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Thursday 28 August 2014

TANZANIAN ENVOY TO CHINA IMPRESSED BY SINO-TANZANIA BILATERAL RELATIONS


This year Tanzania and China mark the 50th anniversary of bilateral relations. In China, the celebrations started in April, while in Dar es Salaam, the occasion was marked in June when China's Vice President Mr Li Yuanchao visited the country. The celebrations will climax in October when President Jakaya Kikwete visits China.
Daily News Staff Writer ABDUEL ELINAZA interviewed Tanzania's Ambassador to China Lt. General ( rtd) Abdulrahman Shimbo in Beijing on the various aspects of Sino-Tan relations at 50 and the preparations for President Kikwete's visit. Exerpts:
Question: What are the highlights of President Jakaya Kikwete's visit to China in October?
Answer: In October, we expect to welcome President Kikwete here in China. His visit marks the climax of festivities to celebrate the 50th anniversary of diplomatic relations between the two friendly countries. Together with the promotional materials that we've made, including this year's coverage of animal migration in Serengeti, the visit will be covered by the media.
Next month, there will be a live coverage on China Cable Television (CCTV). We (Tanzania Embassy in Beijing) are planning the President's visit together with the Chinese Ministry of Foreign Affairs. When the schedule is ready, definitely we will advertise it and print some publications. We are hoping that he will be able to discuss a lot of issues, including bilateral relations. We would like this to include education and promotion of Chinese investments in Tanzania.
Q: What are the specific areas and projects that Tanzania wants to attract investment from China?
A: At present, China is the second largest investor after the UK. Chinese investments are expanding. I believe that in two years time, China will be the largest investor in Tanzania. Areas of investments include but not limited to energy, infrastructure, agriculture, health, tourism, environmental protection and education.
A lot of investments from China have focused on two large areas namely infrastructure, (the largest), and the energy sector. Tanzania and Africa as a whole lags behind in infrastructure and energy sectors. These are the areas that stalled our development. With lots of investments, thus, the government plans to open up the country to the world and help tap its natural resources. The aim is to boost the economy and the income of the people.
Q: If there will be investment in infrastructure, energy and education, are these all we need for development?
A: Unfortunately, energy is one of the major shortcomings in our country. We did not produce enough of it to attract investment in heavy industry, for example. Also, we did not have enough energy to run important sectors of development such as schools, factories, etc. We are now investing in energy, focusing on different sources. Topmost is gas. At present, we have a gas turbine right in the heart of Dar es Salaam that receives gas from Songo Songo.
A main pipeline is under construction with investment from China. This will transport natural gas from Mtwara to Dar es Salaam. The project will be completed this year, most probably this November. Gas turbines will be installed. Chinese companies have invested already in construction of gas turbines to produce electricity.
So in two years time, we should be able to increase electricity production of about 2,300 megawatts. This will be a huge boost from the current production capacity. The country is also investing in coal, wind and solar power, without forgetting our traditional [hydrogenation] areas. All these projects are being implemented concurrently.
There are contracts which have already been signed and [some] will be signed later. But it is worth mentioning that the investment in most of these areas comes from China. So it is the area we are addressing, and we hope once these are completed, we will attract a lot of investors into Tanzania from China, east and west.
Q: A couple of years ago China Foreign Direct Investments (FDIs) in Tanzania were not top on the list, but now they are, almost all of a sudden. Is this favouritism?
A: No. There has been a leap forward, because of competition. Tanzania is opening up to allow more foreign investments. The country has a 25-year development plan from which the Vision 2025 was born. We have opened doors to foreign nations and China is among them. It was a stiff competition.
It was a stiff competition and China won a lot of investment opportunities. The country has several advantages. First; it is one of the friendliest countries of Tanzania. Secondly, China offers what Tanzania wants.
The country gets preferential and commercial loans with low interest rates. Also, Chinese companies are ready to take risks, while some [from western countries] are not ready to put themselves in such a situation.
The works of Chinese companies are completed in time and are of high quality. Investment also involves teaching local people to take over once the Chinese have left the country.
It's a win-win situation. Work that is done by most Chinese investors ensures that both sides gain from the investment. The investors are also able to take part of their profits back home.
We get reasonable prices on their products which don't interfere with our internal affairs. That is what made Chinese companies win the second position. What is worth noting also is the fact that the companies are investing in almost every sector .It is a fair competition and their [Chinese] conditions are very attractive.
Q: What is your take on the China's Ambassador Tanzania Mr Lu Youqing?
A: We know each other very well. I have a high esteem for Ambassador Lu. I have had a chance to reflect on what he said to the Chinese investors and companies in Tanzania. He gave a warning to companies investing in Tanzania, saying they should avoid corruption and quarrels. He said there are some Chinese nationals and companies that are not doing clean business.
They lower the price of investment making their quality of work not appealing. Within a very short period of time, the projects collapse altogether. The Ambassador also warned the Chinese not to involve themselves in illegal businesses, saying that portrays a bad image of the otherwise good country. Ambassador Lu said directly that we should follow and fight corruption.
The Preventing and Combating Corruption Bureau is very effective. It has done a very good work and still doing that work. It is regulating some of the competitions in order to avoid corrupt practices, especially in tendering of major projects. .
Q: What can you say about Tanzanians' conduct in China?
A: Actually, we have Tanzania Business Associations centres in China and some are based in Shenzhen, Guangzhou and Shanghai. Tanzanians mainly purchase goods such as clothes, construction equipment, building materials, machinery and electronics. Their conduct has been very good. They also interact well with the Chinese business community and some Tanzanians have established clearing and forwarding for foreign companies, and are exporting goods to home. But we also have bad elements.
There are Tanzanians who came here illegally and are staying in this country. We have told them that we won't accept that. Some are engaging in drug trafficking, others have been nabbed and sentenced while there are those still waiting to be sentenced.
anzanians should not be cheated by dealers to haul drugs to China or Hong Kong, they will be arrested. There are detection systems at all entry points. The penalty is heavy for anyone convicted.
Q: There is the issue of substandard goods and people are complaining that their country is a dumping ground.
A: This is quite a big concern for both governments. China has instituted very heavy penalty for counterfeit goods. Tanzanians who buy goods around here are required to go to the right companies and also contact the authorities so that they may procure goods that have gone through quality clearance. It also requires Tanzania to check for standards for goods shipped into the country.
Counterfeit goods are not accepted. Normally, once discovered, they are destroyed and the traders are penalized. The danger of low-quality goods is that they could be hazardous to population. For example, if they are electrical substandard goods, they may cause fire. If it is construction materials, they can be a risk to people's lives. Both governments are signatories to regulations that check these goods before they are exported.

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