The Invisible Tax: Why Container Deposits Cripple East African SMEs

Meet Juma, a dedicated Clearing Agent in Dar es Salaam. He has five containers to clear for a client, but he’s stuck. Why? He needs $5,000 upfront just for container deposits. That’s money that should be paying his staff or bidding for new contracts. Instead, it’s sitting in a shipping line’s bank account, doing nothing for him.

For years, the "Invisible Tax" of container deposits has acted as a silent ceiling on the growth of East African SMEs. While these deposits are meant to guarantee the return of equipment, they effectively strip small businesses of their most precious resource: Liquidity.

• The Capital Trap: When an SME ties up $1,000–$2,000 per TEU, they aren't just paying a deposit; they are losing the "opportunity cost" of that money.

• The Domino Effect: High entry barriers for clearing agents lead to less competition, higher costs for the end consumer, and a slower flow of goods across the Central and Northern Corridors.

• The Stagnation: Without cash flow, agents cannot invest in the digital tools or fleet expansions needed to compete globally.