Out-Law News 1 min. read

Opening of Chinese-built bridge in Tanzania cements nations’ investment ties


A bridge built by Chinese firms in Tanzania at a cost of $135 million has been formally opened in the country’s commercial capital Dar es Salaam.

Tanzania’s president John Magufuli, who opened the bridge on 19 April, told China’s ambassador to the country, Lu Youqing, that the project would further boost the country’s economic growth.

China’s state Xinhua News Agency said the bridge, connecting Kigamboni and Kurasini to Dar es Salam’s central business district, was built as a joint venture by the China Railway Construction Engineering Group and the China Railway Major Bridge Group.

According to Xinhua, the 680 metre-long bridge “is the first of its kind in east and central Africa”. “It is 32 metres wide, has six lanes, three in each direction, and two pedestrian and cyclist lanes.”

The project, which began in 2012, was jointly funded by Tanzania’s government and Tanzania’s National Social Security Fund, Xinhua said.

Chinese firms are involved in a number of infrastructure projects in Tanzania and China is a key long-term investor in the country.

According to the Forum on China-Africa Cooperation, Chinese investment in Tanzania rose to more than $4 billion in 2014, “almost doubling the amount in 2013”. The forum said: “The level of investment, up 60% to a historic high, comes as China attempts to help turn Tanzania into an industrial hub in the region.”

In October 2014, Tanzania announced the signing of investment deals with China worth more than $1.7bn, including plans to build a ‘satellite city’ to ease congestion in Dar es Salaam and $85m in grants and zero-interest loans from China for unspecified projects. According to figures from the China Business Network, China’s total direct investment in Tanzania soared from $700m in 2011 to $2.1bn in 2012, with investments focused on railways, ports, buildings, road construction, gas pipelines and wind power farms.

Last year, a Chinese-backed pipeline was formally commissioned to connect offshore natural gas fields to Dar es Salaam. Xinhua said the 535-kilometre pipeline was built by the China Petroleum Technology and Development Corporation, a subsidiary of the China National Petroleum Company, with a $1.25bn concessional loan from the Export-Import Bank of China.

Towards the end of last year, Chinese technology conglomerate Huawei was selected by Tanzania’s government as its technical advisor to help in the development of the country’s information and communications technology sector.

Tanzania “is expected to become one of the fastest-growing economies in the world”, according to research by professional services firm PwC. “Key drivers will be recent natural gas discoveries, regional integration supported by an extension of transport infrastructure networks and long-term stable democracy:”

PwC said: “Infrastructure in Tanzania has witnessed impressive investment in recent years and there is more to come. Transport and utilities infrastructure projects worth $19bn are in the pipeline.”

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