Abidjan, Ivory Coast – Tanzania's Vice President Dr. Philip Mpango (pictured above) has shed light on the key drivers behind the country’s impressive strides in infrastructure development. Speaking at a high-level panel during the African Development Bank (AfDB) Annual Governors’ Meeting in Abidjan, Dr. Mpango outlined a compelling blueprint rooted in effective tax revenue collection, a vibrant private sector, and strategic use of capital markets.
“Infrastructure remains the backbone of Tanzania’s economic transformation. Our government is fully committed to mobilising resources to fund strategic projects that enhance connectivity and drive regional trade,” said Dr. Mpango.
Strategic Financing: A Three-Pronged Approach
Tanzania’s infrastructure agenda, including landmark projects like the Standard Gauge Railway (SGR) and cross-border road networks, has been largely propelled by three key pillars:
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Domestic Revenue Mobilisation
Enhanced tax administration—powered by electronic collection systems and a dedicated taxpayer complaints office—has significantly increased government revenue. This, in turn, has provided critical funding for national infrastructure without over-reliance on external debt. -
Expansion of Capital and Bond Markets
Tanzania has actively diversified its financing instruments, leveraging domestic capital markets to raise funds. Notably, social security funds have been tapped to construct roads and bridges, reflecting innovative public finance strategies. -
Development Partnerships & Concessional Loans
The country has efficiently utilized concessional loans and grants from development partners, with the AfDB playing a key role. Dr. Mpango specifically praised outgoing AfDB President Dr. Akinwumi Adesina for supporting transformative projects in Tanzania.
“The AfDB has been instrumental in funding major infrastructure including roads, airports, and the SGR—linking us with Burundi and the DRC,” he acknowledged.
Powering Progress: Energy Investments in Focus
A cornerstone of Tanzania’s development strategy is energy infrastructure. Dr. Mpango highlighted the now-completed Julius Nyerere Hydroelectric Power Project (JNHPP), which is delivering 2,115 megawatts to the national grid. This is a game-changer for powering industrial growth and rural electrification.
Additional energy initiatives include:
- Natural Gas Exploration & Expansion
- Geothermal Energy Projects, with an initial capacity of 500 megawatts set to come online.
“These energy investments are not just about powering factories—they’re about inclusive, sustainable growth for every Tanzanian,” Dr. Mpango emphasised.
A Model for Africa?
Tanzania's approach offers a replicable model for other African nations aiming to achieve infrastructure-led development. By prioritizing revenue efficiency, enabling financial markets, and embracing strategic partnerships, the country is demonstrating how internal capacity can drive long-term transformation.
As the AfDB continues to push for better resource utilization across the continent, Tanzania’s story could inspire a broader regional shift toward sustainable, locally driven development.
Stay tuned to our blog for more insights on Africa’s economic transformation and the policies shaping tomorrow’s infrastructure landscape.
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