Port of Dar es Salaam. The Bagamoyo project framework agreement was
signed on March 24, 2013 to enhance competition along the EastAfrican
coast and supplement the Tanzanian ports of Dar es Salaam and Mtwara.
PHOTO FILE | NMG 
Financial constraints have forced Tanzania to miss out on
ownership of the $10 billion Bagamoyo Port and Special Economic Zone
project.
Under a three-way partnership signed with Oman
and China in 2013, Tanzania was to get an undisclosed shareholding in
the project by dint of raising $28 million for compensating landowners
who were to be displaced.
But the government managed
to raise only $1.5 million and compensated a few of the 2,180 registered
residents of the area earmarked for the project. There are other owners
of large tracts who do not reside in the area and are yet to be
registered for the compensation.
With investors anxious
of losing the business opportunities envisaged from the project, the
government is now negotiating with the investment partners for them to
fund the compensation of land owners. In turn, the government will
forego an equity stake in the project and only benefit from taxes on the
land and occupancy by the investors.
Minister for Industries and Trade Charles Mwijage told The EastAfrican
that the discussions with investment partners also revolve around the
legal framework to ensure there would be no conflict between them and
the Bagamoyo community.
China Merchants Holdings
International (CMHI), a port management firm, is understood to be ready
to raise money for the compensation. CMHI managing director Hu Jianhua
said in a statement two weeks ago that the company would run Bagamoyo as
one of its overseas ports.
“We had not abandoned this
project. We were waiting to compensate the people whose land was taken
for development of various business programmes,” he said.
CMHI
said in its report that the Bagamoyo SEZ is part of its global
investments. In Africa, the Chinese company has invested in Kenya,
Ethiopia, Togo, Nigeria and Djibouti.
The
Bagamoyo project framework agreement was signed on March 24, 2013 to
enhance competition along the EastAfrican coast and supplement the
Tanzanian ports of Dar es Salaam and Mtwara.
Retired
President Jakaya Kikwete touted the project during his term, vowing to
construct Tanzania’s biggest port at the former slave harbour with
funding from Oman and China.
However, when President John Magufuli came to office in 2015, the project took a backseat as the government prioritised improvements of Dar es Salaam, Mtwara and Tanga ports.
However, when President John Magufuli came to office in 2015, the project took a backseat as the government prioritised improvements of Dar es Salaam, Mtwara and Tanga ports.
The
Bagamoyo port and its affiliate industrial zone is meant to address
congestion at the old port and support Tanzania to become East Africa’s
leading shipping and logistics centre. The port is located about 75
kilometres from Dar es Salaam and 10 kilometres from Bagamoyo town.
Some
190 industries have been marked for development within the SEZ. When
fully developed, the Bagamoyo SEZ will attract about 700 industries to
become a strategic investment zone in East Africa.
CMHI
said among the projects envisaged in the Zone are industrial parks
worth $120 million, a $70 million tourism Park, free port facilities ($
90 million), free trade zone ($70 million), Science and Technology parks
($ 50 million), International business centre ($70 million) and
industrial sheds costing $20 million.
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