MINISTER for Industry and Trade, Dr Selemani Jafo, has given the National Development Corporation (NDC) 45 days to review its partnership agreement with ETC Cargo Company.

The government, through NDC, holds a 25 per cent stake in ETC Cargo, which operates in Mbagala, Dar es Salaam, with the remaining 75 per cent owned by the company. The joint venture, initiated in 2009, began paying monthly dividends of 50m/- in 2022—an amount that has raised concerns for Minister Jafo.

Jafo expressed dissatisfaction with the 50m/-, stating that the substantial business operations on the 55-acre government land could generate significantly more revenue. He questioned why the government was receiving such a small amount, considering the potential for leasing the land to generate higher returns.

The minister was surprised by claims that the joint venture had been making losses since its inception, which hindered the payment of dividends. He emphasised the need for a better agreement, urging a “win-win” situation where both the investor and the government benefit fairly.

“I have instructed them to sit together. We need a clear strategy that ensures the government receives a fair share, especially since the company is planning for expansion,” said Jafo. “The current monthly income is too low, and with the expansion plans, I am confident that the government’s share will increase.”

Jafo also noted that the company employs 139 direct workers and over 600 temporary staff, stressing the importance of protecting Tanzanian jobs while fostering business growth.

Looking ahead, Jafo plans to visit key projects such as the Mchuchuma and Liganga coal projects to ensure continued success and profitability for the country. He reassured the public that the government is actively working to promote business growth and ensure strategic projects benefit Tanzanians.

NDC Executive Director Nicholas Shombe confirmed that the corporation adheres to a policy of private sector involvement in joint ventures. He assured that the review process would be completed within the 45-day deadline, with a focus on ensuring sustainability and fair dividends.

Since the 2009 partnership, the government has only received 50m/- per month from 2022, as the investor cited operational losses.