Top 10 Infrastructure Projects Shaping Tanzania’s Investment Landscape

Tanzania is undergoing one of the most ambitious infrastructure transformations in Africa. With nominal GDP projected to grow from USD 88.9 billion in 2025 to USD 180 billion by 2030, infrastructure is the backbone of this expansion. Investors evaluating Tanzania must understand the scale, financing, and long-term impact of its largest projects. Below are ten infrastructure developments defining Tanzania’s economic trajectory.

1. Standard Gauge Railway (SGR)

The USD 10 billion SGR project is Tanzania’s flagship transport investment. Stretching from Dar es Salaam to Dodoma, with extensions to Mwanza on Lake Victoria and Kigoma on Lake Tanganyika, it will connect Tanzania to Rwanda, Burundi, and the Democratic Republic of Congo. Once operational, it is expected to reduce freight costs by up to 40 percent and transform Dar es Salaam into a regional logistics hub.

2. Julius Nyerere Hydropower Project

Valued at USD 3.6 billion, this 2,115 MW hydroelectric project on the Rufiji River is set to more than double Tanzania’s current power generation capacity. Scheduled for completion in the late 2020s, it will reduce reliance on thermal power and provide the energy backbone for industrialization. Its scale makes it the largest hydropower initiative in East Africa.

3. Dar es Salaam Port Expansion

Handling over 95 percent of Tanzania’s international trade, the port is undergoing a USD 421 million upgrade funded by the World Bank and TradeMark Africa. Improvements in berths, container handling, and customs systems aim to double capacity to 28 million tons annually. The expansion will enhance Tanzania’s competitiveness against ports in Mombasa and Durban.

4. Liquefied Natural Gas (LNG) Project in Lindi

Negotiations with international oil majors such as Equinor and Shell are advancing on a USD 42 billion LNG plant. With reserves of 57 trillion cubic feet of natural gas, the project would position Tanzania as a major energy exporter. If completed, it could generate billions in annual revenue and attract secondary investments in petrochemicals and industrial processing.

5. East African Crude Oil Pipeline (EACOP)

The USD 10 billion EACOP will stretch 1,443 kilometers from Uganda’s oilfields in Hoima to Tanzania’s Tanga port. Once operational, it will transport 216,000 barrels per day. Tanzania will earn an estimated USD 1 billion in transit fees over the pipeline’s 25-year lifespan. Its construction also catalyzes road, housing, and service infrastructure along the corridor.

6. Bagamoyo Port and Industrial Zone

Although delayed, the USD 10 billion Bagamoyo Port project remains a critical long-term development. If revived, it would become one of the largest ports in Africa, handling 20 million containers annually—more than ten times Dar es Salaam’s current capacity. The accompanying Special Economic Zone is designed to attract manufacturing and logistics investment.

7. Dodoma Airport Expansion

As Dodoma consolidates its role as Tanzania’s administrative capital, a USD 300 million upgrade is planned for its airport to handle larger aircraft and increased passenger flows. Improved connectivity will support government relocation, business travel, and regional commerce.

8. Kigamboni Bridge and Urban Road Networks

Completed at a cost of USD 136 million, the Kigamboni Bridge links Dar es Salaam with the rapidly growing Kigamboni district. Alongside this, billions are being spent on urban road expansion in Dar es Salaam and Dodoma, easing congestion and enabling efficient movement of goods and people.

9. Rural Electrification Program (REA)

With a budget exceeding USD 1 billion across multiple phases, REA aims to increase rural electrification from under 40 percent today to over 75 percent by 2030. Electrification drives productivity in agriculture, improves education outcomes, and creates new markets for appliances and digital services.

10. National ICT Broadband Backbone (NICTBB)

Backed by the government with World Bank support, NICTBB is expanding high-speed internet access nationwide. By connecting regional towns and cross-border trade points, it lowers transaction costs and enables e-commerce, fintech, and digital services, an increasingly critical component of Tanzania’s growth story.

Investor Takeaway

These projects highlight a clear truth: Tanzania’s growth strategy is infrastructure-led. Collectively, they represent more than USD 80 billion in capital commitments, creating opportunities in construction, supply chains, logistics, energy, and financing. The challenge for investors is not finding opportunities but assessing execution capacity, governance risks, and long-term returns. Those who enter early, with strong local partnerships, will capture disproportionate value as Tanzania positions itself as a regional economic powerhouse.