A multidisciplinary analysis of the Sino-Tanzanian investment framework

Abstract

In recent years, the Sino-Tanzania relationship has strengthened especially in the fields of trade and investment. The potential for Sino-Tanzania investment cooperation is great and yet, dependency on Chinese investment leads to the decline of local industries which in turn leads to the loss of jobs, the availability of low quality goods and environmental degradation among other things. The researcher assessed whether Tanzania s regulatory framework governing investment promotes the realization of socio-economic rights. The terms local industries, businesses or domestic investors are used interchangeably to represent all businesses operated in Tanzania by Tanzanian nationals. The overarching purpose of this research is to contribute in broadening the discourse on China in Tanzania, through the analysis of the investment regulatory framework and its impact on exercising human rights in Tanzania. The study therefore provides valuable insight into how the gaps identified in the investment regulatory framework have implications on socio-economic rights. The author argues that Chinese investment brings both opportunities and challenges to Tanzania s community in general and to its local industries in particular. But, in order for Tanzania to benefit from the Sino-Tanzanian investment framework, the law has to bridge in the gap that hinders the realisation of socio-economic rights. From the analysis herein the researcher infers that the laws and government institutions are not sufficient and efficient enough to address the gaps currently present in the investment regulatory framework. This in turn affects the gradual realisation of socio-economic rights for both local investors and the community at large. In policy and law, the government of Tanzania is rights-based and oriented towards the growth of local industries. In practice however, the government s capacity to ensure the promotion of socio-economic rights using the law governing foreign direct investment is questionable. The researcher therefore proposes that other multidisciplinary approaches can assist in protecting and promoting socio-economic rights given the presence of Chinese investors in Tanzania.