SAGCOT Regions Benefit from Major Road Infrastructure Boost: Tanzania’s TZS 3.775 Trillion Investment

Kilimokwanza.org Reporter

On June 16, 2023, the Tanzanian government, through the Tanzania National Roads Agency (TANROADS), took a significant step towards enhancing the nation’s infrastructure by signing seven major contracts under the Engineering, Procurement, Construction, and Financing (EPC+F) arrangement. These contracts, valued at TZS 3.775 trillion, aim to construct 2,035 kilometres of roads over the next five years. This ambitious initiative is set to bolster Tanzania’s transportation network, stimulate economic activities, and foster regional integration.

Enhancing Connectivity in SAGCOT Regions

Among the seven contracts, three encompass critical regions within the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), which includes Morogoro, Iringa, Mbeya, and Ruvuma. These areas are pivotal for Tanzania’s agricultural development due to their fertile soil, favourable climate, and high productivity potential. The following roads fall within the SAGCOT area:

1. Kidatu – Ifakara – Lupiro – Malinyi – Kilosa Kwa Mpepo – Londo – Lumecha/Songea (435.8 km): This road traverses the Morogoro and Ruvuma regions, enhancing connectivity and access to agricultural markets.
2. Igawa – Songwe – Tunduma (four-lane) (237.9 km): Located in the Mbeya and Songwe regions, this road will facilitate smoother transportation of goods and people, promoting regional trade.
3. Mafinga—Mtwango—Mgololo (81 km): This road passes through the Iringa region and will significantly improve access to rural areas, fostering agricultural productivity.

Comprehensive Road Network Development

The construction of these roads is part of a broader initiative to improve Tanzania’s overall road network.

The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) covers approximately one-third of Tanzania’s total land area, making it a critical region for its agricultural and economic growth. The initiative stretches from the coastal region of Dar es Salaam to the inland borders with Zambia and the Democratic Republic of Congo, encompassing key regions like Morogoro, Iringa, Mbeya, and Ruvuma. The development of these roads within SAGCOT is expected to continue the momentum of unlocking the agricultural potential of these regions, facilitating access to markets, reducing transportation costs, and enhancing overall productivity.

Infrastructure development is crucial for Tanzania to fulfil its mission of becoming the “granary of Africa.” The Tanzanian government lays the foundation for sustained economic growth, improved regional connectivity, and enhanced agricultural productivity by investing in a robust road network. The successful implementation of these road projects will not only transform Tanzania’s transportation landscape but also contribute significantly to the nation’s long-term development goals.

The other roads to be constructed under these contracts include:

• Arusha – Kibaya – Kongwa (453.42 km)
• Handeni – Kiberashi – Kijungu – Kibaya – Njoro – Olboroti – Mrijo Chini – Dalai – Bicha – Chambolo – Chemba – Kwa Mtoro – Singida (384.33 km)
• Masasi – Nachingwea – Liwale (175 km)
• Karatu – Mbulu – Haydom – Sibiti River – Lalago – Maswa (339 km)

These projects aim to enhance Tanzania’s transportation efficiency, stimulate economic activities in the regions where the roads will be built, and boost connectivity with neighbouring countries, thereby increasing revenues through heightened port usage.

Partnership with Chinese Companies

The contracts were signed with four prominent Chinese companies: China Civil Engineering Construction Company (CCECC), Sinohydro Corporation Ltd., China Overseas Engineering Group Co. Ltd. (COVEC), and China Railway Company 15th Bureau Group (CR15G). These companies bring extensive experience and expertise in infrastructure development, ensuring that the projects will be completed on time and to the highest standards.

Profiles of Chinese Companies Involved in Tanzania’s Road Projects

China Civil Engineering Construction Corporation (CCECC)

Established in 1979, China Civil Engineering Construction Corporation (CCECC) is a prominent state-owned enterprise in China specializing in international contracting and economic cooperation. CCECC initially gained recognition for constructing the Tanzania-Zambia Railway (TAZARA), China’s largest foreign aid project. Over the years, the company has expanded its operations to over 50 countries across Asia, Africa, America, Europe, and Australasia. CCECC has been involved in numerous infrastructure projects, including the Lagos-Kano railway in Nigeria and the Addis-Djibouti railway​​​​.

Sinohydro Corporation Ltd.

Sinohydro Corporation Ltd. is another leading Chinese state-owned enterprise with a strong African presence. Known for its expertise in hydropower projects, Sinohydro has diversified its portfolio to include road and bridge construction, urban development, and environmental protection. In Africa, Sinohydro has been involved in major projects such as the Karuma Hydropower Project in Uganda and the Bui Dam Project in Ghana. The company’s commitment to quality and efficiency has made it a preferred partner for large-scale infrastructure projects​​.

China Overseas Engineering Group Co. Ltd. (COVEC)

China Overseas Engineering Group Co. Ltd. (COVEC) is a subsidiary of the China Railway Group Limited (CREC) and specializes in international construction projects. COVEC has been actively involved in various infrastructure developments across Africa, including constructing roads, bridges, and railways. One of its notable projects is the rehabilitation of the Benguela Railway in Angola, which has significantly improved transportation and trade in the region. COVEC’s extensive experience and technical expertise enable it to undertake complex projects with a focus on sustainability and innovation​​.

China Railway 15th Bureau Group (CR15G)

China Railway 15th Bureau Group (CR15G) is a subsidiary of the China Railway Construction Corporation (CRCC), one of the largest construction companies globally. CR15G specializes in railway construction, road building, and urban infrastructure projects. In Africa, CR15G has contributed to developing the Nairobi-Mombasa Standard Gauge Railway in Kenya, revolutionising transportation between the two major cities. The company’s proficiency in large-scale infrastructure projects makes it a reliable partner for development initiatives across the continent​​.

These Chinese companies bring a wealth of experience and expertise to Tanzania, ensuring that the road projects under the EPC+F arrangement will be completed to the highest standards. Their involvement in various infrastructure developments across Africa underscores their commitment to supporting the continent’s growth and development.