Cooperation between China and Tanzania on ICT: fish, fishing tackle or fishing skills?

© 2016 The Chinese Economic Association - UK. Tanzania has ambitions of moving from a mere consumer of information and communication technologies to a designing and manufacturing base. This paper aims to assess the role of public-private partnerships with Chinese institutions in the achievement of this goal. Through an in-depth case study, this paper examines the contributions of three Chinese multinationals in terms of technology transfer and technological capacity building in local firms in Tanzania. The analysis contrasts the organisation of improvements on the manner of technology transfer and capacity building in these partnerships with prior Sino-Tanzanian partnership efforts in technology and industry. The Chinese multinationals had a labour localisation rate of 60% on average, with some training services provided to Tanzanian nationals and supply of services and equipment to Tanzanian firms. However, the overall level of technology transfer continues to be weak. Observed barriers to technology transfer include weak incentives for collaboration between Chinese and Tanzanian firms and low-level technology embedded in activities offshored by the Chinese multinationals to Tanzania.