Tanzania port dethrones Kenya as port of choice in East Africa

In recent years, the dynamics of trade in East Africa have been shifting, with the port of Dar es Salaam in Tanzania emerging as a frontrunner, displacing Kenya's port of Mombasa from its traditional position. The cargo efficiency rankings have seen vessels increasingly choosing Dar es Salaam over Mombasa, a trend that has raised questions about the future of global trade in the region. To shed light on this development, Silvester Kasuku, a Public Policy Analyst at the African Centre for Transport, Infrastructure, and Regional Integration, shared insights on how countries are intensifying their port investments and the implications for trade growth. A key point of concern highlighted by Kasuku is the recent decline in cargo volume at the Port of Mombasa, as reported by the Kenya National Bureau of Statistics. This decline, experienced in 2022 for the first time in five years, raises red flags about the efficiency and performance of Mombasa as a key trade gateway. Various factors have contributed to this drop, including the disruptions caused by the COVID-19 pandemic and geopolitical events like the Russia-Ukraine war, which have impacted global logistics and supply chains. Moreover, Kasuku emphasized the changing trends in global manufacturing and logistics, as companies are now shifting towards nearshoring and onshoring strategies, favoring proximity and regional production over far-off sourcing. This transformation has implications for port usage and the flow of goods, with new routes and hubs emerging to cater to evolving trade patterns. The Port of Djibouti, for instance, has gained significance in serving markets like Ethiopia and facilitating transshipment activities. Looking ahead, Kasuku outlined a vision for the future of global logistics, emphasizing the potential for Africa to become a manufacturing powerhouse. By leveraging the continent's vast resources and growing consumer market, African countries can position themselves as key suppliers in various sectors, from automotive parts to textiles and food products. The industrialization agenda for Africa, coupled with investments in transport infrastructure, holds the key to unlocking intra-Africa trade and reducing the cost of moving cargo within the continent. In line with this vision, Kasuku underscored the importance of collaboration among African nations to harness their collective strengths and promote regional trade under the African Continental Free Trade Area. By promoting local production, optimizing supply chains, and enhancing logistical efficiencies, African countries can tap into their potential as suppliers of choice for global markets. The outlook for ports in Africa is not just about imports but also about building robust supply chains that support Africa's economic growth and integration in the global trade landscape.