DP World Deal: An unforced error by President Samia's government

 

By 

Charles Makakala

Summary

·         What Dar needs is political will. We should not push the nation into a needless crisis because the government is unwilling to govern.

As President Samia Suluhu Hassan marked two years in office, I penned an article concluding that she is a “decent person”. 

Read: Are we finally seeing the authentic Samia?

However, my assessment faced significant criticism from certain circles. How dare I suggest, critics asked, that the President is decent?

I observe that two groups consistently find fault with this president.

Read: Commentary on the agreement between the Emirate of Dubai and Tanzania

The first comprises diehard members of opposition parties who refuse to acknowledge any positive aspects of her leadership.

The second group consists of followers of the late President Magufuli, mostly CCM members, who relentlessly point out perceived missteps in her actions, much like some of us criticised Magufuli.

Amid such political challenges, facing opposition from within and without, it was crucial for President Hassan to consolidate her power to secure re-election beyond 2025.

However, the DP World debacle has become a major stumbling block to that agenda.

It is unfortunate because this blunder could have been easily avoided but was carelessly allowed to happen. That is what is called an “unforced error”.

The potential for such a scandal was always present. All leaders face character tests when in power, such as the temptation to exploit their position for personal gain or to favour specific groups. This regime was particularly susceptible to two tests.

Nevertheless, the DPW issue presents a scandal that checks all the boxes – leading to people raising questions of all types about the leaders’ intentions. It was quite avoidable.

The government’s response to the situation has been intriguing. After the initial missteps, such as trying to control the narrative by employing comedians, the need for a more serious individual to champion that cause became apparent.

I presume that for weeks, the dubious honour of the “Pro-DPW Supremo” was hurtling through the corridors of power until Prof Kitila Mkumbo made himself available.

It remains unclear why the politically astute Prof Mkumbo took that risk. He is probably banking on our forgetfulness for his political survival.

The message that the government has been sending to the nation is quite disturbing.

Since independence, great leaders such as Julius Nyerere have told us that we can do anything.

Through their words, they inspired us with their vision and their belief in our potential.

But now, our leaders are mobilising resources to tell us that we cannot competitively manage the Dar Port and that only the Emiratis can.

That is a startling admission and a serious political error.

But we don’t buy that nonsense, do we? We know that investing a billion dollars or two in improving the port is well within our means.

We know that we can integrate TPA and TRA systems if we wish to. We know that TPA, or better yet, another independent public operator, can competitively manage the port without entering into dubious agreements.

But when the government keeps saying, “No, we can’t”, we probably should agree with them. Probably the government cannot.

I suggest some serious soul-searching on their part to see whether they have the necessary equipment to take this nation forward.

The DPW idea is a geopolitical wildcard with significant implications for Tanzania.

For example, Dar is a strategic gateway for seven countries, and it handles merchandise possibly worth up to 60 percent of our GDP.

DPW is a state-owned multinational with UAE interests at heart. It is unwise to render such a strategic resource to foreign operators with competing interests.

Moreover, when DPW manages the port, it will likely attempt to link DRC with Rwanda (as argued by an expert), where DPW has an inland port.

However, given the tensions between DRC and Rwanda, DRC, which contributes about 50 percent of all transit cargo, may avoid routing its cargo through Tanzania, leaving Tanzania with both a significant loss of revenue and an SGR white elephant.

Over the past year, I have engaged with several individuals with a deep understanding of our ports and the issues affecting their performance.

Often, the problems they highlight are mundane and don’t need foreign interventions.

For instance, in one port, failing to bribe crane operators can result in significant delays in cargo unloading.

In another, inadequate space for trucks to manoeuvre leads to unnecessary long dwell times. In another one, using ICDs has dramatically reduced waiting times.

The 2013 World Bank report on the Dar port found that Dar’s inefficiency is due to corruption and the benefits that powerful individuals get from the port’s inefficiency.

The report estimated that the cost to Tanzania was equivalent to eight percent of its GDP annually, or about 15 trillion shillings today.

The report recommended increasing consumer awareness of the cost of inefficiency, reducing corruption, motivating changes, improving coordination, and engaging private operators.

The first four recommendations don’t need a foreign investor and don’t necessarily lead to the need for a private operator.

I contend that we don’t require a foreign operator for this port.

What Dar needs is political will. We should not push the nation into a needless crisis because the government is unwilling to govern.

DP World is not a solution. It is, at best, a dereliction of duty.