In Tanzania, we need to talk about China - By Erick Kabendera
Posted on February 11,
2014<http://africanarguments.org/2014/02/11/in-tanzania-we-need-to-talk-about-china-by-erick-kabendera/>
 by 
AfricanArgumentsEditor<http://africanarguments.org/author/africanargumentseditor/>

If Tanzania's founding father, Julius Nyerere, were still alive today, he
would surely be considering withdrawing the speech he gave in 1965 when he
was famously stated that "it is not China policy at all" to use its
economic aid to exploit Africans.

Over 50 years later, the Chinese are no longer searching for a possible
railway route to link up the Zambian copper belt with the Tanzanian coast.
But they *are* still here and currently engaging in a process of frantic
foraging for the country's natural resources.

Investments such as the 532 km natural gas pipeline linking the southern
Tanzanian gas fields to the country's biggest city, Dar es Salaam -
financed by the Chinese government-owned Export-Import Bank to the tune of
$ 1.2 billion - show that the Chinese are here to stay.

In the past few months, the country has learnt a few things about Chinese
operations in Tanzania. These include a deep involvement in elephant
poaching; Chinese businesspeople being ushered through airport security
points without inspection; Chinese business gurus driving straight to State
House to sign a deal to repair an airport in exchange for a mining site,
and UN allegations of Chinese companies smuggling gold from DRC through Dar
es Salaam with the help of corrupt customs officials.

On top of that, the Communist Party of China seems to be renewing its close
relationship with Tanzania's ruling party, Chama Cha Mapinduzi, which has
remained at the helm of power since the country's independence in 1961,
with the aim of using the party to influence investment and trade
decision-making.

Not only have visits of CCM officials to China, and vice versa, increased
in frequency, but the Chinese Ambassador, Lu Youqing, late last year went
as far as accompanying CCM officials on a regional tour in Shinyanga where,
at a public rally, he pledged continued support to help the ruling party
implement its election manifesto.

Whereas the government insists that the gas pipeline will help to reduce
electricity shortages, much doubt hangs over the actual cost of the
project, and whether Tanzanian taxpayers will repay the (apparently
overpriced) loan for the project. As is fairly common across the continent,
where contracts signed between the Chinese and African governments are
considered top secret, not even local MPs have seen what the contract for
construction of the pipeline looks like.

A parliamentary oversight committee on Public Accounts summoned the
Tanzania Petroleum Development Corporation (TPDC), a para-statal
responsible for implementing petroleum exploration and development policies
on behalf of the government, to provide it with the contracts last year,
but the corporation said that its parent Energy and Minerals ministry still
had them in its possession. Before the committee could summon the ministry
to provide the contract, the Speaker's office reportedly intervened and
halted the move.

The Chinese government is estimated to have provided $2billion in loans
last year alone for various projects, ranging from building a convention
centre to a government information system. Yet, a distinct lack of
transparency has raised rumours in political hallways and amongst
interested spectators that two natural gas blocks - originally reserved for
TPDC in order to experiment different exploration approaches - might be
awarded to Chinese companies outside the competitive tendering process.

Such episodes, together with the level of political corruption and impunity
amid such developments, makes many ordinary Tanzanians wonder whether the
ongoing discoveries of hydrocarbons will help Africans reduce poverty and
eventually put to rest their leaky begging bowls.

In the light of the secrecy surrounding the contracts signed between
African countries and multinationals, it is clear that the ordinary poor
peasants will bear the brunt - much more so than the political leaders who
sign such agreements with their own interests in mind.

That is why right now it is important that we know the names of politicians
and civil servants who have stashed away money in offshore safe heavens and
Swiss bank accounts. Conventional wisdom has it that political leaders and
technocrats who travel to China to sign such contracts may negotiate a
deal, top up their cut and ask for China's help to put it in a bank account
abroad for them.

This isn't to say that Western countries and their big corporations coming
to invest in natural gas exploration and development are totally clean. No!
Recent corruption allegations facing British oil and gas investors, despite
signing the most rigorous anti-corruption laws back in their own countries,
have left people wondering if their motivation is different from their
grandfathers whose dehumanising past activities left the continent already
bleeding.

The key to the debate is the question whether China is a truer friend for
Africa than the West. This point must now be properly debated as the people
look up to their leaders to use newly-found resources to make an historic
transformation to their country.

*Erick Kabendera is a Tanzanian freelance investigative journalist.  Tweet
him @kabsjourno*

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