Abstract
This paper discusses the mixed perceptions toward the Tanzania–China relationship since the dawn of globalization. The focus among other things is on the increase of foreign direct investment (FDI) flow to Tanzania in general and from China in particular. It aims to show how the political and economic cooperation between two countries has been fairing and how globalization forces are influencing cooperation between Tanzania and China. Among other aspects, it discusses major areas of cooperation and how these areas have been changing over time. Additionally, opportunities and challenges of this cooperation not only in the context of economy, but also socially and culturally are explored and discussed. Information presented in this paper is based on a pilot qualitative study conducted in Dar es Salaam, Tanzania’s major commercial center. The article concludes that involvement of China in Africa in general causes mixed feelings within and outside Africa. However, observers from outside Africa seem to be more skeptical and concerned than those from within Africa are.
Dieser Artikel stellt unterschiedliche Meinungen zur Tanzanisch-Chinesischen Kooperation dar. Er zeigt generell steigende ausländische Investitionen in Tanzania auf, vor allem jene aus China. Dieser Beitrag zeigt wie die Globalisierung die politischen und wirtschaftlichen Kooperationen seit den sechziger Jahren verändert hat. Diese Veränderungen führen zu unterschiedlichen Meingungen bei Wirtschaftsexperten und Bevölkerung. Weiters werden die Chancen bzw. Herausforderungen für die tansanische Wirtschaft und Entwicklung im Artikel detaliert dargestellt.
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Notes
Urafiki is a Swahili word meaning friendship.
The International Monetary Fund (IMF) defines foreign direct investment as a type of investment that involves a lasting interest in an enterprise that operates in a different country of origin from the investor, which can be classified into two forms: setting up new enterprises and the acquisition of existing corporate equity.
See, for example, Sigalla 2011.
See The Citizen 2012c.
This piece of work acknowledges Chiduashe’s argument in the sense that he does not mean that Africa is poor because of the aid it receives from development partners, even though the opposite is also true in some instances, i.e., that aid has been undermining Africa’s commitment to its development especially politically. There are a number of reports on this aspect in the literature, such as those by Moyo (2009), Tandon (2009, 2008), Easterly (2002), Watkins (1998), and Kabou (1995). Chiduashe’s argument should be taken as a critique of Africa’s mindset of aid dependency, but not necessarily a critique on the aid and development cooperation Africa has had with its development partners. The contribution of aid, if properly implemented and managed from both parties—namely, donor and recipient—is undeniable. However, the politics of aid are also known. In my view, Chiduashe’s argument aims at encouraging Africa to use carefully and strategically its natural and human resources to transform its socioeconomic condition for the current generation and create a stable foundation for the future generations. Africa must revive the spirit of self-help and self-reliance if it aims at building a self-sustaining economy.
Beregu’s opinion about his experience in China. Quoted from his article published in the Tanzanian newspaper The Citizen 2011.
The annual yellow book on African development.
This is one of the oldest towns in East Africa, famous for commerce and trade. Kilwa is one of the coastal and historical small towns in Tanzania.
The day of union between Tanganyika and Zanzibar to form The United Republic of Tanzania.
These opinions were obtained from a second interview with the Facilitation Director at the Tanzania Investment Center (TIC) after analyzing the data. After noting the position of China among the leading 13 countries investing in Tanzania and its contribution to employment in relation to other leading countries, it was apparent that I needed to get more information related to the data and observations I made. Data show that Chinese investments create more jobs in Tanzania compared with investments from other countries. However, we need to thoroughly assess the types of employment created by Chinese investments and their contribution to the income of the respective employees. We need to know the type of labor force it demands in terms of educational level, sex, age, and—more importantly—income.
Investments of this nature may require big capital but few skilled people compared with manufacturing or construction, which also employ casual labor. The discrepancy between the capital and labor force required might be one of the reasons why investments from the other five leading countries appear to create fewer jobs than investments from China.
These data were derived from an in-depth interview (expert interview) with a Senior Official of the Chamber of Commerce, Industry and Agriculture (TCCIA) on 16 May 2011 at the chamber’s headquarter, Ohio Street, Dar es Salaam. This is a business center in Tanzania for various imported and locally made goods, especially construction materials, vehicle parts, textiles, electronic equipment, and domestic appliances as well as a big market for food such as vegetables and fruits.
They are learned and experienced and have worked with government institutions for many years since the 1970s. They know Tanzania from the Ujamaa period and they have experienced the transition to the contemporary period that is dominated by neoliberal ideologies. Some of them work with vital government institutions that are responsible for planning and management of economic activities. The said “experts” work with institutions such as the Chamber of Commerce, Agriculture and Industry, the Tanzania Investment Centre, the Business Registration and License Authority, and the Tanzania Bureau of Standards. I also had a long discussion with a senior official of the Chinese Embassy in Tanzania who is responsible for economic affairs.
They may damage a house.
This was also supported by a senior officer of the Chinese Embassy in Dar es Salaam, Tanzania, responsible for economic cooperation at his office, Msasani Road 362 B, Dar es Salaam, during our discussion on 3 June 2011.
Ibid.
This information was collected in a discussion with a senior government officer at the Tanzania Chamber of Commerce, Industry and Agriculture in Dar es Salaam.
Dalala is the name of small busses that are used in public transportation in Tanzania.
Based on the Bank of Tanzania (BoT): Official Foreign Exchange Rates, May 7, 2012. From The Guardian 2012b.
This informations is drawn from the Tanzanian local newspaper The Guardian: Sunday Agenda 2012a.
See the conceptualization of “global market,” for instance: Sigalla (2012).
This testimony was given by my colleague (a sociologist) who belongs to the Sukuma tribe during one of our discussions about the manifestations and implications of Chinese investments in Tanzania.
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Sigalla, H. Changing trends in the Tanzania–China relationship. Österreich Z Soziol 39, 61–78 (2014). https://doi.org/10.1007/s11614-014-0118-6
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DOI: https://doi.org/10.1007/s11614-014-0118-6