The World Bank, together with the British Department for International Development (DfID), is providing the money in the form of grants and loans. TradeMark East Arica is the lead consultant and is involved in giving knowhow.
“We believe that this programme will turn around the port,” Harrison Mwakyembe, Tanzania transport minister said last week.
Ros Cooper, the acting head of DfID Tanzania said after the official signing, “‘The Port of Dar es Salaam is arguably Tanzania’s most important infrastructure asset hence future growth of the economy depends on the port’s ability to improve, to become more efficient and to be able to handle more trade.”
Recently, the World Bank reported that Dar’s competitiveness as an efficient transport hub was mainly undermined by inadequate facilities and outdated systems. The bank estimates inefficiencies were costing the country and its neighbours up to $2.6 billion annually.
The Dar es Salaam port handles $15 billion worth of goods a year, equivalent to 60% of Tanzania’s GDP in 2012.
Sri Mulyani Indrawati, the World Bank Group Managing Director asked the Tanzania government to invite more private sector involvement.
She said, “It’s not only that all these investments should be done by the public sector — inviting more private sector participation can provide more investments,” she said at a news conference after the signing of the port financing agreement.
Completion of the redevelopment is expected to raise Dar’s profile alongside Mombasa, which is also in the middle of a major upgrade. However both are overshadowed along Africa’s eastern seaboard by Durban in South Africa.
Durban has a circumference of just over 20 kilometres and over 4000 commercial ships dock there annually.
The port also generates more than 60% of the combined revenue of all South Africa’s ports.
Source URL: East African Business Week
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.