Tanzania Secures Promises, Not Cash, From China

To realize its quest to become East Africa's economic and financial hub, Tanzania is unafraid to reach out. During a six-day state visit to China, Tanzanian President Jakaya Kikwete oversaw the signing of six cooperation agreements, worth approximately $2.1 billion, on public infrastructure projects. He also signed a deal to work with a Chinese and an Omani construction firm to build up the port of Bagamoyo. Although the deals appear significant on the surface, financial constraints that were not addressed in Beijing will hamper Tanzania's transformation into a regional business hub. Realistically, these various agreements are more likely intended to alleviate localized supply chain backlogs in the Dar es Salaam region, as opposed to making Tanzania's dream of becoming a commercial nexus a reality.