Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Sunday, May 22, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
A photo of Tanzania Tanzanite Bridge

Transport sector in Tanzania is essential in transforming farm produce markets and tourism: Photo by Korea Herald

Tanzania banking on transport economy to ace East Africa’s market

Tanzania Standard Gauge Railway (SGR) and aviation industry are two of the major sub-sector transforming Tanzania transport sector.

by Padili Mikomangwa
April 27, 2022
in Countries
0
Share on FacebookShare on LinkedIn
  • Tanzania has one of the largest international airports in East Africa
  • Tanzania Standard Gauge Railway is slated to commence operation by the end of April 
  • Tanzania is a gateway serving competitive landlocked neighbouring countries.

Tanzania’s economy is moving at a steady pace. According to the Bank of Tanzania, the inflation rate is at 3.6 per cent, and the nation’s GDP stands at 5.2 per cent (3rd Quarter 2021).

The United Nations argues that the African Continental Free Trade Area (AfCFTA) is expected to increase intra-African trade in transport services by nearly 50 per cent.

In 2015, the African Development Bank (AfDB) approved $346.38 million to improve 500 km of roads across the country over the next five years.

On the other hand, in 2014 World Bank, another development funder to Tanzania, furnished the nation with $300 million to improve rail and transport infrastructure, which ultimately boosted intra-region trade with landlocked neighbours.

In that case, African nations with serious investment in transport economy, such as Tanzania, stand to draw billion from the latter.

The East African nation is strategizing to expand its investment horizon and advance towards being the most attractive economic hub.

Earlier this month, Tanzania’s President Samia Suluhu Hassan signed several business agreements with the United States of America, slated to be implemented in Tanzania by investors and companies from the US.

Tanzania’s national development strategy stresses utilizing infrastructures to propel the nation’s economy as an enabling sector.

Tanzania is one of the largest countries in Africa and the second largest in East Africa. With a sizeable share of transport infrastructure, Tanzania will reduce travel times, integrate the national market and connect it to other marketing in the East African Community, and eliminate non-tariff barriers to trade (AfDB).

Tanzania is geographically positioned on a very potential gateway. Tanzania is the international gateway for several of its landlocked neighbouring nations.

“Burundi, Rwanda, Uganda, DRC, Zambia and Malawi are all dependent on the country’s transport network for their access to global markets”, according to AfDB.

Tanzania’s investment in infrastructure is essential. The latter has been realized by the previous administration by the late President John Magufuli and is being progressed by President Samia’s government.

Transport in Tanzania

Tanzania SGR photo - Tanzania Economy
A photo showing the standard gauge railway cemented on the ground: Photo by Green Building Africa

Road transport is essential in Tanzania and widely used—carrying over 90 per cent of the passenger and 75 per cent of the freight traffic in the country.

Tanzania’s road network has changed compared to the past three decades. Via the Tanzania National Roads Agency (TANROADS), Tanzania manages 35,000 km of 12,786 km of trunk roads and 22,214 km of regional roads. The road network is 85,000 km long.

In 2017, the World Bank provided the Tanzanian government with $255 million for the Ubungo interchange—a formerly chronic transport bottleneck of Dar es Salaam—the commercial pulse of Tanzania.

Over the past five-year, Tanzania’s transport sector has been fueled with substantial funding to transform the economy on a broader scale.

The current infrastructure projects have made some profound and recognizable changes in Tanzania’s transport sector.

The first phase of the Bus Rapid Transit system implemented in Dar es Salaam, a very populated region in Tanzania, reduced travel time by 90 minutes a day, saving commuters 16 days of sitting in traffic.

Tanzania has invested in the aviation sector, which has levitated the nation to a global stage through its state of the art international and regional airports. Tanzania has 58 airports and more than 300 private airstrips.

In 2016 air traffic grew by 2.1 per cent to 4.95 million compared to the previous year. However, the newly established Julius Nyerere International Airport (JNIA) terminal three costs around $314 million and is argued to increase airport capacity to 8 million passengers annually.

Tanzania Standard Gauge railway is yet another transformative transportation five-phase project that connects Tanzania with neighbouring countries—Burundi and DRC. The project is to replace the old, inefficient meter-gauge railway system and reduce road congestion.

Further, the $7.5 billion electrified SGR project is also expected to decrease freight costs by 40 per cent. According to information from Construction Review Online, each freight train is expected to transport up to 10,00 tonnes, which is equivalent to 500 lorry loads.

The project’s first phase from commercial pulse Dar es Salaam to Morogoro will commence operation at the end of this month.

The sector does not only facilitate domestic and international trade, but it contributes to national integration and provides access to jobs, health and education facilitates for many people.

Currently, Tanzania is marketing itself on the global stage as the most attractive place to invest, and the ongoing improvement of transportation infrastructures gives Tanzania an advantage across the region.

Read: Tanzania bidding for SGR trains

Tags: Air TanzaniaAir Tanzania Company Limited (ATCL)Air Transport in TanzaniaATCLAviation IndustryBRTBRT TanzaniaSGR TanzaniaTanzania Air TransportTanzania Standard Gauge RailwayTRC

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Padili Mikomangwa

Padili Mikomangwa is an environmentalist based in Tanzania. . He is passionate about helping communities be aware of critical issues cutting across, environmental economics and natural resources management. He holds a bachelors degree in Geography and Environmental Studies from University of Dar es Salaam, Tanzania.

Related Posts

www.theexchange.afrcia
Countries

Eyes on trade: Kenya seeking to deepen bilateral relationship with United Arab Emirates

May 11, 2022
Growth in employment earmarks Kenya's post-pandemic economic recovery. www.theexchange.africa
Countries

Growth in employment earmarks Kenya’s post-pandemic economic recovery

May 11, 2022
Zimbabwe: Mnangagwa's freeze on bank lending to save currency value. www.theexchange.africa
Countries

Zimbabwe: Mnangagwa’s freeze on bank lending to save currency value

May 10, 2022
Next Post
Africa: A common currency dream verses a Central Bank Digital Currency future. www.theexchange.africa

A common Africa currency and CBDC's unlikely future

Could East Africa Member states unite to form the most powerful federation in Africa? www.theexchange.africa

Federal Republic of East Africa: Could this be the continent's most powerful country?

Facebook rebranded to Meta back in 2021/ Reuters

Meta- formerly Facebook- denies poor working conditions claims in Kenya

Please login to join discussion




This months edition

May Edition

Features

EdTech role in African development
Tech & Business

EdTech’s role in African development

by Kanyali Muthui
May 16, 2022
0

Due to the pandemic, the topic of innovation in education has never been more crucial.  While most developed countries moved...

Read more
investment in African science and technology
Tech & Business

Investing in Africa’s science and technology: Where are we now?

by Kanyali Muthui
May 16, 2022
0

The continent’s digital revolution can largely be driven by building the necessary skills for the short- and long-term future, and...

Read more
Fintech revolution in Africa
Tech & Business

The Fintech Revolution in Africa’s FX Markets

by Kanyali Muthui
May 11, 2022
0

With over 548 million registered mobile money users in sub-Saharan Africa, increased internet access and readily available mobile money solutions,...

Read more
www.theexchange.africa
Countries

US – Nigeria Trade Relations: An Overview

by Wanjiku Njugunah
May 2, 2022
0

Nigeria is currently the United States' 54th largest goods trading partner, with US$7.8 billion in total goods trade as of...

Read more
A previous conference for African Insurtech sector. The Insurtech boom is deepening insurance uptake in Africa. www.theexchange.africa
Tech & Business

Insurtech boom deepening the uptake of insurance in Africa

by june njoroge
May 2, 2022
0

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In