Friday, 7 July 2017

New Energy Investment Welcomed in Tanzania


Tanzania welcomes Chinese businesses to invest in its potential infrastructure and other sectors, the country's president John Magufuli told a Chinese industry association official in May, according to Tanzanian official newspaper report.
Zhang Xin, vice-chairman of the China National Machinery Industry Federation, visited Tanzania in late May.
When meeting with Zhang in Dar es Salaam - the nation's capital - Magufuli said that his government will support investors from China in the country's power, manufacturing and agricultural sectors, Daily News reported.

The president said that Tanzania and China have maintained close relations since the two countries established diplomatic ties in 1964, the newspaper reported.
In recent years, Tanzania has become a hot investment destination for Chinese businesses.
According to the statistic of TanzaniaInvest, the country's official investment promotional organization, China's investment in Tanzania totaled $6.62 billion by the end of 2015, becoming the second-largest investment source country for Tanzania.
Magufuli said the country has set out plans to boost power generation from the current 1,500 megawatts to 10,000 mW by 2025. He added that investors are warmly welcome to invest in various power sources like gas, coal and solar to enable the nation to attain its goal.
"We invite the Chinese investors to come to Tanzania. They are our relatives and long-time friends," Daily News quoted Magufuli as saying. "It will be good for them to join our efforts in building an industrial economy by generating sufficient power and participating in other projects like construction of railways and roads," he added.
As the second-largest economy in East Africa, Tanzania is one of the fastest-growing countries in the region.
According to Daily News, the country has maintained an average annual growth rate of 7 percent since 2005, and such a high rate is expected to continue for several years.
In recent years, Chinese companies have been investing in Tanzania in various sectors.
There are currently more than 500 Chinese-invested enterprises in Tanzania, offering jobs to about 600,000 local people.
Tanzania attracts investors because of its political stability and rich resources. Since Magufuli became the president of the country in November 2015, his government has given high priority to economic growth through industrialization. The government also highlights the rule of law to create a good legislative environment for investors.
According to Daily News reports, the government has implemented a series of preferential policies for investment, including incentives in taxation and land use.
The country has rich land, fisheries and mineral resources. About 70 percent of the population are people aged below 35, which means rich labor resources and strong market demand for consumer goods.
The country witnessed an investment boom in the past year. According to Tanzania-Invest, 242 new investment projects were registered in Tanzania, involving total funding of $2 billion.
China, the United Kingdom, the United States and the United Arab Emirates are the major investment source countries for Tanzania.
Article Source: China Daily
Picture: Power transmission project built by TBEA, a leading transformer producer from China