Huge Chinese-financed Port Project Stalled Again in Tanzania

Reuters published on 23 May 2019 a story titled "Why Tanzania, China's $10 Billion Port Project Has Just Stalled."

China Merchants Holdings International signed a loan agreement for $10 billion in 2013 to construct a port complex at Bagamoyo that would surpass the port of Mombasa in neighboring Kenya. There was a ground-breaking ceremony in 2015 but construction has not yet started. After years of negotiation, there is not yet a legally binding agreement. The Tanzania side argues that the conditions are not commercially viable and is waiting for new talks to resume with the Chinese company.

This long anticipated and oft delayed project has the potential to change the trade economics of the eastern African coast but also demonstrates increasing African concerns that these huge infrastructure projects make commercial sense.