Chinese centre to boost Tanzanian trade
What you need to know:
- There are concerns that the presence of Chinese nationals in the market could overshadow Tanzanian entrepreneurs, who have traditionally dominated trade in East and Southern Africa.
Dar es Salaam. The East Africa Commercial and Logistics Centre (EACLC) is poised to connect Tanzanian traders directly with manufacturers, aiming to enhance their competitiveness in the market.
EACLC Administration Manager Victoria Momburi reassured The Citizen that fears among Tanzanian traders regarding the Centre’s impact on their businesses are unfounded.
Momburi said that the EACLC will alleviate high travel costs and reliance on middlemen by offering warehouses stocked with affordable goods imported from China.
She said, “We have started to introduce Tanzanian products in the Chinese market, including cashew nuts, spices, coffee, and wine, enabling them to do business,” and added that Tanzanian traders will receive the majority of stalls.
Despite these assurances, unease among local traders is mounting as they anticipate the opening of the EACLC, which is scheduled for October.
There are concerns that the presence of Chinese nationals in the market could overshadow Tanzanian entrepreneurs, who have traditionally dominated trade in East and Southern Africa.
The EACLC, a $110 million regional market developed by Chinese investors, will feature 2,060 shops and is currently 90 percent complete.
The Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, is on record as having assured that 95 percent of the stalls will be reserved for Tanzanian entrepreneurs.
He highlighted the economic benefits of the centre, including the creation of over 15,000 direct jobs and an increase in the city’s appeal.
Local business leaders, however, remain skeptical. The Chairman of the Dar es Salaam Region Business Community, Mr Omary Yenga, voiced concerns that Chinese traders might dominate the market due to their substantial resources.
“If the Chinese trade alongside Tanzanians, they might overshadow local businesses, particularly in East Africa and Southern African countries where Tanzanians have a strong presence,” Yenga warned.
Similarly, the Chairman of the National Association of Businesspeople, Mr Hamis Luvembe, expressed concern about the competitive implications of Chinese participation.
“With approximately 100 stalls set aside for Chinese traders, there is a fear they could overpower Tanzanian entrepreneurs,” he said.
In response to these apprehensions, Deputy Minister for Industry and Trade Exaud Kigahe assured the public that 97 percent of the stalls will be allocated to locals.
“This is what we agreed with the investor—that 97 percent of the stalls go to Tanzanians while 3 percent go to foreigners from any country,” he explained.
Kigahe also noted that many Tanzanians have already begun reserving stalls, indicating a positive outlook for local participation in the EACLC.
