IPP woos Chinese investors to Tanzania

05Dec 2018
Mtapa Wilson
DAR ES SALAAM
Financial Times
IPP woos Chinese investors to Tanzania

THE Executive Chairman of IPP Limited, Dr Reginald Mengi, yesterday urged members of the business community from China to form joint ventures with IPP Ltd and take advantage of investment opportunities being created by President John Magufuli’s industrialisation drive. 

The Executive Chairman of IPP Limited, Dr Reginald Mengi (C), welcomes the Chairman of the Council for Promoting South-South Cooperation, Lu Xinhua (L), who led a business delegation from China to pay a courtesy call on Dr Mengi at the IPP headquarters in Dar es Salaam yesterday. Right is the Chinese Ambassador to Tanzania, Wang Ke. Photo: Selemani Mpochi

Dr Mengi, who is one of the country’s leading industrialists, told a delegation of 17 companies from China that paid a courtesy call on him in Dar es Salaam that there were huge opportunities for joint ventures.

He named some of the possible joint venture mega projects as construction of the Tanzania-Uganda natural gas pipeline and investments in advanced cashew nut processing factories to produce cashew butter and edible oil.

Dr Mengi also mentioned other possible joint venture opportunities between Tanzanian and Chinese private sectors as the revival of the General Tyre factory in Arusha and investments in the country’s mining industry.

The Chinese business delegation is in the country to explore avenues for investment and economic cooperation.

Dr Mengi described Tanzania as the land of opportunity with abundant natural resource wealth that the Chinese business community could benefit from investing, drawing from the historically strong bilateral relations between the two countries.

He said China, which is among the world’s top industrialised countries with advanced science and technology, could play a key role in the industrialisation of Tanzania.

“I’m looking for joint venture partners to invest in the construction of the gas pipeline from Tanzania to Kampala.  I will be happy to discuss with any partners who are interested to invest in this project,” said the IPP chief executive.

“I would also like to have a joint venture with any partner in the cashew nut processing industry, which will add value to raw nuts in the country.”

Dr Mengi told the Chinese business delegation that he recently launched a joint venture company to assemble vehicles in the country with South Korean partners, adding: “In this case we need tyres, so I am also looking for joint venture partners to revive the General Tyre factory in Arusha.”

The Chinese Ambassador to Tanzania, Wang Ke, said that her embassy was working closely with IPP Ltd in building a bridge that can enable Chinese businessmen to maintain win-win cooperation with Tanzania.

“Dr Mengi is normally interested to form joint ventures with Chinese companies.  And today he has mentioned his four major projects which he wants to work together with Chinese investors.  So this is an opportunity to both Chinese and Tanzanian businessmen,” Wang said.

The Chairman of the Council for Promoting South-South Cooperation, Lu Xinhua, said the delegation of the business community from China comprised of 17 companies dealing with several sectors like infrastructure investment and engineering, electronic technology, service provider for high speed railway, finance, banking and industries.