology (ICT). “It’s good that China has widened the market of goods originating from Tanzania as well as approving importation of our avocados. It’s a high time for farmers and the government to put in place strategies that will increase production and with high quality,” he urged.
A University of Dodoma (UDOM) Lecturer, Dr Paul Loisulie said President Samia’s visit to China and the agreements that were signed, will help to minimise the gap on trade imbalance between the two countries. Statistics show that the current trade volume between the two countries stands at 6.74 billion US dollars (about 15.5tri/- ), with Tanzania accounting for only 606 million US Dollars (about 1.4 tri/-).
The figures indicate that the trade is in favour of China and thus there is a need for efforts that will narrow the gap.
“The initiatives that would be taken will help to create jobs through various sectors including agriculture and in turn improve income for individuals, as well as cement the existing ties between the two countries,” he said.
Dr Lousilie also challenged Tanzanians to get ready in tapping the opportunities that have been created, especially in the exportation of avocados and other goods that are highly demanded in China.
His views are in line with the observation by ‘this paper’ columnist and socio-economic commentator, Godvictor Lyimo saying the pacts will create employment, boost the Gross Domestic Product (GDP) as well as increase a reserve of foreign currency. He called for comprehensive efforts that will engage more people in the agricultural sector that has proved to be the top contributor to the national income.
“As a country, we should make better use of the available resources, including the fertile soil, water bodies and human resources in increasing productivity of the agriculture sector,” he told the ‘Daily News’.
For his part, an expert and analyst on economic diplomacy, Prof Kitojo Wetengere called on the government to ensure and protect the interest of Tanzanians while implementing the agreements.
He added: “It’s true that the moves are beneficial for Tanzanians but in the short term, all we need is to have the processing plans that will be adding value to the crops before being exported abroad.”
China is a leading source of foreign direct investment (FDI) into Tanzania, accounting for 1,098 investment projects in the country.