Set Your Infrastructure Policies in the Right Direction

Tanzania Overview

• Global Performance: Tanzania is a top performer in infrastructure activity among low-income countries, supported by high financial stability and foreign equity infrastructure deals.
• Goals for Efficiency: The government needs to publish an infrastructure plan, project pipeline, and conduct environmental impact analysis to balance environmental and infrastructure outcomes.
• Economic Indicators:
  • GDP per capita: $1,177
  • Population: 59.7 million
  • Infrastructure investment: 10.6% of GDP
  • Infrastructure quality: 44.9/100
  • Infrastructure gap: 5.6% of GDP

Driver Overview

• Governance: Ranked 57, score 46.7 (Aspiring)
• Regulatory Frameworks: Ranked 66, score 47.6 (Emerging)
• Permits: Ranked 73, score 28.9 (Emerging)
• Planning: Ranked 73, score 12.6 (Emerging)
• Procurement: Ranked 45, score 71.7 (Contender)
• Activity: Ranked 4, score 71.2 (Global Leader)
• Funding Capacity: Ranked 58, score 22.9 (Aspiring)
• Financial Markets: Ranked 71, score 19.5 (Emerging)

Strengths

• Infrastructure Investment: At 10% of GDP, Tanzania has the third-highest infrastructure investment share among InfraCompass 2020 countries.
• Foreign Equity Deals: Tanzania leads in closed infrastructure deals with foreign equity sponsorship at 0.38% of GDP.
• Financial Stability: Notably stable among low-income countries, aiding capital supply for projects.

Opportunities to Grow

• Published Project Pipeline: Currently unavailable; could help indicate future infrastructure activity.
• Published Infrastructure Plan: Lack of a national/sub-national plan; could identify investment opportunities and government responses.
• Market Sounding: No formal requirement; could assess investor interest.

Metrics to Improve

• Planning: Improve published project pipeline, infrastructure plan, and market sounding processes to raise scores.

Detailed Data

• Governance:
  • Recovery Rate: 20.4/100
  • Rule of Law: 38.9/100
  • Political Stability: 40.7/100
• Regulatory Frameworks:
  • Quality: 37.7/100
  • Insolvency Framework: 56.3/100
• Permits:
  • Cost to Start Business: 18.5/100
  • Time to Start Business: 34.8/100
• Procurement:
  • Transparency: 50.0/100
  • PPP Procurement: 68.0/100
• Activity:
  • Infrastructure Investment: 100/100
  • Foreign Equity Deals: 86.5/100
• Funding Capacity:
  • Credit Rating: 32.5/100
  • GDP per Capita Growth: 1.4/100
• Financial Markets:
  • Financial Depth: 21.8/100
  • Stocks Traded: 0.0/100

Conclusion

Tanzania is a leading low-income country in infrastructure activity with robust financial stability and significant foreign investment. However, there is potential for growth through formal infrastructure plans, pipelines, and market soundings. Improvements in governance, regulatory frameworks, and planning can further enhance the infrastructure landscape.