‘Investment in cold, grain chain critical for economic growth’

SIGNIFICANT investment in cold and grain chain infrastructure is expected to accelerate Tanzania’s economic and social development by improving transportation connectivity and facilitating production across key economic sectors, it has been stated.

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

“The construction of modern and robust infrastructure will serve as a catalyst for economic growth, creating jobs, expanding the tax base, boosting foreign exchange and positioning Tanzania as an economic and trade hub due to its strategic location,” said Mr Kihenzile.

Mr Kihenzile, who represented Deputy Prime Minister Doto Biteko, said that the Cold and Grains Chain project would facilitate large-scale investments in agriculture, mining and livestock by enabling seamless transportation of goods to both domestic and international markets.

He added that the initiative would help reduce transport costs and minimise post-harvest losses for farmers.

One of the central components of the initiative is the structured Rail Cold Chain Project, which was launched in 2022 in partnership with the World Food Programme (WFP).

The project initially focused on transporting horticultural products between production centres in Dodoma and Morogoro and retailers in Dar es Salaam. It also aimed to facilitate exports through the port and airport in Dar es Salaam.

WFP has so far invested 530,000 US dollars (about 1.443bn/-) in the project, contributing to an assessment, feasibility study and procurement of critical equipment.

The purchase includes refrigerated containers compatible with both Tanzania’s Meter Gauge Railway (MGR) and Standard Gauge Railway (SGR), heavy-lift equipment and plastic crates, all of which were handed over to the Tanzania Railways Corporation (TRC).

Mr Kihenzile said the investments were crucial, reiterating that improved infrastructure will be instrumental in attracting more foreign direct investment.

“With this new infrastructure, Tanzania can become a preferred hub for regional trade, given our strategic location and proximity to key markets in Eastern and Southern Africa,” he said.

He further called on all stakeholders in the agricultural and livestock sectors to work with the government to ensure that the initiative reaches its full potential.

Speaking on the advantages of railway transport, Mr Kihenzile said that it is more cost-effective and environmentally friendly compared to road transport, making it ideal for transporting bulk goods like grains and agricultural produce.

Mr Kihenzile further said the Cold and Grains Chain is part of a broader government effort to improve the country’s transport infrastructure, which also includes ongoing investments in the SGR, port improvements, and the enhancement of Tanzania Airlines.

“These projects are intended to make Tanzania’s transport sector more competitive and capable of meeting the demands of a rapidly growing economy,” he said.

ALSO READ: Impact of AI on the economy and financial market infrastructure

WFP Tanzania Country Director Ronald Tran Ba Huy commended government’s efforts, saying WFP’s role in transporting humanitarian food commodities through the Dar es Salaam port and for local distribution and export to neighbouring countries.

“Over the past five years, 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.

In addition to transportation, he said WFP has also locally purchased an average of 56,311 metric tonnes of food commodities, such as maize and sorghum, at an annual cost of 51 million US dollars, contributing to the national economy and creating local employment opportunities.

TRC Director General Masanja Kadogosa said that railway transportation, particularly for cargo, is essential for generating revenue.

“The Cold and Grains Chain initiative also aims to improve market access for Tanzanian farmers and reduce product spoilage, enhancing food security,” he said.

Mr Kadogosa added that the government’s goal is to increase Tanzania’s reach to regional markets, particularly in Rwanda, Uganda, South Sudan and the Democratic Republic of the Congo.

 

Source: Daily News