Tanzania’s vehicle inspection system has become a cash cow for the politically connected, leaving the nation’s treasury on the sidelines. What was once a profitable reform under late President John Pombe Magufuli now appears to serve the private pockets of a few.
In March 2021, Magufuli scrapped the Pre-Export Verification of Conformity (PVOC) system, introducing Destination Inspection (DI) instead. The results were immediate and striking. By August 2021, just six months after commencement of Destination Inspection at the port of Dar es Salaam, TBS collected TSh 3.9 billion. Under PVOC, the government only received 30% of the inspection fees, while inspection agents pocket the lion’s share of 70%. DI was widely celebrated as a bold reform that maximized government earnings, plugged revenue leaks, and restored financial sanity in the inspection sector.
But just a year later, following President Magufuli’s death, President Samia Suluhu abruptly reversed the policy, reinstating PVOC in March 2022. Officially, the government claimed Tanzania lacked local vehicle inspection expertise, arguing the system was necessary to maintain quality standards.
Behind the scenes, however, insiders paint a far more unsettling picture.
Since PVOC’s reinstatement, Japanese company, EAA Company Limited, led by Tanzanian-Japanese entrepreneur Prosper Nguku Sugai, has emerged as the near-monopoly player, pushing out seasoned competitors like ATJ, despite their extensive expertise and international track record. Medium-sized firms have been relegated to crumbs, receiving only peripheral allocations.
Insiders further reveal that before the policy reversal, meetings were held in Dubai between EAA proprietor Prosper Nguku Sugai and a former Tanzanian Ambassador to Japan. According to sources, these meetings, deliberately held outside Tanzania to avoid scrutiny, allegedly facilitated the introduction of President Suluhu’s son Abdul who wields unchecked power, into the inspection business. It is after these Dubai engagements that the shift from DI back to PVOC was reportedly fast-tracked and later announced by the President. The Shadowy Relative of the president receives a kick back of 50usd of all the car inspected Last year impoorts of used cars from Japan was 70,000 units multiply by 50 USD that amounts to 3,500,000 USD equivalent to 8.5 Billion Tanzania per year total of 4 years of the contract that amounts to 34 billion Tanzanian Shillings.
Sources claim this partnership has shifted billions in potential state revenue into private hands, while the public sector, and the taxpayers who fund it lose out. Meanwhile, equipment worth TSh 3.5 billion, procured specifically for Destination Inspection at the Dar es Salaam port, now lies idle, gathering dust. These state-of-the-art machines, purchased using public funds, have been abandoned following the abrupt switch back to PVOC. Critics argue this represents gross wastage of public resources, sacrificed on the altar of private interest and unchecked greed. Critics warn the move is a textbook case of abuse of power and nepotism, with government policy bending to serve personal interests rather than national economic priorities. Where DI had maximized state income, PVOC now ensures that the bulk of inspection fees stay in private hands, leaving taxpayers and the treasury sidelined. A policy designed to protect consumers and streamline trade has been hijacked to benefit a privileged few, sacrificing national revenue for personal private gain. Billions that could have strengthened the nation’s finances are being rerouted to personal bank accounts for those close to power.
The said Prosper Nguku Sugai operates the whole chain of car business from Inspection, car sales, shipping, consolidation and clearing.
Prosper Sugai, the proprietor of EAA company has conflict of business; he does vehicle sales, shipping, clearing ,forwarding and consolidation of shipments Prosper has partnered with BE-FORWARD the biggest car exporter from all over the world. Below are the listed companies Prosper Sugai uses in Tanzania 1) Afritel System Limited 2) Be Forward Tanzania Company Limited 3) Prime Consolidators Limited all these companies are registered under prospers name Josiah Benedict Nguku.
