The government expects the mega-project to attract investments totalling about TZS 8.5 trillion once fully operational, part of a broader strategy to boost industrialisation and economic growth. 

Six companies have already been granted licences to operate in the Bagamoyo Special Economic Zone (SEZ), with a combined capital commitment of more than Tanzania shillings 180 billion.

Tiseza

Prof Kitila Mkumbo, Minister of State in the President’s Office (Planning and Investment), said he anticipates that the first six companies will begin operations in the SEZ by the end of 2026. 

The government is courting manufacturers, investors in renewable energy and technical education institutions, and is also bolstering logistics infrastructure with plans for what it says will be the largest port in Tanzania and East Africa at Bagamoyo.

Wikipedia 

The economic zone is also expected to accommodate marine industries, including shipbuilding facilities. At a ceremony on Tuesday to hand over investment permits to the first six investors, Prof Mkumbo described the event as a “historic take-off” for the region.

“We want to transform Bagamoyo into a modern investment city,” he said, noting that the initiative aligns with the ruling CCM party’s 2025–2030 election manifesto, which prioritises economic transformation of the Coast Region.

 The minister said that the project is expected to generate significant employment, attract foreign and domestic capital, enhance technology transfer and not least boost Tanzania’s economy.

According to a recent report, the Coast Region has already been a leading contributor to job creation in Tanzania, accounting for more than 86,600 new jobs in the industrial and investment sectors, placing it at the forefront of implementing national employment priorities. 

Tanzania’s industrial sector, including manufacturing, mining, construction and utilities, accounts for around 28% of national GDP and employs about 8–9% of the workforce. Manufacturing alone contributes roughly 8–10% of GDP, with food and beverage processing, textiles, chemicals and cement among the main subsectors. 

Despite these gains, the sector has historically lagged behind services and agriculture due to challenges such as energy supply constraints and reliance on imported inputs. The government’s creation of Special Economic Zones is part of a larger strategy to accelerate industrial growth, expand exports and reduce import dependency.

Grokipedia

 First investors and projected jobs

TISEZA Executive Director Gilead Teri said the six licensed companies cover a range of sectors. Canary Industries Limited will invest TZS 1 billion in food-grade packaging. Grosso Engineering and Fabricators Limited plans to invest US$5.2 million (about TZS 12bn) in hot-dip galvanising, while Novara Global Steel Limited will commit US$8 million (about TZS 20bn) to iron product manufacturing.

Jaribu Cashews Production Limited is expected to invest US$5 million (about TZS 12bn) in processing cashew and coffee products, and Shah Steel Global will put in US$5 million (about TZS 12bn) for ferro-alloy manufacturing. Auto assembler MCGA Auto Limited plans a US$50 million (about TZS 123bn) investment. 

Mr Teri said the vehicle assembly project alone could create about 1,000 direct jobs and more than 3,500 indirect roles, supporting the government’s goal of cutting vehicle imports. 

TISEZA has already allocated a further 60 investment plots at BEMC and said the development would involve both local and international investors, with the objective of reaching cumulative investment of TZS 8.5 trillion once the zone is fully established.

Investors have been given one year to start operations, with licences subject to revocation for non-performance, Mr Teri warned, adding that the authority will continue to support investors with facilitation services.

Bagamoyo Member of Parliament Subira Mgalu welcomed the announcement, describing the project as a long-held vision that is finally taking shape. “The journey that has spanned over 20 years has finally become a reality,” she said, and expressed confidence that young.

Notes to Editors

·      Bagamoyo Eco-Maritime City (BEMC) is a flagship development aimed at transforming Tanzania’s Coast Region into a major manufacturing, logistics and maritime hub serving East and Central Africa.

·      The project is anchored in the Bagamoyo Special Economic Zone (SEZ), overseen by the Tanzania Investment and Special Economic Zones Authority (TISEZA).

·      Once fully operational, BEMC is expected to attract cumulative investments of approximately TZS 8.5 trillion, spanning manufacturing, logistics, marine industries, renewable energy and technical education.

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