Coast region to become manufacturing, logistics hub
COAST REGION: PLANS to transform the Coast Region into Tanzania’s leading manufacturing and logistics hub are at an advanced stage, with the establishment of the Bagamoyo Eco-Maritime City (BEMC) now firmly in sight.
A total of 8.5tri/- is expected to be invested in the mega project at full capacity, while six companies have already been issued with investment licences to operate within the Special Economic Zone (SEZ), with a combined capital of over 180bn/-.
Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, said he expects to inaugurate operations of the first six companies at the SEZ by the end of 2026.
Prof Mkumbo said the government is targeting manufacturers, renewable energy investors and higher learning institutions specialising in technical sciences, while also strengthening logistics through the construction of what will be the largest port in Tanzania and East Africa in Bagamoyo.
He added that the economic zone will also host marine industries, including shipbuilding facilities.
The minister revealed this on Tuesday during the handover ceremony of investment permits to the first six investors at BEMC, describing the occasion as a historic take-off.
“We want to transform Bagamoyo into a modern investment city,” Prof Mkumbo said, noting that the initiative aligns with the ruling CCM Election Manifesto 2025–2030, which prioritises economic transformation of the Coast Region.
He said the project is expected to create massive employment opportunities, attract capital, enhance technological development and boost the national economy.
Prof Mkumbo further disclosed that 60 additional investment plots at BEMC have already been allocated and are ready for investors.
Earlier, Tanzania Investment and Special Economic Zones Authority (TISEZA) Executive Director Mr Gilead Teri named the first six licensed companies and outlined their planned investments.
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He said Canary Industries Limited is expected to invest 1bn/- in food-grade packaging to support value addition for domestic products.
Other investors include Grosso Engineering and Fabricators Limited, which will invest 5.2 million US dollars (over 12bn/-) in hot-dip galvanising; Novara Global Steel Limited, investing 8 million US dollars (about 20bn/-) in iron product manufacturing; and Jaribu Cashews Production Limited, which will invest 5 million US dollars (over 12bn/-) in cashew and coffee value addition.
Mr Teri said Shah Steel Global will invest 5 million US dollars (over 12bn/-) in ferro-alloy manufacturing, while MCGA Auto Limited plans to inject 50 million US dollars (over 123bn/-) into vehicle assembly.
He noted that the combined capital of the six companies exceeds 180bn/-.
According to Mr Teri, the car assembly project alone, which aims to reduce vehicle imports, is expected to create about 1,000 direct jobs and more than 3,500 indirect jobs.
Looking ahead, he said BEMC will involve both local and foreign investors, with the aim of achieving a cumulative investment of 8.5tri/- once the project reaches full operational capacity.
Mr Teri stressed that all six investors are required to commence operations within one year, warning that licences would be revoked for those who fail to honour contractual obligations.
He added that TISEZA will continue to provide an enabling environment to attract and support investors.
Meanwhile, Bagamoyo Member of Parliament Ms Subira Mgalu thanked the government for turning a long-standing vision into reality.
“The journey that has spanned over 20 years has finally become a reality,” she said.
Ms Mgalu expressed confidence that residents of Bagamoyo, particularly the youth, will benefit from decent employment opportunities once BEMC becomes fully operational.
