The President of the United Republic of Tanzania, Dr. Samia Suluhu Hassan, is currently in China for the Forum for China-Africa Cooperation (FOCAC). She is expected to sign new loan deals and strategic aid agreements during her visit.
President Samia Suluhu Hassan is this week visiting China for the Forum for China-Africa Cooperation (FOCAC), where she is expected to sign new loan deals and strategic aid agreements.
This visit reflects the ongoing strengthening of Tanzania-China relations and aligns with Tanzania’s freshly revised foreign policy, emphasising economic diplomacy and non-alignment.
President Samia’s visit to China and the resulting agreements will impact Tanzania’s economic development by enhancing infrastructure, diversifying the economy, expanding trade, and strengthening diplomatic relations.
However, careful management of the associated debt and strategic planning will be essential to realize these benefits and ensure long-term economic stability.
This visit reflects Tanzania’s strategic positioning within China-Africa relations, emphasizing economic cooperation and infrastructure development. It aligns with broader African engagement with China, which remains pivotal for the continent’s growth despite the challenges related to debt and project sustainability.
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We should remember that during President Samia’s previous visit to Beijing in November 2022, 15 bilateral agreements were signed, and this time around, more achievements are expected.
They included an upgrade of the Tanzania-Zambia Railway (TAZARA), a USD 13.49 million debt waiver, and a USD 56.72 million concessional loan for Zanzibar’s International Airport terminal.
These relations were elevated to a “comprehensive strategic cooperative partnership,” China’s highest level of diplomatic engagement. China has already expressed willingness to finance the next phase of bilateral projects in Tanzania and enter into new strategic project sponsorship pacts.
This commitment is significant as it signals China’s continued investment in developing Tanzania, particularly in infrastructure and industrial projects. Chinese companies are Tanzania’s largest foreign direct investment (FDI) source, with assets totalling USD 9.8 billion last year.
Such investments span transportation, real estate, manufacturing, mining, and agriculture, underscoring China’s critical role in Tanzania’s economic development.
I remember in 2022, Tanzania’s export trade to China was valued at USD 600 million, with a target to increase this to USD 1 billion by 2025. Oily seeds, copper, and precious metal ores are major exports to China, while footwear, fabrics, and electronics are imports from China.
The FOCAC conference, which incorporates 53 African countries, is a crucial platform for China to expand its footprint globally. This year’s event will attract many African leaders as China seeks to strengthen its economic ties with Africa, particularly in infrastructure development and industrial cooperation.
China’s lending to Africa increased in 2023, with USD 4.61 billion in loans approved, marking the first annual rise since 2016. Between 2000 and 2023, China lent a total of USD 182.28 billion to Africa, focusing on the energy, transport, and ICT sectors.
This loan increase reflects China’s strategic focus on managing risks in debt-laden African economies while maintaining its influence through initiatives like the Belt and Road Initiative (BRI). Africa’s engagement with China through platforms like FOCAC and BRI has significant implications for the continent’s development.
While China’s investments and loans have facilitated substantial infrastructure projects, they have also raised concerns about debt sustainability and the long-term quality of partnerships.
However, China’s recent loan increases and strategic investments indicate a continued commitment to Africa, albeit with a more cautious approach. China’s commitment to financing ongoing and new projects in Tanzania, particularly in infrastructure, is expected to enhance the country’s economic capacity significantly.
Investments in sectors like transportation (railways, ports), energy, and ICT will improve connectivity, reduce transaction costs, and stimulate economic activities. The influx of Chinese investments will likely create employment opportunities in various sectors, particularly in construction, manufacturing, and services, thereby reducing unemployment and improving livelihoods.
To increase Tanzania’s exports to China from USD 600 million in 2022 to USD 1 billion by 2025, greater emphasis will be placed on boosting the production and export of Tanzanian goods. This could lead to diversification in Tanzania’s export base, increased foreign exchange earnings, and improved trade balance.
The new agreements are expected to focus on energy, minerals, green development, and the digital economy. By leveraging Chinese expertise and capital, Tanzania can diversify its economy, reduce reliance on traditional sectors like agriculture, and foster sustainable development in emerging industries.
The elevation of Tanzania-China relations to a “comprehensive strategic cooperative partnership” during President Samia’s previous visit signals deepened cooperation that goes beyond economic interests to include cultural, educational, and technological exchanges.
This holistic partnership can lead to long-term stability and growth. While Chinese loans and investments are beneficial, they also risk increasing Tanzania’s debt burden. Effective debt management will be crucial to ensure that these loans are used productively and do not lead to unsustainable debt levels that could hinder long-term economic growth.
Developing key infrastructure projects, such as the Tanzania-Zambia Railway (TAZARA) and Zanzibar’s International Airport terminal, will enhance Tanzania’s connectivity with regional and global markets, facilitating trade, tourism, and investment. Improved infrastructure is a fundamental enabler of long-term economic growth.
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Tanzania can increase its competitiveness in the global market by upgrading infrastructure and diversifying the economy. This can attract more foreign direct investment (FDI) and promote sustainable economic growth.
As Tanzania’s largest partner in the green energy transition, China provides Tanzanian consumers with “affordable, durable and accessible” green products without imposing conditions.
In contrast, Western aid is often tied to political and economic conditions such as austerity measures, privatization, and “democracy promotion,” which often cause civil strife.
The CSIS pointed out that “in other words, the West is still trying to civilize the former colonies by getting them to do things we (Western countries) think are good for them.”
Uganda’s President Yoweri Museveni slammed in August 2023 that many of the loans and aid packages from Western countries “are either of no value addition to the country or are even anti-growth, altogether” in a speech following the World Bank’s decision to halt financing to Uganda.
Loans and aid packages from the West have indeed distorted and stunted Africa’s growth as well as the entire continent, said Museveni, blaming Africa’s “miserable” economic performance on the Western world, which sees Africa only as a producer of raw materials.
The history of Western aid in Africa has played absolutely no role in lifting Africa (out of poverty), so we don’t prefer more investment. We want more trade.
China has remained Africa’s largest trading partner for a 15th consecutive year, with a trade volume of 282.1 billion U.S. dollars in 2023, a joint report by the Office of the Leading Group for Promoting the Belt and Road Initiative, the National Development and Reform Commission (NDRC) and other authorities revealed on Thursday.
As of the end of 2023, China’s direct investment stock in Africa exceeded 40 billion dollars. China-Africa trade and investment are expected to maintain steady growth this year, demonstrating the strong vitality and resilience of China-Africa’s economic and trade cooperation.
China’s growing engagement with Africa unsettles some nations in the West. They hence use narratives like “neocolonialism” and “debt trap” as geopolitical tools to smear China and weaken the effectiveness of its development partnerships with developing countries, and such hype is not in the interest of emerging economies.
China’s contributions to infrastructure development, healthcare, and education in African countries are visible and tangible in the daily lives of local people. These contributions significantly boost China’s growing approval across the continent, noted Moshi.
He said many Africans appreciate China’s approach to aid and investment, which emphasizes respect for African nations’ sovereignty.
On the contrary, the U.S. promotion of its ideology and strategic interests, and the lack of consistent engagement with or tangible benefits for Africa all led to the decline in African approval of the United States.
FOCAC is an important mechanism for collective dialogue between China and Africa and a key platform for promoting practical cooperation between the two sides.
Since its establishment in 2000, FOCAC has developed into a fine example of South-South cooperation and a banner of international cooperation with Africa. Over the past 21 years, the China-Africa relationship has evolved from “the new type of partnership” to “the new type of strategic partnership” and to “the comprehensive strategic and cooperative partnership” at present.
Since 2000, the China-Africa trade volume and China’s FDI in Africa have increased 20-fold and 100-fold, respectively. China has been Africa’s largest trading partner for 12 consecutive years, and Chinese enterprises’ direct investment stock in Africa has exceeded USD 56 billion.
In September 2018, the FOCAC Beijing Summit was held with grandeur. During it, the Chinese and African leaders reached a consensus on building an even stronger China-Africa community with a shared future.
After that, China and Africa jointly promoted the implementation of the summit’s outcomes, especially the “Eight Major Initiatives”. Faced with the unexpected COVID-19 pandemic, China and Africa have supported each other to tide over the difficulties and promoted further development of their cooperation.
This bucks the declining international trade and investment trend and manifests bilateral cooperation’s great resilience and strong vitality.
During the past three years, China and Africa have successfully held important events like the China-Africa Economic and Trade Expo and the Forum on China-Africa Cooperation in Agriculture.
The China-Africa friendship has been strengthened continuously in their solidarity against the COVID-19 pandemic. When China was in its most difficult time fighting the virus, African brothers gave their support in various forms to China.
At the same time, after the outbreak of COVID-19 in Africa, China took the lead in rendering assistance, including dispatching expert teams to 17 African countries, donating anti-epidemic supplies to all African members of FOCAC, and providing vaccines to over 50 African countries and the African Union through aid and export. African countries have widely praised China’s strong support in this regard.
Tanzania has actively participated in FOCAC activities, and supported the forum’s establishment and development during the past 21 years.
China and Tanzania have maintained strategic communication within the FOCAC framework, deepened mutually beneficial cooperation, and promoted the implementation of relevant outcomes of all previous FOCAC conferences, thereby bringing steady impetus to their common development.
The trade volume between China and Tanzania has increased nearly 50-fold, from less than US$100 million in 2000 to USD 4.58 billion in 2020. Chinese companies’ accumulative investment in Tanzania has exceeded USD 7 billion, with more than 700 investment projects.
China has been Tanzania’s largest trading partner and biggest source of foreign investment for several consecutive years. The Julius Nyerere International Convention Centre (JNICC), the University of Dar es Salaam Library and the Jakaya Kikwete Cardiac Institute (JKCI) built with Chinese assistance have become new symbolic projects of China-Tanzania friendship.
The infrastructural projects undertaken by Chinese companies, such as the fifth section of the Standard Gauge Railway (SGR) and the expansion and renovation of Dar es Salaam Port, and the China-Tanzania production capacity cooperation projects, such as the acquisition of Maweni Limestone Ltd. by Huaxin Cement, are all progressing steadily. Moreover, China has resolutely supported Tanzania in fighting the COVID-19 pandemic.
It is providing Tanzania with nearly 3.5 million doses of COVID-19 vaccines. At a time of global changes and a pandemic, both on a scale unseen in a century, the importance of China-Africa solidarity and cooperation has become more obvious.
Upholding the principles of sincerity and friendliness, equality and mutual respect, efficiency and pragmatism, and mutual benefit and win-win outcomes, the upcoming Eighth Ministerial Conference of the FOCAC will build new consensus and inject fresh impetus to the common development of China and Africa.
China plans to announce targeted cooperation measures in key areas, such as infrastructure, healthcare, climate change, and the digital economy, to promote transformation and upgrade China-Africa cooperation and enhance its quality and efficiency.
China is ready to communicate closely with Tanzania and work with it to generate more fruits within the frameworks of the Belt and Road Initiative (BRI) and FOCAC, elevating the China-Tanzania comprehensive cooperative partnership to a new height.
