HomeCentral AfricaIs Chinese investment in Africa threatening non-Chinese investment?

Is Chinese investment in Africa threatening non-Chinese investment?

Tanzania – Several Chinese-funded projects have been implement in the East African country of Tanzania in the past few years, which raises the question as to whether Chinese investment in Africa will crowd out non-Chinese investment.

This follows the awarding of a $7.6-billion contract by the Tanzanian government to a China Railways Materials-led consortium to construct a 2 561 km railway connecting Rwanda, Burundi, Uganda, and the Democratic Republic of Congo to the Dar es Salaam port.

The Tanzania government also announced a $1.4-billion framework agreement with China Railway No 2 Engineering Group on a 1 000 km railway connecting iron-ore and coal mines in southern Tanzania to Mtwara port and an agreement with China Merchant Holding International to build a new mega port and economic zone at Bagamoyo expected to cost at least $10 billion.

Tanzania and China have also signed an investment deal to build a satellite city to ease congestion in the commercial capital Dar es Salaam.

China, which is Tanzania’s largest trading partner, has displaced the UK to become the largest foreign investment source, with $4 billion in investments in 2014, according to local newspaper The Citizen.

Top Stories:

Old mines pose increased safety risks

Illegal strike at Husab mine end, no resolution reached

Central Rand Gold extends potential sale to Huili by another month

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.