Tanzania Roundup: Exports boost, PPP power project, longest bridge opened
Exports boost
Tanzania's economic landscape shows encouraging signs as the current account deficit for the year leading up to August 2024 has narrowed to US$2.57 billion from US$3.85 billion the previous year. This improvement is attributed to robust export growth, particularly in goods and services, which reached US$15.06 billion, driven by a surge in tourism and significant exports of gold, tobacco, and horticultural products. Traditional exports totalled US$1.1 billion, while non-traditional exports soared to US$6.57 billion, with gold exports alone witnessing an 8.2% increase to US$3.19 billion. Additionally, service receipts, primarily from travel and transport, contributed US$6.95 billion, reflecting a marked 21.7% rise in tourist arrivals, IPP Media reports.
First PPP power transmission project
Tanzania is also advancing its energy infrastructure, currently negotiating with two foreign entities for its inaugural Public-Private Partnership (PPP) power transmission projects, valued at an impressive $1.2 billion. Currently, power transmission remains solely under the control of Tanzania Electric Supply Company (TANESCO). With aspirations to draw lessons from successful PPP models in Latin America and Asia, the government faces notable challenges such as regulatory barriers and skills shortages in governmental agencies. These PPP initiatives aim to enhance electricity access and reliability while reducing transmission losses and costs for consumers. As reported by Daily News, despite benefiting from an overarching electricity surplus, the government has earmarked $1.9 billion for the enhancement of transmission infrastructure, addressing ongoing issues in power accessibility.
Longest bridge in East Africa opened
In another pivotal development, Tanzania has inaugurated the Magufuli Bridge, now recognised as East Africa's longest bridge, standing at 3.2 kilometres across Lake Victoria in the Mwanza region. Constructed for £240 million ($300 million) by Chinese contractors, this bridge connects the Misungwi and Sengerema districts, entirely financed by the Tanzanian government. Although construction began in December 2019, it was delayed due to the COVID-19 pandemic, with completion achieved on October 6, 2023. This infrastructure is set to significantly bolster regional connectivity with neighbouring countries such as Rwanda, Burundi, and Uganda, ranking among Africa's top ten longest bridges. The bridge has been named to honour the late President John Magufuli, who first envisioned the project.
Importance of conservation
The creative sector, particularly film, also plays a role in Tanzania's socio-economic development. Filmmaker Aika Kirei is utilising her animated series "Chiku and Katope" as a medium to educate primary school students about environmental conservation. VOA reports that through this innovative storytelling approach, Kirei aims to instil a sense of environmental stewardship in young viewers, highlighting the vital importance of sustainability and conservation efforts for future generations.
Economic boost
Furthermore, the economic contributions from Barrick Gold's Twiga partnership, encompassing the North Mara and Bulyanhulu gold mines, significantly bolstered the Tanzanian economy, accounting for 51% of the government's revenue from the extractive sector. According to the latest assessments by Mining Review Africa, these mines have excelled in safety initiatives, with Bulyanhulu being the recipient of an Occupational Safety and Health Award. Barrick Gold is actively conducting exploration efforts aimed at replenishing and expanding its mining reserves, whilst concurrently identifying new mining opportunities. The initial phase of the Barrick-Twiga Future Forward Education initiative has seen an investment of $10 million into local school infrastructure, with further investments planned.
