Port Expansion in Dar es Salaam will prompt new Trade Boost
LOCAL shipping agents, freight forwarders and transporters are foreseeing booming business opportunities and enhanced efficiency once the expansion work at the Dar es Salaam port is completed and the envisioned electronic single window system becomes operational. Installed capacity at the country’s major gateway is presently at 18 million tonnes, but with the planned deepening and strengthening of berths at the port through the Dar es Salaam Maritime Gateway Project (DMGP), the capacity will surge to 28 million tonnes.
Industry players were upbeat that the coming of larger ocean vessels will reduce unit cost due to economies of scale and the same time reduce the dwell time that ships have been using at the harbour. “It is as well obvi…
45% of GDP in 2017/2018 to be spent on Infrastructure
Good news for the members of Into SA’s eAFRICA Platform: President mMgafuli holds what he promised: The government of Tanzania is planning to spend almost 45 per cent of its 2017/2018 fiscal year budget as development expenditure in infrastructure, according to the Ministry of Works, Transport and Communication who unveiled $4.5trillion budget, which among other things, will cover flagship infrastructure development.
Out of the amount, the transport sector will take a huge chunk, totalling Tshs 2.5trillion, while Tshs1.9trilion is for works sector and the remaining Tshs18billion is reserved for communication sector.
Among areas of priority, is Tshs 900billion for the construction of Standard Gauge Railway (SGR) from Morogoro to Dod…
GDP Growth accelerated to 6.3% in 2015
Tanzania’s economy grew by 6.3 per cent in the third quarter of 2015 compared with 5.4 per cent in the similar period in 2014.
Construction and transport powered the growth. The cumulative gross domestic product (GDP) estimates for January to September was Sh71.7 trillion as growth prospects for the whole year remained positive, according to the National Bureau of Statistics (NBS).
Construction recorded the highest growth rate at 17.6 per cent followed by transport and storage and public administration and defence at 10.6 per cent while mining grew by 8 per cent.
“We witnessed construction of roads and other infrastructure during the period. It should be remembered that we were approaching the General Election and therefore the …
As Hydro Resources dry up, Fossil Fuels again in Focus for 2016
As drought continues to cripple its hydropower plants, Tanzania is struggling to produce enough electricity – and is moving towards using more fossil fuels to make up the shortfall. Hydropower plants normally produce about 35% of Tanzania’s electricity needs, with gas and oil plants making up most of the difference. But as demand grows and water shortages hit hydropower production, Tanzania Electric Supply Company Limited – since 1964 the state-run power utility firm TANESCO – is investing in more fossil fuel plants to maintain its electricity supply.
In October the east African nation was forced to shut down its main hydropower facility for nearly a month because the water level was too low to run the turbines, officials said. In Dec…
Inflation rises to 6.6% in Wake of increased Food Prices
Rising food prices pushed Tanzania’s year-on-year inflation rate to 6.6% in November from 6.3% the previous month, the statistics office said. The National Bureau of Statistics (NBS) said month on month inflation rose by 0.8% in November from an increase of 0.1% in October. “The increase of the inflation rate in the year to November was mainly caused by faster rises in the price of food items such as rice, maize, meat, fish, beans… and sweet potatoes,” Ephraim Kwesigabo, a director at state-run National Bureau of Statistics, told a news conference.
The food and non-alcoholic beverages inflation rate increased to 11.2% in the year to November from 10.2% in October 2015.
Positive GDP Growth Outlook but Risks remaining
Tanzania has managed to maintain an impressive average growth rate of 6.5% over the past decade, in part made possible by a better diversified economy. The rebasing of Tanzania’s GDP revealed that reliance on the agriculture sector has declined, while the secondary and tertiary sectors have become more significant, both in terms of their growth rates and contributions to GDP.
While economic growth is likely to be somewhat lower this year than in 2014, the medium term outlook remains constructive: there is on-going investment in gas production and power generation, urban migration is strong and regional trade continues to improve.
As always this view is not without risks. Regional instability, declining …
FastJet Opens new Route to Malawi
In an announcement that compliments the eAFRICA Platform of Into SA, FastJet Tanzania has announced that flights on its newest and sixth international route will commence on July 27 2015 between Dar es Salaam, Tanzania and Lilongwe, Malawi. Services between Dar es Salaam and Lilongwe will initially operate twice a week on Mondays and Fridays, using Fastjet’s Airbus A319 jet aircraft with seating for up to 156 passengers.
More capacity is expected to be added by Fastjet to this route as demand increases. Tickets for flights on the direct route are on sale immediately, with fares starting from US$ 50 one-way, excluding airport and government taxes – the earlier the bo…
Gas Pipeline to Dar es Salaam complete but technical go-ahead only expected November
A pipeline connecting offshore natural gas fields to Tanzania’s commercial capital Dar es Salaam is complete, but technical setbacks will keep it from going online until November. Tanzania estimates it has at least 53.28 trillion cubic feet (tcf) of recoverable natural gas reserves off its southern coastline. Discoveries offshore of Tanzania and Mozambique waters have led to predictions the region could become the world’s third-largest exporter of natural gas. The 532 km pipeline and gas processing plants, financed by a US$ 1.225bn Chinese loan, were initially expected to be completed last year.
“Construction of the pipeline is 100 percent complete,” Badra Masoud, spokeswoman for the energy and minerals ministry said. "There is some a…
New Port to become East Africa's Number One
In its heyday, Bagamoyo was a gateway to the heart of Africa for colonisers, with trade goods surging in from the Indian Ocean, and timber, ivory and countless slaves exported from the east coast harbour.
Then Bagamoyo, which looks out towards the island of Zanzibar, fell on lean times for more than a century. Now Tanzania plans an US$ 11bn project to make it the region’s biggest port and an engine of Africa’s boom. The Chinese-backed project would dwarf Kenya’s port at Mombasa, east Africa’s trade gateway some 300km to the north, and include an industrial zone and rail and road links to capitalise on growth in a region hoping to exploit new oil and gas finds. "It will be the engine for economic activity not only for Bagamoyo but for …
Legal Framework for Eurobond Issue to be finalised
The government is finalising legal procedures before floating the long awaited Eurobond between April and May this year, says Finance Minister Saada Salum. The Eurobond process in Tanzania was originally launched in 2008, but was postponed due to the global financial crisis and launched again in 2012 with the intention of issuing the Eurobond during the 2012/13 financial year. However, in Salum’s own words “we needed to put our house in order before floating the Eurobond to avoid mistakes done by other sub Saharan countries.”
Saada Salum now says that international lawyers have teamed up with local experts to work on the final details of legal and other procedural requirements before floating the Eurobond, aimed at securing funds for …