President Samia Suluhu Hassan presents an award for outstanding dividend contribution to the Chairman of the TPA Board, retired IGP Ernest Mangu, accompanied by TPA Director General Plasduce Mbossa. PHOTO | THE CITIZEN CORRESPONDENT
Dar es Salaam. President Samia Suluhu Hassan said on Tuesday, June 10, 2025 that the World Bank, which initially declined to fund Tanzania’s port development, later reversed its decision after observing the government’s progress in upgrading the sector.
Speaking at State House on Tuesday during a dividend handover ceremony from state-owned institutions, President Hassan said the World Bank’s renewed interest—now offering a $500 million (about Sh1.3 trillion) loan—was prompted by the country’s demonstrated capability to finance and manage port improvements independently.
“In 2023, we approached the World Bank for a loan, but they returned with many conditions and declined to fund us,” she said. “Later, after seeing the investments we had made and the revenue generated, they came forward on their own with an offer.”
The President noted that the government has spent the past three years investing in port infrastructure and forming strategic partnerships, notably with DP World, which now operates and develops the Dar es Salaam Port.
These efforts, she said, have boosted efficiency and collections. The Tanzania Ports Authority (TPA) reportedly collected Sh325.3 billion in just five months, according to Chief Government Spokesperson Gerson Msigwa.
President Samia revealed that when TPA Director General Plasduce Mbosa informed her of the World Bank’s new offer, she advised caution.
“I told him: ‘Don’t rush. Find out exactly what they’re offering. We have enough resources for now. Let’s continue with our plan—if we face challenges later, we’ll reassess,’” she recounted.
She emphasised that the country now takes pride in achieving development goals without relying heavily on external financing. “When you show capacity, lenders come to you—not the other way around,” she added.
In an interview after the event, Mr Mbosa attributed the gains to operational reforms that have significantly reduced port running costs.
“Before private investment, routine expenditure—mainly on equipment—totalled Sh1.1 trillion. That figure has since fallen to Sh537 billion,” he said.
According to him, this cost reduction is due to private investors now bearing a substantial portion of expenses.
The savings have enabled the government to fund other key projects, including expansion of the Mtwara Port, construction of oil storage tanks worth over Sh600 billion, and development of the Mbambabay and Kemondo ports.
“This is not just about dividends. We are also contributing significantly in taxes. These gains are the direct result of reforms we have made—and continue to implement,” said Mr Mbosa.
