Tanzania has the potential to become East Africa’s transportation hub
Tanzania has the potential to become East and Central Africa’s transportation hub if its infrastructure is improved and integrated with information technology.
This was said by Mwananchi Communications Ltd board member, Mr John Ulanga, on Friday, November 5, 2021, during the 60-year Independence Symposium on the Infrastructure Sector themed Growth, Challenges and the Future of the Infrastructure Sector in Tanzania, the symposium was attended by various stakeholders including ministers.
Mr Ulanga said in the whole of Africa, there is no country that borders many landlocked countries like Tanzania, which borders about six such countries.
“It means that as we continue to improve infrastructure, we are improving the opportunities we have as a country to generate more revenue from the export sector,” said Mr Ulanga.
He said apart from improving the country’s domestic transport, infrastructure development will enable the country serve as a transport hub by connecting East Africa with businesses abroad.
Studies show that the state of infrastructure in Africa, reduces productivity by 40 percent thus increasing production costs by 30 to 40 percent.
Mr Ulanga said this is due to the fact that one-third of anything that a person buys comes from transportation costs.
“So if our transport infrastructure is not good enough, production costs will also increase locally but also within the African continent.”
According to Mr Ulanga, who is also the resident director of TradeMark East Africa, technology plays a key role in increasing the country’s infrastructure efficiency, saying studies show that 70 percent of Africa’s infrastructure is poorly used due to inefficiencies in the use of information technology.
He said, for example, that the apparent success of the financial sector in the country was due to the existence of a link between the provision of financial services and technology.
He added that the upcoming fourth industrial revolution means that technology will become an integral part of service delivery.
“So we have experts today who can help determine how we can improve the industry technologically,” said Mr Ulanga, adding that technology-enabled infrastructure will also help the country to have the kind of infrastructure that is climate-smart, where vehicles can reduce pollution.
