Ports, partnerships to strengthen competitiveness

DAR ES SALAAM: TANZANIA’S ambition to become East and Central Africa’s leading logistics and investment hub may depend less on geography than on how efficiently it converts that advantage into economic value.

Bordering the Indian Ocean and serving more than six land linked countries, Tanzania already occupies one of Africa’s most strategically important trade corridors.

Yet analysts say the country’s ability to maximise that position will depend on continued investment in ports, transport infrastructure and Public-Private Partnerships (PPPs) that improve efficiency while attracting long term capital.

Speaking during a public lecture at Sokoine University of Agriculture (SUA), Public-Private Partnership Centre (PPPC) Executive Director, Mr David Kafulila described Dar es Salaam Port as Tanzania’s equivalent of the Strait of Hormuz one of the world’s most strategically significant maritime routes because of its central role in regional commerce.

“This geographical advantage is one of our greatest economic assets,” Mr Kafulila said.

“We need continued investment in ports and roads so cargo arriving at Dar es Salaam reaches its destination faster and more efficiently than competing routes.”

His remarks reflect growing recognition that logistics has become a major driver of economic competitiveness.

Faster cargo clearance, efficient transport corridors and lower shipping costs can attract more regional trade while encouraging investment in manufacturing, agriculture and exports.

For Tanzania, the opportunity extends well beyond handling more cargo.

A more efficient port would strengthen the country’s ability to compete for transit business from neighbouring landlocked economies while reducing logistics costs for domestic producers and exporters.

It would also reinforce Dar es Salaam’s role as the preferred gateway for regional supply chains at a time when East African trade continues to expand.

Infrastructure, however, requires financing. With governments worldwide facing growing fiscal pressures, policymakers are increasingly looking to PPPs as a means of developing and managing strategic assets without transferring public ownership.

Mr Kafulila argued that private-sector participation should extend beyond construction financing to include operating and managing public infrastructure where specialised expertise can improve efficiency and commercial performance.

Using Tanzania’s Standard Gauge Railway (SGR) as an example, he said experienced private operators could help maximise utilisation while allowing government to retain ownership.

“We can partner with experienced operators to run the railway efficiently so it generates revenue instead of becoming a financial burden,” he said.

The approach reflects a broader shift in infrastructure policy, where governments increasingly focus on leveraging private capital, operational expertise and technology to improve returns from public assets. The benefits could extend well beyond transport.

Agriculture, one of Tanzania’s largest employers and a key source of export earnings, also stands to gain from stronger collaboration between government, research institutions and private investors.

SUA Deputy Vice-Chancellor, Prof Amandus Muhairwa said partnerships are essential to modernising agriculture, strengthening value chains and expanding agroprocessing industries.

“Without agriculture, there are no industries and no jobs,” Prof Muhairwa said.

“Creating better investment conditions through partnerships between government, the private sector and research institutions can unlock more opportunities for economic growth.”

He said PPPs could mobilise investment, technology and technical expertise needed to improve productivity while helping commercialise innovations developed by universities.

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For research institutions, commercialisation is becoming an increasingly important part of economic development.

SUA Principal of the College of Agriculture, Dr Nyambilila Amani said universities are no longer simply centres of teaching and research but are increasingly expected to generate technologies capable of attracting investment and solving commercial challenges.

Knowledge itself, he argued, has become an economic asset. Countries that have successfully combined investment in infrastructure with strong human capital development provide useful lessons.

Prof Muhairwa cited Singapore, where public-private collaboration and sustained investment in education helped transform a resource-constrained economy into one of the world’s leading commercial and logistics centres.

While Tanzania’s circumstances differ, he said similar principles of collaboration, innovation and private-sector participation remain relevant.

The PPPC public lecture forms part of wider efforts to familiarise universities, businesses and policymakers with PPP models capable of financing large-scale development projects.

For investors, the discussion signals an evolution in Tanzania’s economic strategy.

Rather than relying solely on public spending, policymakers increasingly envisage development driven by partnerships that combine government support with private capital, operational expertise and technological innovation.

Such an approach could prove particularly important as demand grows for investments in ports, railways, roads, energy, agriculture and industrial infrastructure.

If implemented effectively, greater private-sector participation could transform strategic public assets from budgetary obligations into revenue-generating enterprises while easing pressure on government finances. For Tanzania, the opportunity is considerable.

Its location cannot be replicated by competitors. What can be replicated, however, is the quality of infrastructure, the efficiency of logistics and the attractiveness of its investment environment.

The challenge is therefore no longer one of geography but of execution. Faster ports, efficient transport corridors, commercially managed infrastructure and stronger publicprivate collaboration could position Tanzania as one of East Africa’s most competitive logistics and investment destinations.

Whether that potential translates into billions of shillings in additional trade and investment will ultimately depend on how successfully the country turns strategic advantages into commercially sustainable projects capable of delivering measurable economic returns.