VICE President Dr Philip Mpango has said that the government is building buffers to economic shocks by working to ensure a cohesive society with equal rights in the legal, political and socio-economic aspects to correct past mistakes.

He made the remarks at the conclusion of the China-Tanzania Investment Forum in Dar es Salaam yesterday which focused on achievements during the past three years under the leadership of President Samia Suluhu Hassan.

“For this reason, the current administration has put more emphasis on strengthening governance institutions to guarantee the rule of law and the safety of local and foreign investment,” noting that the forum was an opportunity to engage in dialogue on policy reforms.

Policy and the regulatory framework can improve the business environment and attract local and direct investments, he said, underlining that addressing in investor concerns in a frank and transparent manner will help deepen economic ties.

It will catalyse sustainable development and open up beneficial opportunities for Tanzanian and Chinese businesses, he said, hailing China as the leading strategic investor and a major trade partner for Tanzania.

Annual foreign direct investment flows from China increased from $92m in 2019 to $221m in 2021, he said, pointing out that from January 2021 to December 2023, 256 projects were registered by the Tanzania Investment Centre (TIC).

Their estimated value stands at $2.4bn and expected to generate 9,122 job openings, bringing Chinese investments here to a cumulatively $11.4bn and creating 14,759 job opportunities. 

The top five FDI projects from China are in manufacturing, commercial buildings, agriculture, transportation and services, while in trade China accounted for up to 20 per cent of Tanzania’s total commodity exports last year, he said.

Prof Kitila Mkumbo, the Planning and Investment state minister in the President’s Office in his remarks, lauded Chinese investors for taking position just as the green light was given to invest.

He praised this character trait as largely peculiar to the Chinese people as they don’t seek too many assurances, and are also resilient to ensure they realize their investment goals regardless of the challenges.

Chen Mingjian, the Chinese ambassador, said that the two countries are close friends and this year marks the 60th anniversary of diplomatic ties between the two nations.

“China has been Tanzania’s largest trading partner for the eighth consecutive years,” she stated, noting that last year bilateral trade neared $8.8bn with a year-on-year increase of 5.7 per cent.

Chinese investment increased by 60 per cent over the three year period, with over a dozen delegations from China visiting Tanzania in one year, she said.

The VP said in other remarks that the government has been championing a transformative opening up agenda to build and sustain a vibrant economy underpinned by four pillars of reform, reconciliation, resilience and rebuilding.

Reforms focus on consolidating policy, legal provisions, institutional and regulatory reforms to improve the business environment.

“We are seeking to promote consistency and predictability of policies as well as enhance transparency and cut down red tape and bureaucracy in the government,” he emphasised, highlighting government efforts to fight corruption.

The president has given a stern warning to government officials who are seemingly not up to speed in facilitating investment, he said, vowing that top leadership stands ready to welcome and listen to any investor who is facing obstacles in government.

”Under the pillar of rebuilding the main goal is to grow an economy that will create more employment for the youth and open up more opportunities. Several initiatives have been taken in infrastructure, mining, energy and agriculture sectors. Similarly, efforts are made to revive the tourism industry through various promotional initiatives led by the president’s royal tour documentary,” he added.