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Thursday, December 3, 2015

Industrial relocation windfall need adequate preparations - don

ABDUEL ELINAZA in Johannesburg, South Africa
TANZANIA quest to capitalise on China’s industrial relocation to African countries will be a reality if it starts putting in place key infrastructures, University don has said.

Prof Garth Shelton of The University of Witwatersrand, said though the industrialization is a long term process, the concept is best if implemented gradually like China itself. The country’s economic and special zones are key in the realization of the industrialization strategy.
“Tanzania as well as other African countries need to create right condition to attract investments,” Prof Shelton told ‘Daily News’ at the sideline of China-Africa Relations Roundtable Conference.
The scholar who specialise on Sino-Africa said, “We need to create skills, transports and other infrastructure. I think we can do it and next four years Africa will change,” The roundtable was held prior to the Forum for China and Africa Cooperation (FOCAC), to look over the shoulder and strategies the way forward till next FOCAC.
Former China Ambassador to Zambia, Zhou Yuxiao said the African governments needed to come up with the right policies to optimize the gains of the windfall from industrial relocation.
He gave an example of some Railway Engineers who came from China for inspecting the railway line prior to rehabilitation but Tanzania imposed taxes on the equipment while Zambia waived them.
“The engineers’ on Zambian side collected their item but a month later equipment for Tanzania side where seating at the port,” Mr Zhou said. He said “paying taxes is of paramount importance but there should be consideration of the nature of the project,” Though Dar es Salaam was chosen as the first country for relocation, the Tazara incident shows Tanzania does not own the process.
This discourages those in authority on China side. “It is challenging,” said Amb Zhou, “strategies and policies for attracting capacity transfer and lager scale investment are still absent in many (African) countries.”
“Capacity transfer does not come automatically to any given country. It requires certain conditions, such as political stability, laws and regulations, and incentives policies. FOCAC seek to deepen Sino-Africa cooperation in trade and investment.
In decade and half, Sino-Africa trade increased by over 700 per cent to some 220 billion US dollars last year. China wants the trade volume to Africa to reach 400 billion US dollars by 2020.

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