2022-01-20

Based on MoU with Zanzibar Government OIA explores the Feasibility of Rehabilitating, Developing and Operating Malindi Port, Zanzibar

As part of its endeavors to diversify its investment portfolio and strategically streamline its operations, both in geographic spread or the diversity of the promising investment sectors, OIA, in the presence of His Excellency the President of the Zanzibar Government, signed a memorandum of understanding (MoU) with the Zanzibar government stipulating that OIA and its subsidiaries shall conduct a feasibility study for the restoration, development and operation of Malindi Tourism Port, the seafront as well as the transfer of trade activities from the existing port to the new port of Mangapwani.

The MoU stipulates that OIA is to prepare a study for a new commercial and industrial port including the necessary basic infrastructures at Mangapwani suburb in Zanzibar which is about 25 km distance from the existing Mangapwani harbor. It is a multipurpose project that involves the construction of a berth for the shipping, handling and storage of cargo, fish processing, storage and exporting facilities. The first phase of the project stretches over an area of 3 million square meters while the second phase covers an area of 1.5 million square meters with a whopping capacity of 10 million tons annually; in addition to zones for light and medium industries. Moreover, the MoU covers the revamping of Mangapwani ancient port with its associated facilities which was built in 1920 and currently serves as the main gate for handling the traffic of incoming and outgoing goods in the island and an ideal site for the berthing of tourism and passenger vessels. It has a single wharf with a total quay length of 240 meters which is used for the whole range of activities and is still constrained by inadequate lifting capacity. However, OIA will undertake an initial study to transform the facility into a tourism port on 10-hectare space. It is expected to become an engine for the Island’s touristic activities recovery and development in addition to the facilitation of passengers’ traffic in line with the maritime safety requirements.

Mr. Sami Al Sinani, Investment Senior Manager-Logistics and Infrastructure, underlined that the MoU intends to maximize the Oman’s returns from the One Belt One Road Initiative (OBOR) which is an ambitious project that focuses on improving connectivity and cooperation among multiple countries spread across the continents of Asia and Africa and embarking on the historical relationships between Oman and East Africa – which is an immensely economically promising region with lucrative investment opportunities that would potentially encourage OIA and its affiliated firms to transfer and exchange their expertise to further expand into the international business in the form of partnerships with international investors and corporates that are likely to contribute to the economic diversification plan in Oman.

This MOU comes as supplement for the MOU signed between OIA and Zanzibar government during the first quarter of the last year. The MOU stipulated that OIA to conduct feasibility studies for the construction and operation of the multipurpose Mangapwani Port. OIA is expected to render a decision to proceed on the investment depending on the outcome of the current study which is likely to be completed by June 2022.