TANZANIA · TRADE AND PORTS
Key Facts
- —What is happening Tanzania’s finance minister, Khamis Mussa Omar, told the national tax agency and Zanzibar’s port company to start preparing equipment, systems and staff for the new Mangapwani port, on a visit on Monday 26 October 2026.
- —Why it matters The port is meant to ease congestion at Zanzibar’s 1920 harbour and make the island a regional trade hub, so customs systems must be ready by 2028.
- —The numbers The project costs US$300 million, is about 20 percent built, and should finish in September 2028. Its first phase is planned for at least 250,000 containers a year.
- —Who is who The Tanzania Revenue Authority, or TRA, is the national tax and customs collector. The Zanzibar Ports Corporation is the island’s state port operator, led by director Akif Ali Khamis.
- —What to watch Watch for the TRA and port company to agree a joint schedule for scanners, cargo storage and customs systems, as the minister asked, before the planned handover in September 2028.
- —What it means for you US shippers, travellers and investors with Zanzibar exposure should expect slower change now and a possible new transshipment route later; no US contract or sanction is involved.
Tanzania’s finance minister has told the tax agency to prepare for a new US$300 million port in Zanzibar. The aim is to have customs ready before ships arrive in 2028.
Tanzania has told its tax agency to prepare for the new Mangapwani port, a US$300 million harbour rising on Zanzibar’s north coast. Finance Minister Khamis Mussa Omar gave the order on a site visit on Monday 26 October 2026.
Zanzibar is a semi-autonomous island region of Tanzania, known for beaches and spices and popular with US tourists. Its main harbour, Malindi, was built in 1920 and is congested and cannot be expanded.
The Mangapwani port is meant to ease that pressure and turn Zanzibar into a regional trade hub. Omar wants customs staff, systems and equipment ready well before the port opens in 2028.
What the Minister Ordered at Mangapwani
Omar directed the Tanzania Revenue Authority (TRA), the national tax and customs collector, to begin preparations. He gave the same order to the Zanzibar Ports Corporation, the island’s state port operator.
They must plan the equipment, systems and staff needed to run the Mangapwani Integrated Port once building ends in 2028. He said the port will take large vessels and become a key centre for customs duties and government revenue.
He warned against “a situation where the port is completed before essential operating equipment and systems are ready.” He asked TRA and the port company to align their schedules so services start promptly.
Omar said he was satisfied, with construction at about 20 percent, in line with expectations for this stage. The Citizen, a Tanzanian daily owned by Nation Media Group, reported the visit on Monday 26 October 2026.
TRA Deputy Commissioner General Mcha Hassan Mcha and port company director Akif Ali Khamis joined the visit. Mwananchi, the Swahili sister paper of The Citizen, also dates the minister’s visit to Monday 26 October.
What the Port Company Says It Needs
Akif Ali Khamis said the port should strengthen trade and cargo transport, helping growth in Zanzibar and on the mainland. He said the Union Government and the Zanzibar Revolutionary Government must cooperate to make it a regional hub.
The Union Government is Tanzania’s national government, where Omar serves, while the Revolutionary Government runs Zanzibar’s own affairs. Zanzibar has its own president, Hussein Mwinyi, and its own ministers.
For customs clearance and transshipment, he named three needs. They are cargo storage facilities, inspection equipment including scanners, and TRA computer systems.
Transshipment means a hub port unloads containers and smaller ships carry them on to other places. He said early preparation by every service institution is essential to run the port efficiently and maximise revenue.
How Big the Mangapwani Port Will Be
The port is due for completion in September 2028 and will then pass to the Zanzibar Revolutionary Government. The Citizen reports a first phase of 250,000 to 300,000 containers a year plus 500,000 to 1 million tonnes of cargo.
Later phases could add storage areas and other infrastructure as demand grows. The port company director said this would also create new investment opportunities.
At the foundation stone ceremony on Sunday 22 March 2026, a senior works official put the cost at US$300 million. Work began in September 2025, and he described three berths, the main one 680 metres long and 20 metres deep.
That main berth is meant for container ships of up to 200,000 tonnes. In March the plan was an initial 200,000 containers a year, so the first phase figure has since risen.
Zanzibar President Hussein Mwinyi said at the ceremony that the island’s economy grows between 7.1 and 7.4 percent a year. He named port congestion, unreliable power and limited fuel storage as the three limits on faster growth.
The same site is planned to host fuel storage tanks and a 200 megawatt power plant. Reports of that launch also named China Harbour Engineering Company as the builder.
In Plain English
Customs duties are taxes on goods entering a country, and the TRA collects them at ports and borders. A scanner is a large X-ray machine that checks containers without opening them.
A port without scanners and customs systems cannot clear cargo fast. That is why the minister wants the work to start now, not in 2028.
Today imported fuel for Zanzibar must first be offloaded at Dar es Salaam or Tanga, The Citizen reported in March. A deep island port with fuel storage could cut that extra step.
What It Means for US Readers
This is a story about trade routes and tourism logistics, not a US policy decision. No US government action, contract or sanction is linked to the Mangapwani port in the sources reviewed.
Importers of Zanzibar spices and seaweed, and US travel firms, may eventually see faster and cheaper cargo handling. Any such gain is years away, since the port is only about one fifth built.
Investors who follow East African ports should note that governments, not private operators, are asked to get ready first. The site has also covered a cargo scanner that Tanzania pledged for Zanzibar’s separate Fumba port.
For wider context, see the guide to who runs Tanzania’s economy. A second guide covers Tanzania’s geopolitics, including its Gulf and Chinese port ties.
What Is Not Known
The cost of the TRA and port company preparations is not stated. It is also not known how the work will be paid for, since the reports give no financing detail.
No source reviewed gives the builder’s contract value or terms. Reports of the March launch differ on fuel storage size and on a 2026 first phase, so those points are left out.
No date has been given for buying scanners or assigning customs staff. The 2028 completion date also depends on construction continuing at its current pace.
Mwananchi gives the first phase as 250,000 containers and 1 million tonnes, so the exact figures differ. Apart from that sister paper, no second independent outlet reporting the directive was found.
What Comes Next
The next step is for TRA and the Zanzibar Ports Corporation to agree a joint timetable, as the minister asked. Construction continues toward the planned September 2028 handover.
This directive does not mean the port is close to opening. The project is only about 20 percent complete.
Frequently Asked Questions
What is the Mangapwani port?
It is a US$300 million port being built in North Unguja, on Zanzibar’s northern coast. It is meant to ease congestion at the old Malindi harbour and handle large container ships.
When will the Mangapwani port open?
Completion is planned for September 2028, after which it passes to the Zanzibar Revolutionary Government. Construction is about 20 percent complete.
Why was the tax agency told to prepare?
The finance minister wants customs equipment, systems and staff ready when construction ends. He wants to avoid a finished port that cannot clear cargo.
Is Zanzibar a separate country?
No, Zanzibar is a semi-autonomous region of Tanzania with its own government. The Union Government in Dodoma and the Zanzibar government must cooperate on the port.
Does this affect US travellers?
Not directly, since the port handles cargo and will not open until 2028. Better logistics could later lower costs for goods and fuel on the island.
Sources: The Citizen, 26 October 2026; Mwananchi, 26 October 2026; The Citizen, 22 March 2026; Daily News, 23 March 2026 (all accessed 27 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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