Business journalist
Summary
· Kenya- Tanzania's business competitor in the region- is set to enter into an investment agreement with United Arab Emirates (UAE)
Dar es Salaam. At a time Tanzanians are divided over the recent Intergovernmental Agreement (IGA)
with Dubai, Kenya is reported to be courting the same investors from the Gulf.
Kenya, Tanzania’s business
competitor in the region, is set to enter into an investment agreement with the
United Arab Emirates (UAE).
Details of an agreement
between Nairobi and the Gulf state
are not available but the two sides have been in talks over the latter's
investments in the Kenya ports.
On June 10, the National Assembly
debated and approved the IGA between Tanzania and Dubai over the latter's
investment in the Dar es Salaam port.
The agreement, which has generated a
hot debate in the country, is currently awaiting the implementation stage where
the Host Government Agreement (HGA) and Lease/Concession Agreement is to be
signed as the two parties may deem fit.
While a section of Tanzanians say
the planned partnership with DP World, the Dubai-based company, will increase
Dar port's efficiency, others think otherwise.
Until yesterday, politicians were vividly
divided on the matter, with the Chadema national chairman, Mr Freeman
Mbowe reiterating the party’s opposition to the deal, calling upon parties to
unite; create a working cooperation and take action by fighting for a new
constitution that could help the country out of such challenges.
Mr Mbowe alleged that there were some
people who had been bribed to turn the opposition to the deal into a religious
confrontation.
“People have enough knowledge. They
will not be swayed by propaganda by a few individuals,” he said, trashing all
the government’s defence to the IGA with Dubai and emphasising that the deal
meant that Tanzania had given the mandate of developing all its ports in the
hands of the Arab Emirati.
In a separate rally in Kondoa
District, Dodoma, the CCM vice chairman (Mainland) Abdulrahman Kinana yesterday
told those who attended to have full trust in the ruling party, President Samia
Suluhu Hassan and her government.
He urged them to speak on the
President’s behalf and offer encouraging statements instead of discouraging the
Head of State.
“She is doing a very good job.
Different words are usually spoken at every political time. This will be said
today, while something else will be uttered tomorrow. What had been said last
month will go, as something else will be said today and will also go,” he said.
Without any mention of the Port
deal, Mr Kinana said the president will not be derailed from her focus. “When
she sees our support as well as good statements we make on her behalf. When she
see us praising her for the good things she is doing, she will be encouraged to
increase her working speed,” he added.
But despite the scarcity of details,
President William Ruto affirmed late last week that his country would soon sign
an investment framework with
the UAE.
Port operations are not mentioned in
the proposed deal, but it will be geared to exploit opportunities in transport
infrastructure, renewable energy, digital technology, agriculture, food
security and housing.
Last week, the UAE minister of State
in the ministry of Foreign Affairs Sheikh Shakhboot bin Nahyan Al Nahyan held
talks with resident Ruto at the State House in Nairobi.
Although it is too early to tell how
far negotiations between the current Kenya Government have gone with the
proposed investments, DP World is not a new name in Kenya.
At the height of the election
campaigns last year, politicians said Uhuru Kenyatta's government had plans to
allow DP World to manage some ports in Kenya.
Read: Why Tanzania picked DP World
for development of Dar port
There were reports then that the two
countries would sign an Economic Cooperation Agreement (ECA) for operations of
three ports as well also for supporting infrastructure at the ports and the
hinterland.
The visit by the UAE minister to
Kenya and a meeting with President Ruto may signal a U-turn for the Kenya
Kwanza administration over the issue.
As such, analysts say Kenya's plan
to sign an investment framework with the Gulf state is, however, seen as a
wakeup call for Tanzania to be proactive in embracing the same opportunities
coming its way.
The investment framework, whose
details have not been made public and whether they would entail operations of
the ports, would create job opportunities, among other benefits.
Analysts have cautioned that
Tanzania has to be proactive like its northern neighbour which also happens to
be its business competitor in the region.
"It is a pity that Kenya is
busy embracing opportunities going its way in the Gulf states at a time when
Tanzanians are divided into two over the DP World saga,” said Mr Ally
Kilengawana, a business analyst.
“Kenya is trying to push forward an
agenda that will make it the regional hub for all logistics and
transportation,” cautioned the transport and logistics expert.
He was of the view that Tanzania
should not waste time in exploiting the available business opportunities as
some of its competitors.
Kenyans, he said, was keen to ensure
Tanzania’s logistics industry posed no threat to them, especially in
collaborative projects with the giants in global logistics business.
Another logistics and transport
expert Alphonce Mwingira echoed, saying Kenya's signing of the investment
framework could scuttle opportunities to Tanzania.
"We need as a country to
swiftly act to ensure we develop our transportation and logistics hubs,"
he advised, noting that Tanzania should take advantage of its geographical
position to exploit the transportation links.
Tanzania is more strategically
located to serve a number of hinterland countries as a road, air and maritime
hub for the entire eastern African region.
The government, on the other hand,
has put in place a conducive environment for private sector investments which
ensured profitable investments.
Mr Mwingira called for enhanced
efforts to improve agricultural productivity through the application of modern
agricultural farming methods thus making the country food secure.
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