Infrastructure renaissance positions Tanzania as regional growth engine

Tanzania is quietly emerging as a regional infrastructure powerhouse, leveraging strategic megaprojects to position itself as a gateway to East and Southern Africa. Under successive administrations, most recently that of President Samia Suluhu Hassan, the country has pursued an unbroken vision of connectivity and productivity, transforming itself from a transit corridor into a vital economic hub.

Flagship projects such as the JPM Magufuli Bridge, the Standard Gauge Railway (SGR), and the Mwalimu Nyerere Hydropower Plant are now redefining not only Tanzania’s domestic landscape but also the commercial dynamics of its landlocked neighbours.

Infrastructure as a national investment strategy

Between 2002 and 2025, Tanzania reportedly invested over $645 billion in infrastructure—an astonishing figure for a country whose current GDP stands at approximately $85 billion. The returns are starting to show. According to World Bank models cited by a local economist, Dr Bravious Kahyoza, every $1 spent on transport infrastructure yields roughly $2 in national return, and about $1.50 in rural settings.

This strategic spending has lifted Tanzania’s GDP from $63 billion in 2021, with real growth accelerating from 4.2 percent to 5.7 percent. In tandem, government-led rural electrification, irrigation expansion, and transport connectivity have narrowed the urban-rural divide, stimulating inclusive economic activity.

A bridge to growth

A central symbol of this transformation is the newly inaugurated JPM Magufuli Bridge across Lake Victoria. Stretching across East Africa’s largest lake, the bridge reduces travel time by nearly 80 percent and is expected to boost regional trade by 40 percent. It also generates more than 2,700 jobs and directly links Tanzania’s lake zone to inland provinces and neighbouring economies such as Uganda, Rwanda, and the Democratic Republic of Congo.

More than infrastructure, the bridge reflects a broader push toward regional integration. Located along the Central Corridor—a trade artery connecting the Indian Ocean port of Dar es Salaam to the Great Lakes—it complements ongoing investments in dry ports and freight rail, enhancing logistics for both domestic producers and regional exporters.

Hydropower as industrial backbone

Tanzania’s energy strategy is equally ambitious. The 2,115 MW Mwalimu Nyerere Hydropower Project—once controversial—is now emerging as a backbone of national energy policy. With the potential to export electricity to Mozambique, Malawi, and Zambia, the dam also powers agri-processing and small-scale manufacturing across underserved rural districts.

Energy economists project that expanding generation capacity to 10,000MW could lift rural incomes by as much as $300 per capita annually—pivotal gains in a country where agriculture still employs two-thirds of the workforce.

Policy consistency pays dividends

What sets Tanzania apart is its policy continuity. Infrastructure priorities launched under Presidents Mkapa, Kikwete and Magufuli have been maintained—and in many cases, accelerated—under President Samia Suluhu Hassan. The International Monetary Fund notes that Tanzania is among just six African nations to fast-track infrastructure delivery during and after the COVID-19 pandemic.

“Tanzania is building a future around productivity and regional integration,” Dr Kahyoza said. “This is not about headline projects alone—it’s about reshaping the economy.”

Plans are underway to expand Mtwara Port for Malawian exports, extend rail lines into Burundi, and reinforce cross-border infrastructure with Zambia and the DRC.

Road to a $1 trillion economy

Tanzania has set its sights on becoming a $1 trillion economy by 2050. Analysts agree that to reach this target, the country must deepen its pipeline of public–private partnerships, scale renewable energy adoption, and unlock capital through investment-friendly reforms.

The regulatory landscape is evolving accordingly. Investor protections, local-content incentives, and commercial dispute mechanisms are being strengthened to provide a stable environment for capital inflows.

Yet, experts caution that infrastructure alone is not enough. “Roads and power lines matter,” one academic noted, “but so does enabling market participation—access to finance, digital infrastructure, and workforce upskilling.”

Regional ripple effects

The strategic logic of Tanzania’s infrastructure play extends beyond its borders. Trade volumes through Tanzanian ports and rail have surged from 7 percent to 24 percent of total volume, fuelling growth in East and Southern Africa. For landlocked countries such as Rwanda, Burundi, and Zambia, Tanzania offers the shortest and most efficient trade routes to global markets.

By blending hard infrastructure with cross-border vision, Tanzania is reshaping the regional economy—and potentially, the continent’s development model. Its success suggests that infrastructure, when integrated with sound policy and regional coordination, can serve as a true engine of transformation.

Ambassador Mindi Kasiga is Director of Communication in the Ministry of Foreign Affairs and East African Cooperation