The transformation and contribution of Tanzania’s transport sector (2021–2026) ahead of the 2026/2027 budget

By Lookman Miraji

Over the past five years, Tanzania’s transport sector has undergone notable transformation, strengthening its position as one of the key drivers of national economic growth. 

The sector has continued to serve as a backbone linking production, trade, and investment across the country and beyond its borders.

Through sustained reforms and infrastructure investments, the Ministry of Transport has worked to improve the movement of people, goods, and services. 

This has enhanced efficiency in economic activities and reinforced the sector’s role as a critical enabler of development. 

In practical terms, the transport system has functioned as the lifeline of the economy, ensuring that agricultural produce, industrial goods, and commercial services reach markets in a timely and cost-effective manner.

During this period, the government has placed strong emphasis on strengthening policies, legal frameworks, and regulatory systems governing the transport sector. 

These reforms have been designed to keep pace with economic growth, technological advancement, and global standards in service delivery. 

As a result, the sector has become more structured, competitive, and attractive to both local and international investors.

A key focus has been ensuring that transport services are inclusive, safe, and sustainable. This approach has not only improved operational efficiency but has also contributed to building public trust and confidence in transport systems across all sub-sectors.

In the railway sector, one of the most significant milestones has been the continued implementation of the Standard Gauge Railway (SGR) project. 

This modern railway system has transformed the way passengers and freight are transported, offering faster, safer, and more reliable services compared to the old meter-gauge system.

The operational sections of the SGR have already demonstrated major improvements in reducing travel time and logistics costs. 

The project has also strengthened Tanzania’s ambition to become a regional transport and logistics hub, linking the country with neighbouring economies in East and Central Africa.

Efforts to extend the railway network beyond national borders remain ongoing, with the aim of enhancing regional trade integration. 

At the same time, rehabilitation and improvement of the Tanzania-Zambia Railway Authority (TAZARA) line continue to support cross-border trade, particularly with Zambia and the Democratic Republic of Congo, strengthening Tanzania’s strategic position in regional commerce.

In the ports and maritime transport sub-sector, significant investments have been directed towards upgrading and expanding port infrastructure, especially at the Port of Dar es Salaam. 

These improvements have increased cargo handling capacity, reduced congestion, and improved efficiency in clearance and turnaround time for ships.

As a result, the port has become more competitive in the region, supporting increased trade flows and reducing the cost of doing business. 

This development has also enhanced Tanzania’s role as a gateway for landlocked neighbouring countries, including Zambia, Rwanda, Burundi, Uganda, and the Democratic Republic of Congo.

In addition, the establishment and operationalisation of inland dry ports have played a key role in decongesting seaports and improving cargo distribution. 

These facilities have brought services closer to traders in inland regions, reducing delays and transport costs while improving logistics efficiency across the supply chain.

In the maritime transport system, rehabilitation and construction of vessels operating on major lakes such as Victoria, Tanganyika, and Nyasa have improved safety and reliability in water transport. 

Upgraded ports and terminals have further strengthened connectivity for communities living along lakeshores, opening up new economic opportunities in trade, fisheries, and tourism.

The aviation sector has also recorded steady growth during this period, supported by continuous infrastructure development and modernization of airports. 

Julius Nyerere International Airport and other regional airports have undergone major upgrades to accommodate increasing passenger and cargo traffic.

These improvements have contributed to the growth of tourism, international business travel, and air freight services. The expansion of airport facilities has also enhanced Tanzania’s connectivity to global markets, making air transport more efficient and accessible.

At the same time, Air Tanzania Company Limited has been strengthened through fleet expansion and the introduction of new domestic and international routes. 

This has improved connectivity within the country and across borders, while increasing competition and service quality in the aviation industry. It has also contributed to increased national revenue from the transport sector.

In the road transport sub-sector, regulatory institutions have been reinforced to improve oversight, safety, and compliance. 

These efforts have contributed to reducing road accidents, improving driver discipline, and enhancing the overall quality of transport services provided by operators.

Stronger enforcement of transport regulations has also helped improve efficiency in passenger and freight transport services, ensuring better service delivery to the public.

Overall, the transport sector has continued to make a significant contribution to Tanzania’s economy. In 2024, the sector accounted for approximately 7.5 percent of the Gross Domestic Product (GDP), up from 7.2 percent in 2023. 

This steady growth reflects the increasing importance of transport in supporting economic activities and national development.

Beyond its direct contribution to GDP, the transport sector has had wide-ranging effects on other sectors such as agriculture, industry, and trade. 

Improved transport infrastructure has reduced the cost of moving goods, increased market access for farmers and manufacturers, and strengthened the competitiveness of Tanzanian products in both domestic and international markets.

The sector has also played an important role in promoting social and economic integration. Improved connectivity has enabled citizens to access essential services such as healthcare, education, and employment opportunities more easily. This has contributed to reducing regional inequalities and improving overall living standards.

As the government prepares the 2026/2027 national budget, the Ministry of Transport is expected to focus on consolidating the gains made over the past five years. 

Priority areas are likely to include further expansion of the Standard Gauge Railway network, continued modernization of ports, and further investment in aviation and maritime infrastructure.

There is also growing expectation for increased use of modern technologies in transport management systems. 

Digitalisation is expected to enhance efficiency, transparency, and accountability in service delivery across all transport sub-sectors.

In addition, public-private partnerships are expected to play a greater role in financing and implementing large-scale transport projects. This approach is seen as key to mobilising additional resources, accelerating infrastructure development, and improving operational efficiency.

In conclusion, the period from 2021 to 2026 has been marked by substantial progress in Tanzania’s transport sector. 

Through strategic investments, policy reforms, and infrastructure development, the sector has strengthened its role as a major engine of economic growth.

As the country moves toward the 2026/2027 fiscal year, the transport sector remains central to Tanzania’s development agenda. 

Its continued transformation is expected to support industrialisation, boost trade, and enhance the country’s competitiveness in the regional and global economy.

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