The President of Tanzania, John President Magufuli, suspended the plan of the Bagamoyo port construction, following a disagreement with the Chinese investors. The project would have resulted to the biggest port in East Africa.
Specifically, sources report that the President of Tanzania halted the plan because the Chinese demands were not favourable. Generally, the project commenced four years ago, in 2015, and was about to be signed by the former president Jakaya Kikwete in 2013.
In addition, parts of the Chinese demands were:
- They would own and operate the port for 32 years;
- The Tanzania Revenue Authority won’t take part in port operations;
- Chinese could start other companies within the port’s land without interference from the government;
- Tanzania shouldn’t develop other ports to compete with Bagayomo;
As Mr Magufuli reported
Those investors are coming with tough conditions that can only be accepted by mad people. They told us once they build the port, there should be no other port to be built all the way from Tanga to Mtwara south.
President Magufuli also said the new Bagamoyo port risked undermining the ongoing $522m expansion of Dar es Salaam port that would enable it to triple its current capacity when complete by the end of this year.
