WHEN I recently asked the Minister of State in the President’s Office responsible for investments and planning, Prof. Kitila Mkumbo, about the people’s reservations and the government measures against Chinese investments in Tanzania, he said: “We are following up.”
At first, it would be easy to take it as a brush-off – one of those stock political responses. But in the days and weeks that followed, I realised this single statement captures the delicate dance Tanzania is performing in the face of a growing and controversial economic entanglement with China.
The promise and the problem
Chinese investment in Tanzania, particularly in the small-scale mining sector, has been both a blessing and a curse. On paper, China is Tanzania’s biggest trading partner, with bilateral trade hitting $8.78 billion in 2023, according to China Daily. China’s hand is visible in infrastructure – from roads and railways to energy and manufacturing. The Belt and Road Initiative (BRI) brought a promise of modernisation. But on the ground, the story is much messier.
In the resource-rich regions of Shinyanga and Geita, tensions have escalated over Chinese investors acquiring mining licenses once held by local Tanzanians. At Mwakitolyo Number 5 mine, which once employed more than 10,000 small-scale miners, chaos erupted when investors took over. What followed was the destruction of mining offices and open clashes. Leonard Waziri, a local mine manager, told a local media outlet: “We were displaced. We lost everything.”
Environmental devastation and economic displacement
In Nyamahuna village, residents tell stories of poisoned wells and damaged homes. Ndiyabi Kazigile, a local elder, said: “Chemicals from the mining site have infiltrated our water.” Explosives used by the new investors have cracked walls and displaced families, but complaints to local authorities have been met with silence.
This isn’t just about mining. It’s about whose development we are prioritising and who pays the cost. Tanzanian MP Jumanne Kishimba warned that when foreign investors control strategic sectors without production accountability, towns like Kahama and Singida risk economic collapse.
The government’s response: New laws, new attitudes
To its credit, the government has started to “follow up.” In 2022, it introduced the Tanzania Investment Act, requiring all investors to work through the Tanzania Investment Centre (TIC). The law removes barriers for local investors – like minimum capital requirements – and insists foreign investors should partner with Tanzanians.
The Ministry of Minerals also moved to ban foreign nationals from engaging in small-scale mining – activities that are legally reserved for Tanzanian citizens. Word is out, however, that Chinese investors still engage in small-scale mining using local traders’ permits. But this is a crucial shift in policy, acknowledging growing public frustration. Are these efforts enough?
China’s diplomatic tightrope
Unlike Tanzanian citizens, the Chinese government has responded diplomatically. Rather than push back publicly, Beijing has deepened state-level cooperation. In March 2024, Tanzania and China signed memoranda to rehabilitate the TAZARA railway – a nod to the historic ties between the two nations.
China’s ambassador to Tanzania, Chen Mingjian (pictured above), emphasised continued cooperation and “shared prosperity.” This careful language reveals China’s priority: stability, not confrontation.
A continental cautionary tale
Tanzania is not alone in this quagmire. Across Africa, nations are waking up to the costs of unregulated Chinese investments. In Zambia, overdependence on Chinese loans and infrastructure projects led to a debt crisis, with Chinese firms now managing key national assets like airports and copper mines. In Kenya, the Standard Gauge Railway, which was built and financed by China, has become a symbol of debt, secrecy, and state capture.
In Sri Lanka, Chinese-funded infrastructure led to the infamous Hambantota Port deal, where the country, unable to repay its debt, was forced to lease the port to China for 99 years. This is a modern-day cautionary tale of sovereignty loss.
Listening to the people
What sets Tanzania apart, perhaps, is the increasing civic outcry. Tanzanians are no longer whispering their frustrations. From poisoned water to lost livelihoods, their voices demand not only “follow-up” but real accountability.
If this government wants to position itself as a guardian of Tanzanian interests, it must move beyond regulatory tweaks. It must enforce existing laws, conduct environmental audits, and make investor-community partnerships a legal obligation – not a courtesy.
The road ahead
Tanzania stands at a crossroads. It can welcome foreign investment while also protecting its people and natural wealth. But that balance demands courage, transparency, and political will.
To Minister Mkumbo and others in power: Following up is not enough. Tanzanians deserve follow-through.
