Saudi Arabia lands in Tanzanian waters: The Saudi African Investment and Development Company (SADC) will manage Tanzania’s Bagamoyo Port and boost its logistical capabilities, after being awarded concession and acquisition rights for the facility, according to a statement from the Federation of Saudi Chambers of Commerce. The port is targeted to be operational in the next three to five years, Chairman Mohammed Al Dulaim told Al Arabiya. No investment ticket was disclosed.

More details: SADC is planning to boost the port with new docks, warehouses, and advanced maintenance systems. The port is also expected to host free industrial and commercial zones, which are slated to be supported by customs incentives in a bid to foster global partnerships, Al-Dulaim told Al Arabiya.

The rationale: The project aims to boost Saudi Arabia’s exports to African markets. The move is in line with the Kingdom’s East Gateway project, which aims to help Saudi Arabia diversify its foreign investments and projects across East Africa. The port’s expansion will help ease congestion in Tanzania’s main port at Dar es Salaam and position Bagamoyo as a trade hub, especially for raw materials exports from the African continent.

The initiative also aims to streamline the integration of more Saudi giants in the region — including the expansion of firms like Aramco, Sabic, Maaden, ACWA Power, and Almarai into East African markets, Al-Dulaim added.

Outmatching China: Tanzania was originally planning a USD 11 bn project in 2015 with China Merchant Holding International to make Bagamoyo the country’s biggest port, Reuters reported at the time. Negotiations fell through, however, over disagreements on the concession rights tenure, Al Dulaim told Al Arabiya

More than just port development: The Saudi Chambers of Commerce also inked an agreement with the Tanzania Chamber of Commerce, Industry, and Agriculture to set up a Saudi-Tanzanian Business Council to enhance cross-border cooperation and facilitate investments for Saudi and Tanzanian businesses, SPA reported on Thursday.

Trade in numbers: The Kingdom’s exports to Tanzania reached USD 1.44 bn in 2023, while its imports reached USD 31.4 mn, according to Trading Economics data.

The UAE is also active in Tanzania: UAE-based East Africa Gateway, a subsidiary of Indian port operator Adani Ports and Special Economic Zone, signed a share purchase agreement to acquire 95% of Tanzania International Container Terminal Services (Ticts) for USD 39.5 mn from Hutchison Port Holdings and Harbors Investments.

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