Tanzania’s Infrastructure : A Continental Perspective
Infrastructure contributed 1.3 percentage points to Tanzania's annual per capital GDP growth during the 2000s. If the country's infrastructure endowment were improved to the level of the African leader, Mauritius, annual per capita growth...
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
2012
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Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120208110410 http://hdl.handle.net/10986/3247 |
Summary: | Infrastructure contributed 1.3
percentage points to Tanzania's annual per capital GDP
growth during the 2000s. If the country's
infrastructure endowment were improved to the level of the
African leader, Mauritius, annual per capita growth rates
could increase by 3.4 percent. Tanzania has made great
progress in reforming its trunk roads, improving the quality
of the road network. The country has also seen significant
gains in ICT networks, and has one of the most competitive
domestic air transport sectors in Africa. The power sector
poses Tanzania's most serious infrastructure challenge.
Despite significant improvements in pricing and operational
performance in recent years, inefficiency still absorbs
about 1.4 percent of GDP. Moreover, due to heavy reliance on
hydro-power the sector remains vulnerable to climate
variability. The port of Dar es Salaam also suffers from
performance problems as rapid traffic growth has
increasingly exposed deficiencies in storage and access to
the port. Poor access to safe water is another challenge,
exacerbated by poor budget execution in the sector. Tanzania
would need to invest $2.4 billion annually for 10 years to
meet its infrastructure targets. Spending at that level
would absorb just over 20 percent of the country's GDP.
Existing spending stands at $1.2 billion a year. Tanzania
loses $0.5 billion each year to inefficiencies such as
underpricing, undercollection of revenue, overstaffing, and
lack of budget prioritization. But even if inefficiencies
could be fully captured, an annual funding gap of $0.7
billion would remain. That gap could be shrunk to $0.4
billion if lower-cost technologies were adopted and if
regional power trade could be further developed. |
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