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Tanzania to construct Chinese products trading center

(Xinhua) Updated: 2014-08-21 10:53

DAR ES SALAAM - Tanzania authorities said on Wednesday that construction of the Tanzania-China Logistics Center, a trade hub for high quality Chinese products to the East and Central African markets, will start soon.

Tanzania's minister for Industry and Trade Abdallah Kigoda said China will finance the project to the tune of $412.5 million. The Tanzanian government has released $33 million to compensate 1,020 residents who will be affected by the project at Kurasini in the commercial capital Dar es Salaam.

"The government has given the money to the Export Processing Zones Authority (EPZA) which will oversee the compensation exercise," the minister told a news conference.

The project is a result of a Sino-Africa cooperation meeting in 2009, and will cover 60.4 hectares in Kurasini covering Shimo la Udongo, Mivinjeni and Kiungani areas.

"We are happy. This signifies a crucial development toward implementation of this important project to our country's development," said Kigoda.

The deputy minister for Industry and Trade Janet Mbene said the project will create more than 25,000 direct employments and 100,000 indirect employments, and will increase the government's tax base.

"The trade hub will also help local residents to buy Chinese products in Tanzania instead of travelling all the way to China, hence cutting down costs," Mbene said.

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