Tanzania to kick off $10 billion port project in December

Tanzania is set to begin construction of a new port in the country’s east this December, ending a decade of delays caused by government objections to the initial contract terms with foreign developers.

The Bagamoyo port, part of a broader special economic zone initiative that includes industrial parks and rail and road links, is located about 75 km (47 miles) north of Dar es Salaam, the nation’s commercial capital.

Gerson Msigwa, the chief government spokesperson, said the port will eventually feature 28 berths, with construction starting initially on 14, according to Reuters.

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Machinery for the project is reportedly on its way, though he did not provide further details. The port is expected to reach a depth of 20 meters, allowing it to accommodate larger vessels than any other port in East Africa.

Tanzania signed a framework agreement with China Merchants Holdings International and Oman’s State General Reserve Fund in 2013, but implementation was stalled after the government deemed the terms unfavourable.

After taking office in 2021, President Samia Suluhu Hassan said her administration had begun renegotiations to revive the $10 billion project, signalling a major step toward boosting the country’s trade capacity and regional maritime influence.

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The move comes as Tanzania works to recover from economic challenges following a contentious election that was widely criticised for being violent and flawed.

That post-election tension is already spilling into the economy, with Kenyan businesses reportedly facing growing obstacles in their trade dealings with Tanzania.

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