Tanzania’s Transport Minister Mbarawa announced in June that the country has begun talks with Dubai’s DP World to administer the state-owned port of Dar es Salaam, saying that Tanzania’s leader Hassan wanted the company to increase the facility’s revenues.
According to a statement from DP World, the UAE global logistics business has won a proposal to run a portion of Tanzania’s Dar es Salaam port and would invest more than $250 million to enhance existing facilities.
He went on to say that this collaboration will provide the East African region with trading prospects with global markets, as well as contribute to its economic development by creating jobs and improving access to goods and services.
Furthermore, the Dubai-based company stated that it might increase the investment to $1 million throughout the concession term. The company has declared ambitions to invest in a variety of industries, including temperature-controlled storage, rail-linked logistics, and the creation of a special economic zone.
Furthermore, Tanzania’s Transport Minister Makame Mbarawa applauded the concession agreement, calling it a “significant breakthrough in building best-in-class infrastructure.”
Furthermore, Mbarawa highlighted that no jobs will be lost at the port authority because the Tanzania Ports Authority will keep a stake in the port concessionaire.
The importance of the initiative was also emphasized by Tanzania Ports Authority Director General Plasduce Mkeli Mbossa, who stated that the partnership will stimulate “large scale infrastructure development” and allow the country to allocate funds to other key economic sectors.
According to media sources, Mbarawa stated that the East African nation’s government held talks with DP World in June to oversee berths one through seven at the port. According to the report, Mbarawa also claimed that the country’s leader anticipates the facility’s revenue to expand from $3.1 billion to $10.7 billion over the following decade.
Furthermore, the transport minister stated that the average stay of a ship will be lowered from five days to 24 hours as a consequence of the company’s efforts to alleviate congestion, according to the media.
Apart from Tanzania, DP World has ports in Angola, Djibouti, Egypt, Morocco, Mozambique, Senegal, and Somaliland.
Abu Dhabi’s influence in Africa is expanding. According to the multinational law firm White & Case, the UAE has become the continent’s fourth-largest global investor over the last decade, trailing only China, the EU, and the United States.