Investment in Cold, Grain Chain Critical for Economic growth in Tanzania

An investment in cold and grain chain infrastructure is expected to boost Tanzania’s economic and social development by improving transportation connectivity and facilitating production in key economic sectors.

Mr David Kihenzile, Deputy Minister for Transport, said the government is committed to strengthening the central corridor’s transport sector at the launch of the Cold and Grains Chain initiative yesterday in Kilosa District.

“Building modern and robust infrastructure will create jobs, expand the tax base, increase foreign exchange, and position Tanzania as an economic and trade hub because of its strategic location,” Mr Kihenzile said.

Deputy Prime Minister Doto Biteko, represented by Mr Kihenzile, said that the Cold and Grains Chain project would facilitate large-scale investments in agriculture, mining and livestock.

According to him, the initiative would reduce transport costs and minimise farmers’ post-harvest losses.

In partnership with the World Food Programme (WFP), the structured Rail Cold Chain Project is a central component of the initiative.

Transport of horticultural products between Dodoma and Morogoro production centers and retail outlets in Dar es Salaam was the initial focus of the project. Dar es Salaam’s port and airport were also intended to facilitate exports.

WFP has already invested 530,000 dollars (about 1.443 billion) in the project, contributing to the assessment, feasibility study, and procurement of critical equipment.

As part of the purchase, Tanzania Railways Corporation (TRC) received refrigerated containers compatible with both the Meter Gauge Railway (MGR) and the Standard Gauge Railway (SGR), heavy-lift equipment, and plastic crates.

Kihenzile said the investments are crucial, citing improved infrastructure as a key to attracting foreign direct investment.

Due to Tanzania’s strategic location and proximity to key markets in Eastern and Southern Africa, this new infrastructure can help the country become a preferred hub for regional trade.

In addition, he urged stakeholders in the agricultural and livestock sectors to collaborate with the government to make the initiative a success.

Rail transport, Mr Kihenzile said, is more cost-effective and environmentally friendly than road transport, making it ideal for transporting bulk goods such as grains and agricultural produce.

The Cold and Grains Chain is part of a broader government effort to improve the country’s transport infrastructure, which includes investments in the SGR, port improvement, and Tanzania Airlines’ enhancement.

Tanzania’s transport sector will be more competitive and capable of meeting the demands of a rapidly growing economy as a result of these projects, he explained.

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The country director of WFP Tanzania Ronald Tran Ba Huy commended the government’s efforts. He emphasized WFP’s role in transporting humanitarian food commodities through the Dar es Salaam port as well as for local distribution and export.

WFP has transported an average of 86,766 metric tonnes of food annually through the port at a cost of 26 million US dollars, he said.

WFP, he said, has also purchased local food commodities, including maize and sorghum, at an annual cost of 51 million US dollars, contributing to the nation’s economy and creating jobs.

Railway transportation, particularly for cargo, is crucial for generating revenue, according to TRC Director General Masanja Kadogosa.

The initiative also aims to improve market access for Tanzanian farmers and reduce product spoilage, enhancing food security.

Tanzania’s government aims to extend its reach to regional markets, including Rwanda, Uganda, South Sudan, and the Democratic Republic of Congo, according to Kadogosa.