China influence in Tanzania sparks economic growth
China influence in Africa is growing exponentially with Beijing exploiting its economic power to gain more influence in the geopolitical arena and in particular, it has focused on growing its influence in Africa.
Notably, Chinese investment in Tanzania has increased by more than 40 percent in recent years, reaching USD 4 billion last year, and both countries have pledged to foster their economic ties even further, increasing China influence in the country.
“According to the future model of geo-economic competition, China first seems to be trying to become the leading state in Asia and, secondly, is taking more power in many areas of the world, including Africa,” writes Alessandro Deligios in a recent reserach document titled ‘Relations of Tanzania and China and Ecological Transition.’
One of the strategies that Beijing uses to extend China influence is the Belt & Road Initiative (BRI). “Through financing projects in different world areas, China can deeply link the economies of various countries to her own and so create a global economic network that has Chinese economic and financial system as a reference or the so called, Beijing consensus,” he notes.
The Beijing Consensus, which supports China influence growth, is a development model that emphasizes state-led industrialization and economic growth that is being discussed in the context of Tanzania and Africa more broadly.
The writer cites recent developments include the Dar es Salaam Consensus, a document highlighting shared development paths for the Global South, and increased Chinese investment, particularly in mining. He says this engagement is part of China’s broader strategy to expand its influence in Africa through infrastructure projects like the Belt and Road Initiative.
“In particular, China is focusing on East Africa. In this region, the Tanzania-China relationship is a key for Beijing to get a strategic economic position,” the author alludes and notes this relation serves to grow CHina influence in Tanzania and Africa as a whole.
He recalls that in 2013, the Tanzanian former President Jakaya Kikwete signed an agreement to allow China to invest in the financing of Bagamoyo port project. The grand project provided a special economic zone in which China gained special operating conditions e.g. water and energy provisions.
“But in January 2016, the project was annulled by President John Magufuli because the agreement for him was like selling Tanzania to Chinese investors,” he notes.
Years down the road, at the start of April 2021, the then minister Geoffrey Mwambe said that Tanzania would be ready for a new agreement about the Bagamoyo port project if the terms were changed, the author points out in his research document.
“In this, Tanzania-China relations can be central to Africa’s ecological transition. Tanzania could advance conditions for the project according to the UN 2030 Agenda sustainability goals, cooperating with other African countries to do the same with other Chinese investments in Africa,” he writes.
“China is interested in extending its economic influence in Africa to get more global diplomatic weight and as such, it is disposed to accept sustainability conditions for its projects,” the document reads.
The author says, Tanzania, and other African nations can use this predisposition to put pressure on China, and other developed countries, to apply sustainable practices in all their projects within the country.
Last year, China Foreign Minister Wang Yi said China is willing to work with Tanzania to enhance global influence of China-Africa Dar es Salaam Consensus to contribute more to safeguarding the common interests of the Global South.
In a meeting with visiting Tanzania’s Minister for Foreign Affairs and East African Cooperation January Makamba in Beijing. He underscored that African nations, after gaining political independence in the last century, are now eager to achieve true economic independence and autonomous development through their own efforts.
He siezed the opportunity to express China’s readiness to work with Tanzania and promote South-South cooperation.
Tanzania hopes to work together with China and other African countries to elevate this consensus from an academic achievement to an intergovernmental cooperation consensus between China and Africa, he said.
Notably, China is a major source of Foreign Direct Investment (FDI) in Tanzania, with numerous registered projects across various sectors. The two diplomats highlighted that as of February 2024, there were 1,274 registered Chinese projects valued at approximately US$ 11.4 billion and which created more than150, 000 jobs.
As China looks to grow its influence in Tanzania, it held the China-Tanzania Investment Forum last year convened at the Johari Rotana Hotel in Dar es Salaam. The forum was graced by Tanzania’s Vice President ot year Dr. Philip Isdor Mpango.
The forum showcased China investment in Tanzania spanning manufacturing, agriculture, and services. It was noted that Tanzania is also a key strategic partner in China’s Belt and Road Initiative (BRI).
“This forum serves as a pivotal platform for fostering bilateral collaboration, reaffirming the unwavering commitment of both nations to strengthening trade and investment ties,” the Vice-President said.
It attracted over 200 Tanzanian companies, 40 local Chinese firms, and 60 enterprises from Jinhua, Zhejiang Province, and Dr. Mpango said the turn out underscores a shared vision for fostering economic growth and prosperity.
Dr. Mpango highlighted what he described as notable milestones achieved, including the registration of 256 Chinese projects by the Tanzania Investment Centre (TIC), totaling a significant USD 2.4 billion in investment and the creation of thousands of job opportunities.
Vice President Mpango also cited increased China influence in Tanzania’s tourism with Chinese visitor arrivals surpassing 44,000 last year.
In his address, the esteemed Chinese Ambassador to Tanzania, Chen Mingjian, emphasized China’s recognition of Tanzania as a pivotal production hub, with a strategic objective to channel products manufactured in the country to markets across Africa, thereby bolstering Tanzania’s foreign currency reserves.
Also Read: Africa healthcare: Calls grow for self-reliance as foreign aid dries up
The Dar es Salaam Consensus was curated by scholars from 50 countries who jointly released the document last year at the 13th Meeting of the China-Africa Think Tanks Forum held in Tanzania’s port city of Dar es Salaam.
The document aims to offer approaches and solutions to major global issues and challenges and it is the view of its authors that it is the first international consensus proposed by the Global South rather than imposed by the Global North, and which expresses the collective voice of the Global South.
“The significant value of this consensus lies in African countries beginning to consciously and independently explore a modernization path that suits African conditions,” Wang said at the document launch.
Tanzania’s diplomat January Makamba described the Dar es Salaam Consensus as “…an important understanding reached between African countries and China to address shared global challenges.”
He said the document upholds principles of mutual respect, openness, win-win cooperation, shared prosperity and development promotion.
“It also helps to establish a more just world economic order, point the right way for African modernization, and garner more international support and resources,” he summed up.