China ready, will­ing to fi­nance Tan­za­nia in­dus­tri­al­iza­tion drive


Chee­rio Tan­za­ni­ans on in­dus­tri­al­iza­tion agenda! The fi­nan­cial storm is over as the Chi­nese are com­mit­ted to as­sist­ing the coun­try to re­al­ize its dream of in­dus­tri­al­iza­tion. Their am­bas­sador in the coun­try Dr Lu Youqing has un­der­scored the im­por­tance of Tan­za­nia adopt­ing the in­dus­tri­al­iza­tion drive and as­sured the coun­try has noth­ing to lose but the en­demic poverty.

“In­dus­tri­al­iza­tion is the only sure way of achiev­ing ex­pe­di­tious de­vel­op­ment through value ad­di­tions, em­ploy­ment cre­ation, in­no­va­tions and in­fra­struc­ture ser­vice de­vel­op­ment,” he said.

How­ever, he cau­tioned the bureau­crats to be re­silient and firm on the chal­lenges on the way wait­ing the Tan­za­ni­ans as many coun­tries in the west will dis­cour­age them out of envy and the fact that it is China and not them do­ing the need­ful.

“You are lucky you have a friend in the mode of Peo­ple’s Repub­lic of China that is whole­heart­edly be­hind you in re­al­iz­ing your dreams and ad­vance in the in­dus­trial econ­omy,” ob­served Dr Lu Youqing who as­sured the lieu­tenants of in­dus­tri­al­iza­tion in Tan­za­nia, the 14 elite gov­ern­ment es­tab­lish­ments and stake­hold­ers adding;”China gov­ern­ment is firm on its re­solve and com­mit­ments to over­see in­dus­tri­al­iza­tion in the coun­try as a mat­ter of pri­or­ity to his coun­try and credit to en­gage the African con­ti­nent.

“We have se­lected four coun­tries in Africa to be rep­re­sen­ta­tive of Chi­nese In­dus­tri­al­iza­tion Ini­tia­tive in­clud­ing Tan­za­nia, Ethiopia, Kenya and Ghana,” he noted.

“The Tan­za­nia choice was not made out of pity and the sub­sist­ing long good bi­lat­eral re­la­tions but also Tan­za­nia as a coun­try has some at­tributes that make it im­por­tant to be an insider in any ma­jor eco­nomic ven­ture con­cern­ing African de­vel­op­ment,” he said adding, “It is a choice of its own mer­its and should be con­fi­dent in what­ever it wants to achieve.”

“In fact,” he said, “we need it more than you do to prove to the West that we can do in­dus­tri­al­iza­tion in Africa when they failed to do it to prove our abil­ity and com­mit­ment to the con­ti­nent by re­mov­ing the neg­a­tive per­cep­tion be­ing pro­moted that China is in Africa to ex­ploit and not de­velop it.

“The mu­tual ben­e­fit is a con­cept and Chi­nese vo­cab­u­lary in in­ter­na­tional re­la­tions but the West is us­ing it to its ad­van­tage and that way un­der­mines China’s in­ter­ests.”

He un­der­scored the geopo­lit­i­cal pre­em­i­nence of Tan­za­nia through its mem­ber­ship in East African Com­mu­nity (EAC) and the South­ern Africa De­vel­op­ment Com­mu­nity (SADC); Tan­za­nia is a gate­way to 26 coun­tries economies. It means busi­ness to who­ever in­vests here!

More­over, Tan­za­nia is po­lit­i­cally sta­ble and has a lot of nat­u­ral re­sources and min­er­als that could be used as raw ma­te­ri­als for the planned in­dus­tri­al­iza­tion for both chem­i­cal and met­al­lurgy.

“It has good re­la­tions with many coun­tries glob­ally and for the past decade the GDP growth is 13.5 per­cent and not 6.5 per­cent as al­leged by the West. It is the high­est in the world,” he said.

Dr Lu am­pli­fied the im­por­tance of hav­ing con­fi­dence in one’s un­der­tak­ing and he be­lieves Tan­za­ni­ans are ca­pa­ble of do­ing it be­cause are or­ga­nized and feed­back from Min­istry of Ed­u­ca­tion in China is pos­i­tive cit­ing Tan­za­nian stu­dents lead­ing in ed­u­ca­tion in­sti­tu­tions in China com­pared to other stu­dents from Africa and are com­mit­ted to learn which is an as­set in in­dus­tri­al­iza­tion by ac­quir­ing tech­nol­ogy and in­no­va­tion.

“In this re­gard I’m happy to an­nounce to you that our gov­ern­ment is go­ing to honour all con­tracts in­clud­ing Mchuchuma and Li­ganga Iron and Coal met­al­lurgy, con­struc­tion of the Cen­tral Cor­ri­dor Rail­way and its ex­ten­sions, the Chi­nese in­dus­trial park at Kurasini and the Mega Bag­amoyo Port and the In­dus­trial City Con­struc­tion.”

He said these de­vel­op­ments are set for be­gin­ning soon and urged Tan­za­nian part­ners to be in the same zeal and speed.

“Mchuchuma is to be launched soon while Bag­amoyo Port in Au­gust will be ini­ti­ated and ex­pec­ta­tions that peo­ple would have been paid their nec­es­sary com­pen­sa­tions and so are peo­ple of Kurasini for the planned in­dus­trial and busi­ness cen­tre there.”

Con­vinc­ingly Am­bas­sador Lu said: “I re­peat in Bag­amoyo we are go­ing to build an in­dus­trial city in full to make it a show­case to oth­ers.

The am­bas­sador was re­spond­ing to re­flec­tions and re­quests at the Fol­low up of Sem­i­nar on China Tan­za­nia In­dus­try and Tech­nol­ogy Trans­fer and Co­op­er­a­tion at the Eco­nomic and Com­mer­cial Rep­re­sen­ta­tive of­fice in Tan­za­nia last week, that was co chaired by Lin Zhiy­ong, the chief Rep­re­sen­ta­tive and Dr Ade­helm Meru the Per­ma­nent Sec­re­tary of MITI.

Lu went far­ther by re­veal­ing that of the three East African coun­tries of Kenya, Ethiopia and Tan­za­nia they are more con­fi­dent with Tan­za­nia that seems to be the best of all.

“But the two want to sur­pass us we should not al­low that and do bet­ter by be­ing ag­gres­sive and hav­ing closer con­tact by es­tab­lish­ing struc­tures and or­ga­ni­za­tion to step up co­op­er­a­tion,” he ap­pealed.

In a re­join­der Dr Meru noted that the in­dus­tri­al­iza­tion drive has been the brain­child of the CCM party and its gov­ern­ment in the Vi­sion 2025 and was planned to be im­ple­mented in three phases 2012 to 2026 and thus deep rooted in the gov­ern­ment ma­chin­ery but the im­pe­tus has been pro­vided by the Fifth Phase Gov­ern­ment by ac­quir­ing the right de­vel­op­ment mix in­clud­ing in­dus­tri­al­iza­tion ob­jec­tives, in­fra­struc­ture and in­no­va­tion work­ing jointly and sev­er­ally.

He said the aim was to build the econ­omy from a least de­vel­oped coun­try (LDC)sta­tus to mid­dle in­come through sus­tain­able in­dus­trial pol­icy (SIDC).

In at­ten­dance were gov­ern­ment es­tab­lish­ment in­clud­ing Dr Adel­hem Meru, Per­ma­nent Sec­re­tary Min­istry of In­dus­try, Trade­andIn­vest­ment,Am­bas­sador Ab­dal­lah Kil­ima Di­rec­tor Min­istry of For­eign Af­fairs, Elisante Mb­wilo As­sis­tant Di­rec­tor Pres­i­dent’s Of­fice Pub­lic Ser­vice Man­age­ment and Good Gover­nance, Zacharia Kingu In­vest­ment Pro­mo­tion Man­ager Tan­za­nia In­vest­ment Cen­ter (TIC) and Louis Ac­caro Di­rec­tor Tan­za­nia Pri­vate Sec­tor Foun­da­tion (TSPF).

Other par­tic­i­pants were rep­re­sen­ta­tives from Min­istry of In­dus­tries, Trade and In­vest­ment (MITI) con­sult­ing sec­tors in­clud­ing Tan­za­nia In­dus­trial Re­search De­vel­op­ment Or­ga­ni­za­tion (TIRDO) Ex­port Pro­cess­ing Zone Author­ity (EPZA), Na­tional Eco­nomic Em­pow­er­ment Coun­cil (NEEC) and the Na­tional De­vel­op­ment Cor­po­ra­tion (NDC) Man­ag­ing Di­rec­tor Mlingi Elisha Mkucha. It seems NDC will hold the man­tle to spear­head in­dus­tri­al­iza­tion. It has a long his­tory on that.

Dr Meru said they was long term agenda of 15 years 2012 to 2026 and short agenda of five years de­vel­op­ment plans in three se­quence of five years cul­mi­nat­ing into the Vi­sion 2025 of be­com­ing a mid­dle in­come econ­omy. Key in­dus­trial projects The iron and steel met­al­lur­gi­cal com­plex has two ma­jor projects in­clud­ing the Li­ganga Iron ore and sponge iron prod­ucts

The Li­ganga Iron Ore project is lo­cated in Ludewa District, about 850 km South­west of Dar es Salaam. It is the big­gest iron ore re­sources iden­ti­fied in the coun­try with the proven re­serve of 126 mil­lion tones.

The iron ore de­posited in Li­ganga is known as Vanado-Titanium Mag­netite. Iron ore is a re­source for steel man­u­fac­tur­ing in­dus­tries and other fer­rous based in­dus­tries. The project is be­ing de­vel­oped by Tan­za­nia China In­ter­na­tional Min­eral Re­sources Ltd (TCIMRL) as an in­te­grated project with Mchuchuma.

TCIMRL, which is a joint ven­ture com­pany be­tween NDC and Sichuan Hongda Group of China, will in­vest USD 1.8 bil­lion at Li­ganga for es­tab­lish­ment of 2.9 mt/y iron ore mine and Iron and steel Com­plex to pro­duce 1.0 mt/y of iron and steel prod­ucts, vana­dium pen­tox­ide and titanium diox­ide fol­low­ing suc­cess­fully bank­able fea­si­bil­ity study.

The Li­ganga project is ex­pected to start oper­a­tion by 2018/19. Sponge Iron Prod­uct The sponge iron plant will be es­tab­lished in Ludewa district uti­liz­ing iron ore from Ma­ganga Mat­itu (part of Li­ganga) and coal from Kate­waka to pro­duce sponge iron.

Ma­ganga Mat­itu Re­source De­vel­op­ment Lim­ited (MMRDL) is im­ple­ment­ing the project and the share­hold­ers are NDC and MM Steel Re­sources Pub­lic Lim­ited Com­pany (MMSR PLC). Project due dili­gence and bank­able doc­u­ment are be­ing fi­nal­ized.

The project in­tends to es­tab­lish a 400,000 tpa of Sponge Iron Plant that will be used to pro­duce 300,000 tons of iron and steel prod­ucts per year. Pro­duc­tion is ex­pected to start in 2018/19.

Iron ore trans­porta­tion

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