AS the government continues to improve investment and trade environment in the country, 2 major foreign firms have signed a Memorandum of Understating (MoU) for the implementation of strategic joint investments on ports logistics in Tanzania.
The 2 companies are Abu Dhabi-based Ports and AD Ports Group and India’s Private Ports and Logistics Company, Adani Ports and Special Economic Zone (APSEZ).
The deal will see investments in end-to-end logistics infrastructure and solutions, such as rail, maritime services, ports operations, digital services, an industrial zone and the establishment of maritime academies in Tanzania.
The partnership with Adani comes hot on the heels of AD Ports’ link up with Hong Kong operator and one of the leading port investors, Hutchison Ports, to identify joint investment and business opportunities, with an initial focus on operating within Tanzania, including the country’s principal Dar es Salaam Port.
“This MoU with Adani Ports and SEZ is significant in its impact on both Tanzania’s ability to transform itself into an African trading hub, as well as our ability to further develop our global capabilities and connections that will bring goods to market faster and more efficiently.
“Our strategic investment in Tanzania in infrastructure and solutions will enable international companies to enter African markets,” said Captain Mohamed Juma Al Shamisi, the AD Ports Managing Director and Chief Executive Officer.
AD Ports’ venture in Tanzania is part of the United Arab Emirates (UAE) government’s strategy to position Abu Dhabi as a global leader in logistics and industry and will enable international companies to enter African markets.
“The agreement is significant in its impact on both Tanzania’s ability to transform itself into an African trading hub, as well as our ability to further develop our global capabilities and connections that will bring goods to market faster and more efficiently”, Mr Al Shamisi said.
Tanzania’s freight sub-sectors are expected to post ‘healthy’ growth rates in the short to medium term, with total trade growth projected to expand by more than 10% in 2022 as the easing of Covid-19 restrictions encourages consumer spending on imports.
Stronger global economic growth would also increase demand for Tanzania’s exports. Cargo over rail, road and ports are all expected to improve in the long term, as Dodoma continues to invest in turning Tanzania into an international logistics hub for East Africa.
“The agreement between AD Ports and Adani Ports is expected to improve and bring about positive change in communities, standing by our commitment to growth with goodness”, said Karan Adani, the Adani Ports CEO.
“We continue to support local employment, as well as general economic growth in Tanzania and East African countries that will benefit from our investments through the collaboration with AD Ports Group,” he said.