As Prof Lipumba lauds its economic achievements, prospects for cooperation
Chinese President Xi JinpingThere is no doubt that the world’s attention is going to be directed to Dar es Salaam to listen to what the newly inaugurated Chinese President Xi Jinping will announce, considering that China is now the second largest economy in the world.
Minister for Foreign Affairs and International Cooperation Bernard Membe has clearly stated that about 17 economic and development agreements will be signed between Tanzania and China.
The opposition Civic United Front (CUF) Chairman Prof Ibrahim Lipumba held a press conference yesterday in Dar es Salaam to express his gratitude for the historic visit of President Xi.
However, Prof Lipumba has cautioned the government against signing agreements for projects that end up being white elephants.
The caution from Prof Lipumba, an economist-turned politician, has been made in reference to the much-touted project of the expansion of the Julius Nyerere International Airport.
The job was to be carried out by a Chinese firm but until today the project has remained a dream with no explanation from the government.
He further noted that the problem is implementation of our set policies, which according to him are not well followed, though the government prepares its plans which at the end of the day are not executed.
He gave an example of the contract which the government entered with Chinese company and another company from Germany (Siemens) to generate electricity in the southern regions, which did not materialize.
To great dismay the government cancelled the contract and signed another contract for the gas pipeline generation project from Mtwara to Dar es Salaam, which according to him has spent billions of taxpayers’ money wantonly. He said the government should develop a strategy of building their own industries and should not become a home for growing raw material and export them to China.
The cost of industrial production in China is increasing and employment of more than 90 million people in that country could shift to other countries, he said. “It is important therefore that Tanzania should put in place its plans in a bid to increase employment opportunities for industrial production that moves from China,” the veteran economic adviser asserted.
It was equally important for the Government to set aside an area covering between 100 and 200sq kilometers between Tanga and Mtwara port for economic expansion, he stated. He was of the view that the Government should work in collaboration with the private sector so as to upgrade its infrastructure and to make the area a special economic zone for industrial growth and exports.
In line with this strategy, the government should create a conducive environment to enable foreign and local investors enhance their investment opportunities, so as to increase employment chances for local people, mostly youths.
In many African countries there are so many claims that counterfeit products from China are sold in African markets, stifling its industrial growth, he pointed out.
Chinese companies have invested in many African countries especially in the minerals sector and are effectively participating in the construction of important infrastructure such as roads.
Petty traders from China have emerged to conduct their business in many African countries, an aspect that creates a lot of debate among the local people who are mostly in the opinion that they have come to snatch away their opportunities which should be entirely left for Africans.
The seasoned economist has thrown blame to the Department of Immigration that they should be careful while issuing work permit to foreigners and see if they are entitled to special work which cannot be done by local people.
He has also urged our diplomat missions outside the country to countercheck reports of guests coming into the country, while also observing transparency with issues related to the signing of contracts and their responsibilities.
The relationship between China and Tanzania that started back in the mid-1960s from the economic point of view has facilitated many economic joint cooperation projects between the two countries, he pointed out. Two very successful projects are Friendship Textile Mills located at Ubungo in Dar es Salaam and building of the Tanzania Zambia Railway line (TAZARA) in the early 1970s and mid 1970s respectively.
Even after the supposed privatization of Urafiki Textile Mills it still has ineffective production levels, he said, also citing TAZARA railway which does not perform well. In 2002 the railway transported 677 tones of cargo while in 2011 the load had been reduced to 248 tones, he pointed out.
A high point in with the low interest rate of his evaluation of China-Africa relations was the plan by China to disburse to African countries loans of $20 billions at low interest rates in the coming three years.
This is double the amount of aid given earlier, issued for the construction roads, railways and other infrastructure, he stated. Along with agriculture, industries and other generating economic activities in the medium and small business will be of interest in discussions between the two sides.
In 2011, the total value of trade between China and Africa was $166 billion, where Africa sold its products to China worth $93 million,, he pointed out. Such products are chiefly raw materials especially crude oil, along with minerals such as copper and iron. Africa imported from China products worth $73 million, mainly industrial products.
As China started to embark on its policy changes in 1978, the National Domestic Gross Product (GDP) stood at $190 million. However, the changes ignited rapid economic growth at an average rate of more than 10 percent per year, for 34 years. In world economic history, according to Professor Lipumba, there is no country which has successfully increased its economy consistently for a longer period and at such a fast pace as China.
During the period under review, foreign trade grew at the average rate of 16.3 percent per year. China with a total population of 1.34 billion people now has an average per capita Gross Domestic Product of approximately $4,930 whereas Tanzania’s per capita GDP stands at an average of $ 530.
More than 600 million people moved out of abject poverty in the period of 30 years, Prof. Lipumba noted in his seven paged report circulated yesterday in Dar esc Salaam.
In his report, however, Professor Lipumba said that there is no country which can struggle to reduce poverty without increasing its national economy as well as employment. “In issues of economy there is no miracle whatsoever,” he emphasized.
President Xi and his delegation are expected to sign about 17 agreements on economy and development, including the construction of Bagamoyo Port, bigger than the port of Dar es Salaam upon its completion, and inaugurate the Julius Nyerere International Conference Centre.
Foreign Minister Membe said the distinguished guest is expected to announce in Dar es Salaam his country’s economic and development policies and how they relate with those of Tanzania and perspectives of other African countries.
As Prof Lipumba lauds its economic achievements, prospects for cooperation
Chinese President Xi JinpingThere is no doubt that the world’s attention is going to be directed to Dar es Salaam to listen to what the newly inaugurated Chinese President Xi Jinping will announce, considering that China is now the second largest economy in the world.
Minister for Foreign Affairs and International Cooperation Bernard Membe has clearly stated that about 17 economic and development agreements will be signed between Tanzania and China.
The opposition Civic United Front (CUF) Chairman Prof Ibrahim Lipumba held a press conference yesterday in Dar es Salaam to express his gratitude for the historic visit of President Xi.
However, Prof Lipumba has cautioned the government against signing agreements for projects that end up being white elephants.
The caution from Prof Lipumba, an economist-turned politician, has been made in reference to the much-touted project of the expansion of the Julius Nyerere International Airport.
The job was to be carried out by a Chinese firm but until today the project has remained a dream with no explanation from the government.
He further noted that the problem is implementation of our set policies, which according to him are not well followed, though the government prepares its plans which at the end of the day are not executed.
He gave an example of the contract which the government entered with Chinese company and another company from Germany (Siemens) to generate electricity in the southern regions, which did not materialize.
To great dismay the government cancelled the contract and signed another contract for the gas pipeline generation project from Mtwara to Dar es Salaam, which according to him has spent billions of taxpayers’ money wantonly. He said the government should develop a strategy of building their own industries and should not become a home for growing raw material and export them to China.
The cost of industrial production in China is increasing and employment of more than 90 million people in that country could shift to other countries, he said. “It is important therefore that Tanzania should put in place its plans in a bid to increase employment opportunities for industrial production that moves from China,” the veteran economic adviser asserted.
It was equally important for the Government to set aside an area covering between 100 and 200sq kilometers between Tanga and Mtwara port for economic expansion, he stated. He was of the view that the Government should work in collaboration with the private sector so as to upgrade its infrastructure and to make the area a special economic zone for industrial growth and exports.
In line with this strategy, the government should create a conducive environment to enable foreign and local investors enhance their investment opportunities, so as to increase employment chances for local people, mostly youths.
In many African countries there are so many claims that counterfeit products from China are sold in African markets, stifling its industrial growth, he pointed out.
Chinese companies have invested in many African countries especially in the minerals sector and are effectively participating in the construction of important infrastructure such as roads.
Petty traders from China have emerged to conduct their business in many African countries, an aspect that creates a lot of debate among the local people who are mostly in the opinion that they have come to snatch away their opportunities which should be entirely left for Africans.
The seasoned economist has thrown blame to the Department of Immigration that they should be careful while issuing work permit to foreigners and see if they are entitled to special work which cannot be done by local people.
He has also urged our diplomat missions outside the country to countercheck reports of guests coming into the country, while also observing transparency with issues related to the signing of contracts and their responsibilities.
The relationship between China and Tanzania that started back in the mid-1960s from the economic point of view has facilitated many economic joint cooperation projects between the two countries, he pointed out. Two very successful projects are Friendship Textile Mills located at Ubungo in Dar es Salaam and building of the Tanzania Zambia Railway line (TAZARA) in the early 1970s and mid 1970s respectively.
Even after the supposed privatization of Urafiki Textile Mills it still has ineffective production levels, he said, also citing TAZARA railway which does not perform well. In 2002 the railway transported 677 tones of cargo while in 2011 the load had been reduced to 248 tones, he pointed out.
A high point in with the low interest rate of his evaluation of China-Africa relations was the plan by China to disburse to African countries loans of $20 billions at low interest rates in the coming three years.
This is double the amount of aid given earlier, issued for the construction roads, railways and other infrastructure, he stated. Along with agriculture, industries and other generating economic activities in the medium and small business will be of interest in discussions between the two sides.
In 2011, the total value of trade between China and Africa was $166 billion, where Africa sold its products to China worth $93 million,, he pointed out. Such products are chiefly raw materials especially crude oil, along with minerals such as copper and iron. Africa imported from China products worth $73 million, mainly industrial products.
As China started to embark on its policy changes in 1978, the National Domestic Gross Product (GDP) stood at $190 million. However, the changes ignited rapid economic growth at an average rate of more than 10 percent per year, for 34 years. In world economic history, according to Professor Lipumba, there is no country which has successfully increased its economy consistently for a longer period and at such a fast pace as China.
During the period under review, foreign trade grew at the average rate of 16.3 percent per year. China with a total population of 1.34 billion people now has an average per capita Gross Domestic Product of approximately $4,930 whereas Tanzania’s per capita GDP stands at an average of $ 530.
More than 600 million people moved out of abject poverty in the period of 30 years, Prof. Lipumba noted in his seven paged report circulated yesterday in Dar esc Salaam.
In his report, however, Professor Lipumba said that there is no country which can struggle to reduce poverty without increasing its national economy as well as employment. “In issues of economy there is no miracle whatsoever,” he emphasized.
President Xi and his delegation are expected to sign about 17 agreements on economy and development, including the construction of Bagamoyo Port, bigger than the port of Dar es Salaam upon its completion, and inaugurate the Julius Nyerere International Conference Centre.
Foreign Minister Membe said the distinguished guest is expected to announce in Dar es Salaam his country’s economic and development policies and how they relate with those of Tanzania and perspectives of other African countries.
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