Tanzania signs investment deals worth US$1.7bn with China

Posted on : Wednesday , 10th December 2014

 The deals would cover areas such as infrastructure, power distribution, real estate and business cooperation, added Kikwete.

A report in Reuters Africa has stated that the countries will develop a satellite city worth US$1bn and a financial centre worth US$500mn in Dar es Salaam. The two projects are jointly developed by the China Railway Jianchang Engineering Company and Tanzania’s National Housing Corporation.

“The satellite city, on the outskirts of Dar es Salaam will be a self-contained urban zone equipped with water, electricity, roads, banks, schools and hospitals. It is designed to ease congestion in Dar es Salaam’s central business district,” said Kikwete.

The new investment deals mark China’s growing economic presence in Tanzania, which has discovered natural gas off its southern coast, said a spokesperson for Kikwete.

“In recent years, Chinese companies have signed deals to build a new port, rail network and a 532 km natural gas pipeline. Between July and September 2014, Chinese investments totalled US$534mn, compared to US$124mn during the same period last year,” added the spokesperson.

Kikwete added that he hoped to boost Tanzania’s exports to the Asian country.