Taking Charge: DP World's Expansion Into Africa's Ports via Tanzania

DP World, an Emirati maritime company, has signed a multimillion-dollar deal with Tanzania that is expected to strengthen the United Arab Emirates' (UAE) dominance in Africa's freight industry. The $250 million deal has faced criticism from opposition parties, who argue that it violates Tanzania's constitution and undermines national sovereignty. Activists opposed to the agreement were briefly detained after petitioning the court to stop the deal. However, the high court in Tanzania dismissed the petition, allowing DP World to manage two-thirds of the Dar es Salaam port for the next 30 years. The company expects to triple its revenue within a decade and significantly reduce vessel clearance times. The deal was approved due to concerns over inefficiency, corruption allegations, and competition in freight management, particularly from neighboring Kenya. The UAE has become one of the largest investors in Africa, with investments totaling almost $60 billion in infrastructure and energy sectors. DP World currently operates ports across the continent, including in Angola, Djibouti, Egypt, Morocco, Mozambique, Senegal, and Somalia. The company has pledged to invest $1 billion in Africa in the coming years. This expansion has at times strained relationships and intensified competition for infrastructure development in Africa. Like China, Turkey, and Russia, the UAE is increasingly positioning itself as a Western counterweight in political and economic terms. The UAE has strengthened its diplomatic presence in Africa through humanitarian support and defense cooperation, particularly in the Horn of Africa. DP World's presence in the Red Sea region has given it a near monopoly in the area, as well as consolidating defense interests in the Gulf of Aden. This strategic positioning has provided the UAE with an advantage in crude oil exports. DP World's operations in Somalia and Djibouti have faced political pressure, but the company has continued its activities in these regions. Djibouti's attempt to seize the Doraleh Container Terminal from DP World triggered a legal battle, which ended with the court ordering Djibouti to pay over $600 million in damages. The lengthy lease in Dar es Salaam is consistent with DP World's approach across the continent. The company has secured long-term agreements for ports in Senegal, Angola, and the Democratic Republic of Congo. Critics of DP World's presence in Tanzania argue that it undermines local rights and management. However, the company's CEO has stated that the Dar es Salaam port will become a "world-class facility." Tanzania's current President, Samia Suluhu, has actively pursued partnerships with the UAE to address challenges quickly and seize opportunities. DP World is integral to the UAE's geopolitical strategy in Africa.