Kenya- Tanzania’s business competitor in the region- is set to enter into an investment agreement with United Arab Emirates (UAE)
Dar es Salaam. At a time Tanzanians are divided over the recent Intergovernmental Agreement (IGA) with Dubai, Kenya is reported to be courting the same investors from the Gulf.
Kenya, Tanzania’s business competitor in the region, is set to enter into an investment agreement with the United Arab Emirates (UAE).
Details of an agreement between Nairobi and the Gulf state are not available but the two sides have been in talks over the latter’s investments in the Kenya ports.
RELATED Tanzania government maintains it’s position on ports agreement with Dubai
On June 10, the National Assembly debated and approved the IGA between Tanzania and Dubai over the latter’s investment in the Dar es Salaam port.
The agreement, which has generated a hot debate in the country, is currently awaiting the implementation stage where the Host Government Agreement (HGA) and Lease/Concession Agreement is to be signed as the two parties may deem fit.
While a section of Tanzanians say the planned partnership with DP World, the Dubai-based company, will increase Dar port’s efficiency, others think otherwise.
Until yesterday, politicians were vividly divided on the matter, with the Chadema national chairman, Mr Freeman Mbowe reiterating the party’s opposition to the deal, calling upon parties to unite; create a working cooperation and take action by fighting for a new constitution that could help the country out of such challenges.
Mr Mbowe alleged that there were some people who had been bribed to turn the opposition to the deal into a religious confrontation.
“People have enough knowledge. They will not be swayed by propaganda by a few individuals,” he said, trashing all the government’s defence to the IGA with Dubai and emphasising that the deal meant that Tanzania had given the mandate of developing all its ports in the hands of the Arab Emirati.
In a separate rally in Kondoa District, Dodoma, the CCM vice chairman (Mainland) Abdulrahman Kinana yesterday told those who attended to have full trust in the ruling party, President Samia Suluhu Hassan and her government.
He urged them to speak on the President’s behalf and offer encouraging statements instead of discouraging the Head of State.
“She is doing a very good job. Different words are usually spoken at every political time. This will be said today, while something else will be uttered tomorrow. What had been said last month will go, as something else will be said today and will also go,” he said.
Without any mention of the Port deal, Mr Kinana said the president will not be derailed from her focus. “When she sees our support as well as good statements we make on her behalf. When she see us praising her for the good things she is doing, she will be encouraged to increase her working speed,” he added.
But despite the scarcity of details, President William Ruto affirmed late last week that his country would soon sign an investment framework with the UAE.
Port operations are not mentioned in the proposed deal, but it will be geared to exploit opportunities in transport infrastructure, renewable energy, digital technology, agriculture, food security and housing.
Last week, the UAE minister of State in the ministry of Foreign Affairs Sheikh Shakhboot bin Nahyan Al Nahyan held talks with resident Ruto at the State House in Nairobi.
Although it is too early to tell how far negotiations between the current Kenya Government have gone with the proposed investments, DP World is not a new name in Kenya.
At the height of the election campaigns last year, politicians said Uhuru Kenyatta’s government had plans to allow DP World to manage some ports in Kenya.
READ Why Tanzania picked DP World for development of Dar port
There were reports then that the two countries would sign an Economic Cooperation Agreement (ECA) for operations of three ports as well also for supporting infrastructure at the ports and the hinterland.
The visit by the UAE minister to Kenya and a meeting with President Ruto may signal a U-turn for the Kenya Kwanza administration over the issue.
As such, analysts say Kenya’s plan to sign an investment framework with the Gulf state is, however, seen as a wakeup call for Tanzania to be proactive in embracing the same opportunities coming its way.
The investment framework, whose details have not been made public and whether they would entail operations of the ports, would create job opportunities, among other benefits.
Analysts have cautioned that Tanzania has to be proactive like its northern neighbour which also happens to be its business competitor in the region.
“It is a pity that Kenya is busy embracing opportunities going its way in the Gulf states at a time when Tanzanians are divided into two over the DP World saga,” said Mr Ally Kilengawana, a business analyst.
“Kenya is trying to push forward an agenda that will make it the regional hub for all logistics and transportation,” cautioned the transport and logistics expert.
He was of the view that Tanzania should not waste time in exploiting the available business opportunities as some of its competitors.
Kenyans, he said, was keen to ensure Tanzania’s logistics industry posed no threat to them, especially in collaborative projects with the giants in global logistics business.
Another logistics and transport expert Alphonce Mwingira echoed, saying Kenya’s signing of the investment framework could scuttle opportunities to Tanzania.
“We need as a country to swiftly act to ensure we develop our transportation and logistics hubs,” he advised, noting that Tanzania should take advantage of its geographical position to exploit the transportation links.
Tanzania is more strategically located to serve a number of hinterland countries as a road, air and maritime hub for the entire eastern African region.
The government, on the other hand, has put in place a conducive environment for private sector investments which ensured profitable investments.
Mr Mwingira called for enhanced efforts to improve agricultural productivity through the application of modern agricultural farming methods thus making the country food secure.
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