PRESENTATION BY AMBASSADOR OMAR R. MAPURI OF TANZANIA TO CHINA AT THE SYMPOSIUM ON INVESTMENT IN CHINA AND AFRICA: THE ROLE OF HONG KONG ORGANIZED BY THE HONG KONG CHAPTER OF THE CHINA-AFRICA BUSINESS COUNCIL, HONG KONG, JULY 17, 2007.
Your Excellency, The Chairperson, Fellow Panelists,Distinguished Participants, Ladies and Gentlemen:
In the invitation to participate at this symposium, I was asked to share insights with the participants on the potential of Africa in general and Tanzania in particular as an investment opportunity for Chinese partners. Although the topic would seem to be very wide and divergent, it offers an invaluable opportunity to clear misconceptions that have tended to dominate the global debate on China-Africa relations. The debate, triggered by such developments that promise to make the relations more structured such as the formation of FOCAC and subsequently CABC and the just recently established CADFund, has tended to portray Africa’s potential as only in the plunder of its minerals and other riches. But in sharp contrast to that mainstream mindset, this symposium through this topic, is attempting to draw our attention to the potential of Africa as an investment opportunity.
Most of us will have noticed that most of those accusing China of a quest to plunder Africa’s mineral resources are the very culprits of the very same offence committed through the facilitation of both colonialism proper and neo-colonialism. The mindset here strengthened by Africa’s long history of subjugation, is that any relation with Africa can only be that of plundering of its mineral resources. I challenge this symposium to undertake to root out this mindset and steer away the debate from plunder to investment. This can be achieved through a concerted advocacy for investment in Africa. CACB and CADFund are among many facilitative organs and mechanisms that can take us to that goal. Let us rally behind them and give them full support. And it should also on the other hand, be understood that by inviting Chinese investments, Africa is only diversifying, and not, changing investment partnerships. To me therefore, those carrying the banner of China as a threat to other’s interests in Africa, are only good for nothing alarmists who should not be taken seriously.
Dear Participants,
Africa’s potential goes far beyond minerals. The debate revolving around plunder of African riches that put mineral resources in the limelight, has tended to obscure other investment opportunities available in Africa from the attention of potential Chinese and other Asian investors. A number of Chinese entrepreneurs exploring investment opportunities in Africa would most likely enquire about oil and other minerals, first thing, followed by market probes for Chinese finished goods and availability of raw materials for Chinese factories. Other investment opportunities are seldom raised by them and it needs a painstaking effort to try to solicit their consideration for such alternatives. But forums like this one, I hope, can provide the opportunity to transform this mindset by diverting attention from oil to other investment potentials and above all by creating a new awareness for investing in Africa among Chinese entrepreneurs. When we talk of mutually beneficial China-Africa cooperation, Africa looks to an increased inflow of investments.
Generally speaking, Africa is endowed with enormous natural resources such as agricultural and forestry products, tourist attractions, year round friendly weather, cultural diversity and friendly people apart from the much publicised minerals. All these avail an unlimited potential for investment, especially in value addition processing. In line with the advice in the invitation, I will highlight the example of Tanzania.. On the side of investment opportunities, Tanzania has a lot to offer. Agriculture and Agro-based industries top the national priority list. Tanzania is a producer of a wide range of cash crops of the like of cotton, sisal, coffee, tea, cashew nut, sugar cane, cloves, simsim, soy beans and a wide variety of fruits and oil seeds. Tanzania is also rich in livestock and sea products. Investments in ventures that will increase production and add value to such products are very much encouraged.
The Mining, Petroleum and Gas sector offers an unlimited range of opportunities. Tanzania is currently Africa’s third largest producer of gold and the only producer of Tanzanite in the World. Tanzania has huge deposits of natural gas, iron ore and coal. Various kinds of gem stones are scattered all around the country, and substantial amounts of rare minerals like uranium, platinum and nickel have been discovered. Prospects for oil are also high.
Investment in ventures that will increase and improve the tourist receiving facilities like hotels and restaurants are in line with the tourism promotion drive. To this end, Tanzania has just recently opened up the Serengeti National Park for construction of more tourist hotels for which investors are invited. To further highlight on the tourism sector, Tanzania is the custodian of Mt. Kilimanjaro – The Roof of Africa. More than 80 per cent of the 8th New Wonder of the Natural World, namely the mighty Serengeti Ecosystem -the paradise of migrating animals, is in Tanzania as the Serengeti National Park. The Ngorongoro Crater with its unique phenomenon of which humans and wild animals share the ecosystem in a captivating natural setting is among the many unique animal sanctuaries found in Tanzania; the others being the vast Selous Game Reserve, Lake Manyara Manyara National Park, Tarangire National Park and Gombe National Park which has for years hosted the World famous research on Chimpanzees’ social life. Others National Parks include Mkomazi, Ruaha, Mikumi, Mahale, Katavi and the latest declared Saadani.
Tanzania also offers a variety of other kinds of tourist attractions . These include the legendary Spice Islands of Zanzibar and Pemba which offer an unlimited range of fascinations ranging from the historical relics of the East African slave trade, European explorer’s missions, Arab occupation and oriental cultural influence on one hand to pristine white sandy beaches, which have become the most newly discovered world paradise for leisure holiday makers and honeymooners on the other.
As indicated earlier, investment opportunities in the form of hotels, restaurants, tour and travel services and related activities that will open up the tourist attractions to more tourists are plenty.
Other investment hotcakes include the Energy, Infrastructure, Construction, Manufacturing and Human Resource Development sectors. There are also designated special economic zones for a wide variety of ventures including food processing, horticulture, forestry for timber, furniture, garments manufacturing, minerals processing etc. The list of opportunities cannot be exhausted within the short time that we have today. Suffice to say that Tanzania and Africa at large, has a lot of untapped potential in very many sectors.
Ladies and Gentlemen
Tanzania’s credibility as a worthwhile investment destination is underlined by being rated among the ten best reformers of the World for two years consecutively, namely 2005 and 2006 as indicated in the World Bank’s “Doing Business Reports” 2006 and 2007. This is a result of concerted and continuous efforts to improve the investment climate. Investments are adequately protected by law. We have a World renowned vibrant one stop centre, i.e the Tanzania Investment Centre. Investment in Tanzania opens for you the opportunity to access the wider markets of the SADC and the East African Cooparation (EAC) Regions to both of which Tanzania is a member. Tanzania also qualifies for preferential quotas to the American and EU markets through the AGOA and EBA facilities respectively. Above all, Tanzania is renowned the World over as Africa’s haven of peace, thus assuring both the security and safety of investments.
I am also proud, at this juncture, to inform participants that the EAC has expanded its membership to include Rwanda and Burundi in addition to the original the founder members Kenya, Uganda and Tanzania. This development does not only expand the market that can be accessed through any of its member states, but also guarantees stability in the Sub – Region. Huge Pan – territorial projects have started to be considered in the EAC, SADC and other Sub – Regions, especially in the infrastructure, energy and communications sectors. Investors are thus, also invited to venture into such projects which are emerging in most of Africa’s sub – regional organizations.Dear Participants,
This symposium is aimed to solicit participation of Hong Kong in the China-Africa cooperation drive. I am aware that there are already investment initiatives in Tanzania that originate from Hong Kong. Hong Kong investors should be very much at home in Tanzania. They don’t need a visa to go to Tanzania and they are more advantaged than their Mainland compatriots when it comes to language communication, thanks to a shared colonial history that brought us together under British tutelage. On the other hand, Tanzanian traders who come to China for business usually use Hong Kong as their stepping stone, thus making it easy to forge contacts. Above all, Tanzania has a vibrant Honorary Consulate in Hong Kong.
All these are good starting points for an all out mobilization of potential Hong Kong investors to consider Tanzania for investment.
Ladies and Gentlemen,
I wish to conclude by a word of thanks to the organizers for inviting me to participate in this very important event. I believe the outcome of this Symposium will have far reaching implications in the enhancement of China-Africa Cooperation.
Lastly but not least, I wish to commend CABC and UNDP for this invaluable initiative to create conditions for Chinese entrepreneurs to know more about Africa and its opportunities. I encourage them to maintain the pace and I assure them of our support.
I thank you for your attention.
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