Govt pledges to review new container charges within 60 days

Dar es Salaam. The government has pledged to review new container loading and offloading fees, charged at the port and in the Dar es Salaam municipalities, within 60 days.

The decision follows concerns raised by industrialists and businesspeople about rising business costs.

Industry and Trade minister Selemani Jafo said on Monday that his ministry in collaboration with the Ministry of Finance and the President Office - Regional Administration and Local Governments (PORALG) was working to find the solution.

“I have received complaints from industrialists, particularly through the Confederation of Tanzania Industries (CTI), regarding the new charges,” said Dr Jafo.

“We are taking these concerns seriously and will provide a resolution within two months.”

CTI executive director Leodegar Tenga emphasised that the additional charges have increased production costs, making local industries less competitive.

“Industrial development requires a favourable environment. We appreciate the Minister’s commitment to resolving this issue because industries create jobs and contribute to government revenue,” he added.

Mr Tenga added that discussions with key government officials have been extensive, with a focus on container-related costs.

He said with industrialisation playing a key role in Tanzania’s economic growth, they are hopeful for a swift resolution.

“The government’s commitment to reviewing the charges within 60 days is a step towards creating a more business-friendly environment,” he said.

The regional administrative secretary for Dar es Salaam, Dr Toba Nguvile, acknowledged the business community’s concerns, particularly the high container handling fees.

“Traders have asked for these fees to be scrapped, but they also propose a bulk discount—for example, a 20 percent reduction for those handling 50 containers or more,” he said.

Dr Nguvile also pointed out inconsistencies in fees across different cities, which have been seen as barriers to industrial growth. While some issues have been resolved, others, such as the bulk discount proposal, require further discussion, he said.

“These charges are set by municipal bylaws and are intended to support public services.”

CTI first vice chairperson Hussein Sufiani recalled a similar situation in 2016 when Mwanza City Council introduced fees that became unsustainable.

“In business, numbers matter more than anything. Any cost increase affects competitiveness,” he said.

According to him, Dar es Salaam is a major import hub, and many goods processed here are for export. Even a fee of Sh130,000 per container may seem small but has a significant impact on overall costs, he said.

Mr Sufiani also highlighted the chemical levy of Sh4,000 per tonne and had serious financial implications for businesses.

Industry and Trade permanent secretary Hashil Abdallah assured the business community that their concerns are being addressed.

“Traders are willing to pay taxes, but the charges must be justifiable. If businesses struggle, the minister cannot rest,” he said.

One of the affected companies, ALAF Limited, emphasised the burden of the fees, particularly in the steel sector.

“The cost might seem small per container, but for those handling 50 or more at a time, it adds up,” said ALAF external affairs manager Hawa Bayuni.

“Manufacturers invest millions of dollars annually, and such fees make us less competitive,” she added.

She proposed a fixed, minimal charge that balances business competitiveness while ensuring municipalities still generate revenue.