This archive report was first published on 28 June 2021.
On June 26, 2021, Tanzania announced plans to revive the $10 billion Bagamoyo port project, a stalled initiative that was initially set to become East Africa's largest port.
The project, which was first signed in 2013 with China Merchants Holdings International, aimed to transform Tanzania into a trade and transport hub rivaling its neighbors.
However, the late President John Magufuli's government had expressed concerns over the project's commercially unviable conditions, including a request from China that no other port be built in Tanzania.
Magufuli had also criticized the 'exploitative and awkward' terms attached to the deal, which included a 33-year guarantee and a 99-year lease, as well as a provision that prohibited Tanzania from questioning investors once the port became operational.
Furthermore, Magufuli alleged that the $50 million compensation for those displaced by the project was diverted to benefit a few individuals in Dar es Salaam instead of reaching the beneficiaries in Bagamoyo.
Despite the project's stalled status, the Bagamoyo port remains a crucial component in China's $900 billion Belt and Road Initiative.
Interestingly, in the wake of Tanzania's decision to opt for donor funding for mega projects, the World Bank has recently approved a $292 million fund for infrastructure projects in Zanzibar, in addition to the $4.9 billion already approved to help push mega projects in the country.
