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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