The Government of Tanzania has received a TZS97b grant from China for further development of the country’s education, seaports, health and airline security.
The grant agreement was recently signed by Charles Mwijage, Tanzania’s Minister of Industry, Trade and Investment, Dorothy Mwanyika, Permanent Secretary at Tanzania’s Ministry of Finance, and Qian Keming, China’s Vice Minister for Commerce.
Mwijage explained that the grant will help Tanzania to address its medical drugs shortage. He added that China is also considering investing in the Tanzania Zambia Railway Authority (TAZARA) to support the country’s industrialization.
He also said that Tanzania will facilitate the construction of 3 processing factories in the country’s coast region.
One of the factories will be a tile plant where China is planning to invest USD100m. The tile factory is expected to produce 800,000 roofing tiles per day. It will also employ 1,500 Tanzanians directly and more than 3,000 indirectly.
Keming said that China will continue to support Tanzania’s industrialization drive.
China FDI to Tanzania
Tanzania is China’s largest aid recipient country in Africa. Tanzania accounted for 16.3% of China’s total FDI in Africa with USD4b in 2014, an increase of 100% from the total Chinese FDI recorded in the country at the end of 2013, according to the Chinese Embassy to Tanzania.
The largest Chinese-supported projects In Tanzania include: TAZARA, Friendship Textile Mill, Mubarali Rice Farm, Kiwira Coal Mine and Mahonda Sugar Cane Factory.
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