The Tanzanian government has found itself in a defensive position, clarifying to skeptical citizens that reports claiming a Saudi Arabian firm has secured a concession to operate the Bagamoyo Port do not reflect the reality on the ground. This follows multiple reports in Saudi Arabian media suggesting that the Kingdom had acquired the port.
“The information circulating on social media claiming that a company from Saudi Arabia has secured a contract to operate the Bagamoyo port is not true,” said Prof. Kitila Mkumbo, the Minister of State, President’s Office, Planning, and Investment, during a parliamentary session on February 14, 2025.
He continued: “The government has not entered into any agreement or commitment with any investor at the moment. Therefore, the government has no agreements or contracts with any investor regarding the Bagamoyo project, including the port project.”
The speculation arose after the Tanzania-Saudi roundtable meeting, held between The Federation of Saudi Chambers of Commerce and the Tanzania Chamber of Commerce, Industry, and Agriculture (TCCIA) in Dar es Salaam.
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Following the meeting and consultations, one of Saudi Arabia’s lobbyists, Mohammed Al-Dulaim, who is also part of the Saudi Chambers of Commerce, gave extensive interviews claiming that the Kingdom had finalized a deal for the port.
“This project will serve as an integrated system supporting both the public and private sectors. The Ministry of Investment, represented by His Excellency Minister of Investment Eng. Khalid Al-Falih, played a leading role in negotiations with the Tanzanian side from the initial stages of the idea,” Mohammed Al-Dulaim told Saudi Arabia’s state television, Al Ekhbariya.
“Subsequently, the Saudi-African Investment and Development Company was established as the investment entity responsible for overseeing the implementation of this project. We are now aligning with international regulations under the East African Community agreements and working with the Tanzanian side to activate this agreement comprehensively and legally,” he added.
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The reports sparked widespread debate among netizens, as several Saudi Arabian news sites claimed the Kingdom had secured rights to the port. Given the strong pushback faced during the Tanzania-Dubai port deal, the Tanzanian government swiftly responded to the issue. The Saudi Arabian Ambassador also clarified that an agreement had only been made to conduct a study for the Bagamoyo Port.
The Bagamoyo Port project was initially introduced in 2013 through a tripartite Memorandum of Understanding (MoU) between Oman’s General State Reserve Fund (GSRF) and China Merchant Holding International. It was expected to be a $10 billion investment. However, the project was halted in 2019 by President John Magufuli, who rejected the terms, famously stating that “only a madman and a drunkard would have accepted them.”
In his statement, Minister Mkumbo emphasized that several investors have expressed interest in the Bagamoyo Special Economic Zone. He reiterated that, due to the project’s scale and its implementation under a public-private partnership, the government will provide regular updates to the public regarding its progress.
