ACT Wazalendo and CCM Clash Over Malindi Port Deal

ACT Wazalendo and CCM Clash Over Malindi Port Investment Agreement

March 1, 2025

A dispute has erupted over the management and development of the Malindi Port in Zanzibar, with opposition party ACT Wazalendo calling for an immediate cessation of its deal with the port’s investor, while the ruling Chama cha Mapinduzi (CCM) maintains that the issue has already been resolved.

On Thursday, Ismail Jussa Ladhu, Vice Chairman for Zanzibar of ACT Wazalendo, sharply criticized the government’s handling of the port investment deal. He accused the administration of engaging in fraudulent practices and mismanagement, alleging that it had failed to meet key promises made to the public.

Addressing a press conference at the party’s headquarters, Jussa emphasized that the government had assured the public that an influx of international investment would bring a host of improvements to the port. These included reduced waiting times for ships, quicker container unloading, expanded storage capacity, and lower fees for port users. He also pointed out that the port was initially supposed to be managed by the reputable French company Bolloré. However, the government entered into an agreement with Africa Global Logistics (AGL), which later rebranded as Zanzibar Multipurpose Terminal (ZMT).

Jussa criticized the government for bypassing essential legal procedures, such as public tendering and conducting proper due diligence on the credibility of the investor. According to him, despite a substantial government investment of 17 billion Tanzanian shillings, including a costly e-Port system, AGL had not made any capital investment itself. Instead, the company has benefited from the port’s existing infrastructure, claiming 70% of the profits, while the government receives only 30%.

After two years of AGL’s management, Jussa argued that conditions at the port have not improved. Delays and worsening congestion have disrupted businesses and the general public, particularly as the holy month of Ramadan approaches, further compounding the problems at the port.

In response, Zanzibar’s Chief Government Spokesperson, Charles Hillary, refuted the opposition’s claims, asserting that the current administration is committed to national development. Hillary argued that, in contrast to the allegations, the government has overseen substantial improvements at the port.

“We have no time for this kind of political diversion, as we focus on building our nation,” Hillary stated.

The ruling CCM party also dismissed ACT Wazalendo's stance on the issue. Khamisi Mbeto Khamis, CCM’s Secretary for Ideology, Propaganda, and Training in Zanzibar, defended the government’s decision. He explained that the 24-month negotiation process to select AGL was thorough and transparent, with AGL meeting all the government’s criteria.

Khamis pointed out that AGL, a subsidiary of the Mediterranean Shipping Company (MSC), offered a 30% investment and the promise of advanced technology for faster cargo handling. Other international bidders, such as DP World, OIA from Oman, and AD Port from Abu Dhabi, did not meet the government’s standards. DP World, for example, proposed a lower investment and more restrictive terms, which the government rejected.

“The matter has been settled. Democracy should promote development and unity, not foster division,” Khamis concluded.

The debate over the Malindi Port investment deal continues to divide both the government and opposition, with each side holding firm on their positions. The ongoing standoff reflects broader tensions surrounding the management of key infrastructure projects in Zanzibar.