Experts: EAC Logistics Centre will drive integration, boost economy

DAR ES SALAAM: ANALYSTS have hailed the upcoming launch of the East Africa Commercial and Logistics Centre (EACLC) in Dar es Salaam as a transformative development that will elevate the city to a regional business hub comparable to Dubai.

The 110-million-USdollar (over 280bn/-) project, which has been under construction for two years, is set for inauguration by President Samia Suluhu Hassan on August 2 this year.

Business expert Dr Sylvester Jotta of the Saint Augustine University of Tanzania (SAUT) said the centre will catalyse domestic, regional and international trade, positioning Ubungo District in Dar es Salaam as a new epicentre of East African commerce.

He stressed that the facility would generate substantial revenues for Tanzania by facilitating increased transactions in exports, imports and domestic trade.

“The Dar es Salaam City will experience a surge in business transactions similar to Dubai, enabling Tanzania to generate massive revenues and strengthen its economy,” he noted.

Dr Jotta further highlighted the potential of the centre to connect local businesspersons with traders from the East African region and beyond, turning Tanzania into a vibrant hub for cross-border trade.

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He pointed out that the centre will also stimulate growth in the transport sector, complementing key infrastructure such as the electric Standard Gauge Railway (SGR), the Dar es Salaam Port and Air country’s digital revolution, equipping Tanzanians to engage more effectively in ebusiness and e-marketing,” he said.

Additionally, Dr Jotta noted that the centre will enhance Tanzania’s appeal as a regional tourism hub. He explained that foreign traders visiting Dar es Salaam for business may also explore the city’s scenic Indian Ocean beaches, further boosting the local hospitality sector.

Commenting, Economiccum-Investment Banker, Dr Hildebrand Shayo said the centre will streamline the flow of goods inside and outside East Africa while attracting foreign direct investments (FDIs).

“For Tanzania, its development marks a significant shift in East Africa’s logistics landscape, promoting industrialisation and supply chain integration,” Dr Shayo pointed out.

He said the logistics hub will also boost the manufacturing sector and value addition insisting that with better logistics, local industries in Tanzania can efficiently import raw materials and export finished goods and in turn encourage industrial growth and value chain development.

“The centre in my view signals stability and economic opportunity, drawing investors in logistics, manufacturing, real estate and services,” Dr Shayo noted.

Adding “reduction in costs and delays through improved logistics will lower the cost of doing business, reduce delivery times and enhance competitiveness for Tanzanian producers and exporters.” Tax expert and Tanzania Association of Tax Consultants (TATC) Chairperson Ms Victoria Soka described the facility as a significant revenue driver.

“It will attract substantial revenues through customs duties, export taxes and other levies, while diversifying Tanzania’s revenue streams,” she said.

She further emphasised that the centre could attract advanced production technologies and foster the establishment of local manufacturing plants, which would support the trade of value-added products.

“We must prioritise exporting value-added products to generate foreign exchange and safeguard local jobs, rather than allowing a trade imbalance dominated by imports,” she said.

Tanzania Investment and Special Economic Zones Authority (TISEZA) Director General Mr Gilead Teri echoed these sentiments during a recent press conference in Dar es Salaam. He described the centre as part of the government’s broader efforts to build an inclusive economy by attracting strategic investors.

“The commercial facility is poised to boost the country’s economy by catalysing both imports and exports,” he said, adding that it is expected to contribute 150 million US dollars (over 384bn/-) in export value.