China’s OBORI eyes on investment opportunities in Tanzania

By ALVAR MWAKYUSA

CHINA’s One Belt One Road Initiative is soon becoming a reality in Tanzania as investors and businesspersons from the Asian country are eyeing opportunities in various sectors of economy including agroprocessing, tourism and manufacturing.

Under its One Belt One Road initiative, China aims at promoting better economic integration with other countries in the world as it seeks to promote competitiveness in the global economy.
The Chairman of China- Asia Economic Development Association’s Committee of Oversees Co-operation, Mr Huang Zhaojin, said Chinese investors are interested in Tanzania due to its stable economic policy coupled with favorable business and investment environment.
Mr Zhaojin, who is leading a delegation of investors and businesspersons from his country, made the remarks during a tour at the Export Processing Zone Authority (EPZA) in Dar es Salaam on Monday.
The team is in the country for a fourday visit. “Our visit in Tanzania is part of implementation of the One Belt One Road initiative which was agreed by our presidents. We understand there are a lot of opportunities in this country,” Mr Zhaojin explained during a media briefing. Earlier, the EPZA’s Director for Investment Promotion and Facilitation, Mr James Maziku, said Tanzania could be a hub of China’s businesses and investments in the region.
“The proposed Bagamoyo Special Economic Zone and port is one area which could attract massive investments from Chinese investors for manufacturing of products for exports to other countries in the region,” Mr Maziku explained.
The EPZA official explained that such investments were beneficial to Tanzania through foreign exchange earnings, job creations, and stability of the local currency against foreign currencies as well as improving balance of trade between Tanzania and other countries. Making a presentation to the delegation, the EPZA’s Head of One Stop Service Centre, Mr Lameck Borega, explained to the visitors on the existence of vast market of 130 million people in the East African Community (EAC) and additional 300 million in the Southern African Development Community (SADC).
“Tanzania is strategically positioned, bordering eight countries six of which are landlocked and transiting their exports and imports,” he explained. The official informed the Chinese delegation that the government of Tanzania provides a number of incentives to investors in export processing zones as per the EPZA Act of 2012.
He mentioned some of the incentives as exemption of corporate taxes for initial ten years and waiver of value added tax on utilities to be used by the investor. Among others, a criterion for foreign investors in export processing zones is US $500,000 dollars and US $100,000 for the locals.