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Sunday, October 29, 2017

Why Bagamoyo SEZ project important to Dar economy

RODGERS LUHWAGO, just back from China
THE potential investor in the Bagamoyo Special Economic Zone (BSEZ) project and the government have said the much-awaited scheme will bring enormous economic benefits to the country, including multiplying almost ten folds the GDP per capita income of Bagamoyo residents and taping the containerised cargo that Kenya and South Africa ports are now receiving.

The benefits to be brought by the project to Tanzania’s economy were explained by China Merchants Group and Tanzanian Ambassador to China, Mr Mbelwa Kairuki to the delegation of media practitioners from Tanzania who recently visited the Asian nation for a study tour and training on how media can help the government implement industrialisation drive.
China Merchants Group, a State-owned company with a turnover of over 1 trillion US dollars, signed an agreement with the government in 2013 to implement the project, a replica of what it did in Shenzhen, turning it into a modern and exemplary City in the world from a mere fishing village.
Presenting an overview of the project to media representatives, including its benefits at the company’s head office in Shenzhen City, China Merchants Group Director for Overseas Investments, Dr Moosa Mao said the project would, among other things, involve establishment of 190 factories in start-up zone.
He said that upon completion of the whole project, around 760 factories will have been established, catapulting the GDP per capita income of Bagamoyo from the current 901 US dollars to 8,100 US dollars by 2047.
He said that the project would bring about multiplier effects, including availing job opportunities to Tanzanians. He added that during project implementation, locals would benefit by providing labour force but upon completion of the undertaking a total of 270,000 direct job opportunities would have been created.
Dr Mao said the 5.6 billion US dollars project will involve construction of a modern port, industrial parks and real estate development.
He said it was sad to learn that while China Merchants Group had already implemented or started implementing projects in Djibouti, Ethiopia, Sri Lanka and Kenya, Tanzania remained hesitant to let the project kick started.
However, Dr Mao expressed his gratitude to President John Magufuli for his decisiveness to let the project implemented. “We signed the agreement with the Tanzanian government way back in 2013, but until today we haven’t done anything tangible on the ground.
Time to talk is over, let’s go for action now,” Dr Mao, who has spent several years in Tanzania conducting research on the project, insisted.
According to Dr Mao, Tanzanian government would not be required to bear any burden in implementing the project. He said the government would not need to spend any money nor engage in any form of borrowing to finance the project.
He said skills and technology transfer, provision of royalties and management expertise are some of the benefits that Tanzanians and their government stood to benefit from the project.
Ambassador Kairuki said he was confident that under President Magufuli the project would now swiftly be implemented. “The best thing about this project is that it supports the fifth phase’s industrialisation drive and President Magufuli has ordered for the project to be implemented.
The investor has already submitted his project implementation proposal. The only thing that is now being awaited is the final round of talks,” Ambassador Kairuki said.
Mr Kairuki said China Merchants Group has financial powers, technical expertise and experience in implementing such projects. The company turned a fishermen village of Shenzhen near Hong Kong into a multibillion dollar city with modern ports, financial institutions, industrial parks and modern real estate.
China Merchants Group owns a state-of-the art port in Shenzhen City known as Shekou Container Terminal (SCT). But, there are other container terminals in other parts of China, making it one of the largest companies with container terminals in the world.
Funds to finance the project are expected to be dished out by the investor with the support of Oman government. Under One Belt One Road initiative, China has offered to help a number of states, including some African governments in implementing strategic economic projects to stimulate growth.
Along the same initiative, the second largest economy has established China Africa Development Fund (CADF) to enhance the continent’s own ability to develop in market oriented ways.
The fund with 5 billion US dollar is meant to be loaned to African businesspersons who form business partnerships with Chinese people.

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