ACT Wazalendo, CCM clash over Malindi Port investment deal
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A section of Malindi Port, Zanzibar. PHOTO | FILE
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- In response to these criticisms, Zanzibar’s Chief Government Spokesperson, Charles Hillary, rejected the claims, stating that the current administration was focused on national development arguing that, contrary to the allegations, there had been notable improvements at the port
Unguja. The ongoing debate over the Malindi Port investment deal has taken a new turn, with opposition party ACT Wazalendo calling for the immediate termination of the contract with the port investor, while the ruling Chama cha Mapinduzi (CCM) insists the matter is resolved.
ACT Wazalendo’s Vice Chairman for Zanzibar, Ismail Jussa Ladhu, on Thursday criticised the government’s management of the port project, accusing it of fraud and mismanagement.
In a statement at the party's headquarters, Jussa claimed the government had failed to fulfil its promises regarding the port, which he argued has been a setback, particularly for the poor.
Jussa highlighted that the government had assured the public that international investment would bring significant improvements, including reduced waiting times for ships, faster unloading of containers, expanded storage, and lower charges for port users.
He pointed out that the port was supposed to be overseen by a reputable French company, Bolloré.
However, instead of Bolloré, the government signed the deal with Africa Global Logistics (AGL), which was later rebranded as Zanzibar Multipurpose Terminal (ZMT).
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Regional Director of Southern Africa at Africa Global Logistics (AGL), Tony Stenning, and CEO of Zanzibar Ports Corporation, Nahaat Mahfoud, sign the contract for the management of the Malindi Container Terminal at the Port of Malindi in Zanzibar on May 18, 2023. PHOTO | COURTESY
According to Jussa, the government failed to follow proper legal procedures, such as issuing a public tender or conducting due diligence on the investor’s credibility.
Furthermore, Jussa claimed that, two years after AGL took control of the port, the situation had not improved.
Despite the government’s investment of Sh17 billion—including in an expensive e-Port system—the investor had not contributed any capital and was benefiting from the existing infrastructure, taking 70 percent of the profits while the government received only 30 percent.
He emphasised that none of the five promises made to improve port operations had been fulfilled, citing delays and worsening congestion, which he said had disrupted businesses and the general public, particularly ahead of Ramadan.
In response to these criticisms, Zanzibar’s Chief Government Spokesperson, Charles Hillary, rejected the claims, stating that the current administration was focused on national development.
He argued that, contrary to the allegations, there had been notable improvements at the port.
“We do not have room for this kind of politics, as we have a nation to build,” Hillary remarked.
The ruling party, CCM, also dismissed ACT Wazalendo’s stance on the issue with the party’s Secretary for Ideology, Propaganda and Training in Zanzibar, Mr Khamisi Mbeto Khamis, insisting that the process followed in selecting AGL was legitimate.
He explained that the government conducted a thorough negotiation process, lasting 24 months, before selecting AGL, a subsidiary of the Mediterranean Shipping Company (MSC), over other international bidders such as DP World, OIA from Oman, and AD Port from Abu Dhabi.
Mr Mbeto emphasised that AGL was chosen because it met the government’s criteria, offering a 30 percent investment and the installation of technology for faster cargo handling.
He pointed out that other companies, such as DP World, had failed to meet the criteria, proposing lower contributions and more restrictive terms, which the government rejected.
Mr Mbeto concluded by asserting that the matter had already been settled, adding that the goal of democracy should be to promote development and unity, not to sow discord.
As the debate continues, it remains clear that the government and opposition are at an impasse, with each side standing firm on their perspective regarding the Malindi Port investment deal.