$250 million maritime deal rocks Tanzania, as govt backs UAE firm to control two-third of country’s port for 30 years

TANZANIA – A multimillion-dollar deal signed between Emirati maritime giant DP World and Tanzania on Sunday looks set to further entrench United Arab Emirates (UAE) in Tanzania’s freight industry.

Reports of the US$250 million (£205 million) deal first emerged in July, sparking criticism by the opposition that it “violated Tanzania’s constitution and endangers national sovereignty.”

Business Ghana reported that activists petitioned a court to halt the deal and were briefly detained for planning anti-government protests.

The high court in Tanzania’s south-western town of Mbeya dismissed the petition, paving the way for DP World to manage two-thirds of the Dar es Salaam port for the next 30 years.

Transport Minister, Makame Mbarawa, – whose office did not respond to earlier requests for comment – said there would be no job losses and that Tanzania would retain 60 percent of earnings.

DP World said it expected to triple revenue within a decade and speed up the clearance of vessels from the current average of 12 hours to 60 minutes.

Chronic inefficiency, corruption allegations and competition in freight management by neighbouring Kenya are some of the underlying reasons why Tanzania President Samia Suluhu signed off on the agreement.

“People have a right to raise concerns because this is a democracy. And it is the government’s job to act,” she said during the signing in the administrative capital, Dodoma, downplaying public disquiet.

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