Press Release: Tanzania, April 13, 2023
Tanzania’s ports and logistics sector present significant business potential for Dutch companies interested in looking to expand into the East African market, the Netherlands Ambassador to Tanzania – Wiebe de Boer (photo above) – has revealed.
During a webinar for entrepreneurs in the port and logistics sector yesterday, the Diplomat highlighted the country’s strategic location, growing economy, and investment in infrastructure as key factors that make Tanzania an attractive market for Dutch logistics companies.
“Port and logistics business is currently a crucial sector for the Tanzanian sustainable economic development,” Wiebe said, adding that “the sector is faster becoming a critical component of Tanzania’s economy, with the majority of the country’s imports and exports passing through the ports.
“The port of Dar es Salaam handles around 95% of Tanzania’s international trade, making it a crucial gateway for the country’s economy,” he said, adding “The government has invested heavily in the ports and logistics sector, with a focus on improving infrastructure and increasing capacity. This presents a great opportunity for our Dutch companies, interested in looking to expand into the East African market.”
Leading players in the ports and logistics sectors from the Netherlands attended the event, including Smart Hub Logistics, Van Oord, Boskalis, DSM Corridor Group, APM Terminals among others.
Located in East Africa and with a coastline stretching over 1,424 kilometres along the Indian Ocean, Tanzania has four major ports: Dar es Salaam, Tanga, Mtwara, and Lindi. Other connecting ports are Zanzibar Port, Kigoma and Bagamoyo Port. Dar es Salaam is the largest port in Tanzania and serves as a gateway for the country’s imports and exports.
“Tanzania’s logistics sector has great potential due to its strategic location, natural resources, and growing economy,” Ambassador De Boer told the participants.
Economic Overview:
As one of the fastest-growing economies in Africa with an annual growth rate of around 6-7%, Tanzania has an abundance of natural resources, including minerals, agriculture, and fisheries. The country is also becoming a hub for oil and gas exploration, with significant discoveries in recent years. The country’s economy heavily relies on exports, with agriculture and minerals being the main contributors. Tanzania’s main trading partners include China, India, and the European Union.
Ports and Logistics Sector:
The ports and logistics sector are a critical component of Tanzania’s economy, with the majority of the country’s imports and exports passing through the ports. The port of Dar es Salaam handles around 95% of Tanzania’s international trade, making it a crucial gateway for the country’s economy. The government has invested heavily in the ports and logistics sector, with a focus on improving infrastructure and increasing capacity.
Business Potential:
During the webinar, key opportunities for Dutch entrepreneurs were identified, including;
Strategic Location: Tanzania’s location makes it a gateway to landlocked countries in East and Central Africa such as Rwanda, Congo, Zambia and Uganda, providing access to a market of over 400 million people. This presents an opportunity for Dutch logistics companies to provide transportation, warehousing including cold storage facilities and distribution services to these countries.
Growing Economy: Tanzania’s growing economy presents a growing demand for logistics services. The country’s GDP is expected to continue growing, which will increase demand for transportation, warehousing, and distribution services.
Investment in Infrastructure: The Tanzanian government has invested heavily in the ports and logistics sector, with ongoing projects to improve infrastructure and increase capacity. This includes the construction of a new port in Bagamoyo, which will have a capacity of 20 million containers per year, making it the largest port in East Africa.
Natural Resources: Tanzania’s abundance of natural resources presents an opportunity for Dutch logistics companies to provide transportation and distribution services for these products. This includes minerals, agriculture, and fisheries.
Challenges:
Despite the business potential, Tanzania’s ports and logistics sector also face various challenges, including:
Inefficient Processes: Tanzania’s ports are known for their slow and inefficient processes, leading to delays and increased costs for logistics companies.
Limited Infrastructure: While the Tanzanian government has invested in improving infrastructure, there is still a significant need for further investment in roads, railways, and ports to meet growing demand.
Corruption: Corruption is a significant challenge in Tanzania’s ports and logistics sector, leading to increased costs and delays for logistics companies.
Ambassador Wiebe de Boer called on Dutch logistics companies looking to invest in Tanzania’s ports and logistics sector to consider these factors when assessing the market. Overall, he praised the country as a major investment destination, saying “Tanzania’s ports and logistics sector presents a promising opportunity for Dutch businesses looking to expand into the East African market.”
