Tanzania's Zanzibar Plans $560 Million Free Port Investment
2026-06-17 16:48
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en.Wedoany.com Reported - Tanzania's semi-autonomous island of Zanzibar has announced plans to build a major free port in Mangapwani, aiming to re-establish the island as a regional trade and logistics hub along East Africa's Indian Ocean coast.

The project, valued at approximately 78 billion Kenyan shillings ($560 million), plans to create a dedicated free port and logistics zone to attract international shipping, transshipment, manufacturing, and distribution activities. Authorities believe this development will help position Zanzibar—often called the "Spice Island"—as a trade gateway serving East Africa, the Middle East, and the broader Indian Ocean region.

Mangapwani, located on Zanzibar's west coast, is considered a strategic location capable of supporting larger-scale maritime infrastructure than the island's existing port facilities. The project is expected to include cargo handling infrastructure, logistics parks, warehousing, and other related industrial facilities.

This initiative is part of Zanzibar's broader efforts to diversify its economy, reduce reliance on tourism, and strengthen its role in regional supply chains. East Africa has emerged as one of the world's most competitive port investment markets, with governments and operators racing to develop new gateways to capture growing trade volumes.

If completed, the Mangapwani project would position Zanzibar to directly compete with regional hubs such as Dar es Salaam, Mombasa, and Djibouti, while targeting transshipment opportunities linked to major east-west shipping routes.

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