China’s Finance in Tanzania

ABSTRACT This article provides a detailed analysis of official finances from China to Tanzania with special attention to the question of Tanzania’s foreign finances policy. The findings reveal that Tanzania like much of sub-Saharan Africa, has an infrastructure gap and Chinese finances are largely used to fund infrastructure projects. However, majority of the funds are loans. In addition, Chinese firms are the ones implementing the projects, and much of the raw material and labor is imported from China. All these calls for Tanzania to institute a coherent foreign finances policy that ensures the country fully benefits from these finances.