Citizens Disagree Over Ports' Allocation in Tanzania

By Mutayoba Arbogast

The Port of DaresSalam, proclaimed as the busiest and ultramodern in East Africa by World Bank, has signed an Inter-governmental Agreement (IGA) with DP World, a global port operator and logistics company based in Dubai, the United Arab Emirates (UAE).

A preceding IGA between the United Republic of Tanzania and UAE concerning the economic and social partnership for the development; as well as improving the optimal performance of sea and lake port's across Tanzania was penned on 25th of October, 2022.

Tanzanians have expressed concerns on social media platforms over the DP World pact, saying they keep no grudge against investments in the country, while emphasizing what matters most is the kind of investment the country enters into must not be an exploitative nor subjective one.

It has also stirred heat debate within civil society organizations who feared the country's sovereignty would be threatened, as the IGA failed to specify how long the port will be under DP World; what amount the East African country will earn; or Tanzania's share of the entity, amongst others.

"This is  the worst Agreement in Tanzanian history. Since we were under colonial rule, and post-independence, we've had some Agreements which actually didn't benefit us, but at least they had time limitations. This kind of Agreement which gives out all our sea and lake ports, special economic zones, logistics' parks, state corridors, e.t.c?", lamented Tundu Lissu, a lawyer  and Vice-Chairperson of Tanzanian opposition political party, CHADEMA.

The deal allows DP World to manage and develop berths in up to seven ports handling various types of cargo, including containers, bulk cargo, and petroleum products for Tanzania and its neighboring landlocked countries.

Father, Dr. Charles Kitima, the Secretary-General of Tanzania Episcopal Conference is of the opinion that it is important the government adopt clear policies and regulations in governing the privatization process, while ensuring it serves the public good.  He further advised the government  to help local investors in a scheme devoid of bureaucratic bottlenecks in order to experience investment growth, instead of handling such resources, itself; or should  operate in partnership and not affiliations. 

The clergyman's stance corroborated that of Jenerali Twaha Ulimwengu, the Chairperson of the Board of Rai Mwema Newspaper and the High Court in DaresSalaam.

Tanzanian government has avowedly  endorsed the Resolution on the Inter-governmental Agreement, with the process questioned by Professor Anna Tibaijuka, a former politician and  United Nations official; claiming it was improper, stating what was needed to ratify the IGA was a secret ballot system, not an open one.

Tanzania ruling party, CCM is behind the whole deal and its members and cadres, supports the government move, except for rare cases when they speak their minds freely.

In a recent interview, the Works and Transport Minister, Makame Mbarawa told local newspapers that by working with Dubai-based firm, DP World, the state is projecting to improve revenue collection through the DaresSalam port by 233.7 percent in the next ten years.

Mbarawa disclosed that after tabling Tsh3.6 trillion for his Ministry's budget for 2023/24 at the Parliament, the government will work on the advice by Members of Parliament to engage the private sector to improve on efficient operation at the DaresSalaam Port.

The Minister also revealed that the most competitive DaresSalaam Port is being operated under Private-Public Partnership (PPP), akin to Mombasa Port (Kenya); Beira Port (Mozambique); similar to the ports in Namibia, South Africa and Morocco.

Tanzania aims to unlock the ports's full potential and establish  it as a model for efficient  harbour management in the commercial world.

Editing by Adedayo Osho for Goodness Oil & Gas News