Saudi Arabia Shows Interest in Bogamoyo Port Project
According to a media release from the Federation of Chambers of Commerce of Saudi Arabia on 12 February 2025, ‘the competent Tanzanian authorities have granted the concession rights for the Bogamoyo Port in Tanzania to the Saudi African Investment and Development Company (SAIDC).’ The Bogamoyo Port Project forms part of the vision to position Tanzania as the ‘Gateway to Eastern Africa.’
The agreement was reached during the Saudi Arabia – Tanzania Business Forum which was held in Tanzania in February 2025. On that occasion, the SAIDC led a delegation to visit Tanzania to explore various business opportunities.
The Bogamoyo Port deal represents a win-win for both countries. It will enhance the stature of Tanzania as a regional logistics and trade hub. The transformative project will open investment opportunities for Saudi companies in mining, manufacturing and energy, to name a few.
The Bogamoyo project is in line with Saudi Arabia’s efforts to diversify its economy, create new investment outlets and promote the export of Saudi products to Eastern Africa. In particular, Saudi firms such as Aramco, Sabic, Maaden, ACWA Power and Almarai have shown interest in Tanzania, and some already have projects in Africa.
Currently, the trade volume between Saudi Arabia and Tanzania stands at USD 1.5 billion in 2023. However, the trade balance is heavily skewed in favor of Saudi Arabia with exports from Tanzania only reaching USD 31 million.
As part of the development plan, Saudi Arabia will build new docks and warehouses. The seaport will be complemented by a Special Economic Zone (#SEZ) with industrial and commercial facilities. The operationalization of Bogamoyo seaport will help alleviate the congestion at Tanzanian main port of Dar es Salaam, which has partnered with Dubai Ports World.
It is to be recalled that Tanzania and China initially signed an MoU for the development of Bogamoyo Port Project in 2013. China Merchant Holding intended to invest USD 11 billion to transform Bogamoyo into Tanzania’s biggest port. However, Tanzania deemed the amount to be to onerous.
On a related note, the UAE-based East Africa Gateway company, which is a subsidiary of Indian port operator Adani Ports, signed a share purchase agreement to acquire 95% of Tanzania International Container Terminal Services (TICTS). The Container Terminal would be sold for a price tag of USD 39.5 million by Hong Kong-based Hutchison Port.
All being said, on 14 February 2025, Professor Kitiila Mkumbo, Minister for Planning and Investment, told the Tanzanian Parliament that reports of Saudi’s involvement in Bogamoyo Port were fake news.
The Government of Tanzania is looking for investors and partners to develop the Bogamoyo Special Economic Zone, of which the port is a key component. The BSEZ is one of the flagship projects in Tanzania’s 3rd Five-Year Development covering the period FY 2021/22 – 2025/36. Earlier, the Bogamoyo Port was included in the Tanzania Mini Tiger Plan.
It is worth noting that neighboring Kenya is also positioning itself as the Gateway to East Africa with the seaports of Mombasa and possibly Lamu. As part of plan to enhance regional connectivity, the railway between Mombasa and Nairobi is already operational and will be extended to the region.
Before engaging with China Merchant Holdings, the Tanzania Ports Authority (TPA) contracted Hamburg Port Consulting to conduct a feasibility study on the Bogamoyo Port Project. Other interested investors include the Oman Sovereign Wealth Fund, known as the Oman State General Reserve Fund and South Korean companies.
One must await for further clarification or confirmation in order to see clearly into the Bogamoyo Project. The preferred cooperation model from the Tanzanian perspective would be to establish a Public-Private Partnership (PPP).