The signing was not only a display of the isles commitment in implementing the Public Private Partnership (PPP) policy into action but a demonstration of the government’s determination to ensure the potential maritime economy is realized over the East African market.
According to Zanzibar President, Dr Hussein Ali Mwinyi who witnessed signing of the agreement between his government and a Dutch firm—ZF Devco, the project showcases progress in implementing the PPP policy as well as the government readiness to work with the private sector.
“Now we have a policy outlining the cooperation between the government and the private sector. This project will be the first ever example of such cooperation and execution of the PPP policy. I wanted this event to take place at the State House to show the importance of the policy and the monumental significance of the project. The current situation at the port is not satisfactory due to congestion as well as security issues. That is why we have taken measures to further improve the port by constructing another port instead of only renovating the existing one,” Mwinyi said.
Mwinyi said that Zanzibar needs to have proper marine infrastructures that will widen the market and entry to regional and international markets, starting with the East African Community (EAC).
Akif Ali Khamis is the Director General at the Tanzania Ports Corporation (ZPC), he said the goal for developing the passenger terminal is not only to implement the PPP policy but to create more business opportunities within the African continent.
“We aim to bring Zanzibar closer to the African continent and ensure Isle residents have access to more market opportunities within East Africa. Construction of the passenger terminal will ease transportation through marine services thus link Zanzibar with the world. The new ferry terminal’s operation will no longer depend on the tidal waves to be operational,” he said.
Data from the East African Community (EAC), the intra-EAC trade, accounting for imports and exports in the 7 EAC partner states, grew from 13 percent in 2019 at a value of $ 7.1 billion to 15 percent in 2021 at a value of $9.5 billion.
By September 2022, the EAC trade value was recorded at $10.17 billion representing a 20 percent share of intra-trade to global trade.
With the Maruhubi Mpigaduri port project underway, Zanzibar is set to expand its market presence and influx of tourists, goods and services entering the isles hence boosting the per capita income of the individuals’ running businesses in the isles but also increasing the level of foreign currency earned by the government through export of cloves.
Khamis is optimistic that Zanzibar will be the pioneer of green port in Africa and having a sustainable port which serves as a terminal for aerial, marine and land transport. He added that the project will act as an example for others to learn as the island focuses on improving its infrastructure to attract more tourists, businesses and offer friendly services.
On the future revenue projections after construction of the new terminal, the ZPC boss said, the new project shows promising returns since it will double the number of people entering Zanzibar from the current 3 million per year to more than 6 million per year. He said improvement will also see an additional seaplanes and sea taxis and business complex as well as hotels that will be operating at the terminal.
“We will gain more taxes through land rates, parking fees from aerial, marine and land transport vehicles, and through the hotels other amenities will be available. The success of this project in revenue generation will not only benefit ZPC but also other institutions like the Zanzibar Revenue Authority (ZRA) through taxes collected from the hotels and other infrastructures,” he noted.
Matthew VanderBorgh, Co-Founder and Director General of ZF Devco – a Dutch firm that execute the Maruhubi Mpigaduri passenger terminal in collaboration with the government said the project’s design and construction observes inclusivity to make sure everyone grabs hold of the profits generated from the new facility.
The Maruhubi Mpigaduri port will also connect the isles with ports in Tanzania mainland.
“The port will have facilities that allow all people including women, youth, men, handicapped, and elders to access the various services. It is an inclusive ferry terminal with state-of-the-art facilities that have been designed and constructed in a way that everyone can use. The port will not impact Zanzibar alone, but also connect Zanzibar with other ports in Dar es Salaam, Tanga, Pemba and Bagamoyo as it will allow ships from multiple points to come in. It will operate 24 hours and 7 days a week. The RoRo service of the new port will expand exponentially as people and trucks will be able to enter Zanzibar unimpeded at any time of the day,” he said.
Jaffer Machano, Director and Co-Founder of ZF Devco stated that the port will not only boost Zanzibar’s economy but integrate other economic sectors thus driving the economy forward.
He pointed out that the port is a non-containerized facility which specifically deals with people and loose cargo, maintaining the key idea of supporting the mechanism of the government’s investment in to the passenger port in a bid boost the efficiency and convenience of passenger travel and loose cargo transportation.
Despite the development strides made by the government, it is crucial for public institutions to provide maximum cooperation for the partaking actors executing construction of the project to ensure the project is completed within schedule.