Tanzania's Transport Hub: What Prospects for Regional Trade and Local Economic Development?

This paper analyses investment in transport infrastructure in Tanzania, in terms of its ability to foster regional economic integration and drive sustainable economic growth that spills over into local communities. It first examines the relevant legislation governing investment in transport infrastructure, such as the Tanzania Development Vision, the Five-Year Development Plans, the national transport policy, transport sector investment programmes and the Big Results Now Initiative. It then reviews the current state of transport infrastructure in Tanzania, with a particular focus on the port and rail sectors, given their ability to foster both national and regional trade. It also looks at how these infrastructure developments fit into Tanzania’s regional commitments. The paper then turns to the challenge of mobilising finance to build this infrastructure, analysing the current turn towards driving public– private partnerships within the context of promoting foreign direct investment. Finally, it considers how such investments can be sustainable as well, in terms of their ability to build local capacity and support equitable growth. It also offers recommendations on how Tanzania can further develop its transport infrastructure to enhance regional trade and local development.