TANZANIA: AS President Samia Suluhu Hassan’s government strives to ensure it completes the ongoing construction of strategic projects initiated in the previous administration, it is also striving to get funding to continue financing the implementation of those initiated during her phase.
Completing all projects currently under implementation and starting new ones require a lot of money that the government cannot afford to raise from its domestic sources except by borrowing from international financial organisations.
However, securing large and unconditional loans from these financial organisations is a great challenge due to some strict conditions that are sometimes attached to them.
But, given the brotherly relationship that Tanzania has cultivated over years with China, Tanzania may find itself benefiting from a number of development initiatives that the second largest economy in the world has come up.
China has proven to be a reliable partner that can provide large-scale loans without setting stringent conditions. It has been providing large loans as well as financing the construction of strategic projects that have helped reduce the infrastructure gap and stimulate economic development in African countries.
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In order for Tanzania to be able to achieve sustainable development, it must first build crucial and strategic infrastructure, most of which will require a lot of money.
By recognising Tanzania’s great need for infrastructure, industrialisation, agricultural modernisation etc, China has expressed willingness to facilitate access to funds for infrastructure construction and help Tanzania achieve its national vision 2025, the UN 2030 Agenda for Sustainable Development Goals and AU Agenda 2063.
In his speech during his meeting with President Samia Suluhu Hassan on 4th September, 2024, in Beijing FOCAC Summit, President Xi Jinping said that his country is ready to work with Tanzania and make it a demonstration zone for deepening China-Africa high quality cooperation under the Belt and Road Initiative (BRI). His statement began to bear fruit with the signing of a MoU to revive the TAZARA Railway.
President Xi also promised that China will work with Tanzania to advance and deepen the China-Tanzania comprehensive strategic cooperative partnership to make China-Tanzania relationship more beneficial for both sides.
China willingness and its commitment to help Tanzania is based on the solid foundation of friendship built by the founding leaders of these two nations, Mao Zedong and Mwalimu Julius Nyerere.
Regarding the promise made by President Xi to make Tanzania be an example for high quality Belt and Road Initiative (BRI) in Africa, it is now high time the government seizes the opportunity and ensures that it closely cooperates with the Chinese government so that it can help solve some economic challenges.
Understandably, one of the areas of focus of BRI is infrastructure connectivity such as a network of railway, energy pipelines, highways, streamlined border crossings and ports. Based on win-win situation, China has expressed its readiness to help Tanzania achieve its infrastructure connectivity. Through this arrangement Tanzania should set its priorities and come up with a list of projects and sectors that it would want China to support.
Undoubtedly, the construction of Bagamoyo Port is a mega project that is on the government table. According to economists, the implementation of this project is crucial and must be given priority, as it will increase the amount of cargo, including reducing freight transport costs.
Other benefits that will result from the Bagamoyo port include job creation, increase in government revenue and investment stimulation. Additionally, the Bagamoyo Port will be linked to the central railway, Standard Gauge Railway (SGR) and the Tanzania Zambia Railway (Tazara), a measure that will simplify transportation of goods to the neighbouring countries as well as the regions where these railways pass through.
Another important project that should be given priority is the construction of Standard Gauge Railway (SGR) from Mtwara/ Mbamaba – Liganga to Mchuchuma for transporting goods from Mtwara to Malawi as well as transporting grains and various minerals, especially iron, coal to the Mtwara port.
It should be noted that in order for African countries to achieve their AU Agenda 2063, they need billions of US dollars every years. According to the African Development Bank, it is estimated that Africa’s need for infrastructure funding is between 150 billion US dollars to 170 billion US dollars annually.
Until the year 2063, this estimated amount of money is expected to double due to various reasons including the increase of price in construction materials and construction costs.
With these estimates, it is clear that African nations including Tanzania will struggle What keeps African nations in the Commonwealth? TZ should capitalise on China’s BRI initiative to get funding due to the large amount of money required annually.
In the period of 39 years from now to 2063, the amount of money that is required to achieve AU Agenda’s goal is between 5.8 and 6.6 trillion US dollars. During the same period, each country will have to spend at least between 108.3 and 122 billion US dollars to complete or at least bridge its infrastructure gap.
However, in all 54 countries, there are small, medium and large countries, so if you take the 150-170 billion US dollars required annually and allocate it to all 54 countries according to the size of each country, there is no doubt that Tanzania will need about between 5 and 8 billion US dollars annually to build and bridge its infrastructure gap.
Due to this estimated amount, Tanzania will need to cooperate closely with China so that it can help in financing the construction of infrastructure. It is important to note that, China contributes more than 25 per cent of all infrastructure financing in Africa.
China’s contribution to the development of African countries is huge, therefore, African countries should continue to rely more on China so that they can achieve their national goals, the UN 2030 Agenda for Sustainable Development Goals (SDGs) and their AU Agenda 2063.
It is also important to note that, China started cooperating with Tanzania in the field of infrastructure in the 70s when it helped in the construction of the TAZARA railway. In addition to that, China has been helping Tanzania in various sectors such as industry, agriculture, education, sports, health etc.
During the 70’s and 80’s, China provided great support to develop Mbarali Farm, Ruvu Farm, Upeja Farm in Zanzibar and UFI factory projects etc and has continued to help Tanzania in various economic and developmental fields.
Chinese people say, ‘if you want to prosper, first build the road’. They used the example of road to represent all the important infrastructure that connect countries, regions such as transport infrastructure, communication, energy etc.
The Chinese have implemented their saying with real examples by building many strategic structures that have contributed in stimulating economic development in their country. With the same spirit, we believe China is committed and ready to help Tanzania build important infrastructure that will help stimulate and accelerate economic development and bring about sustainable development.
Through its BRI programme, China is ready to increase investment and help Tanzania in its plan to improve industries, infrastructures and promote modern agriculture.
In its plans to make Tanzania a demonstration centre for high quality Belt and Road Initiative, the first project which was signed is to revive the TAZARA railway. The agreement to revive the railway was signed on September, 4th 2024 and witnessed by the President of the People’s Republic of China, Xi Jinping, President Samia Suluhu Hassan of the United Republic of Tanzania and the President Hakainde Hichelema of Zambia.
The revival of the TAZARA railway will increase its cargo and passenger carrying capacity and will in future be extended to DRC.
It should be understood that, apart from infrastructure cooperation, China also wants to cooperate more with Tanzania in the field of commerce and investment.
Currently, China is the largest investor in the country and the number one trading partner. According to the TIC report, up to June 2024, China’s investment in the country had reached 11.5 billion US dollars, making it the largest investor and source of DFIs in the country.
Chinese enterprises have contributed to creation of more than 150,000 jobs to Tanzanians. With significant achievement in practical cooperation, the trade volume between China-Tanzania reached 8.78 billion US dollars with an increase 5.7 per cent, making China the biggest strategic trading partner for three consecutive years.
Moving forward, China will align the high quality development of Belt and Road Initiative with Tanzania’s development strategies in various sectors such as agriculture, education, tourism sector, including contributing to the growth of digital economy, green development and blue economy.
China is ready and willing to work with Tanzania to implement the initiative and support Africa industrialisation, agricultural modernisation and plan for development proposed by President Xi to enable Tanzania achieve industrialisation and agricultural modernisation.
