Zanzibar charts path to become East Africa new trade hub

Zanzibar charts path to become East Africa new trade hub

ZANZIBAR, Aug 31 (NNN-DAILYNEWS) — ZANZIBAR is positioning itself as East Africa’s next major trade and logistics hub through a sweeping programme of modernising and expanding its ports.

A move the government said will unlock unprecedented opportunities in shipping, business, tourism and regional connectivity.

The multi-billion-shilling initiative, spearheaded by President Dr Hussein Mwinyi’s administration, is designed to link Zanzibar’s ports into a single integrated system capable of handling international cargo, fish landings, petroleum products, passenger ferries and cruise ships.

Minister for Infrastructure, Communication and Transport, Dr Khalid Salum Mohamed, said preparations are well underway to overhaul key ports on Unguja and Pemba islands.

These include new or upgraded facilities at Kizimkazi, Maruhubi, Mangapwani, Shumba, Wete and Mkoani, which he said will restore Zanzibar’s historic role as a gateway for Indian Ocean trade.

“We are determined to move forward in the port sector and compete at the highest level,” Dr Khalid told journalists, noting that different ports will be tailored for specialised activities such as fishing, oil handling and passenger services.

Zanzibar Ports Corporation (ZPC) Director General, Akif Ali Khamis, said the government has embarked on transformative port reforms that will allow both domestic and international shipping lines to dock directly in Zanzibar, cutting costs and boosting trade.

“These new facilities are being built to modern standards, with capacity for large cargo and passenger vessels and fitted with advanced handling equipment,” Akif explained. He singled out Mangapwani Port as the designated international trade gateway.

Zanzibar, long a historic entrepôt for Indian Ocean trade, is now aiming to reclaim that status with projects that promise not only to ease shipping but also to generate jobs, attract investment and drive economic growth.

Among the headline projects is a 250 US million dollars investment by Dutch and Tanzanian companies to construct the new Maruhubi passenger terminal, expected to begin trial operations between November and December this year. “By 2027, all passenger services from Malindi will be relocated to the state-of-the-art Maruhubi terminal.”

Another ambitious project is the planned Kizimkazi passenger port, which will slash travel time between Zanzibar and Dar es Salaam from two hours to just 45 minutes. Feasibility studies are ongoing, with construction expected to start in the 2025/2026 fiscal year and be completed within two years.

At Fumba, expansion is adding 24 hectares of storage space to handle up to 250,000 containers annually, with direct shipping links expected from China, Dubai, Turkey and the UK. Oil offloading facilities at Mangapwani are also in the pipeline.

The reforms are already paying off. The DG said port revenues have grown from 27bn/- annually before Dr Mwinyi’s presidency to an average of 33bn/-, with collections reaching 36bn/- in 2024/25. “At Malindi Port alone, monthly income has more than doubled from 360m/- to over 800m/-, with projections to surpass 1bn/-.”

“With the completion of Mkoani, Fumba and Mangapwani projects, we expect revenues to exceed 42bn/- annually within the next two years,” Akif revealed.

“Thirty years from now, Zanzibar’s ports will be fully modern, competitive and independent,” he said. “This is the backbone of our economy and the key to placing Zanzibar firmly back on the global trade map.”

Customs Chief Secretary, Ahmed Suleiman, added that the government’s long-term vision is to ensure every region of Zanzibar has a modern port, strengthening services and expanding national revenue.

Officials say the sweeping port transformation will be one of President Mwinyi’s defining legacies, setting Zanzibar on a path to self-reliance and prosperity for decades to come. — NNN-DAILYNEWS

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