China factory investments: Third in size, low in welfare

By Guardian Reporter , The Guardian
Published at 09:46 AM Apr 28 2025
Technology’s improving, but pay isn’t.
Photo: Factory
Technology’s improving, but pay isn’t.

WITHIN the walls of Chinese factories, Tanzanians endure a harrowing ordeal as they grapple with long hours of unpaid overtime work, debilitating work-related injuries and confront the harsh reality of being deprived of vital medical care necessary for their healing and overall welfare.

A recent survey in some factories operated by Chinese investors showed that despite China currently standing as the foremost contributor to foreign direct investment (FDI) inflows as it holds a 30 percent share, there are issues to sort out in the widening economic partnership between the two countries.

In the manufacturing sector, the promise of FDIs to improve the lives of everyday Tanzanians remains unfulfilled, with Chinese FDIs experiencing remarkable growth.

The stimulation of domestic direct investments (DDIs) stands at 22 percent, falling short of the World Bank’s recommended 50 percent threshold, on the basis of Tanzania Investment Center (TIC)o data.

Disturbingly, instances of discriminatory wage and salary practices within Chinese manufacturing facilities are becoming more prevalent with each passing day, industry stakeholders assert.

TIC says that China-Tanzania trade volumes in goods and services reached $5.41bn (13.5tn/-) as of October 2023, decreasing from $8.31bn (21.2tn/-) in 2022.

Britain led with 20 percent of FDIs inflows, followed by Canada at 15 percent, neanwhile as Chinese FDIs have not significantly improved the well-being of local employees or increased family incomes as expected.

Samson Simon, a 25-year old resident of Mji Mpya Street in Kisemvule ward, located in Mkuranga District, found himself inadvertently employed by Fujian Hexingwang Industry Tanzania Co. Ltd on the 1st of July, 2020.

This hiring occurred after he had served as among temporary staff for the preceding 18 months, with his recruitment transpiring following a surprise factory inspection by the Occupational Safety and Health Administration (OSHA) in mid-July 2020.

Reflecting on this experience, Simon shared that he was among 20 casual workers out of the estimated 300 present workforce at that time “who were compelled to sign contracts without prior consent.”

As per the contract reviewed by this journalist, Simon was engaged as a scrap attendant for the blast furnace under a two year agreement, guaranteeing him a lump sum of 118,000/- until the contract’s conclusion on July 31, 2022.

Following the contract’s expiration, Simon reverted to being a casual worker from August 1, 2022.

Another individual, Selemani Yassin Mwamba, a 28-year-old casual worker at the same factory, raised issues regarding the durability of safety gear such as boots, gloves and helmets.

These crucial safety items frequently deteriorate within just seven days, falling short of the expected three month lifespan, he stated.

The absence of health and safety representatives at the factory contradicts the stipulations of the Occupational Health and Safety Act 2003, Section 11 (4) (b)m he added.