A MILESTONE has been registered by the Zanzibar Ports Corporation (ZPC), with monthly revenues now averaging 2bn/-, in the wake of strategic investments and management reforms.

Akif Ali Khamis, the ZPC director, made this observation at a press briefing here, affirming that from September 2023 to January 2025, the Zanzibar multipurpose terminal at Malindi, operated by a private firm, had generated a 29bn/- profit.

The figure excludes contributions from other ports, such as Fumba and Mkoani Pemba that also benefit from investment partnerships with Africa Global Logistics (AGL), the terminal project operator, he said.

The surge in revenue comes after the Zanzibar government privatised port operations, with critics at the time saying it would lead to financial instability, with the increase in earnings disproving those concerns, and showcasing the benefits of modernization and private sector involvement.

Dr Khalid Salum Mohammed, the Works, Communication and Transport minister, disclaimed recent criticisms regarding delays at Malindi Port, asserting that there has been no increase in red tape.

Introducing the single-window system by the Tanzania Revenue Authority (TRA) had streamlined cargo clearance processes, benefiting businesses and reducing processing times, he said.

A substantial technological leap had been registered with a $6.5m e-port system already yielding impressive returns, he said, noting that the system has helped boost monthly government royalties by over 200m/- “and is helping distinguish Zanzibar ports from competitors in the region.”

Apart from technological advancements in cargo clearance, the newly implemented fleet and fuel management system (FFMS) has already reduced operational costs by over 10 percent, contributing to the terminal’s overall financial success, he said.

The port’s monthly royalties have increased by 41 percent, from 1.4bn/- to an average of 2.07bn/- from January 2024 to January 2025, making the Zanzibar port sector an emerging leader in East Africa’s maritime industry, he stated.

The government is committed to enhance port efficiency and revenue generation, while tackling issues such as tax evasion through technological innovations like electronic ticketing systems, he added.