East Africa Marine Transport

Tanzania, Uganda
Facilitating regional trade in sub-Saharan Africa
Sector
Transportation
Total PIDG Commitment
USD 25.4m
Related SDG Goals
Project Overview
Investee CompanyEast Africa Marine Transport
SectorTransportation
CountryUganda, Tanzania
Total Project CostUSD 27.81m
PIDG Commitment
  • Equity: USD 24.8m
  • Technical Assistance: USD 0.61m
Dates of PIDG involvement
  • 2016 – Present
Challenge

Inadequate transport infrastructure presents a major barrier to trade expansion in sub-Saharan Africa. Limited routes are vulnerable to disruption and the costs of transporting goods to market are prohibitively high for regional traders and producers. In the countries bordering Lake Victoria (Kenya, Tanzania and Uganda), the majority of existing freight is transported by road via the region’s congested Northern Corridor. Freight transport across Lake Victoria is undertaken on an ad hoc basis and vessels sail only when full. This approach has economic and opportunity costs for businesses, particularly those working with time sensitive cargo. The Heads of State of the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC) are committed to adopting an integrated approach to diversifying trade routes, recognising the potential to transform Lake Victoria from a trade barrier to an important trade route.

Solution

The East Africa Marine Transport (EAMT) project is pioneering a scheduled roll-on/roll-off freight transport service across Lake Victoria. EAMT commissioned a purpose-built vessel, M.V. Mpungu, which operates the Lake’s first fixed day scheduled freight service. The vessel transports 21 fully laden trucks – carrying up to 1,000 tonnes of cargo per crossing – between Port Bell (serving Kampala, Uganda) and the Port at Mwanza South, Tanzania. M.V. Mpungu reduces average journey times from 3-4 days on the region’s congested roads to just 18 hours. The vessel relieves pressure on roads and addresses the issue of driver fatigue.

Built in Entebbe, Uganda at a purpose-built shipyard, the 96-metre long EAMT vessel became operational in early 2025. EAMT is being delivered in partnership with regional logistics experts Grindrod Limited (Grindrod) who are the vessel operators.

The European Union–Africa Infrastructure Fund (EU-AITF) supported the design and development of the project, providing funding for feasibility studies around market assessment, technical definition and design assessment of the legal and institutional framework, port infrastructure, shipping lanes and customs processes.

Impact

Planet

The fuel-efficient freight vessel offers customers a more sustainable route to market. EAMT secured the FAST-Infra label for its construction phase which acknowledged the project’s positive contributions in: Biodiversity and Ecosystem Services, Climate Change, Resilience, Human Rights and Labour Rights.

Market transformation

It is anticipated that the first vessel will demonstrate market appetite for a scheduled service, attracting further investment to expand capacity and to provide additional routes. Affordable access to markets is expected to facilitate development of the wider blue economy.

Wider economy

Costing less than existing routes, M.V. Mpungu is expected to save the economy approximately USD 2 -3 million in the first year alone. Access to a scheduled freight vessel offers customers a reliable, cost-effective, and faster route to markets.

Gender

EAMT implemented a crew training programme. 30 per cent of the trainee mariners were women. The cadets received their certificates from the Dar es Salaam Maritime Institute. Four of the trainees undertook additional training to qualify as Officers.

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