China has always been on the lookout for resource-rich countries in Africa for investments. A recent case in example is Tanzania. China is the top investor in most African countries including Tanzania with 1098 projects and a total investment of approx. US$ 9.6 billion.
Since 2010, Tanzania – China relations have witnessed a marked upswing after discovery of natural gas reserves in the offshore basin of the Indian Ocean. China National Offshore Oil Corporation (CNOOC) acquired a substantial stake in Tanzania’s offshore natural gas fields. The bilateral relationship was elevated to a Comprehensive Strategic Cooperative Partnership in November 2022 during the state visit of Tanzanian President to Beijing. The two sides pledged to continue supporting each other on issues involving sovereignty, territorial integrity and other core interests and major concerns. Beijing plans to further deepen multifaceted bilateral ties, especially the economic relationship, with Tanzania in consonance with its Global Development Initiative (GDI).
In 2019, the two countries signed an MoU on Belt and Road Cooperation with a view to promoting infrastructure development and connectivity in Tanzania under Silk Road Economic Belt and 21st century Maritime Silk Road. Recently, China has proposed a Cooperation Plan to jointly promote the BRI taking into account the respective strengths and development demands of each other. Significantly, the plan underlined that enterprises, working under government guidance, would be the ‘main player’ and they would be encouraged to ‘act in conformity with market rules’. Emphasis on the salience of the market was indicative of Beijing’s predisposition as a hard bargainer if its economic interests were involved.
The key projects shortlisted under the Cooperation Plan include 1860 km TAZARA Railway between Dar-es-Salaam and Kapiri Mposhi, Zambia, Ngorongoro Lengai UNESCO Geopark Project, Jakaya Kikwete Cardiac Institute Project, Beidou Navigation Satellite Systems Applications Industrialization Centre, development of Confucius Institutes and Luban Workshops for skill development and vocational training support. The projects would be girded with stress on tourism promotion and cultural exchanges and financial support under Talented Young Scientist Program (TYSP). Beijing hopes the Plan would exponentially increase China’s footprint in Tanzania by opening more sectors to China’s business enterprises.
Though the projects under the Cooperation Plan might seem lucrative to the Tanzanian government, it needs to be aware that Chinese infrastructure projects in African countries have often been marred by controversies. Moreover, Chinese agreements, which are ostensibly commercial in nature, also have political clauses. They go a long way in serving politico-strategic objectives of the country.
