By Adonis Byemelwa*
The Tanzania-Dubai-based multinational logistics company DP World pact that allows the latter to take over some operations at the Dar es Salaam Port, has stirred harsh criticism from several actors who think it will benefit the company more than Tanzania and its people.
Approved by the parliament on June 10, 2023, the agreement has put the government in a tight spot, forced to defend a deal that some have equated to an attempt to sell off the country to foreigners, a charge that those in power have vigorously rejected.
The dubious pact has put the government in the spotlight due to the suppression of dissidents by accusing them of treason, in which the staged peaceful demonstration by the Tanzania diaspora in the United States Embassy on August 18 had ignited pressure on the release of a retired diplomat, Dr. Wilibrod Slaa, and two others, who were accused of subversion.
The diaspora was up in arms against the government’s intolerance of the dissents, with diverse chants from demonstrators pressing for the step down of Inspector General of Police Camillus Wambura.
“We have no weapons to harm anyone but have concerns to be registered. Tulia Ackson must go, DP World must go, Camillus Wambura must go. We cry for freedom of speech. We push for the release of DP world critics unconditionally,” said one of the demonstrators.
The diaspora had insisted on the importance of maintaining the country’s sovereignty, calling on the government to push for the new constitution which would see all unfair legislations kept at bay.
The diaspora’s hullabaloo is believed to have forced The Tanzania Police Force to release retired diplomat, Dr. Wilibrod Slaa, advocate Boniface Mwambukusi, and Maluka Nyagali, after holding them for several days, in what the law enforcers say the trio was accused of incitement.
The diaspora’s demonstration came a day after the thirty-seven Catholic Bishops in Tanzania’s joint statement Friday 18th August over the controversial Tanzania-Dubai intergovernmental agreement, calling on the government to listen to people’s demands to cancel the deal, saying, “The voice of the people is the voice of God.”
The deal, which would allow an Emirati logistics company DP World to take over some operations at the Dar es Salaam port, continues to face criticisms from various sections of the public, with authorities appearing determined to proceed with it regardless.
In their joint statement Friday, the clerics said they do not endorse the deal, calling on the government to create the necessary environment to allow Tanzanians to run and manage their resources for their benefit and those of future generations.
Apparently, the international community and human rights groups have overstretched the government to refrain from a clamp down on dissidents, with the Amnesty International releasing a statement on August 16 to condemn the arbitrary arrests of the DP World Critics.
In a new twist, Minister for Information Communication and Technology Nape Nnauye August 17th said in a statement that no one had been arrested for criticizing the deal approved by the Parliament on June 10, 2023. Instead, those arrested have violated the country’s laws.
“The police arrested the three individuals in question for making specific public threats of serious criminal nature, which include calling for the violent overthrow of the government of the day,” Mr. Nnauye who doubles as Mtama MP (Chama Cha Mapinduzi-CCM) said.
The minister’s statement came hot on the heels of a public speech made by Dar esalaam Regional Commissioner Albert Chalamila.
Speaking at a gathering of traders at the Ferry Market, Mr. Chalamila said the government would deal with any individual who provoke violence in the city.
All those who mislead the public are already in detention. I have told them to do whatever they want to do, but I will deal with each of them,” he warned adding: “Dar es Salaam is not a place for violence.”
Mr. Nnauye’s clarification on the arrests by the government followed a decision by local and international human rights organizations to condemn them, demanding authorities to “immediately and unconditionally” release all the detainees.
The Legal and Human Rights Centre (LHRC), Tanganyika Law Society (TLS), Tanzania Human Rights Defenders Coalition (THRDC), and Jukwaa la Katiba Tanzania (JUKATA) gave a joint statement in Dar es Salaam, condemning the “arbitrary arrests” of the deal’s critics.
In June, Prime Minister Kassim Majaliwa, Attorney General Eliezer Feleshi, Works and Transport Minister Makame Mbarawa, and Tanzania Ports Authority (TPA) director general Plasduce Mbossa are among government officials who have issued detailed clarifications on a number of issues in the document.
The list of those who have come out in support of the IGA includes business magnate Rostam Aziz, Tanzania Private Sector Foundation (TPSF) chairperson Angelina Ngalula and politician-cum-academician Kitila Mkumbo.
There are also those who have openly voiced their concerns about some provisions in the agreement, including, former Cabinet minister Anna Tibaijuka and law and development expert Issa Shivji.
Although there could be relevant points to take home from either side, it is apparently the number of people and companies that get their daily bread through port operations that prolongs the debate as each one wants to be sure of what will happen next.
Political analysts and lawyers-cum-activists had criticized the signed contract, with many accusing the Parliament of being a toothless dog—for its failure to show a stance against the pact.
The Tanganyika Law Society (TLS) considers that the provision, which calls for the enhancement of Tanzania’s investment legal infrastructure, may have a positive impact on Tanzania.
TLS, however, is concerned about the phrasing of the article and requires the project to be stabilized in a way that is comparable and satisfactory to the parties alongside the Project Company.
“It is also widely known that the existing legal environment across all sectors does not favor private or Public-Private Sector Partnership (PPP) investments, including the PPP law,” reads a part of the TLS’ statement availed to the media a few days ago. TLS recommended that the government undertake comprehensive legislative and regulatory reforms sector-wise, taking cues from the Business Environment Strengthening for Tanzania Program.
Nevertheless, Attorney General Eliezer Feleshi said the ongoing misleading on the DP World and negative perception towards the company, was unhealthy for the development of the country.
He said the matter could be perceived as Tanzania discriminating against investors from some countries.
“Discriminatory language uttered by a section of people towards investors from some countries can tarnish the country’s image as the best destination for tourists in the content,” warned Dr. Feleshi.
“So, do you want us to create an environment that will worry investors in the sense that our country doesn’t want investors?”
Yes, not bad, the list of stakeholders that depend on the port for their survival and who think their interests need to be safeguarded include shippers, shipping companies, inland container depots (ICDs), clearing and forwarding agents, and lorry owners.
Official TPA statistics show that as of 2022, there were 15 registered ICDs in the country. The ICDs handle about 80 percent of the 800,000 containers passing through Dar es Salaam Port every year, with the rest being delivered directly from the port to customers.
While the government believes an increase in the amount of cargo would mean more business for every player, including ICD operators, some players say it will all depend on how the government negotiates the local content aspect in the HGA and/or lease/concession agreement stages.
“What I can assure all players is that a focus on efficiency will open the door for more business for all players,” Mr Mbossa told reporters recently.
TPA expects that with improvement in efficiency, cargo to be handled by Dar es Salaam Port will more than double from 20.43 million tonnes in the 2021/22 financial year to approximately 56.34 million tonnes in 2032/33.
Shipping more cargo through the port could mean more shippers (importers and exporters), which implies more business opportunities for clearing and forwarding agents. TRA’s 2022 data shows that there were 1,023 registered clearing and forwarding agents in Tanzania. They get business from importers or exporters of cargo by facilitating clearance from ports in Tanzania.
Meanwhile, Tanzania Shipping Agencies Corporation (Tasac) 2022 data puts the number of registered shipping agents in the country at 29. They get business from ship owners or chartered vessels by facilitating cargo loading and discharge at a port of call.
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. Tanzania needs political will to push the deal. We should not drive the nation into an uncalled-for crisis because the government is unwilling to govern. DP World is not a solution. It is, at finest, a negligence of duty.
*Adonis Byemelwa is a Master in International Relations Graduate, teacher, author, and columnist and was formerly a sub-editor with Tanzania’s English Newspaper, The Citizen. Hyperlink, adonisbyeme@yahoo.com. +2555884436
