Clyde & Co advises ZF Devco on development of a new Passenger Ferry and Ro-Ro Terminal in Zanzibar

Clyde & Co has advised Zanzibar Ferry Development Company (ZF Devco) on its Concession Agreement for the finance, design, construction and operation of a new Passenger Ferry and Ro-Ro Terminal in Zanzibar.

ZF Devco entered into the Concession Agreement with the Revolutionary Government of Zanzibar to develop the new terminal which will handle passenger ferries, roll-on/roll-off ferries, water taxis, seaplanes, and leisure craft. A signing ceremony at Zanzibar State House was attended by his honourable President Hussein Mwinyi on 9 January 2024.

The current port at Malindi in Zanzibar is operating in excess of its capacity, as it continues to handle an ever increasing number of passengers, vehicles and cargo. The development of the Passenger and Ro-Ro Ferry Terminal aims to upgrade the existing underdeveloped infrastructure, where the project will introduce new terminals and enhance amenities to cater for the increasing number of passengers.

The new terminal will be built in two phases over 36 months with an estimated project cost of $400 million, increasing capacity to serve 8,000 passengers per day and 3 million passengers per year. 

Zanzibar President Hussein Mwinyi commented: “This project shows the commitment of the Zanzibar government to working with the private sector…We believe that this partnership is the key to unlocking the economic potential of Zanzibar.”

Clyde & Co acted as counsel to ZF Devco on the drafting and negotiation of the Concession Agreement, providing strategic advice throughout negotiations with the Government of Zanzibar. The team was led by Peter Kasanda (Chair, Clyde & Co Africa Committee and Managing Partner, Tanzania) supported by Senior Associate Alex Devereux (Cross-Border Counsel, Kenya).

Peter comments: “This project represents an excellent example of the value that public private partnerships can bring to the economy of Zanzibar and Tanzania. The negotiations were conducted in a spirit of collaboration throughout, with a recognition on both sides of the importance of ensuring the project achieves the social, environmental and economic goals of the country.”

Matthew VanderBorgh (Director, ZF Devco) noted the project’s strong commitment to the Sustainable Development Goals: “the Zanzibar Ferry Terminal development aligns well with the global objectives by addressing crucial sustainability issues, such as advancing sustainable infrastructure, ensuring environmentally friendly transportation, fostering inclusive economic growth, and safeguarding biodiversity.”

Jaffer Machano (Director, ZF Devco) emphasised that as developers ZF Devco “will focus on the passenger port to boost the efficiency and convenience of travel.”

About Clyde & Co

Clyde & Co are recognised as leaders in the changing PPP environment in Africa through active involvement in matters such as this one which shape and influence the market. Our broad range of experience in acting for governments and state-owned enterprises, project companies and sponsors, EPC contractors, financiers and service providers affords us a clear and comprehensive understanding of the issues facing participants in PPPs.

Clyde & Co is one of the largest international law firms operating in Africa, with over 30 partners and 130 staff employed in Dar es Salaam, Tanzania; Nairobi, Kenya; Cape Town and Johannesburg, South Africa; and Cairo, Egypt. Clyde & Co offers both local and cross-border legal services with deep-rooted market knowledge based on over 20 years' experience supporting clients operating and investing in Sub-Saharan Africa.