Tanzania: Isles Govt Terminates Contract Project With Sri Lanka’s Firm

Zanzibar — ZANZIBAR government has terminated an agreement with Sri Lanka’s firm — ‘Hairu Group of Companies (HGC) after the latter failed to execute a fish processing plant project in Unguja.

The Sri Lanka’s firm in partnership with Zanzibar Fisheries Company (ZAFICO) signed the agreement in May last year to build a fish processing plant at Fungurefu-Mkokotoni in Unguja North’s coastal area.

It was anticipated that the project would result in creating at least 450 direct jobs, including boosting the Isles economy, but the company has failed to continue with the project.

“It is unfortunate that the Hairu Company had no funds for the project. We have decided to terminate the agreement, and directed ZAFICO to begin implementing it alone as we look for another potential investor,” President Hussein Mwinyi said in response to questions from journalists as to why the project had been delayed.

He said the project will continue as planned and already ZAFICO is proceeding with the undertaking and that people should expect the fishing processing factory to be in place in the near future, along with promoting fishing in the deep sea where it is still unexploited.

ZAFICO is operating under the Ministry of Blue Economy and Fisheries, and its Minister Suleiman Masoud Makame said the project is among the flagship undertakings in the ruling party’s 2020/2025 election manifesto.

During the signing ceremony at the ministry at Maisara area in the city, the minister said President Mwinyi has been working tirelessly to find ways to develop the blue economy to achieve a strong economy in future.

The minister said that the success of the project will boost the economy of Zanzibar, including uplifting the livelihood of the people of Zanzibar, particularly the fishing community.

“I urge people and other respective institutions to support the project to achieve our goal,” he said.

The project was earlier planned to include the establishment of a leading boat building facility, equipped to manufacture six to 30 metres boats in fiberglass and steel, serving various functions including fisheries, transport, patrol, leisure, luxury, research and mooring.

It was explained that as a major component of the project, the boat building and maintenance services would be the backbone of the Blue Economy and fisheries sector in the country, and also serve tourism, maritime affairs, maritime security, maritime transport and research sectors.

It was anticipated that the project workforce of Zanzibar would be trained in Sri Lanka and locally in order to develop the technical and professional skills required for boat building and maintenance.

Zanzibar government is determined to have the project implemented as part of its value addition strategy on fish.

The facility will accommodate processing factory; fish canning factory; dry fish factory; anchovies processing factory; fish oil and fish meal plant, technical training centre and other supporting facilities.

The establishment of cold room and ice production facilities for fish storage is another part of the huge project, to be used at various temperatures and other food storage including vegetable, medicine and substance storage.

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