Zanzibar plans US$560M free port at Mangapwani to compete with Mombasa, Dar es Salaam
This initiative marks a significant step towards integrating Zanzibar more deeply into global supply chains.
TANZANIA – Zanzibar has announced plans for a US$560 million free port development at Mangapwani, aiming to establish a dedicated free port and logistics zone to attract international shipping, transhipment, manufacturing, and distribution activities serving East Africa, the Middle East, and the wider Indian Ocean region.
The development is intended to support trade serving East Africa, the Middle East, and the wider Indian Ocean region.
Strategic Location and Infrastructure Scope
Mangapwani, on Zanzibar’s western coast, has been identified as a site capable of accommodating larger-scale maritime infrastructure than the island’s existing port facilities. The development is expected to include cargo-handling infrastructure, logistics parks, warehousing, and related industrial facilities.
The proposed project aims to modernize the island’s infrastructure by introducing advanced logistics zones and industrial parks that can host large-scale shipping operations.
The free port’s strategic location between the Middle East and East Africa offers an alternative gateway for perishable cargo moving between Gulf markets and East African agricultural regions.
Economic Diversification and Regional Competition
The project forms part of the Zanzibar government’s efforts to diversify the economy beyond tourism and to expand its participation in regional supply chains.
East Africa continues to attract port investment as governments and operators develop infrastructure to handle growing trade volumes. The new facility is designed to handle international transhipment, placing it in direct competition with established ports such as Mombasa and Dar es Salaam.
If completed, the Mangapwani project would compete with regional hubs such as Dar es Salaam, Mombasa, and Djibouti, while also targeting transhipment opportunities on major east-west shipping routes. The development reflects a broader regional trend towards investing in deep-water capabilities to capture growing trade volumes along the Indian Ocean.
Strategic Significance for Regional Trade
This initiative marks a significant step towards integrating Zanzibar more deeply into global supply chains. By moving beyond a tourism-heavy economy, the government hopes to transform the region into a strategic distribution hub linking the Middle East and East Africa.
Lastly, this major maritime expansion aims to modernize the island’s infrastructure by developing advanced logistics zones and industrial parks capable of accommodating large-scale shipping operations, ultimately transforming the region into a strategic distribution hub between the Middle East and East Africa.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
