Improving and constructing national infrastructure to enhance trade, facilitate industrialisation and spur economic growth.
Tanzania’s financial budget has always prioritised the development of major infrastructural projects since President Magufuli’s appointment in 2015. Recently, the Minister of Finance announced the government’s intent in allocating 12.9% of its 2019 national budget (US$2.1 billion) to a series of important infrastructure projects that aim at providing Tanzania with new trade routes and opportunities. These infrastructure projects are made possible through transparent application of taxpayers’ money.
An important example of this is the US$14.2 billion construction of Tanzania’s Standard Gauge Railway (SGR), stretching 2,561 kilometres connecting Dar es Salaam port to its land-locked neighbours. Phase one is currently over 50% completed, linking Dar es Salaam to Morogoro while future phases will join the three remaining sections: Isaka-Mwanza (248 km), Tabora-Isaka (133 km) and Makutupora-Tabora (294 km). “This project has a multitude of specialty characteristics that differentiate it from other railways in the Africa,” declares Erdem Arioglu, Vice Chairman of Yapi Merkezi.
In prioritising Tanzania’s need for reliable road transport in the East African Community (EAC) bloc, the construction of US$751.2 million transnational Kenya-Tanzania Highway will boost trade and business opportunities and ease traffic from the Mombasa and Tanga ports. Seventy per cent funded by the African Development Bank (AfDB), construction is set to begin this year and will also include the rehabilitation of the 216km Malindi-Lunga Lunga Road.
“The multimillion Dar es Salaam Maritime Gateway Project-DMGP project will support the financing of crucial investments in the Port with the aim of improving its effectiveness and efficiency for the benefit of the public and private stakeholders,” explains Eng. Deusdedit C.V Kakoko, Director General of Tanzania Ports Authority (TPA).
Tanzania is also investing in building a new Oil Terminal at the Tanga Port to support the oil pipeline transporting crude oil produced in Uganda. “It is very important to look beyond 2023/2024,” affirms Jared H.Zerbe, CEO of Tanzania International Container Terminal Services Ltd. (TICTS). “The port needs to unlock additional capacity for the horizon of 2030, there needs to be further infrastructure planning and additional investment to keep up with the demand.”
With other infrastructural projects to be implemented according to this year’s budget, including the construction of Terminal Three at Julius Nyerere International Airport, Tanzania is speedily, albeit carefully and securely, building up its future and consolidating its past, opening itself up to possibilities and innovation and grounding its rapid growth.