What Happened: The Tanzanian government has issued a new set of strict demands for Chinese investors in the $10 billion Bagamoyo port construction project, The East African reported Oct. 21. Tanzania is now reportedly offering only a 33-year lease on the port instead of a previous 99-year agreement; at the same time, it will require investors to obtain government approval to open other businesses in the port area, among other changes.
Why It Matters: The latest negotiations indicate that the Tanzanian government remains interested in the Bagamoyo port project, seemingly confirming comments by the Chinese ambassador in July that talks could continue. The Tanzanian government has been attempting to reach a better agreement with investors after criticizing the previous administration for striking a bad deal.
Background: Ongoing deliberations over the Bagamoyo port project underscore heightened scrutiny against China's Belt and Road Initiative across Africa and other regions over unclear financing terms and allegations of so-called "debt traps."
Read More:
- Tanzania's 'Bulldozer' President Risks Flattening His Country's Reputation and Revenue (March 1, 2019)
- East Africa: Where Ambition Meets Reality (Sept. 16, 2016)
