Tanzania. They have also allowed the UAE to consolidate defence interests in the Gulf of Aden as part of an almost decade-long military offensive in Yemen.
As a result, the UAE – despite its size – has an edge over other Gulf nations as the Horn of Africa is a strategic route for crude oil exports.
DP World’s developments in Somalia’s Bossaso port and Berbera in the self-declared republic of Somaliland amount to almost $1bn. The agreements caused a row with the Somali federal government, which considers Somaliland to be part of its territory and has often had a turbulent relationship with the semi-autonomous Puntland region, which includes Bossaso.
But DP World appears to have shrugged off political pressure to continue operations in both regions.
Its forays in Djibouti – a combination of military real estate and one of the busiest shipping routes in the world – could serve as a cautionary tale.
Djibouti’s attempts to seize the Doraleh Container Terminal, its biggest income generator and employer, from DP World triggered an expensive legal battle.
In 2018, Djibouti handed the terminal over to Hong Kong-based China Merchants Port Holdings to protest against a decision by DP World to give neighbouring Ethiopia and Somaliland access to imports.
But the maritime firm, which has a 50-year concession over the port from 2006, argued that the changeover violated its “exclusive access” to the region. The Hong Kong appeals court ordered Djibouti to pay DP World more than $600 million in damages, reasserting its tight grip.
The lengthy lease in Dar es Salaam is not unusual.
The Emirati firm’s deals across the continent on the Atlantic coast have been characterised by similarly long-term agreements.
In 2007, DP World edged out French interests in Senegal to win a $1.13bn contract to develop the Ndayane port near the capital Dakar, which it will control for 25 years.
The firm is set to earn more than $400m over a period of 20 years from a multi-purpose terminal concession agreement with Angola.
Between these developments is DR Congo’s $1.2bn deep-sea port in Banana that will be completed by 2025.
Tanzania’s troubled waters
Part of the contention over DP World’s presence in Tanzania is the perception that its operations are undermining local rights and management.
DP World Group boss Sultan Ahmed Bin Sulayem said while in Dodoma that the Dar es Salaam port will become a “world-class facility”.
President Suluhu’s predecessor, John Magufuli, had long shunned foreign investment and treated international partners with suspicion.
But since taking over in 2021, Mrs Suluhu has sought various partnerships with the UAE as a means to “address challenges and grab opportunities as quickly as possible”.
DP World remains an anchor for the UAE to extend its geopolitical ambitions across Africa.
