Tanzania to unveil $110m logistics hub to boost jobs, trade

Dar es Salaam. The government has outlined six major benefits ahead of the official launch of the East Africa Commercial and Logistics Centre (EACLC) on August 2, including job creation and increased government revenue.

Other benefits are higher foreign exchange earnings, urban infrastructure transformation, stimulation of local economies, and strengthened international trade.

The launch, to be officiated by President Samia Suluhu Hassan, is expected to mark a key milestone in Tanzania’s ambition to become a regional trade and investment hub.

Valued at $110 million, the project comprises 2,060 modern shops and office spaces spread over 75,000 square metres on the site of the former Ubungo Bus Terminal (UBT). 

It is projected to generate more than 15,000 formal jobs and over 50,000 informal employment opportunities, providing a significant boost to the local economy.

Speaking on Friday, July 25, 2025, Tanzania Investment and Special Economic Zones Authority (Tiseza) Director General, Mr Gelead Teri, outlined the project’s wide-ranging economic impact.

“This development will create thousands of jobs, increase government revenue through taxation, and enhance foreign exchange earnings, especially from transit and re-export trade,” he said. 

“It will also drive urban infrastructure upgrades, stimulate local economic activities, and strengthen our trade relations both regionally and internationally,” added Mr Teri.

He noted that the centre is expected to contribute approximately $8.19 million in direct annual revenue to the government and $150 million in foreign exchange earnings. 
“This is a game-changer, an integrated facility built to international standards for logistics, trade, and investment,” he said.

Some retail units have already opened, with additional spaces available for lease by local and foreign investors.
The project has transformed the previously congested Ubungo area into a modern commercial zone with enhanced logistics and transport infrastructure.

The official launch will also showcase investment opportunities and reaffirm Tanzania’s commitment to infrastructure-driven economic development.

EACLC Chief Executive Officer, Ms Cathy Wang, said the centre’s current occupancy rate stands between 60 and 70 percent, with monthly rental rates starting at Sh1 million, depending on the size of the space.

“The EACLC is a key hub for deepening economic cooperation and fostering regional integration. We’ve combined international development expertise with Tanzania’s local needs to establish this state-of-the-art trade and logistics centre,” she said.

Ms Wang commended Tiseza and Ubungo Municipal Council for their policy support and investor incentives, which she said have helped ensure the project aligns with Tanzania’s broader vision of economic growth and technological progress.

“The centre will improve infrastructure connectivity, streamline trade, and strengthen people-to-people relations. It will bring quality products to African markets and enable premium African goods to reach global households, promoting mutual benefit,” she added.

“Our goal is to equip young Tanzanians with the skills needed for the modern economy, positioning them at the forefront of the digital and logistics revolutions,” stressed Ms Wang. 

Furthermore, she said the centre will provide sustainable, high-quality jobs, spur innovation and entrepreneurship, and nurture a new generation of leaders to drive Tanzania’s prosperity for decades to come.

Ms Wang also highlighted the strategic location of the facility, saying it would enhance Dar es Salaam’s status as a key gateway to Eastern Africa. 

“We see Dar es Salaam becoming the region’s leading economic and trade hub, a must-visit procurement centre for businesses from nearby cities and neighbouring countries,” she said, adding. 

“This project is not only facilitating trade but also directly advancing the logistics and transport sector, contributing to a more efficient and interconnected regional economy.”

For his part, Ubungo Municipal Council’s Head of Commercial and Development, Mr Andumbike Kyomo, said the project is governed by a 32-year contract and is expected to significantly increase the value of surrounding areas.

He added that the council anticipates collecting about Sh1 billion annually in fees and levies, with the funds allocated to infrastructure, schools, hospitals, and other social services.

( The story was also contributed by Aaron Keasi )