China Dasheng Bank Limited (CDBL) has extended its all-around financial services to Tanzania, as the Chinese government-owned financier made its debut in the East African market.
The fully-fledged commercial bank established on initial capital of $40 million seeks to serve public and private businesses in Dar es Salaam and extend beyond the East African Community (EAC).
The inauguration of the bank was attended by the firm’s Board Chairman Ji Jiaqin, Chinese Ambassador Wang Ke and Dar es Salaam Regional Commissioner Paul Makonda. The Bank of Tanzania (BoT), which is the regulator, issued the Chinese financial institution license to operate on November 8.
“There are a large number of Chinese enterprises in Tanzania, including government and private enterprises. We have plans to actively participate in the construction of RMB clearing centre in East Africa, strive to become the RMB clearing/settlement centre in Tanzania and reduce the exchange losses in trading between the two currencies,” Ji Jiaqin said.
The new bank is expected to facilitate China – Tanzania trade relations. In 2016, Tanzania exports to China was worth $354 million, with a partner share of 7.47 per cent while Tanzania imports from China was worth $ 1,638 million, with a partner share of 20.80 per cent same year, according to World Integrated Trade Solution.
Chinese investment in Tanzania has shot up by 40 per cent to reach $4 billion in 2016, a significant foreign investment figure in Ethiopia as well. Chinese investors have ventured in different sectors in the country most notably the health sector and infrastructure development. Their presence has led to robust growth in the African economies and the creation of employment opportunities.
The new investment is a sign of not only a healthy partnership between China and Tanzania but the attractive business environment facilitated by the government. President John Magufuli has emphasized the need to better the economic climate to lure more foreign businesses and support the local sector.