In 2011, 192 people were killed when a heavily overloaded ferry capsized between the country's most populous city, Dar es Salaam, and the tourist island of Unguja (referred to informally as Zanzibar).
Rescuers searched for survivors after the disaster on Lake Victoria in Tanzania, a few yards from the dock on Ukerewe - the lake's biggest island - on Thursday.
Tanzania's chief secretary, John Kijazi, had told reporters the ferry had a passenger capacity of 101.
The divers managed to pull Mr Charahani out of the compartment, where he had hidden moments before the MV Nyerere overturned.
But Majaliwa said divers would continue the grim search in the waters around the boat.
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He was one of about... People carrying their goods from a busy market day prepared to disembark, unbalancing the ferry which turned over. The man's condition was not immediately clear.
Such ferries often carry hundreds of passengers and are overcrowded.
It is learnt that the ferry is carrying almost 400 people.
Transport minister Kamwelwe said on Saturday that 172 of the bodies had been identified by relatives.
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It is thought the ship tipped when passengers moved over to one side.
An official investigation will take place once rescue efforts to find survivors have ended.
Volunteers arrange the coffins containing the dead bodies of passengers retrieved after a ferry MV Nyerere overturned off the shores of Ukara Island in Lake Victoria, Tanzania September 22, 2018. The death toll soared past 200 on Saturday while officials said a survivor was found inside the capsized ferry.
"This is a great disaster for our nation", Magufuli said late Friday in a speech on TBC television.
Accidents are often reported on the large freshwater lake surrounded by Tanzania, Kenya and Uganda.
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The deadliest such incident in recent decades was in May 1996, when about 800 people died after their ferry sank on the way to Mwanza in Tanzania. "We are confident that the government of Tanzania will leave no stone unturned in their efforts to get to the bottom of this tragic incident to enable affected families to get closure".