For decades, Bagamoyo has lived in the margins of Tanzania’s economic imagination, a historic coastal town rich in culture, trade routes and memory, yet waiting for its modern renaissance. Today, that moment appears to have arrived.
As the sun rises over Tanzania’s Coast Region, a great transformation is quietly taking shape. Anchored by the Bagamoyo Eco-Maritime City (BEMC), the region is steadily positioning itself as one of East Africa’s most strategic manufacturing and logistics hubs, signalling a new chapter in Tanzania’s industrial journey.
At full scale, the project is expected to unlock investments valued at an estimated 8.5 trillion Tanzanian shillings, redefining Bagamoyo’s role in regional trade, industrialisation and economic growth. The momentum is no longer theoretical. Six companies have already secured investment licences within the Bagamoyo Special Economic Zone, collectively committing over 180 billion shillings in capital, a clear vote of confidence in the government’s long-term vision.
Speaking during the formal handover of investment permits in Bagamoyo, the Minister of State in the President’s Office for Planning and Investment, Prof Kitila Mkumbo, described the milestone as a turning point for the Coast Region. He revealed that operations by the first batch of investors are expected to officially commence by the end of 2026, marking the start of large-scale industrial activity in the zone.
According to Prof Mkumbo, the government’s strategy is deliberate and future-facing. The Bagamoyo Eco-Maritime City is designed to attract manufacturers, renewable energy investors and higher learning institutions focused on technical sciences, while simultaneously strengthening logistics and transport infrastructure. At the heart of the project is an ambitious plan to develop what is projected to become the largest port in Tanzania and across East Africa, significantly enhancing trade efficiency and regional connectivity.
Beyond manufacturing and logistics, the city will also accommodate marine-based industries, including shipbuilding and related maritime services, a nod to Bagamoyo’s coastal heritage, reimagined for a modern industrial economy.
Crucially, the initiative aligns with the CCM Election Manifesto 2025–2030, which places industrialisation and economic restructuring of the Coast Region at the centre of national development priorities. Prof Mkumbo emphasised that the project is expected to generate thousands of jobs, attract both domestic and foreign capital, accelerate technology transfer and deliver meaningful contributions to Tanzania’s GDP. He also disclosed that 60 additional investment plots have already been allocated and are ready for new investors.
Detailing the scope of early investments, Mr Gilead Teri, Executive Director of the Tanzania Investment and Special Economic Zones Authority (TISEZA), outlined how the first six licensed firms will drive value addition across multiple sectors. Canary Industries Limited will invest one billion shillings in food-grade packaging to support domestic production, while Grosso Engineering and Fabricators Limited is injecting 5.2 million US dollars into hot-dip galvanising.
Other projects include Novara Global Steel Limited, investing 8 million US dollars in iron product manufacturing, and Jaribu Cashews Production Limited, which plans to channel 5 million US dollars into cashew and coffee value addition. Shah Steel Global is set to invest 5 million US dollars in ferro-alloy manufacturing, while MCGA Auto Limited will commit 50 million US dollars to vehicle assembly operations.
The vehicle assembly plant alone is projected to create about 1,000 direct jobs and more than 3,500 indirect jobs, while contributing to reduced vehicle imports, a strategic win for Tanzania’s balance of trade. In total, the combined capital of the six investors exceeds 180 billion shillings, with long-term projections pointing toward cumulative investments of 8.5 trillion shillings as the eco-maritime city reaches full operational capacity.
Mr Teri stressed accountability as a cornerstone of the project’s success, noting that all licensed investors are required to commence operations within one year, or risk having their licences revoked. TISEZA, he added, remains committed to providing an enabling environment that supports investors while safeguarding national interests.
For the people of Bagamoyo, the project represents more than numbers and infrastructure. Bagamoyo Member of Parliament, Ms Subira Mgalu, praised the government for finally bringing to life a vision that has spanned more than two decades. She expressed optimism that local residents, particularly the youth will benefit from sustainable employment and skills development as the city takes shape.
As cranes, permits and policy align, Bagamoyo is no longer a footnote in Tanzania’s economic story. It is emerging as a symbol of what strategic planning, patient investment and political will can achieve a coastal town once defined by history now preparing to shape the future of East Africa’s industrial and logistics landscape.
