Tanzania’s Finance Minister Khamis Mussa has addressed concerns following Nigerian billionaire Aliko Dangote’s decision to build a Sh2 trillion refinery in Kenya’s Lamu instead of Tanzania’s Tanga port. Speaking at the Africa 50 Infrastructure event, Mussa emphasized Tanzania’s ongoing commitment to regional infrastructure development and economic integration.

Dangote Investment and Regional Infrastructure Race

While the refinery project shifted to Kenya, Mussa highlighted Dangote’s existing investments in Tanzania, including a cement plant and potential future projects like a port and fertiliser facility. He stressed that the refinery location was determined by economic factors and reaffirmed Tanzania’s openness to major investors.

Expanding Rail Connectivity

Tanzania is actively extending its Standard Gauge Railway (SGR) network to strengthen links with neighbouring countries. Planned expansions include:

  • New SGR lines westward to Mwanza and Kigoma, enhancing connections to Rwanda, Uganda, Burundi, and the Democratic Republic of Congo.
  • A proposed line from Tanga port to Musoma to serve Rwanda and Uganda.
  • A southern route from Mtwara to Mbamba Bay, connecting to Malawi and Zambia.

Mussa noted ongoing collaboration with Kenya to boost interconnectivity and transform transport corridors into economic corridors by focusing on sectors such as mining, agro-processing, logistics, and tourism.

Power Generation and Regional Energy Cooperation

Regarding energy, Tanzania plans to double electricity generation capacity from 4,000 MW to 8,000 MW by 2030 to support industrialisation. Despite local growth, the country will remain integrated within the East African power pool, maintaining energy links with Ethiopia, Kenya, Uganda, and Zambia. Discussions on nuclear energy are also underway.

Financing Infrastructure Through Partnerships

Mussa acknowledged the importance of balancing debt with sustainable financing, noting that most infrastructure investment will be debt-funded but requires prudent management. He emphasized the potential of public-private partnerships (PPPs) to complement government efforts, calling for government guarantees to attract private investors and accelerate project delivery.