Tanzania's Planned $10 Billion Bagamoyo Mega Port May Never Be Implemented
Updated: Apr 17, 2021
Africa | Tanzania | Infrastructure May 21, 2019
After years of excitement in East Africa about Tanzania's planned $10 billion mega port in Bagamoyo, said would be the largest in East and Central Africa, it now looks as if the ambitious project may never be implemented after all. That follows announcement on May 19, 2019 by the government of Tanzania that negotiations concerning the project between itself and the project investors have reached a stalemate, due to investors' conditions that deprive Tanzania maximum benefits from the project. That was reported by some East African media on May 21, 2019.
Investors in the project are China Merchants Holdings International of China, and Oman's State General Reserve Fund.
Tanzania and the investors signed an initial agreement for the project in 2013. However, delays in commencement of the project began when a new government came to power in late 2015, and have since prevailed.
If the planned new mega port is to ever be built, it may be a game changer in Tanzania's emerging status as an economic giant in East, Central, and Southern Africa. It may also probably elevate the position of Tanzania as the closest economic ally of the world's second largest economy, China, in Africa. Furthermore, a new mega port in Bagamoyo may resolve current issue of congestion at Dar es Salaam port that is said to have very limited and expensive options for expansion.
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