Chinese Heavy Duty Machinery Group Launches New Distribution Facility In Tanzanian Export Processing Zone And Aims At Local Manufacturing

AVIC-SHANTUI Tanzania Limited (SHANTUI), a Chinese company involved with manufacturing and commercializion of heavy duty machinery and equipment, has recently launched a distribution facility at Benjamin William Mkapa Export Processing Zone (EPZ), in Tanzanian commercial capital Dar Es Salaam.

SHANTUI, which is co-funded by AVIC International and Shandong SHANTUI, aims to supply the Tanzanian mining sector with more competitive equipment, favorable price and efficient services.

At a later stage the company also intends to assemble and manufacture heavy duty machinery locally by exploiting the iron ore reserves found at Liganga mining project, funded by China’s Sichuan Hongda Corporation under the “One Belt One Road” initiative.

The facility’s launch ceremony was hosted by Chinese Chief Economic and Commercial Representative to Tanzania Mr. Lin Zhiyong, and included the presence of Tanzania’s former President Ali Hassan Mwinyi and of Tanzania Export Processing Zones Authority (EPZA) Director General Joseph Simbakalia.

Referring to the intention to expand into manufacturing in Tanzania, Zhiyong commented: “I am very much encouraged by H.E. Mwinyi, by requesting assembling to be followed by manufacturing of these machineries in Tanzania soon. This is true capacity transfer. This is the way to help our friend Tanzania to bring about industrialization.”

According to Mwinyi the move will turn Tanzania into a hub of manufacturing and distributing similar construction equipment in Africa.

EPZA Director General Joseph Simbakalia said that the launch of the firm should be taken as an opportunity for absorbing Chinese science and technology necessary for unlocking the existing economic potentials.

Zhiyong explained that Tanzania has been chosen as a pilot country under the umbrella of Chinese capacity transfer to Africa fir its comparative advantages in attracting foreign investments.

Zhiyong also congratulated the Tanzanian people for the peaceful general election, which showed to the whole world that Tanzania is a peaceful and stable country with peace-loving people, which are critical elements for investors to determine to invest in the country.

This is why much more Chinese investments will flood to Tanzania in the coming years for the benefit of two countries, Zhiyong added.

Tanzania’s Export Processing Zones (EPZ) and the Special Economic Zones (SEZ) were established in 2006 and in 2011, to attracts investors undertaking processing and manufacturing activities for export purposes, in the view to building a strong export-led economic development through industrialization.

Companies licensed under the EPZ and SEZ regimes enjoy a number of fiscal and other incentives including exemption of corporate tax for a period of 10 years.