After years of negotiations and setbacks, Tanzania will finally start construction on the ambitious Bagamoyo port next month, government officials announced, signaling a major push in infrastructure under President Samia Suluhu Hassan.
The port, located 75 kilometres north of Dar es Salaam, forms the centerpiece of a vast special economic zone that includes industrial parks, rail connections and road networks. Chief government spokesperson Gerson Msigwa told reporters on 23 November that work would begin on 14 of the planned 28 berths, with construction machinery already en route.
“The port will have a depth of up to 20 metres, allowing it to accommodate larger ships than any other in East Africa,” Msigwa said. “It will handle vessels carrying up to 25,000 containers, boosting our capacity significantly.”
Decade-long delays resolved
The project traces its roots to 2013, when Tanzania signed a framework agreement with China Merchants Port Holdings and Oman’s State General Reserve Fund during President Jakaya Kikwete’s tenure. Valued at USD10 billion, it promised to create East Africa’s largest maritime hub, capable of processing 20 million containers annually by 2045 — 25 times the current throughput of Dar es Salaam port.
However, implementation ground to a halt in 2019 under then-President John Magufuli, who branded the terms “exploitative and awkward.” Magufuli objected to provisions including a 99-year lease for the developers, extensive tax holidays and clauses restricting Tanzania from building competing ports elsewhere. He argued the deal threatened national sovereignty and favored foreign interests over local benefits.
Magufuli’s administration prioritized upgrading existing facilities like Dar es Salaam and Tanga ports instead, fearing Bagamoyo could cannibalize traffic from the capital’s hub. The suspension drew criticism from investors but resonated domestically as a stand against perceived unequal partnerships.
Revival under Hassan leadership
President Hassan, who succeeded Magufuli in 2021 following his death, adopted a more pragmatic approach. She initiated talks to renegotiate the contract, emphasizing fairer terms that prioritize Tanzanian interests. “We have started negotiations on reviving the whole Bagamoyo port project,” Hassan said in June 2021, highlighting its potential to drive economic growth.
By 2024, progress accelerated with revised agreements focusing on technology transfer, local job creation and revenue sharing. Officials have not disclosed the updated contract details or the primary construction contractor, but China Merchants remains a key partner, underscoring Beijing’s ongoing influence in African infrastructure.
The revival aligns with Hassan’s broader agenda to attract foreign investment while safeguarding national priorities. Her government has pursued similar deals, including upgrades to the central railway line and partnerships with Dubai Ports World for Dar es Salaam operations.
Technical specs and strategic vision
Once complete, Bagamoyo will span a 2,500-hectare special economic zone, hosting over 700 industries and employing at least 15,000 workers in its initial phases. The port’s deep-water capabilities will enable it to service ultra-large container ships that current regional facilities cannot handle, reducing reliance on transshipment through hubs like Durban or Salalah.
Rail links will connect Bagamoyo to the standard-gauge railway, facilitating cargo movement to landlocked neighbors such as Uganda, Rwanda, Burundi and the Democratic Republic of Congo. Road upgrades will integrate it with the East African transport corridor, enhancing cross-border trade.
Economic boost amid regional rivalry
Analysts project the port could add 3% to 5% to Tanzania’s annual GDP through increased exports, manufacturing and logistics. It promises to create hundreds of thousands of jobs, attract billions in foreign direct investment and position Tanzania as a gateway for East African trade.
Yet the project faces competition. Kenya’s Lamu port, part of the Lapsset corridor, and Djibouti’s Doraleh facility are vying for regional dominance. Some experts warn that overcapacity could lead to underutilization if trade volumes do not rise accordingly.
Environmental concerns also linger, with critics highlighting potential impacts on Bagamoyo’s historic coastal ecosystem and fishing communities. The government has pledged sustainable practices, including mangrove restoration and community relocation programs.
Broader infrastructure push
Bagamoyo’s restart comes amid Tanzania’s infrastructure boom, including urban railway lines in Dar es Salaam and port expansions in Kigoma. Hassan’s administration views these as critical to achieving middle-income status, leveraging natural gas reserves and mineral wealth.
As machinery arrives and crews mobilize, Bagamoyo represents more than concrete and steel — it’s a symbol of Tanzania’s evolving foreign policy, balancing ambition with caution in partnerships with global powers.
