By Guardian Reporter , The Guardian
Tanzania is stepping up preparations for the Bagamoyo Port project including by drawing attention to the wider Bagamoyo Special Economic Zone (SEZ), which the government hopes will attract industrial investment, create jobs and increase exports.
Current activities at the site of the project site include engineering preparations, improvements to supporting infrastructure and coordination of compensation for residents yet to be reached.
The Tanzania Ports Authority (TPA) has completed the design and construction of a temporary jetty to receive vessels carrying heavy machinery and equipment for the main construction works, according to information released recently.
The port forms part of the wider SEZ, which President Samia Suluhu Hassan has identified as a priority for the country’s industrial development.
Speaking at the St Petersburg International Economic Forum in Russia in June 2026, she invited international companies to participate in developing the project.
“The Bagamoyo Special Economic Zone is our number one project, and we welcome international companies to partner with us in its development,” she said.
The government views the project as part of its long-term industrialisation agenda under Vision 2050 and the First National Development Plan for 2026/2027–2030/2031, which prioritise manufacturing and value addition.
The proposed SEZ covers 9,800 hectares and is designed to combine manufacturing, logistics, trade infrastructure, residential areas and maritime services.
One of its components, Bagamoyo Eco Maritime City, is being developed in phases. The first phase covers 151 hectares divided into 134 industrial plots and intended for factories and related businesses.
Investors begin securing plots
According to the Tanzania Investment and Special Economic Zones Authority (TISEZA), 24 investors had by May 2026 secured land in Eco Maritime City covering manufacturing, logistics and industrial services.
It said one of the investors was Sinovest Industry Investment Limited, which it said was establishing a textile manufacturing facility on a 21-hectare site at an estimated cost of US$7 million.
The company expects to create some 1,000 direct jobs during its initial phase, with another 500 anticipated as operations expand. The factory is also expected to target export markets, particularly the United States and Europe.
The investments indicate potential demand for industrial land and related services, although the scale of future activity will depend on infrastructure delivery, financing and the pace at which projects become operational.
Opportunities across industries
TISEZA Director General Gilead Teri said the SEZ offered opportunities in agro-processing, steel production, vehicle assembly, pharmaceuticals, electronics and marine industries, among them shipbuilding, ship repair and port-related services.
He said integrating manufacturing, transport and logistics within one zone could help businesses reduce operating costs and improve access to regional and international markets.
The planned combination of industrial facilities and maritime infrastructure is intended to support businesses that need reliable transport links for importing raw materials and exporting finished goods.
Potential economic returns
Donald Mmari is Executive Director of Research on Poverty Alleviation Tanzania (REPOA), an independent Tanzanian policy research institution advancing evidence-based research for inclusive development.
He has underscored the need for the Bagamoyo Port project’s economic benefits to be assessed over the long-term “because industrial investments generate returns as production expands”.
“Bagamoyo is a long-term industrial platform. As production expands, it generates exports, employment and broadens the tax base through increased economic activity,” added Mmari.
He said that industrial diversification and export-oriented production could strengthen government revenue over time.
Economist and fiscal policy expert Samson Rutashobya of the University of Iringa meanwhile said integrating production, logistics and trade could reduce operational barriers for investors.
For her part, Assistant lecturer Jasmine Christian of Ardhi University said the Bagamoyo Port project could also strengthen links between large investors and local enterprises, creating opportunities for domestic suppliers and service providers.
Regional trade potential
Located along the Indian Ocean coast, the Bagamoyo Port SEZ is intended to serve Tanzania and neighbouring markets, including Rwanda, Burundi, Uganda, Zambia and the Democratic Republic of Congo.
Its planned links to the Standard Gauge Railway (SGR), the Central Corridor road network and the proposed Mbegani deep-water port are expected to improve connections between factories and regional and international markets.
Teri said the project also aligned with the African Continental Free Trade Area, which provides a framework for expanding trade across the continent.
However, the project’s wider economic impact will depend on the timely delivery of infrastructure, the conversion of investment commitments into operating businesses and the participation of local firms.
For Tanzania, Bagamoyo represents an effort to link port development with manufacturing and logistics, with a view to attracting investment, creating employment and increasing the contribution of industrial production to the economy.
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