Bagamoyo port work for inaugration

[Geza Ulole]

Bagamoyo port work for inaugration

Beijing — CHINA'S new president, Mr Xi Jinping, is expected to officially inaugurate the construction of the proposed modern Port at Bagamoyo, in Coast Region, when he jets into Tanzania on his first state visit abroad.

Addressing a forum of Chinese Companies that are investing in Africa at the Crowne Plaza Hotel in Beijing, the Tanzanian envoy to China, Mr Philip Marmo, said that the proposed ultra-modern port to be constructed at Bagamoyo will be a crucial point of entry linking Africa to Asia and Europe through a special export processing zone.

Mr Marmo said that China will be supporting Tanzania in executing the ambitious project which will also include a satellite city and airport. This, he said, will be in addition to a major highway connecting the port to inland regions of Tanzania as well as neighbouring landlocked countries.

"Bagamoyo is geographically feasible when it comes to international trade as it has been found to be the closest location on the continent when reaching Africa from Singapore, but also the central point where the East and central parts of Africa converge," said Mr Marmo.

China's Vice-Foreign Minister, Mr Zhai Jun, said that in addition to the said task, the new President of China will hold talks with the Tanzanian Head of State, Mr Jakaya Kikwete in Dar es Salaam. The two leaders will be expected to discuss new areas of cooperation, trade and investments.

The Chinese leader is expected to jet into Tanzania on March 24, this year. "China believes that Tanzania is in a better position to pivot our country's new vision for Africa in which the 'Chinese dream' is to complement the 'African dream' in realizing both goals aimed at improving their citizens' welfare through speeding up development," said Mr Jun.

He said that the 'Chinese dream' was to improve the lives of its 1.3 billion citizens by 2020 when residents are expected to have their individual earnings either doubled or tripled.

Earlier on, the Director General of African Affairs at the Ministry of Foreign Affairs here, Mr Lu Shaye, said the new Chinese president, Mr Xi Jinping, places Tanzania on top priority because the country will be the first in Africa that he will be visiting from March 24, this year.

"Historically, Tanzania is the oldest friend of China in Africa since the days of the founding President, Mwalimu Julius Nyerere, who is still a household name in China," said Mr Shaye.

He added that the new leader was keen on rekindling as well as elevating the friendship to a higher level. "Our president believes that Tanzania will play an important role as partner in the new Chinese agenda of strengthening cooperation with the African continent through economic, social and cultural exchanges," he said

Source: http://www.dailynews.co.tz/index.php/local-news/15667-bagamoyo-port-work-for-inauguration

 

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What Xi Jinping's visit to Tanzania means

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Tuesday, 19 March 2013 22:02

​ By Alex Bitekeye The Citizen ReporterDar es Salaam. Xi Jinping, the new Chinese President, is expected to jet into Dar es Salaam on Sunday on a visit that has great significance for Sino-Tanzania relations. Tanzania will be the second country--after Russia--that the Chinese president visits next week, only days after he officially assumed the presidency, signifying how much the Chinese value relations with Tanzania. Tanzanian leaders will want to ride on the back of the visit to chart a new direction in the friendship that ensures that both countries benefit equally from the relationship, according to local international relations and political science experts who spoke with The Citizen this week. Tanzania is rich in minerals, timber and natural gas and there are indications that oil could be discovered in the near future--all of which China would need for its industries. Tanzania could, in turn, benefit from development finance that is crucial in building infrastructure and agro-processing industries, especially in view of the fact that Chinese aid tends to have lesser conditionalities than that from the West. Mr Xi's visit to Tanzania and two other African nations has been described as "a trip of friendship and inheritance" that is expected to broaden cooperation and map out future prospects, according to Chinese analysts. But the Kikwete government has been advised to push harder if it is to accrue more benefits for Tanzania. "Since the China-Africa Cooperation Forum was founded in 2000, the content of cooperation between China and Africa is increasingly expanding," the state-owned Xinhua news agency said in a report yesterday. Mr Xi's visit to Tanzania, South Africa and the Congo Republic is expected to accelerate his country's cooperation with Africa and push forward implementation of the agreements between China and African nations." But Dr Benson Bana, head of the department of Political Science and Public Administration at the University of Dar es Salaam, said: "Our President should find a way of telling his counterpart what Tanzanians want from China. They should invest more in this country, rather than making us a ready market for their products." China's industries need raw materials and markets and this is what the new leader must strive to provide, analysts say, but not at the expense of Tanzania--which needs those products, but not when quality is not guaranteed. Moreover, they should help Tanzania construct its own industries to produce finished goods," according to Dr Bana. The former director of the Tanzania-Mozambique Centre for Foreign Relations, Professor Abdallah Safari, also wants Tanzania to state its case clearly because whatever China is looking for will have been crafted in its own interests. "These are key issues to crosscheck: They (Chinese) are looking for resources to feed their industries, which Tanzania can provide," Prof Safari noted. "But what does Tanzania get in return?" While China has helped Tanzania develop its infrastructure and offered more technical support than any other foreign nation, the general feeling is that there is room for more. "The new Chinese leadership could be looking for ways to revitalise the old friendship," says the professor. "It is only that they should be restricted from hawking here. They should invest in other areas." Dr Bana wants directives that will lead to the Chinese initiating projects such as large scale agriculture and industries. Mr Bashiru Ally, also of the University of Dar es Salaam, is calling for a new approach to Sino-Tanzania relations, given that they are currently based on resources. "It is a one-way relationship." says Mr Ally, "That means giving more while receiving less, All they are doing is define their intentions towards our resources.The ideal situation would be for the relationship to change to an equal profits one." Mr Ally spoke of an economic shift of power which is now moving from the Atlantic Ocean side to Indian Ocean side, adding: "The countries on this side include China, which gives that country a hard time finding where it can get raw materials and also a standby market for its products." The 1,800-kilometre Tazara railway, built in the 1970s, is the greatest monument yet to Tanzania-China relations. The project was made possible by the fact that the ideologies of Mwalimu Julius Nyerere and China's revolutionary leader, Chairman Mao Zedong, dovetailed. One of the factors that made the rail line urgent was that newly-independent Zambia had a hard time transporting exports and imports via the Indian Ocean through Zimbabwe, which was still under colonial rule. What Xi Jinping's visit to Tanzania means

 

[Geza Ulole]

Xi set to unveil $10bn Tanzania port project​

By Leslie Hook in Beijing
March 25, 2013 -- Updated 1116 GMT (1916 HKT)

Xi arrived in Tanzania late on Sunday, and will attend the Brics summit in South Africa on Tuesday and Wednesday​

(Financial Times) -- Chinese President Xi Jinping is expected to unveil a big port project in Tanzania during his first visit to Africa as head of state, highlighting China's growing infrastructure investments in the resource-rich continent.

Chinese investment in and trade with Africa have soared over the past decade, with China's lending to developing country governments and companies surpassing that of the World Bank during certain periods.

The visit to Tanzania is rich in symbolism because the Tanzania-Zambia railroad, built in the 1970s, was one of China's first major infrastructure projects in Africa.

During his trip, Mr Xi is expected to sign several co-operation agreements with Tanzania, including plans for a $10bn port project in Bagamoyo, Philip Marmo, Tanzania's ambassador to China, told the Chinese newspaper 21st Century Business Herald.

The port, which is located north of Dar es Salaam, will be linked to a special industrial zone and function as a trade hub linking Asia and east Africa, with the state-owned China Merchants Group leading the port construction, according to Mr Marmo.

Tanzania has made several natural gas discoveries in recent years and China surprised western donors when it offered to build and finance a 532km gas pipeline to link the gas deposits in the south of the country to the port in Dar es Salaam, despite the fact that there is not yet the proven gas resources to fill the pipeline and no plan to sell what little exists.

Construction on that pipeline, which was funded by a $1.2bn loan from the Export-Import Bank of China, nevertheless began last year on what one observer said was "ludicrously good" terms, with a seven-year interest-free period before low rates come into effect over 30 years. But others cautioned it may be an expensive way to indebt Tanzania to Chinese interests.

China's top diplomat for Africa said it was "inevitable" that Mr Xi included the continent on his first overseas trip as head of state.

"Africa's importance in our foreign policy has been rising," said Lu Shaye, head of the African affairs department at the Chinese foreign ministry. "We want to strengthen our co-operation with developing countries, this is a main direction of our foreign strategy."

Mr Xi arrived in Tanzania late on Sunday, and will attend the Brics summit in South Africa on Tuesday and Wednesday, followed by a visit to the Republic of Congo on March 29-30.

In a statement issued on Sunday, Mr Xi said China and Tanzania shared an "all-weather" friendship.

"In the nearly five decades since we have established diplomatic relations, we have built up trust and constantly supported each other," he said.

Mr Xi is expected to give a speech on China-Africa relations later on Monday. The China Merchants Group declined to comment on whether they were involved in projects in Tanzania.

Xi set to unveil $10bn Tanzania port project - CNN.com

 

[Full Moon]

I would wish it was in Tanga (serving the Northern Tanzania)

I know there are plans to build one port to serve Mtwara and Lindi in the Southern Tanzania.

 

[Geza Ulole]

[h=1]China Aid to Boost National Budget[/h]THE 17 agreements signed last Sunday between Tanzania and China are worth 14 billion US Dollars (about 22tr/-), it has been revealed.

The Minister for Finance and Economic Affairs, Dr William Mgimwa, told the 'Daily News' that the huge funding will cover many strategic economic areas and will have a direct impact on the national budgets at least for the coming two fiscal years.

The minister said that his ministry would prepare the exact statistical details contained in the agreements and areas which would be directly or indirectly benefit from the agreements.

The minister, however, confirmed that many areas will be covered in the framework agreements which embrace various economic and technical co-operations.

"We have got a number of projects that will benefit from this huge funding and some of them will enjoy interest free loans. What is important is that this economic boost will definitely have a great impact on our budgets," he stressed.

According to Dr Mgimwa, some of the projects that will benefit from the funding include the ICT Broadband, Bagamoyo Port, Mtwara Port and power transmissions. Others include modernising of the Mtwara and Tanga ports where apart from Chinese support; the projects will also invite the participation of the Public Private Partnership.

The signing of the agreements was witnessed by President Jakaya Kikwete and the new Chinese President, Mr Xi Jinping who concluded his two-day visit in Tanzania on Monday. Mr Xi is currently attending a two-day summit of leaders from the BRICS countries -- Brazil, Russia, India, China and South Africa -- held in the South African port city of Durban.

Some of the projects in the framework agreement included the development of port-side industrial zone and seaport at the Bagamoyo Special Economic Zone, Infrastructure Development Cooperation (Phase I) and a project on modern agricultural industrialisation Zone.

Others include a loan agreement between the Bank of Tanzania (BoT) and China EXIM Bank concerning the National ICT Broad Infrastructure Project Phase III Sub-Phase 1 and a Funding Support Agreement for Development Project.

There was an exchange of Letters for Chinese government Provision of a TV Broadcast Truck to Tanzania Broadcasting Corporation (TBC), Provision of Concessional Loan by China to Tanzania (National ICT Broad Infrastructure Project (Phase III Sub-Phase 1).

Also, there was a handing over of a certificate of the China-Aided Nyerere International Convention Centre, the Promotion and Reciprocal Protection of Investments as well as agreement on Interest Free Loans.

The Economic and Technical Cooperation between the Chinese and Zanzibar governments included the exchange of letters for China-Aided Abdullah Mzee Hospital Rehabilitation and Upgrading Project and Provision of a Set of Container Inspection Equipment at the port of Zanzibar.

Last Sunday President Jinping and President Kikwete agreed to build a comprehensive cooperative partnership characterised by mutual benefit and win-win results. China has become Tanzania's largest trading partner and second largest source of investment records, showing that bilateral trade reached $2.47 billion last year.

http://www.dailynews.co.tz/index.php/local-news/15880-china-aid-to-boost-national-budget

 

[Geza Ulole]

[h=1]Tanzania to hike spending in 2013/14, boost infrastructure[/h]8:49am EDT

• Economy grew 6.9 percent in 2012
• IMF urges Tanzania to cut power outages
• Government targets inflation in single digits

By Fumbuka Ng'wanakilala

DAR ES SALAAM, March 27 (Reuters) - Tanzania plans to raise spending by 17 percent in 2013/14 to 17.7 trillion shillings ($11 billion) with a focus on infrastructure projects, and aims to lift growth to 7 percent in 2013.

The economy grew 6.9 percent in 2012 from 6.4 percent a year before, above the projected 6.8 percent, helped by transport and communications improvements and higher manufacturing output, Finance Minister William Mgimwa told a closed session of parliament on Monday.

The minister, whose presentation was seen by Reuters on Wednesday, also said the government aimed to reduce inflation to single digits. Prices rose 10.4 percent in the year to February.

East Africa's second-biggest economy, plagued by power cuts and other infrastructure challenges, is fast-becoming a regional energy hub following huge offshore natural gas discoveries. It plans to have a gas utilisation master plan in place in 2013/14.

The sectors that led growth in gross domestic product (GDP) in 2012 were communications which rose 20.6 percent, financial services rising 13.2 percent. Manufacturing rose 8.2 percent and construction 7.8 percent.

"The government plans to boost GDP growth to 7 percent in 2013, 7.2 percent in 2014, 7.5 percent in 2015 and 8.5 percent in 2017," the minister said.

The International Monetary Fund said in October that Tanzania needed to limit power outages to keep growth buoyant, predicting the economy would expand by 6.5 to 7 percent in 2012. It said growth was expected to "remain buoyant" in 2013.

"Priority in the government's 2013/14 budget will be in ... increasing availability of electricity, developing transport infrastructure...and strengthening information and communication technology," he said in the presentation.

INFLATION FALLING
Tanzania signed several agreements with China during President Xi Jinping's visit this week for low-interest loans to build a new port and to develop a national information and communications technology network.

Mgimwa said the government planned to raise 9.88 trillion shillings in tax revenue in 2013/14, up from a targeted 8 trillion shillings a year before.

Loans and grants from external sources would fund a fifth of the total budget, or 3.85 trillion shillings. Commercial borrowing would raise 2.86 trillion shillings, with other income coming from non-tax revenue and revenue from local authorities.

Development expenditure will be 5.15 trillion shillings.

"The government will continue to curb the inflation rate and reduce it single digits," said Mgimwa, adding the government aimed to reduce it to 9.5 percent in June this year and to 6 percent in June 2014.

Inflation eased to 10.4 percent in the year to February from 10.9 percent in January. It has now fallen in 12 of the last 13 months.

The government is working on a draft national gas policy and plans new legislation this year to regulate the industry.

Norway's Statoil and Britain's BG announced this month they were going ahead with plans to build a liquefied natural gas (LNG) terminal in Tanzania after Statoil made its third gas discovery in the region in a year. ($1 = 1617.0000 Tanzanian shillings) (Editing by Edmund Blair; editing by Ron Askew)

Business & Financial News, Breaking US & International News | Reuters.com

 

[Geza Ulole]

Dar seeks $32bn to build port, railway

Tanzania is seeking funds from the equity market to construct one of the largest development corridors in the region.

The government hopes to raise Tsh53 trillion ($32 billion) for the Mwambani Port and Railway Corridor (Mwaporc) in the Tanga region.
Top officials of Mwaporc met the East African Community Secretariat early last month to drum up support for the project it termed to be integrated into the region's infrastructure master plan.

According to Cuthbert Tenga, a co-director at Mwaporc said: "The EAC Secretariat approved the project saying it had the potential of transforming the economies of East and Central Africa."

The Mwambani project includes the construction of a deep sea and free port as well as a new heavy haul standard gauge railway that will link the Indian Ocean from Tanzania through Uganda and the Democratic Republic of Congo (DRC).

The deep sea port will allow direct shipping from international ports and thereby cut the cost of logistics for exporters and importers.
The free port at Tanga to be constructed adjacent to the new deep sea port will host manufacturing, logistics and other service industries. Key anchor activities shall include an integrated iron and steel manufacturing cluster.

Mr Tenga said a number of international companies had expressed commitment to inject capital for the smooth implementation of the project.

"We have received commitments from agencies in England, Canada, US, Scotland, South Africa and the Middle East," said Mr Tenga.
Local companies that have shown interest in the project include the National Social Security Fund (NSSF) and the National Housing Corporation (NHC).

According to Mr Tenga, once they acquire the funds, they plan to list Mwaporc either in Hongkong or London.

"Johannesburg Stock Exchange has expressed interest in cross-listing the project into their stock market, but that will be made possible after listing the company," he said.

Mr Tenga said the project was currently in the prefeasibility stages and construction was expected to take off within 18 months.
"We are now negotiating a memorandum of Understanding (MoU) with the Ministry of Investment and Empowerment in the Prime Minister's Office," he said.

Dar seeks $32bn to build port, railway - News - www.theeastafrican.co.ke

 

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