Marine Silk Road Project in Tanzania Concerns over Sovereignty of Tanzania

Controversies and undertones around land and sovereignty of Tanzania with the existence of China’s Belt and Road Initiative (BRI) aren’t unique and out of expectation. Not only looking at Tanzania, the original China’s  Shekou zone faced similar obstacles thus the reason China Merchants  always sought long concession  terms for its handful similar projects abroad with China’s ‘long lasting’ strategic allies. It always requires long time horizons to sort out the controversies while having sufficient time for Special Economic Zones (SEZs) to start operating. Having faced early concerns, Shekou narrative focused to transform for later success hence it brought about clear regulations for zone operations and land use to focus on positive perception of the project.  Local authorities had total control of land rights and usage and upper hand take on the operation of the project on their territories. Today, modern Shekou narrative is ignoring the early concerns and lacks proper clarity on sovereignty concerns thus the silent discomfort in Tanzania over the mega port project.

Notably, during the era of President Magufuli the diplomatic spat over Bagamoyo port project with China merchants brought in the clear picture of concerns by the local people over the China’s infrastructural project. As much as the local leadership wanted to expand development, the cost of losing control of theland in their territory wasn’t taken lightly. For example, between 2018 and 2019, Tanzanian government expressed desire of expansion of the port projects elsewhere in the country and in particular Dar es Salaam port which was congested and needed modernization, in contrary, China Merchants were firm and opposed to other areas for the project except vicinity of Bagamoyo port. For this, local authorities obviously seemed to be out of control of its internal affairs and interests as PRC deep plans were overriding.

President Magufuli and Bagamoyo Port project stand versesPresident Suluhu reversal

In 2013, Tanzania inked a framework agreement with China Merchants Holdings International (CMHI) & Oman’s State General Reserve Fund(SGRF) for construction of port and special economic zone with aim of transforming the country into a regional trade and transport hub. During President Magufulitenure, the $10 billion Bagamoyo port project was slowed and shelved with focus diverted to expansion and modernization of Dar es Salaam Port, this created diplomatic row with Beijing but President Magufuli was firm with his concerns over the mega project.

He accused the project as “exploitative and awkward” according to terms set for financing the project. The conditions were unacceptable, China Merchants insisted their focus should be in Bagamoyo port and no other other port should come up all the way from Tanga to Mtwara South.

President Magufuli argued that construction of Bagamoyo port would undermine $522-million expansion of Dar es Salaam portand hinder its targeted capacity.

China Merchants wanted to be given a guarantee of 33 years and lease of 99years, additionally; Tanzania shouldn’t have any say over the investment once the port is operational. Issue of land ownership was also a major concern as China Merchants wanted land ownership and again demands compensation from Tanzania for drilling construction of the port.

In addition, President Magufuli was weary that $50-million allocated for compensation of citizens displaced by the new port project didn’t get to targeted beneficiaries in Bagamoyo but benefited wrong individuals. To him this was a blatant corruption scheme.

Moving forward in 2021, after assuming office from President Magufuli, Tanzania’s current president Suluhu made a u-turn on the halted Bagamoyo Port project. While chairing her maiden Tanzania National Business Council in Dar es Salaam signaled that the project should be revived for the benefit of the country. What led to the drastic change of event raised lots of questions and discussion.

According to sources close to her administration, she attributesfalsified information & manipulation during the previous regime that led to the cancellation of the project. For example, contrary to largely-held assumption that the mega project was under advancement by China, the Bagamoyo Port project is firmly a brainchild of Tanzania Ports Authority (TPA) through its Port Development Master Plan which run from 2009-2028. Also, their basis is that the project wasn’t just about the port alone but part of wider Bagamoyo Special Economic Zone (BSEZ) as part of Tanzania Mini Tiger Plan 2020. The mini Tiger plan is an economic strategy under Ministry of Industry and Trade aimed at fostering country’s development through increasing exports to the global market.

For President Suluhu, she was much concerned with amending the punctured long-term diplomatic relationship with PRC. Looking at her country’s interests at the moment she needed Beijing as much it also desperately waited for her. Since Bagamoyo project was a key venture for the Chinese President’s idea of Belt and Road Initiative (BRI), its failure was a clear indication of diplomatic weakeness between the two countries and the end results would be costly for the country.  Tanzania already crippled with ballooning foreign debts and desire to finance some of its key infrastructural projects for political influence, President Suluhu was limited with options but had to be at the mercy of Beijing.

Notably her maiden state visit to China ended with several goodies as PRC wrote-off some of Tanzania’s loan obligationsand signing new infrastructure deals to restore key BRI projects. These are just face value information for the public, but in all these dealings there is always give and takes, what Tanzania offered to receive such offers and now centre of attention Beijing in the region still raises more concerns than answers especially debt trapping and threat to sovereignty of Tanzania.

MSR and labor control, Local jobs in TZ

China’s policy to employ Chinese labor for its various infrastructural projects in Africa has led to influx of more than 200,000 Chinese Citizens working across BRI contracts across the continent. These unfair policies of favourism over locals have raised concerns and hostilities. Locals whose livelihoods were disrupted with development of the mega projects continueto languish in poverty despite project being in their neighborhoods. China goes ahead to import even non-skilled workers, jobs that can easily be taken by the locals against the local policy of giving priority to local residents for such opportunity.

In cases where there is high localization rate of labour then most definitely top-level management positions remain preserve of the Chinese, these greatly endangers an employment generation & management participation gap.

With Tanzania unemployment crisis, the increasing Chinese mega infrastructural investments are equally leading to talent gap due to skewed labor policies.

Additionally, there are concerns that Chinese firms’ labourpractices perpetuate abuse through casualization of labour, poor remunerations and general disregard to occupational safety.

Is PRC out to resettle its overpopulation through MSR

Despite international & regional suspicions on true intentions of Chinese investments, African governments are faced with limited options. Beijing is so far the front-runner with ability to provide gargantuan of financing to develop and modernize port. In the principle of give and take, China’s increased operations and presence in Africa can’t just throw many of these suspicions under the bus.

Chinese sporadic mega BRI investments and enterprises across the continent come with massive Chinese workforce and population. Today, there are over 20,000 Chinese workforcesand over 800 Chinese owned businesses in Tanzania alone. The number is on the rise and has as well necessitated PRC to deploy military investments in the region to protect its growing interests and population. Although, Beijing’s approach to Africa is on ‘Win-win’ approach, increasing Chinese population in Africa points fingers at China more long-term concern of advancing its interests economy, depopulation and employment opportunities for its citizens.