Strategic Growth in TANROADS Investments 2015–2021
November 19, 2024
Between 2015 and 2021, TANROADS has strategically increased infrastructure investments, focusing on high-value projects to drive Tanzania's economic growth. Over this period, the total investment reached 3,264.173 Billion TZS, with a peak average project value of 119.40 Billion TZS per project in 2019. In 2021, despite only 4 projects, the average remained high at 81.41 […]
Between 2015 and 2021, TANROADS has strategically increased infrastructure investments, focusing on high-value projects to drive Tanzania's economic growth. Over this period, the total investment reached 3,264.173 Billion TZS, with a peak average project value of 119.40 Billion TZS per project in 2019. In 2021, despite only 4 projects, the average remained high at 81.41 Billion TZS per project, emphasizing a shift toward impactful, large-scale infrastructure that strengthens national and regional connectivity.
Peak Year: The highest average project value was in 2019, highlighting significant investments in high-value infrastructure.
Earlier Projects: Projects before 2015 had much lower average values, reflecting either smaller scopes or older pricing trends.
Consistent Growth: Recent projects (2020–2021) show a steady increase in total project values with relatively fewer but higher-value contracts.
The figures reveals key insights about TANROADS' project trends and priorities over the years:
1. Investment Growth Over Time
Increasing Project Value: The significant jump in total and average project values from earlier years (2015 and before) to recent years highlights growing investment in infrastructure. This may indicate:
Prioritization of large-scale projects.
Increased funding availability or enhanced budget allocation for road infrastructure.
Strategic Focus on High-Value Projects: 2019 was a peak year with the highest average project value, showing TANROADS' focus on impactful projects.
2. Recent Trends (2020–2021)
Fewer Projects, Higher Value: Despite fewer projects in 2021, the average value per project (81.41 Billion TZS) is high, reflecting a shift toward:
Strategic planning for major regional or national connectivity.
Enhanced quality and scope of individual projects.
Funding Efficiency: A reduced number of projects but higher value per project suggests a deliberate focus on impactful and sustainable infrastructure.
3. Earlier Years (2015 and Before)
Smaller Scopes and Budgets: Lower average project values likely indicate:
Smaller-scale or regionally focused road projects.
A phase of laying foundational infrastructure rather than ambitious nationwide connectivity goals.
4. Long-Term Trends
Focus on Key Transport Corridors: Many projects link significant trade hubs or regions, such as:
Kasulu-Manyovu for international trade with Burundi.
Nala-Dry Port, enhancing transport and logistics efficiency in central Tanzania.
Economic Growth Impact: Infrastructure development aligns with Tanzania’s broader economic goals, such as improving trade, reducing transport costs, and enabling regional integration.
What This Means
Economic Development: Increased spending on high-value projects reflects efforts to bolster Tanzania’s economic growth by improving transport and logistics.
Global Investment Attraction: The upward trend in project scope and value may help attract international investors, particularly for Public-Private Partnerships (PPPs).
Strategic Planning: Recent years demonstrate a focus on fewer, well-targeted projects to maximize infrastructure impact.
The top 10 projects by contract value.
Rank
Project Name
Year
Contract Sum (Bil TZS)
1
J.P. Magufuli Bridge
2019
592.609
2
BRT Phase 2 Lot 1
2018
189.400
3
LUSITU-MAWENGI LOT2
2016
159.217
4
USESULE-KOMANGA LOT1
2017
158.800
5
WIDENING OF MOROGORO ROAD (KIMARA –KIBAHA)
2018
140.450
6
KOMANGA KASINDE LOT2
2017
140.000
7
KASINDE-MPANDA LOT3
2017
133.800
8
LOT 2: IHUMWA DRY PORT – MATUMBULU – NALA SECTION
2020
120.860
9
LOT 1: NALA – VEYULA – MTUMBA – IHUMWA DRY PORT SECTION
2020
100.840
10
MORONGA-MAKETE LOT2
2017
110.446
Key observations:
The J.P. Magufuli Bridge is significantly more expensive than any other project
BRT Phase 2 Lot 1 is the second most expensive project
Most of these top 10 projects were signed between 2017-2020
Infrastructure projects (bridges, roads, and transit) dominate the highest-cost projects