Bagamoyo SEZ negotiations all set to commence afresh

Dar es Salaam. After the formation of a negotiation team last month, the government says it will soon announce the start of negotiations for the multi-billion dollar Bagamoyo Special Economic Zone (SEZ).

Over the weekend, the permanent secretary in the Ministry of Works and Transport in-charge of Transport, Mr Gabriel Migire, told The Citizen that the government formed a team to prepare the country’s position on what interests it requires when it comes to project implementation.

“After the work is done, we will present the report to the President (Samia Suluhu Hassan),” noted Mr Migire - who, however, did not say when the report will be ready.

Yesterday the chairman of the team, Mr Geoffrey Mwambe – who doubles as Investment minister – said preparations for the discussions on the project’s implementation are at an advanced stage.

“We have made great efforts, and will soon officially announce the start of negotiations with our colleagues with whom we previously held talks,” said Mwambe in Dodoma as he provided the press with a briefing for the Investment sector in the country for the past 60 years.

According to Mr Migire, however, Tanzania’s team of negotiators includes the permanent secretaries responsible for Transport, Investment, Finance and Planning, as well as Industry and Trade.

The list also includes representatives from the Tanzania Ports Authority (TPA), Export Processing Zones Authority (EPZA), Tanzania Investment Centre (TIC), Tanzania Revenue Authority (TRA) and TIB Development Bank.

The government signed a framework agreement in 2013 with China Merchants Holdings International (CMHI) and Oman’s State General Reserve Fund to build the port and a special economic zone as part of efforts to transform Tanzania into a trade and logistics hub in the region.

But, the Fifth Phase administration of the late President John Magufuli dismissed the project, saying it was exploitative and inappropriate.

However, chairing her maiden meeting of the Tanzania National Business Council in Dar es Salaam in June this year, President Hassan – who ascended to the Presidency on March 19, 2021 following the death in office of Dr Magufuli on March 17, 2021 – said the Bagamoyo Port project would be executed to benefit the nation.

The project was to be implemented by the government of Tanzania in partnership with China Merchant Holding International and Oman’s State Government Reserve Fund (SGRF).

It would be the largest port in East Africa, and was a key component in China’s $900-billion Belt and Road Initiative, an ambitious transnational infrastructure building programme.

Speaking on investment flows in the past six months of President Hassan’s regime, Mr Mwambe’s data show that the government’s pro-investment approach was yielding positive results.

He said that, in the six months since Tanzania’s first female President came into power, the country has registered 164 investment projects through the Tanzania Investment Centre (TIC).

“These projects have the capacity to generate more than $3.5 billion annually, and create 48,000 jobs,” said Mr Mwambe.

Mr Mwambe - who previously served as TIC chief - also said that, although Tanzania has taken big steps in the investment sector since independence, there nonetheless are still some challenges that need addressing.

These, he said, are policy, legal, technical and administrative challenges.

“We have a team in the Morogoro region right now that is devising new conducive policies for investments while some investment regulations bills are also at top level government before they are submitted for approval in parliament,” he said.

Mr Mwambe also said that his ministry has worked closely with other ministries in the government to address some of the technical issues, while administrative challenges have been resolved by timely directives - all in the name of “investment promotion.”