CHINA'S financial support in development of major infrastructure projects plays a significant role as Tanzania leaps forward to become the regional economic power house.

Looking at the bigger picture, Tanzania's economic fortunes have been boosted by the discovery of the vast natural gas reserves in the southern regions of Mtwara and Lindi, but it is China's influence that will matter most as it finances major energy and infrastructure projects to tap the resources.

China is financing a US $ 1.2 billion gas pipeline project from Mtwara to Dar es Salaam, which is expected to be completed later this year. Once completed, Tanzania will start to export power to its East African neighbours next year.

It also finances two mega-power projects at Kinyerezi area in Dar es Salaam, the Kinyerezi I and II which are project expected to boost electricity generation for domestic consumption and export.

The Asian economic power house will also finance construction of a port, special economic zone and a railway network at the historical town of Bagamoyo in Coast Region in a project estimated to involve more than US $ 10 billion. It is against the backdrop of these developments, the Chinese Ambassador, Lu Youqing says Tanzania is on course to become the regional economic power.

He said in Dar es Salaam last week that Tanzania would have the potential of becoming the regional centre for trade, manufacturing, logistic and IT upon completion of the major gas pipeline project and other mega electricity projects as well as the envisaged construction of Bagamoyo port.

"China has strong confidence that Tanzania will develop to become the driving force in the East African region," he said at an event to mark Chinese New Year organised in Dar es Salaam by Standard Chartered Bank.

He said Tanzania had the potential to become the regional centre of tourism due to her rich tourists attractions including three out of seven wonders of the world. Tanzania is home to Mt. Kilimanjaro which at 5985 metres it is Africa's highest peak and the world's tallest freestanding mountain.

It is also home to the Serengeti National Park, famous for its annual migration of over 1.5 million white bearded wildebeest and 250,000 zebra.

It also has Zanzibar, the majestic spice island in the Indian Ocean. Ambassador Lu said China would work with Tanzania to improve tourist infrastructure such as hotels and transport service to make it a top tourist destination.

He said Tanzania should expect to receive more tourists from China as the Asian economic giant is the biggest tourist source country in the world. Ambassador Lu said trade relations between Tanzania and China had continued to flourish with trade volume reaching US $ 3.7 billion annually.

China is the biggest trade partner of Tanzania and is the second largest foreign investor. Her investments in the country is mainly in infrastructure road construction, railways, ports, gas pipeline, buildings and electricity.

Statistics from the Tanzania Investment Centre (TIC) show that China's total direct investment in Tanzania reached US $2.17 billion ranking the second after the UK which topped the country's FDI list last year with US $4.7 billion from companies including BG Group Plc (BG/) and SABMiller Plc. (SAB).

We are in every sector that is urgent...that needs to be developed...infrastructure, energy...everywhere you see Chinese investments.

The envoy attributed the recent Chinese business and investments boom in Tanzania to a deliberate move to encourage Chinese businesses to establish big investments in Tanzania.

Tanzania and China have strong bilateral and trade relations dating in the 1960's when China agreed to construct the Tanzania and Zambia Railway line from Dar es Salaam to Kapiri Mposhi, Zambia.

Other major highlights of China and Tanzania strong relations is the imposing 60,000-seat ultra-modern National stadium and the Mwalimu Julius Nyerere conference centre all constructed in Dar es Salaam under financial support of China.

(dailynews.co.tz Feb 24, 2014)