TANZANIA, CHINA TRADE TO BALANCE IN FOUR YEARS

Tanzania Ambassador to China, Lt General (rtd) Abdulrahaman Shimbo.

Beijing — The country's trade account with China is set to balance within the next four years following an increase in investments and bilateral trade between the two countries.

Tanzania Ambassador to China, Lt General (rtd) Abdulrahaman Shimbo said the trade balance projections are based on Beijing thrust to import more from Dar es Salaam and increase unconditional trade relations.

"The existing trade surplus in China's favour will be addressed in about four years, as China will import more goods from Tanzania, especially minerals, gas and agricultural products," Mr Shimbo told 'Daily News' last Friday.

He was commenting on the rising fears about China's long-term trade imbalance with Tanzania and its growing demand for raw materials. By the end of 2013, China had invested more than 2.5 billion US dollars in Tanzania, with nearly 500 Chinese companies doing business in the country.

"This amount makes China the second largest investor in the East African nation, behind the UK," the Ambassador noted.

He added: "Chinese investment is growing faster than anticipated. I believe that in the next two years' time, China will be largest investor in Tanzania.

Tanzania has worked hard to improve its investment environment and revived efforts to address the country's unreliable electricity, which was considered one of biggest obstacles to running a business in the country.

During President Xi Jinping's three-nation Africa tour last year, China signed 16 trade, cultural and diplomatic agreements with Tanzania, worth about 12 billion US dollars in total.

The trade agreements signed have started to pay off as China's Yunnan Tobacco International Company will start buying tobacco leaf from local farmers with 10,000 metric tonnes this season.

The Vice-President of Yunnan Tobacco International, Ms Yang Xuemei, said buying of tobacco leaf from the country was made possible after the signing of the bilateral trade deal.

"Depending on demand on China's side and trade conditions between the two countries, the volume of tobacco bought is expected to increase next year," Ms Yang said when answering this paper's questions in Kunming, the capital city of Yunnan Province.

According to Imara Equity Research, Chinese investment has not only boosted Tanzania's economic growth, but has also directly created more than 150,000 jobs.

Daily News