Tag Archives: China investment

China in Tanzania: colonization in modern times

TAZARA railway.  The governments of Tanzania, Zambia and China built the railway to eliminate landlocked Zambia's economic dependence on  Zimbabwe and South Africa,.

China and Tanzania have concluded (November 2014) a month-long naval training exercise, the first joint training exercise in the history of bilateral military relations between the two countries. The closing ceremony of exercise Beyond/Transcend 2014 was held on November 14 at Kigamboni Naval Base, Tanzania  and attended by guests that included China’s ambassador to Tanzania, the chief of the Tanzanian military and heads of the navy and air force.

The exercise between the Chinese People’s Liberation Army Navy (PLAN) and Tanzanian People’s Defence Force (TPDF) kicked off on October 16 in Tanzania’s capital Dar es Salaam, with more than 100 navy officers and seamen participating, although the official opening ceremony was held on October 21….

Tanzanian has emerged as a key ally to the PLAN as it intensifies partnerships and operational deployments in the Indian Ocean Region (IOR) and conducts anti-piracy patrols in the area. In December last year the 15th Chinese naval task force charged with escorting ships and patrolling for pirates visited Dar es Salaam on its way back to China.

China’s strong relationship with Tanzanian can be seen in its support for the military. China has recently sold the East African country 24 Type 63A light amphibious tanks, 12 Type 07PA 120 mm self-propelled mortars, FB-6A mobile short-range air defence systems and A100 300 mm multiple rocket launchers. This follows military hardware delivered earlier in the decade, including tanks, armoured personnel carriers and combat aircraft.

The Chinese government also built the Tanzanian Military Academy (TMA) and the Shanghai Construction Group has been contracted by the Tanzanian Ministry of Defence and National Service to construct 12 000 housing units financed by a $550 million loan from the Exim Bank of China.

On the economic side, China has invested in various Tanzanian projects and late last month signed investment deals worth more than $1.7 billion, including one to build a satellite city to ease congestion in Dar es Salaam. The money will be used to develop infrastructure, power distribution and business cooperation. Tanzania also announced $85 million in grants and zero-interest loans from China, Reuters reports.  In recent years, Chinese companies have signed deals to build a rail network and a 532 km (330 mile) natural gas pipeline. Between July and September 2014, Chinese investments totalled $534 million, compared to $124 million during the same period last year.

China says it will “speed up the construction” of the Bagamoyo port, a new Indian Ocean project being built north of Dar es Salaam, and begin offshore oil and gas exploration off Tanzania.  China’s exports to Tanzania, which totalled $1.099 billion from 2012 to 2013, were roughly double the $495.74 million worth of goods China imported from Tanzania.

China and Tanzania conclude historic naval exercise, defenceWeb, Nov. 18, 2014

Looking at Ecuador as a Deep Mine

Ecuador is set to sign a contract next week that would allow Ecuacorriente to develop El Mirador copper mine, where the Chinese-owned mining company plans to invest $1.4 billion in the next five years, energy minister Wilson Pastor said on Thursday (Mar. 1, 2012).Ecuador has no mining industry to speak of and leftist President Rafael Correa is eager to attract investment to tap the country’s big copper, gold and silver deposits and diversify the economy from its dependency on oil exports.  However, he is trying to reap high benefits from miners and negotiations with Ecuacorriente and Canada’s Kinross, which plans to develop the Fruta del Norte gold project, are taking much longer than initially expected.”With this project Ecuador will be the world leader in terms of how much revenue it will be obtaining,” Pastor told reporters referring to the contract that Ecuacorriente is scheduled to sign on Monday.”They have agreed to pay royalties in advance. Before the project starts they will give $100 million to fund social development projects in areas around the mine,” he said, adding that once production starts Ecuacorriente will pay between 5 percent and 8 percent in royalties depending on copper prices.  Including royalties, value-added taxes, income tax and other duties, Ecuacorriente will paying the state about 52 percent of its revenue, Pastor said, adding that the investment includes the construction of a port from which the copper would be shipped to China….The government says the agreements will be a template for future mining deals that should let Ecuador develop a large mining industry in which the state will have a greater degree of control and pocket most of the profits….Ecuador is set to negotiate contracts this year with International Minerals over its Rio Blanco gold-silver project, with Ecuacorriente over its Panantza-San Carlos copper deposit, and with IAMGold [Canada] which plans to develop the Quimsacocha gold-copper-silver mine.

Excerpt, Alexandra Valencia, Ecuador sees Ecuacorriente copper contract next week, Reuters, Mar 1, 2012