Tanzania cuts port infrastructure levy by half to boost trade competitiveness

Dar es Salaam. The Tanzania Ports Authority (TPA) has announced a significant 50 percent reduction in the Port Infrastructure Development (PID) levy, lowering the charge from nine per cent to 4.5 percent of customs duty.

This strategic move, confirmed by TPA’s Director of Marketing and Public Relations, Dr George Fasha, is designed to enhance the competitiveness of Tanzanian ports and provide much-needed financial relief to traders and the wider transport and logistics sector.

This decision follows intensive feedback from industry stakeholders who expressed deep concerns regarding the potential impact of the original levy on the cost of doing business.

Importers, exporters, and clearing and forwarding agents had formally requested a review of the fee, citing its timing and the cumulative burden of existing port charges.

In response to these appeals, the government and TPA opted to halve the rate to ensure a more business-friendly environment.

The revised levy is now scheduled to take effect on July 1, this year, allowing stakeholders additional time to adjust their commercial operations and honour existing contracts.

The introduction of the PID levy remains a central pillar of the government’s plan to secure independent funding for massive port expansion projects.

As cargo volumes continue to surge, the TPA has outlined a strategic investment roadmap worth 16.1 trillion shillings over the next five years.

This capital will be directed towards critical projects, including the construction of new berths in Dar es Salaam (specifically berths 12 to 15), the expansion of the Tanga and Mtwara ports, and the development of a new port facility at Kisiwa Mgao.

These upgrades are essential to mitigate current operational pressures, such as vessel waiting times and heavy road congestion around the port corridors.

Funding for this ambitious infrastructure programme is expected to be a collaborative effort.

Approximately Sh11.2 trillion will be generated through TPA’s internal service revenues and dedicated levies, while the remaining balance will be sourced via Public-Private Partnerships (PPP).

By establishing this dedicated revenue stream, the authority aims to ensure that strategic projects are completed on schedule, boosting Tanzania’s capacity to serve landlocked neighbours in East and Central Africa.

Projections suggest that the country’s ports will handle upwards of 62 million tonnes of cargo by the 2030/2031 fiscal year.

Recent performance data highlights the rapid growth necessitating these investments.

In the first nine months of the 2025/2026 financial year, Tanzanian ports handled 29.6 million tonnes of cargo.

Furthermore, the authority achieved a historic milestone by processing over one million containers for the first time, a feat that reflects rising operational efficiency and growing international confidence in the Port of Dar es Salaam as a regional gateway.

While stakeholders remain watchful of the total cost of port services, the reduction of the infrastructure fee is being viewed as a vital compromise that balances the need for modern facilities with the economic realities of the regional trade community.