IN THE FIELD
“Life’s caravan never turns back” As the Swahili proverb has it: From roads to railways, rivers to ports, transport drives development in and through Tanzania
A s the ocean gateway for six landlocked neighbors, Tanzania, an East African nation of 67 million people, plays an outsize role in regional development. Its ports, particularly Dar es Salaam and Tanga, control access to maritime routes for Zambia, Malawi, Burundi, Rwanda, Uganda and the Democratic Republic of the Congo, enabling them to import and export goods that are crucial for their economies. Yet despite its potential as a conduit country, Tanzania’s transport infrastructure scored just 3.34 out of 100 in the Africa Infrastructure Development Index 2022 – far lower than regional peers Uganda (6.42), Kenya (10.43) and Rwanda (11.55). To address this deficit and help the country improve its connectivity, the OPEC Fund has joined with partners including the African Development Bank (AfDB) on several road and rail projects across Tanzania. The latest OPEC Fund appraisal mission took place in September 2024 in coordination with the government of Tanzania, the National Roads Authority and the Tanzania Railways Corporation. The OPEC Fund delegation – comprising Hatem El Bakkali, Senior Country Manager for Tanzania; Elizabeth Hassan, Senior Counsel; and Juan Felipe Murcia, Development Effectiveness Specialist – held meetings with members of
The electrified SGR will yield further environmental benefits by reducing greenhouse gas emissions.” Delegates also discussed environmental and social impacts, such as the displacement of local people by the project. A resettlement action plan was agreed to ensure the proper resettlement of all affected communities. The total cost of the proposed project is estimated at US$862 million, to be financed by an OPEC Fund-AfDB loan combined with funds raised through partial credit guarantees, a credit enhancement instrument mechanism for debt instruments based on a lender’s irrevocable promise, backed by AfDB and the government of Tanzania. Additionally, the OPEC Fund delegation held meetings with executing agencies responsible for ongoing projects, including the Uvinza Malagarasi road project (covering 51.5 km), the recently completed Kazilambwa-Chagu road project (36 km) and the Benaco-Kyaka transmission line. Beyond private sector discussions on a possible Agreement for the Encouragement and Protection of Investment, which would allow the OPEC Fund to expand its activities to the country’s private sector, the delegation explored potential cooperation in other projects. In the energy sector, the focus is on clean cooking, power
the office of President Samia Suluhu Hassan, the Foreign Ministry, the Finance Ministry, the Tanzania Social Action Fund and AfDB. Discussions with the Tanzania Railways Corporation and government ministries focused on feasibility studies of the planned 156 km section of the electrified Tanzania Standard Gauge Railway (SGR) system from the Uvinza region to the Malagarasi river. The new section would form part of the second phase of development, including preliminary engineering design and various project components. Juan Felipe Murcia, OPEC Fund Development Effectiveness Specialist said: “This project is vital for the communities involved as it significantly enhances regional connectivity, stimulates economic growth and provides a modern, efficient and reliable transportation corridor. It is explicitly designed to reduce
communities by improving access to markets, promoting agricultural value chains and supporting local activities like mining and agribusiness. “The project will see the construction of strategic railway stations and aggregation centers (for collecting and processing agricultural products). This will streamline supply chains, reduce post-
harvest losses and enable farmers to reach broader markets more efficiently.
This project is vital for the communities involved [and] will yield further environmental benefits by reducing greenhouse gas emissions
transport costs, alleviate pressure on existing road networks and
unlock the economic
potential of landlocked and mineral- rich regions. It will benefit
Juan Felipe Murcia, Development Effectiveness Specialist, OPEC Fund
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Photo: OPEC Fund/Hatem El Bakkali
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