The government has stepped up efforts to improve infrastructure financing and implementation, targeting better transport networks and other key services to unlock production and accelerate economic growth in Tanzania’s Southern Highlands.
Finance Minister Ambassador Khamis Mussa Omar said reliable infrastructure was critical to expanding agricultural production, reducing business costs and creating conditions for value addition, particularly in regions such as Mbeya where tea and other cash and food crops are produced on a large scale.
Speaking at the Mbeya Regional Commissioner’s Office after concluding the Nane-Nane celebrations at the John Mwakangale grounds yesterday, Ambassador Omar said the government was introducing measures to ensure that funding for development projects was released on time.
He said delays in disbursing funds had previously slowed the implementation of major roads and other infrastructure projects, undermining economic activity in productive areas.
Under the new financing arrangement, he said, 70 per cent of revenue collected through special funds would be channelled directly to the respective funds instead of passing through the Treasury.
“In July alone, Sh324 billion was released to various development funds, including Sh76 billion directly to the Road Fund. This arrangement will continue throughout the financial year to ensure infrastructure projects are not held back by funding shortages,” he said.
The minister said the government was also working with the financial sector to explore alternative sources of long-term financing, including infrastructure bonds, to mobilise large amounts of capital for major projects.
He said the approach would reduce reliance on waiting for domestic revenues to accumulate before projects could be implemented.
Ambassador Omar said roads should be viewed as part of the country’s productive infrastructure because they determine how efficiently farmers can move produce from farms to markets and processing centres.
He said better roads in the Southern Highlands would help lower transportation costs, reduce post-harvest losses and strengthen linkages between farmers and industries involved in processing agricultural products.
“Areas in the Southern Highlands where tea and other crops are produced in large quantities need better roads to increase farmers’ productivity and support industries involved in adding value to those products,” he said.
“Better infrastructure will facilitate the movement of produce, reduce losses and open new markets. This is how we can raise farmers’ incomes and contribute to national economic growth.”
The minister’s remarks place infrastructure at the centre of the government’s broader strategy to increase productivity and strengthen connections between agriculture, manufacturing and markets.
The government will also tighten supervision of infrastructure projects to ensure contractors meet agreed standards and timelines, Ambassador Omar said.
Contractors found to be unnecessarily delaying projects could face stringent measures, including being barred from securing future government infrastructure contracts.
He said infrastructure development should not be viewed through a political lens but as a response to practical challenges affecting citizens and the economy.
Poor road conditions in some areas, he said, continue to constrain economic activity, particularly in sectors that depend on the timely movement of agricultural produce and other goods.
Mbeya Regional Commissioner Beno Malisa said the region appreciated the government’s investment in infrastructure, citing the allocation of more than Sh9 billion for the construction of a four-lane road along the Igawa-Uyole-Songwe-Tunduma corridor.
He said the project would improve the movement of people and goods, ease congestion and create new economic opportunities for residents and investors.
“Alongside road improvements, the government continues to invest in essential services such as electricity and water. TANESCO has already provided a schedule for supplying electricity to areas with high demand,” Mr Malisa said.
He said reliable electricity in production areas, including mining centres, would increase productivity and support value addition.
According to Mr Malisa, some mining operations in the region produce up to 400 kilogrammes of gold a month, making reliable power and other infrastructure essential to expanding production and economic activity.
He said continued improvements in water supply and other public infrastructure would complement road and electricity projects in improving living standards and supporting Mbeya’s economic potential.
For the Southern Highlands, the infrastructure investment is increasingly being viewed not only as a connectivity project but as a foundation for turning the region’s agricultural and mineral resources into greater production, value addition, jobs and government revenue.
