Tanzania: New Financing Opportunities Emerge for Infra Projects

Dar es Salaam — TANZANIA'S infrastructure ambitions are entering a new phase as the country seeks to convert development plans into bankable projects, with the Africa50 General Shareholders' Meeting and Infra for Africa Forum in Dar es Salaam providing a platform to connect national priorities with global investment capital.

The meeting brought together African leaders, investors, development finance institutions and private sector players at a time when the continent faces a major infrastructure financing challenge.

With Africa's infrastructure financing gap estimated at tens of billions of dollars annually, countries are increasingly turning to partnerships that combine government commitment, private capital and institutional financing.

For Tanzania, the Africa50 platform represents an opportunity to attract long-term investment into strategic sectors including energy, transport, healthcare and industrial development.

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The forum resulted in three agreements involving Tanzanian institutions covering electricity transmission, healthcare expansion and natural gas distribution, signalling a shift from identifying infrastructure challenges to developing mechanisms for financing and implementing projects.

Bridging Africa's infrastructure financing gap Africa's infrastructure challenge is not only about identifying projects but also finding the capital and technical expertise required to deliver them.

African Development Bank (AfDB) President Dr Sidi Ould Tah said African countries require between 130 billion US dollars and 170 billion US dollars annually to meet infrastructure needs, while facing a financing shortfall estimated between 68 billion US dollars and 100 billion US dollars.

He said Africa must mobilise more domestic resources and attract greater private investment to close the gap.

"Africa holds an estimated 4 trillion US dollars in domestic and external capital through pension funds, sovereign wealth funds and insurance companies, yet only a small share is invested in infrastructure," he said.

For Tanzania, unlocking such capital is critical as the country advances large-scale investments in energy, logistics, industrial parks and regional connectivity.

Tanzania became a shareholder of Africa50 in 2023, allowing it to participate in project preparation, development and financing initiatives.

Finance Minister Ambassador Khamis Mussa Omar said the partnership has supported cooperation in projects including Mangapwani Port development in Zanzibar, mini-LNG initiatives, electricity transmission projects and healthcare expansion through public-private partnerships.

Energy emerges as key investment opportunity Energy was among the sectors that attracted significant attention during the forum, with Africa50 announcing plans to establish a large-scale midstream gas infrastructure investment platform aimed at unlocking Africa's natural gas potential.

The initiative is expected to support investment in gas processing, transportation and storage facilities, helping countries convert natural resources into industrial opportunities.

For Tanzania, the platform aligns with ambitions to expand natural gas utilisation and advance the development of LNG resources.

Energy Minister Deogratius Ndejembi said commercial gas production continues at the Songo Songo and Mnazi Bay fields, while progress is being made on the Ntorya discovery in Ruvuma and offshore Blocks 1, 2 and 4.

The offshore resources are expected to support Tanzania's planned LNG project, which aims to process natural gas for export while meeting domestic energy requirements.

Government figures show Tanzania produced more than 41.5 billion cubic feet of natural gas during the 2025/26 financial year, supplying electricity generation, industries, institutions, vehicles and households.

The country is also expanding gas-based power generation through projects such as the 300-megawatt Mtwara Gas-to-Power Project and the 185-megawatt Kinyerezi I Extension.

The Africa50 gas infrastructure initiative could help attract additional investment needed to develop facilities linking natural resources with industries and consumers.

Private capital takes centre stage A key message from the forum was that governments alone cannot meet Africa's infrastructure financing needs.

President Samia Suluhu Hassan said African countries must strengthen domestic resource mobilisation and build stronger partnerships with investors to accelerate development.

She said infrastructure investment is essential for improving competitiveness, supporting trade and creating employment opportunities.

Tanzania's Development Vision 2050 places private sector participation at the centre of economic transformation, with infrastructure identified as a foundation for industrial growth.

The agreement between Africa50 and Tanzania Electric Supply Company (TANESCO) to unlock private investment in electricity transmission reflects this approach.

Through public-private partnerships, Tanzania aims to attract capital and technical expertise while reducing pressure on government finances.

Positioning Tanzania for investors Beyond individual projects, the Africa50 forum offered Tanzania an opportunity to highlight reforms aimed at improving the investment environment.

The Tanzania Investment and Special Economic Zones Authority (TISEZA) presented initiatives designed to simplify investor access to government services through the One Stop Facilitation Centre.

TISEZA Acting Head of Planning, Research and Innovation Gaudence Mmassy said investment certificates, permits and licences can now be processed within 24 hours.

He identified opportunities in areas including the Bagamoyo Special Economic Zone, LNG development, the Julius Nyerere Hydropower Project, railways, ports and logistics infrastructure.

Zanzibar also showcased opportunities in tourism, energy and the blue economy.

Zanzibar Investment Promotion Authority (ZIPA) Director General Saleh Saadi Mohamed said the Isles have registered 640 investment projects worth about 7.1 billion US dollars over the past six years, while approved public-private partnership projects are valued at about 123 billion US dollars.

The long-term significance of Tanzania's Africa50 engagement will depend on how quickly agreements translate into completed projects.

Infrastructure investment has the potential to strengthen manufacturing, agriculture processing, mining, logistics and regional trade by improving access to reliable energy, transport networks and digital connectivity.

Projects such as the Dar es Salaam Port expansion, Standard Gauge Railway, roads, bridges and logistics corridors are part of Tanzania's broader ambition to become a gateway for East and Southern Africa.

For local businesses, increased infrastructure investment could create opportunities for construction companies, suppliers, engineering firms, technology providers and service industries.

As African countries seek new ways to finance development, Tanzania's partnership with Africa50 highlights the growing role of collaboration between governments, investors and development institutions.

The next challenge will be converting investment commitments into projects that deliver energy security, stronger industries and broader economic opportunities for Tanzanians.

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