The East Africa Commercial and Logistics Center (EACLC), constructed in Ubungo, Dar es Salaam, has raised concerns among business stakeholders.

While one side argues that it is expected to significantly contribute to Tanzania's and East Africa's economic growth, the other side is worried about various challenges, including concerns from traders and customs agents regarding equal business opportunities and job security for locals.

This strategic project, which comprises over 2,000 shops, offices, restaurants, and parking spaces, is said to be aimed at connecting Tanzanian traders with large Chinese industries, creating employment opportunities, and increasing revenue for the Ubungo Municipal Council.

The project covers 75,000 square meters, the former site of the Ubungo intercity and international bus terminal. It includes a three-story building with over 2,000 shops, a parking area for 1,000 vehicles, offices, restaurants, and banks.

The investor, EACLC Limited, has already opened leasing opportunities, and a sign has been placed indicating that the official launch will take place soon.

According to the Ubungo Municipal Council management, the project's goal is to link Tanzanian traders with large Chinese industries, facilitate cargo clearance at the port, and provide storage facilities.

However, the website of Weihai Huatan Supply Chain Management Co. Ltd, headquartered at 152 Zhuhai Street in Weihai, China , describes the Ubungo center as a strategic hub enabling Chinese traders to dominate East African markets and those relying on the Dar es Salaam Port.

According to the website, EACLC is regarded as the "golden area of Dar es Salaam" due to its proximity to key infrastructure such as the port, modern railway, road networks leading to different regions and neighboring countries, and "a significant opportunity to open markets for Chinese industries."

The site further describes EACLC as "the most convenient and modern gateway for Chinese companies to enter the East African market."

The profile of Weihai Huatan Supply Chain Management Co. Ltd, also known as Huatan, states that it was established in April 2019 as a privately and government-owned company with an initial capital of 300 million Yuan. The company focuses on managing supply chains for Chinese industrial products destined for Africa under its mission of strengthening trade relations between China and Africa.

The company aims to enhance Chinese traders' export capabilities by establishing wholesale storage facilities and handling import and export trade.

When the journalist contacted the Minister of Planning and Investment, Prof. Kitila Mkumbo, to discuss the project, he confirmed that construction was progressing well but noted that he had no recent updates on its overall development.

The Executive Director of the Ubungo Municipal Council, which leased the land to the investor, Kaguru Mjuli, stated that the project has significantly benefited them, including receiving an annual land lease fee of 1bn/- .

Mjuli mentioned that the council's revenue would increase through business licenses and service levy payments once the center begins operations.

"We (Ubungo Municipality) have leased the area for 33 years, receiving 1bn/- annually. We see that construction is complete, and traders are already leasing shops. Once the center is operational, we expect more revenue from business activities," Mjuli said.

In an interview, EACLC LIMITED Sales Consultant Hassan Ramadhan stated that the project is valued at US$100 million (over 264.9bn/-) and is in its final completion stages.

He said trader response has been positive, with some leasing for one, two, three, or even 30 years. Those leasing for 30 years are essentially purchasing the spaces, with shop rental prices starting at TZS 1 million per month.

Rental prices vary by floor and shop size. For instance, 12 square meters on the ground floor costs USD 9,500 annually, while the same size on the first floor costs US$6,800, and on the second floor, US$6,500 per year.

For those purchasing the 12-square-meter spaces for 30 years, prices range from 160m/- to 200m/-.

Hassan clarified that only Tanzanians with a Taxpayer Identification Number (TIN) are eligible to lease or purchase shops in the market.

The ground floor will host businesses selling mobile phones, home appliances, computers, electrical goods, and office supplies. The first floor will include children's clothing, toys, adult clothing, leather products, cosmetics, pharmaceuticals, and beauty products.

The second floor will be dedicated to construction materials, home décor, spare parts, agricultural products, supermarkets, and offices. The third floor will accommodate offices, restaurants, and parking spaces.

"Demand is very high. For example, all 30 initially built restaurants have been fully booked, prompting us to construct 20 more," Hassan noted.

Regarding the products to be sold, Hassan said they will be sourced from various countries, depending on trader preferences and experience.

"Not all products will come from China. For instance, if cosmetics are imported from the U.S., that will continue. Similarly, traders selling quality clothing from Turkey will maintain their sources. We do not restrict traders," he explained.

Hassan stated that while EACLC offers customs clearance and forwarding services, traders will still have the option to use their existing customs agents.

"Some traders have long-standing relationships with their customs agents, so it would be challenging to ask them to switch. However, those who need our clearance support will be assisted. Our clearing company will also handle shipments from China," he said.

EACLC will oversee shipments from the source, handle clearance, and provide storage facilities in Kibaha.

"We aim to expand into regional markets such as Rwanda, Burundi, Malawi, Zambia, Zimbabwe, and Mozambique. Traders will no longer need to travel to China for supplies—they can source them here in Tanzania. We will also connect them directly with manufacturers to get factory prices," he added.

Tanzania Freight Forwarders Association (TAFFA) Secretary-General Liston Goodluck stated that while they support the investment, the government must protect local jobs, including customs brokerage.

"Our concern is if they handle customs clearance themselves. This is not good for business. We insist that locals be prioritized because, in other countries, foreigners are not involved in port operations.

"We welcome investment but believe customs clearance should remain in the hands of Tanzanians for national and individual economic benefits. If one entity owns a building, imports goods, and handles clearance, tax evasion becomes easier," he warned.

However, ome Kariakoo International Market traders say the investment will be beneficial if it focuses solely on wholesale trade.

Zakaria Sanga, a clothing trader, said their main concern is that Kariakoo could be affected if EACLC allows both wholesale and retail sales.

Economist Faraja Mgwabati suggests that for strategic investments, revenue-sharing agreements should be based on percentages rather than fixed amounts to ensure long-term national benefits.

"Agreements should be reviewed by the Attorney General before finalization to safeguard national interests," he concluded.