Changing trends in the Tanzania–China relationship

The International Monetary Fund (IMF) defines foreign direct investment as a type of investment that involves a lasting interest in an enterprise that operates in a different country of origin from the investor, which can be classified into two forms: setting up new enterprises and the acquisition of existing corporate equity.

See, for example, Sigalla 2011.

See The Citizen 2012c.

This piece of work acknowledges Chiduashe’s argument in the sense that he does not mean that Africa is poor because of the aid it receives from development partners, even though the opposite is also true in some instances, i.e., that aid has been undermining Africa’s commitment to its development especially politically. There are a number of reports on this aspect in the literature, such as those by Moyo (2009), Tandon (2009, 2008), Easterly (2002), Watkins (1998), and Kabou (1995). Chiduashe’s argument should be taken as a critique of Africa’s mindset of aid dependency, but not necessarily a critique on the aid and development cooperation Africa has had with its development partners. The contribution of aid, if properly implemented and managed from both parties—namely, donor and recipient—is undeniable. However, the politics of aid are also known. In my view, Chiduashe’s argument aims at encouraging Africa to use carefully and strategically its natural and human resources to transform its socioeconomic condition for the current generation and create a stable foundation for the future generations. Africa must revive the spirit of self-help and self-reliance if it aims at building a self-sustaining economy.

Serious discussion related to theories on development and underdevelopment, see for example, Boeckh 1993, James and Wilber 1996, Isbester 2003, and Michael 2004.

Beregu’s opinion about his experience in China. Quoted from his article published in the Tanzanian newspaper The Citizen 2011.

See, for example, The Daily News 2012b; The Guardian 2012d.

This information is drawn from The Daily News Tanzanian newspaper (2012d), special article, see also Tanzania daily newspaper The Guardian 2012c.

The Daily News 2012c; The Guardian 2012d.

The annual yellow book on African development.

This is one of the oldest towns in East Africa, famous for commerce and trade. Kilwa is one of the coastal and historical small towns in Tanzania.

The day of union between Tanganyika and Zanzibar to form The United Republic of Tanzania.

These opinions were obtained from a second interview with the Facilitation Director at the Tanzania Investment Center (TIC) after analyzing the data. After noting the position of China among the leading 13 countries investing in Tanzania and its contribution to employment in relation to other leading countries, it was apparent that I needed to get more information related to the data and observations I made. Data show that Chinese investments create more jobs in Tanzania compared with investments from other countries. However, we need to thoroughly assess the types of employment created by Chinese investments and their contribution to the income of the respective employees. We need to know the type of labor force it demands in terms of educational level, sex, age, and—more importantly—income.

Investments of this nature may require big capital but few skilled people compared with manufacturing or construction, which also employ casual labor. The discrepancy between the capital and labor force required might be one of the reasons why investments from the other five leading countries appear to create fewer jobs than investments from China.

These data were derived from an in-depth interview (expert interview) with a Senior Official of the Chamber of Commerce, Industry and Agriculture (TCCIA) on 16 May 2011 at the chamber’s headquarter, Ohio Street, Dar es Salaam. This is a business center in Tanzania for various imported and locally made goods, especially construction materials, vehicle parts, textiles, electronic equipment, and domestic appliances as well as a big market for food such as vegetables and fruits.

They are learned and experienced and have worked with government institutions for many years since the 1970s. They know Tanzania from the Ujamaa period and they have experienced the transition to the contemporary period that is dominated by neoliberal ideologies. Some of them work with vital government institutions that are responsible for planning and management of economic activities. The said “experts” work with institutions such as the Chamber of Commerce, Agriculture and Industry, the Tanzania Investment Centre, the Business Registration and License Authority, and the Tanzania Bureau of Standards. I also had a long discussion with a senior official of the Chinese Embassy in Tanzania who is responsible for economic affairs.

They may damage a house.

This was also supported by a senior officer of the Chinese Embassy in Dar es Salaam, Tanzania, responsible for economic cooperation at his office, Msasani Road 362 B, Dar es Salaam, during our discussion on 3 June 2011.

Ibid.

This information was collected in a discussion with a senior government officer at the Tanzania Chamber of Commerce, Industry and Agriculture in Dar es Salaam.

Based on the Bank of Tanzania (BoT): Official Foreign Exchange Rates, May 7, 2012. From The Guardian 2012b.

This informations is drawn from the Tanzanian local newspaper The Guardian: Sunday Agenda 2012a.

See the conceptualization of “global market,” for instance: Sigalla (2012).

This testimony was given by my colleague (a sociologist) who belongs to the Sukuma tribe during one of our discussions about the manifestations and implications of Chinese investments in Tanzania.