On 21st April 2021, the President of Tanzania, Hon. Samia Suluhu Hassan met with the leaders of the Chinese Chamber of Commerce in the country to discuss various issues pertaining to trade and investment.
The Chinese leaders led by Mr. Janson Huang assured President Suluhu that they are ready to cooperate with the Sixth Phase Government in economic growth and uplifting the welfare of the people through major investments of more than 800 Chinese companies.
The companies are ready to invest in Tanzania in manufacturing, telecoms, pharmaceuticals, and automotive, and to establish Industrial Parks.
They will also enable Tanzanians to acquire new skills by financing access to Tanzanian and Chinese colleges in various fields including engineering and tourism.
For her part, President Suluhu assured the Chinese leaders that the Sixth Phase Government will further improve the investment and business environment by tackling various challenges hindering investments including difficult access to work permits, taxes, payment delays, bureaucracy, and continue to take precaution against Covid-19.
China is Tanzania’s N1 investor in the country. In 2019, the outflow of FDI from China to Tanzania reached USD 115 million out of a total of USD 1.1 billion in FDI. This was -35% less than USD 177 million in Chinese investments in 2018 and a record USD 226 million in 2015.
In December 2020, the late Tanzanian President John Magufuli and Chinese President Xi Jinping talked about further strengthening relations and cooperation, especially in economic matters during an hour-long phone call.
President Magufuli also asked China to cooperate with Tanzania in investing in large projects by providing cheap loans. Some of these projects are the 358 megawatts and the 222 megawatts power plants on the Ruhudji river and the Rumakali river, and the construction of roads in Zanzibar.
In January 2021, Magufuli and China’s Foreign Affairs Minister Wang Yi signed the agreement for the construction of the 5th phase of the new Standard Gauge Railway (SGR).