China-Tanzania
China-Tanzania Trade and Investment Overview
China remains Tanzania’s largest trading partner and investor. The economic relationship has evolved significantly, with substantial trade volumes and foreign direct investment (FDI) shaping the bilateral ties.
Trade Dynamics
Tanzania’s Exports to China
In 2022, Tanzania exported approximately US$ 447 million worth of goods to China, a decrease from US$ 606 million in 2021. The primary exports included:
- Other Oily Seeds: US$ 128 million
- Raw Copper: US$ 102 million
- Refined Copper: US$ 17.9 million
This reflects an annualized growth rate of 12.2% over the past five years, indicating a consistent demand for Tanzanian products in the Chinese market.
Tanzania’s Imports from China
Tanzania’s imports from China reached about US$ 6.54 billion in 2022, up from US$ 2.7 billion in 2021. Key imports comprised:
- Machinery: US$ 764 million
- Electrical Machinery: US$ 711 million
- Iron and Steel: US$ 552 million
The growth in imports underscores China’s role as a critical supplier of industrial goods to Tanzania.
Chinese Foreign Direct Investment (FDI)
China is the leading source of FDI in Tanzania. As of February 2024, there are 1,274 registered Chinese projects valued at approximately US$ 11.4 billion, creating an estimated 149,759 jobs across various sectors including manufacturing, agriculture, and services.
In 2021 alone, Chinese FDI inflows amounted to US$ 101.7 million, emphasizing China’s ongoing commitment to investing in Tanzania’s economic development.
Economic Relations
Tanzania is the largest recipient of Chinese aid in Africa, with historical ties dating back to the construction of the Tanzania-Zambia Railway (TAZARA) in the 1960s. Recent initiatives have included significant infrastructure projects such as the halted Bagamoyo port project, which was set to cost around US$ 10 billion, jointly funded by Chinese and Omani investors.
Recent Developments
In March 2024, a business forum highlighted the growing collaboration between Tanzanian and Chinese enterprises, with over 800 Chinese companies expressing readiness to invest in various sectors including manufacturing and telecommunication. This reflects a robust interest in fostering bilateral trade relations.
Latest Update: 29th October 2024
