Chinese investors from the Jiangsu Province intend to invest USD5b in the Dar es Salaam region over the next 5 years.
The announcement was made by the Chinese Ambassador to Tanzania, Lu Youqing during a working tour of Chinese government officials in Tanzania on 4th June 2016.
On 3rd June 2016, the Regional Commissioner (RC) of Dar es Salaam Paul Makonda signed an agreement on corporation and development with the Jiangsu Province, for Chinese investments in various projects in agriculture, construction, and social services in the Dar es Salaam region.
During the meeting President Magufuli stressed that its government is committed to industrializing Tanzania so that 40% of its population is employed in manufacturing by 2020.
For this he invited Chinese investors to set up new factories in Tanzania, adding that there is enough place for more than 1,000 new factories to be built in the Dar es Salaam region.
From the Chinese side, Luo Zhijun, Jiangsu Province Secretary of the Communist Party of China (CPC), stated: “I promise to encourage more investors to come to Tanzania as soon as possible to fulfill the plan of building more factories and create more jobs.”
Tanzania aims to become a semi-industrialized country by 2025, for which the contribution of manufacturing to the national economy must reach a minimum of 40% of the GDP.
Foreign Direct Investments (FDIs) are expected to provide the capital for the desired industrial development.
Chinese FDIs in Africa at the end of 2014 were USD24.5b representing 14% of China’s total FDI in that year according to the World Resources Institute (WRI).
Tanzania accounted for 16.3% of China’s FDI to 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.
At the end of 2015 the Tanzanian Government announced that over 100 Chinese investors will set up their businesses in the country, as part of a five-year program backed by the China Africa Development Fund (CADFund).