The $10bn project to build a mega port in the Tanzanian town of Bagamoyo, which was almost shelved by President John Magufuli, may be back on track, according to Mbelwa KairukiTanzania’s ambassador to China. He reported that discussions were under way between the Tanzanian government and investor China Merchants Port Holdings to resolve disagreements over the terms of the deal. Out of the outstanding 29 issues to be resolved, four might require parliamentary action. Rejecting allegations that the Bagamoyo Port project was a debt trap, Chinese Ambassador “This is investors bringing capital. The government is not bringing a single cent. So how can it be a debt trap? “
Bagamoyo Project once completed would be the largest in Africa. The project was under negotiations since 2014 as a 20 million teu (20ft-equivalent unit) container port, variously priced at between $7bn and $11bn.Funded by China and Oman’s sovereign wealth fund, the State General Reserve and developed by Hong Kong-based conglomerate Merchants Holdings International, it was originally due to begin limited operations in 2017
Chinese investments in Tanzania touched $7bn in 2018 with bilateral trade between the two countries recording $4bn, according to Chinese media.
