6 Shocking Conditions That Angered Magufuli Reject Sweet Chinese Loan

Tanzania President John Pombe Magufuli has open the Pandora’s box on the kind of shocking terms Chinese government impose on African Presidents seeking development loans.

While addressing stakeholders in Dar es Salaam, Tanzania, the no nonsense East African leader revealed some of the key strange conditions that he was given by the Chinese government in exchange of their loans .

Using their recent lobby project to seek funding of the Port at Dar es Salaam, he sited some of the below conditions


Tanzanian government was ordered not to build any kind of port or develop even existing ones.

“Imagine someone telling you that I will build you a port but on a condition you will not be allowed to construct or develop any other port in the country for a specified period.”

Chinese to collect Tax on behalf of TZ government

TZ government will be restricted from collecting taxes within the port

“That investor also demands you will also not be allowed to collect revenue (at the port they have constructed), not even TRA (Tanzania Revenue Authority) will be allowed within the premises of that investment,” he said

Hold on the port for long duration

The Chinese will also operate the port within a period not less than 35 years old.

Demolishing TZ rules on land lease

The Chinese investors will also come up with their own set of rules against the existing 99-year land lease in TZ

You will also have to separately settle for a lease agreement, which is different from the laws of the land for 99-years – Magufuli

Modern Colonization

The rogue investors should also be given the mandate to transform that place as if it is their own land.

Double payment

Despite all these tough terms, TZ government is expected to repay the loan without any kind of favour

While all this is happening, you need to be compensating them for the work they did to build that port. I am revealing some of these strange conditions because people have been coming here and taking advantage of Tanzania and Tanzanians. We are supposed to change.” – Magufuli

Magufuli’s revelations have sounded a huge warning to concerned Kenyans who think that Jubilee Government in Kenya actually sold itself cheaply to Chinese loans while funding key projects such as Standard Gauge Railway

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