Skip to main content

Experts Hint on Why Tanzania Is Wary of China Merchant’s Bid on Bagamoyo Port



Staff Writers, Dar es Salaam and Lusaka

Branded as a project that would turn the fishing small town of Bagamoyo into a “Dubai of Africa” the proposed Bagamoyo Port and its auxiliary industrial park and a satellite town has officially been suspended by the Government of reformist President John Magufuli.

Announcing the decision in Dodoma this week, the Minister of Transport, Eng. Aloyce Kamwelwe, told the Parliament, that the government has suspended the talks however they would continue if China Merchant of Hong Kong, China would change some conditions. 
In a quick rejoinder the opposition as well as ruling party MPs bragged into social media to condemn the decision accusing the government for what they cited as economic insensitivity.    

“The Bagamoyo Project would attract multitudes of benefits to the people of Tanzania from employment, revenue to locating Tanzania as the logistics hub of Africa and the Dubai of Africa,” say Speaker of the House, a CCM MP.

But expert reached out to comment on the fate of the Project, commended the government decision citing several arguments ranging from economic, social to political considerations and the the planned finalization of the talks, if it will take place ought to consider these facts.

Dr. Stalin Moore from the Institute of Strategic Studies in Zambia who was aware of some levels of Bagamoyo Port negotiations, commended President Magufuli as “some terms advanced by the China Croup investors were worst ever in the history of recent maritime investments.”

He cited the issue of preferential and exclusive clauses on which China Merchant forced a condition for the government of Tanzania not to develop any other Ports in the vicinity during the initial 33 years of operationalization of the Bagamoyo Port.

“This would clearly undermine Tanzania’s geo-position as a country endowened with several natural oceanic ridges, a condition that would see the development of such ports like Tanga, Mtwara and Mafia clogged,” he said.

The other controversial issue is the land ownership question. China Merchant is understood to have proposed to the government of Tanzania that it will exclusively have the title deed for the industrial park on her name.

“This should not be the worry, bad enough is upon learning that the condition was attached with a request for exclusive management of the park from deciding who to invest, tax collection to plot acquisition. This would mean Tanzania has surrendered part of its land to the Chinese firm,” says Jonathan Moyo, a land expert based in Kitwe.  

Regarding political aspect of the project, experts in strategic studies argue that the economic benefits advanced by the project sponsors and their supporters do not reflect the whole truth. China, under the “Belt and Road Initiative” is understood to advance military, security as well as strategic reasons for financing ports and other Silk road projects in Africa and Asia.
“This rising role in security undergirds Beijing’s economic statecraft and commercial interests in Africa, helps professionalize China’s military and protect its citizens there, and furthers its ambitions to be a major power with global influence. The rapid pace of change is taking Chinese security policy practitioners into new territory,” says an article titled: “China’s expanding military Footprint in Africa” says an article published by Mail and Guardian of Zambia in October, 2018.
The claims are hard to beat as last year China Merchant acquired about 66 percent in running the Djibouti Port in the poverty torn country of the Horn of Africa. Chinese flags are all over the port with several Chinese companies subcontracted to run different sections of the Port.
China's Djibouti Port
In another likely event, after years of extending “soft loans” to the government of Sri Lanka, China has taken possession of a Sri Lanka Port after the government had failed to honour its loan repayment obligation.
The Bagamoyo Port was organized to be funded on equity contributions rather than conditioned loans, however, analyst enlist many more challenges on how long it would actually break even to allow government earn its revenues.
About China Merchant:
China Merchants Group (CMG) is a leading central state-owned enterprise based in Hong Kong, under direct supervision of State-owned Assets Supervision and Administration Commission of the State Council. The business performance hit record high in 2018, with 648.4 billion RMB revenue, 11.1% up year-on-year, and 145 billion RMB total profit, 14.1% up year-on-year, ranking No.1 among all the SOEs. By the end of 2018, the company had the total assets of 8 trillion RMB, continuously ranking No.1 among all central SOEs. 

China Merchants was founded in the Self-strengthening Movement in 1872. It is a pioneer in China's national industry and commerce. Within 146-year history, The company set up the first merchant fleet, the first Chinese bank, the first Chinese insurance company etc., playing an important role in modern China. In 1978, the company made great contributions to the opening-up by solely-investing and developing Shekou Industrial Zone, the first zone in China open to the world, and launching China Merchants Bank and Ping An Insurance Company, the first joint-tock Chinese bank and insurance company.

CMG is a conglomerate with three business platforms of non-financial industries, financial services, investment and capital operation. CMG's non-financial industries cover ports, toll roads, shipping, logistics, real estate, zone development, offshore engineering and trade.
CMG actively participates in the national initiative of "the Belt and Road", operating 53 ports in 20 countries and districts, creating a overseas network of ports, logistics, finance and industrial parks.

Comments

Popular posts from this blog

AFRICA'S TOP 5 "UNAFRICAN" PRESIDENTS OF THE YEAR 2018

"Botswana's impressive performance, Tanzania's great strides, Ethiopian reforms leaves the mark" says our online readers.  By Africa 54 Magazine, Accra, Ghana, 31 Dec, 2018 As we end the year 2018 and welcome the incredible 2019, our online magazine readers were asked to simply comment: who is your best African President for the year 2018- a leader who is not common to have one in Africa "UnAfrican" because of his/her incredible performance, leadership, focus, courage and great result.                                              And these are the results for 2018... #1 IAN KHAMA-Botswana: Always cool in leading the small country into tremendous social and economic transfomations including quality infrastructure, access to social services and j...

Tanzania More Peaceful Nation than France, US and UK

By Staff Writer, New York 31-3-2019: TANZANIA remains East Africa’s most peaceful and calm nation than most of the developed world like France, the United States of America (USA) and the United Kingdom (UK), the report reveals. The Global Peace Index (GPI) 2018 report released this weekend by the Institute for Economic and Peace (IEP), shows Tanzania improved by ranking 51, gaining three positions from 54 in 2017. Four living Presidents of Tanzania The most powerful nation on earth, USA is ranked 121 st while the UK ranked 57, six positions behind Tanzania. The UK dropped 16 positions compared to its 2017 rank. The s tudy covers 163 independent nations and territories around the world. This is good news for most Tanzanians and Africa about the reality of their narrative compared to the Africa of the Western media. Tanzania is one of the top five countries in Africa whose economies is the fastest on the continent. The nation is a beacon of peace and harmony in...

Tanzania's Most Peaceful Election: Why Opposition Got Flabbergasted?

 By John Njoroge:  The ruling party and President John Pombe Magufuli are both leading by far (update: final results are now out, see an update note at the end of the article), trailing the weak opposition in Tanzania following the 28th October General elections.              President John Pombe Magufuli of Tanzania As usual, as the results were pouring out, the oppostion parties, activists and western propaganda machination, all over, resorted to one simple phallacy; whether the election was free and fair. Actually I heard the opposition rejecting the results on the basis of some irregularities.  Let me address that first before I share what I believe to be the reasons for weaker oppostion this time around in Tanzania.  The term free and fair has no one meaning in electoral governance across the world; countries abhor diverse socio-political systems and so is how they manage their elections. The fact that all political parties too...