Tanzania Allocates TZS 22 Billion for Bagamoyo Port’s Early Construction Phases

Tanzania’s long-awaited Bagamoyo Port construction Project will change the connectivity and structure of commercial activity in Tanzania and the surrounding area. Estimates indicate that construction is scheduled to start in stages during the fiscal year 2025. The port is regarded by the government as one of the most important components of Tanzania’s development strategy. Tanzania’s government, via its Tanzania Ports Authority (TPA), has allocated TZS 22 billion to fund the early phases of construction, with a focus on deep water berths to handle larger boats that the Dar es Salaam port are unable to handle.

After construction is finished, the Bagamoyo Port will prove beneficial in planning the expansion of the congested Dar es Salaam Port, which handles the majority of Tanzania’s import and export items. The port, located approximately sixty kilometers north of Dar es Salaam, is anticipated to effectively accommodate ships that require at least 17 meters of depth, allowing it to accommodate vessels with a capacity of 12,000 to 25,000 containers, exceeding the current maximum of 8,000 containers at Dar es Salaam port. This new facility will assist Tanzania establish itself as an important regional trade hub, supplying port services to surrounding landlocked nations such as Rwanda, Uganda, Burundi, and the Democratic Republic of the Congo.

Furthermore, the neighboring BSEZ will add value by serving as an industrial complex capable of accommodating up to 760 manufacturing facilities if fully constructed. Bagamoyo sea port has the potential to boost Tanzania’s economic growth by raising GDP while generating thousands of new employment possibilities, resulting in the country’s industrialization.

Tanzania’s government has made tremendous progress and nearly completed land procurement and feasibility studies. Construction will begin with the building of two big berthing areas, followed by the addition of other amenities in stages depending on the amount of demand for port services. At the moment, the TPA is preparing to tender for additional private investors who will take part in the project through a joint venture.

The Bagamoyo Port project represents a significant step forward in Tanzania’s trade and economic development plans. When finished, the project will enhance regional linkages and enhance carrying capacity through maximal transportation.