BY ELLY MANJALE
As the Kenya–Uganda Railway was being constructed in the late 19th century, some British politicians were not amused. They questioned the logic of spending £5 million to build a railway from nowhere (Mombasa) to nowhere (Uganda), partly because of the limited economic activity in the region through which it would pass. In 1896, British MP Henry Labouchère composed a poem about the railway, writing in part: ‘…what is the use of it none can conjecture, what it will carry there’s none can define…’. He dubbed it the ‘Lunatic Express’.1
When news emerged last week that a Memorandum of Understanding (MoU) had been signed between the Tanzania Railways Corporation (TRC) and Egypt’s Arab Contractors for the construction of the Mtwara–Mbamba Bay railway, I welcomed the development. I was confident that this would not be another ‘Lunatic Express’. The railway could open up the southern corridor to development and prosperity in several ways.
First, it could accelerate agricultural development in Mtwara, Lindi, Ruvuma and neighbouring areas. These regions produce cashew nuts, sesame, maize, coffee, sunflower and other crops. Reliable, competitively priced freight services would facilitate the movement of agricultural commodities to domestic and export markets.
Second, the railway could unlock the commercial potential of Tanzania’s mineral resources. Liganga’s iron ore deposits and Mchuchuma’s coalfields could support mining, mineral processing, steel production and associated industrial activities. Rail transport is particularly advantageous for bulky commodities, as it can move large volumes more efficiently than road transport when freight volumes are sufficient.
Third, the railway could stimulate construction, logistics and manufacturing. Its construction would create demand for engineering services, quarried materials, machinery and logistical support. Once the railway became operational, warehouses, distribution centres and other businesses could emerge at commercially suitable locations.
However, these benefits will not materialise automatically. Much will depend on complementary investments and supportive government policies. I would therefore recommend a coordinated Southern Development Corridor Investment Programme alongside the railway, with five priorities.
First, the government should establish measurable local content targets. All steel required for the project, for example, should be sourced from Liganga. Opportunities to supply construction materials, food, transport and engineering services should be clearly identified, and domestic firms should be encouraged to participate.
Second, the government should identify bankable agricultural, mining and manufacturing projects along the route and provide incentives to encourage private investment.
Third, before construction begins, technical training programmes should be developed to equip local workers with the skills needed for construction and railway-related jobs.
Fourth, freight terminals, collection centres and industrial sites should be established at commercially viable locations.
Fifth, feeder roads and electricity, water and telecommunications infrastructure should be developed to enable rural communities to participate in, and benefit from, the resulting economic opportunities.
The Mtwara–Mbamba Bay standard gauge railway (SGR) could become a powerful instrument for transforming southern Tanzania from a predominantly resource-producing region into an integrated centre of agriculture, mining, manufacturing and regional trade. Its ultimate success will depend not only on constructing railway infrastructure, but also on using it to unlock productive investment, strengthen local businesses and generate broad-based economic development.
Elly Manjale is an economic, business and management consultant based in Arusha who writes on economic, business, social and political issues.
Email: emanjalle@gmail.com
