By Correspondents Peter Haule and Abdul Madenge
Tanzania is seeking to deepen cooperation with international financial institutions to attract investment and support economic growth, with China Dasheng Bank expressing interest in financing Chinese businesses entering or expanding in the country.
The interest emerged during talks between Finance Minister Khamis Mussa Omar and China Dasheng Bank Chief Executive Officer Xu Yueliang at the Ministry of Finance’s offices in Dar es Salaam.
Omar said Tanzania had established a favourable investment environment aimed at generating productive returns for investors while delivering wider economic benefits to Tanzanians.
He said the government would continue working with investors to ensure their investments contribute to development and improve the welfare of citizens.
For businesses looking to establish or expand operations in Tanzania, access to financing and efficient cross-border transactions can be important factors in investment decisions, particularly where projects depend on international suppliers, equipment and trade networks.
4. China Dasheng Bank Chief Executive Officer Xu Yueliang explains his bank’s objectives in promoting investment and development during a meeting with Finance Minister Khamis Mussa Omar (MP) at the Ministry of Finance’s offices in Dar es Salaam.
Bank targets Chinese investors
Xu said China Dasheng Bank wanted to work with the Tanzanian government to strengthen the financial sector, stimulate investment and support economic growth through banking services and financial solutions.
He said the bank was positioning itself to facilitate investment from China by helping Chinese companies planning to enter or expand in Tanzania access financing and transaction services to support their business operations.
The proposed cooperation could help address some of the financial requirements associated with cross-border investment, including funding needs and the movement of money between markets. However, the bank did not disclose specific financing commitments, investment targets or projects it intends to support in Tanzania.
Xu also said the institution wanted to strengthen commercial and financial relations between Tanzania and China by taking advantage of opportunities in the Tanzanian economy.
Trade finance in focus
Beyond investment financing, China Dasheng Bank plans to support international trade through trade finance instruments, including letters of credit, bank guarantees, foreign exchange services and cross-border payments.
These services can help businesses manage payment risks, meet contractual obligations and facilitate transactions with international suppliers and buyers.
Letters of credit, for example, can provide exporters and importers with a structured payment mechanism subject to agreed conditions, while bank guarantees can help businesses meet contractual and financial requirements. Foreign exchange and cross-border payment services are also important for companies dealing in multiple currencies.
For Tanzanian businesses trading with China, access to such services could support commercial relationships and simplify aspects of international transactions, depending on the bank’s products, pricing and operational reach.
Xu said the bank was also prepared to identify and support viable opportunities in strategic sectors, including manufacturing, transport and warehousing, agriculture, energy and infrastructure.
He added that the institution would continue exploring financing opportunities for projects capable of increasing production, creating employment and expanding economic activity.
These sectors are important to Tanzania’s development ambitions, particularly efforts to strengthen domestic production, improve logistics and attract investment into infrastructure and energy.
Building a financial partnership
China Dasheng Bank Limited was established in September 2017 under Tanzania’s Companies Act of 2002. According to the information provided by the bank’s chief executive, it received a licence from the Bank of Tanzania in November 2018 and subsequently commenced operations.
Xu said the bank valued the opportunity to build closer relations with the Ministry of Finance and was ready to continue cooperating with the government in support of business development, economic growth and financial inclusion.
The proposed partnership reflects the potential role of financial institutions in connecting international capital with investment opportunities in Tanzania. For the relationship to translate into measurable economic benefits, the key indicators will be the financing actually extended, the businesses supported, the projects implemented and the jobs and productive capacity generated. While the discussions signal interest in closer cooperation, the next step will be translating that interest into specific financing arrangements and commercially viable investments that benefit both Chinese investors and Tanzania’s wider economy.
