Transport Sector

Logistics costs are high, and dependence on road transportation is high. It is necessary to strengthen logistics networks and their functions and improve safety by further developing infrastructure and establishing better intermodal linkages1. In addition, the development of shipping and tourism in Zanzibar is also an issue to be addressed.

Logistics costs account for 35-45% of import costs in Tanzania. Strengthening the gateway function to landlocked countries and the logistics function necessary to utilize the development potential of agricultural products and mineral resources are required, along with connectivity between the Central Corridor and the Northern Corridor and the facilitation of trade with neighboring countries in East Africa.

Efforts to shift means of freight transport from trucks and other motor vehicles to railroads and ship more than 80% of passengers transport and more than 95% of freight transport in the country depends on roads, but the proportion of paved roads was low at 89% (2021) at the start of FYDPIII, and the government aims to improve it to 12% by 2025. In addition, 11% of national roads are still in poor condition.

The goal is to increase the share of rail transport from 0.6% to 20% for passengers and from 5% to 40% for freight by 2030. Especially in Dar es Salaam, there is a need to eliminate serious traffic congestion and accidents as the population grows rapidly. In Zanzibar, economic development centering on marine transport and tourism is important.