Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

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.

Yearly Breakdown

2021

  • Projects: 4 (Kasulu-Manyovu, Kanyani-Mvugwe, Mvugwe-Nduta, Nduta-Kabingo)
  • Total: 325.64 Billion TZS
  • Average per project: 81.41 Billion TZS

2020

  • Projects: 9 (Nala-Ihumwa Dry Port, Nachingwea-Ruangwa, Sanzate-Natta)
  • Total: 431.64 Billion TZS
  • Average per project: 47.96 Billion TZS

2019

  • Projects: 6 (J.P. Magufuli Bridge, Kazilambwa-Chagu, Kibondo Town Link)
  • Total: 716.412 Billion TZS
  • Average per project: 119.40 Billion TZS

2018

  • Projects: 4 (BRT Phase 2, Songea Airport, Wami Bridge)
  • Total: 434.72 Billion TZS
  • Average per project: 108.68 Billion TZS

2017

  • Projects: 10 (Key examples: Chunya-Makongolosi, Mtwara Airport, Shinyanga Airport)
  • Total: 688.561 Billion TZS
  • Average per project: 68.86 Billion TZS

2016

  • Projects: 4 (Lusitu-Mawengi, Kidatu-Ifakara)
  • Total: 378.878 Billion TZS
  • Average per project: 94.72 Billion TZS

2015 and Earlier

  • Projects: 12 (Kikusya-Ipinda-Matema, Nyakanazi-Kibondo)
  • Total: 288.322 Billion TZS
  • Average per project: 24.03 Billion TZS

Insights

  1. Peak Year: The highest average project value was in 2019, highlighting significant investments in high-value infrastructure.
  2. Earlier Projects: Projects before 2015 had much lower average values, reflecting either smaller scopes or older pricing trends.
  3. 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.

RankProject NameYearContract Sum (Bil TZS)
1J.P. Magufuli Bridge2019592.609
2BRT Phase 2 Lot 12018189.400
3LUSITU-MAWENGI LOT22016159.217
4USESULE-KOMANGA LOT12017158.800
5WIDENING OF MOROGORO ROAD (KIMARA –KIBAHA)2018140.450
6KOMANGA KASINDE LOT22017140.000
7KASINDE-MPANDA LOT32017133.800
8LOT 2: IHUMWA DRY PORT – MATUMBULU – NALA SECTION2020120.860
9LOT 1: NALA – VEYULA – MTUMBA – IHUMWA DRY PORT SECTION2020100.840
10MORONGA-MAKETE LOT22017110.446

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

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