Why it Matters
Tanzania’s Transport Sector is not only a support system for the economy, it is one of its core growth drivers. With the sector contributing 7.5% to GDP, ranking fifth among 17 major sectors, and generating US$2.79 billion in foreign exchange in 2025, transport is directly linked to national revenue, trade performance and economic resilience.
The sector’s impact extends beyond infrastructure. Through rail, ports, aviation, airports and maritime transport, it enables agriculture, mining, fisheries, tourism, manufacturing and trade to function more efficiently. Its regional role is equally important, connecting Tanzania with neighbouring markets including the Democratic Republic of Congo, Zambia, Rwanda, Burundi, Malawi and Uganda, while strengthening the country’s position as a trade and logistics gateway.
Employment is another major factor. With 198,480 jobs supported across infrastructure construction and transport services, including 181,056 jobs linked to the SGR project, the sector is helping to create direct and indirect economic opportunities for Tanzanians. As strategic projects in rail, ports, airports and related services continue, the Transport Sector remains central to production, service delivery, revenue growth, foreign exchange generation and regional integration.
The transport sector remains one of Tanzania’s most important economic enablers, continuing to make a major contribution to stimulating production activities, improving service delivery and supporting growth across multiple sectors of the economy. According to the 2024 National Economic Status Report issued by the National Bureau of Statistics (NBS), the Transport Sector grew by 4.2 per cent and contributed 7.5 per cent to Gross Domestic Product. This placed the sector fifth among the 17 major sectors contributing to GDP, underlining its strategic role in the country’s broader economic performance.
This contribution has supported the continued growth of other productive sectors, including agriculture, fisheries, mining, tourism, manufacturing and trade. The sector’s impact is visible across rail, aviation, ports, airports, meteorological services and transport regulation, as well as through improvements to policy and legal frameworks. Key measures driving this performance include improvements at the ports of Dar es Salaam, Tanga, Mtwara and the Great Lakes ports; the construction and improvement of airports across the country; the continued operation of rail services, including the Standard Gauge Railway (SGR); the involvement of the private sector in the development and operation of Transport Sector activities; the construction and rehabilitation of vessels; the purchase of aircraft; the strengthening of ICT systems; regional and international cooperation; and continued strengthening of the regulation of transport services.
The sector has also remained a significant source of Government revenue, particularly through port services. Between the 2020/21 financial year and the 2024/25 financial year, revenues arising from port customs duties contributed an average of 40 per cent of all revenues collected by the Tanzania Revenue Authority (TRA). This contribution is expected to continue increasing as strategic port projects are completed, reinforcing the role of ports as a central revenue-generating component of the national transport system.
In addition to domestic revenue generation, the transport sector has made a major contribution to the availability of foreign exchange through the sale of transport, carriage and port services. According to the 2025 Bank of Tanzania report, the sector was among the three leading sectors, out of the 17 major sectors, contributing to foreign exchange generation in the country. Foreign exchange earnings are derived from transport services, including the movement of cargo through Tanzania’s ports to and from neighbouring countries such as the Democratic Republic of Congo, Zambia, Rwanda, Burundi and Uganda, as well as air transport and services provided by airports.
In 2025, the sector generated sales amounting to US$2.79 billion in foreign exchange, compared with US$2.35 billion in 2024. This represented an increase of 18.72 per cent. Total exports in 2025 amounted to US$17.59 billion, of which the Transport Sector contributed 15.86 per cent. This compares with total exports of US$15.97 billion recorded in 2024, when the Transport Sector contributed 14.72 per cent. These figures demonstrate the growing importance of transport services in Tanzania’s external trade and foreign exchange earnings.
The sector has also continued to play an important role in employment creation, both directly and indirectly, through infrastructure construction and the provision of transport services. Overall, the Transport Sector has continued to provide 198,480 jobs. The SGR construction project alone has so far provided employment opportunities for approximately 181,056 Tanzanians, comprising 30,176 direct jobs and 150,880 indirect jobs. Additional employment has been generated through airport construction, with 11,680 jobs; air transport services, with 3,983 jobs; port infrastructure development, with 1,761 jobs; the installation of meteorological equipment and systems, with 73 jobs; and sectoral training institutions, namely NIT and DMI, with 152 jobs.
Beyond its direct economic contribution, the Transport Sector continues to facilitate regional and international trade and to serve as a critical link between Tanzania and neighbouring countries, including the Democratic Republic of Congo, Zambia, Rwanda, Burundi, Malawi and Uganda. This has strengthened Tanzania’s international reputation and supported economic diplomacy between Tanzania and those countries. Domestically, the sector remains central to the movement of goods and services within the country. Maritime transport is particularly significant, with 90 per cent of all goods entering the country passing through maritime transport routes.
Taken together, the sector’s contribution to GDP, Government revenue, foreign exchange earnings, employment, domestic connectivity and regional trade demonstrates its strategic importance to Tanzania’s economic development. The continued implementation of flagship and strategic projects across rail, aviation, ports, airports and related services positions the Transport Sector as a major driver of production, service delivery and national economic growth.
Key Facts:
- Tanzania’s Transport Sector grew by 4.2% in 2024.
- The sector contributed 7.5% to Gross Domestic Product.
- Transport ranked fifth among the 17 major sectors contributing to GDP.
- Between 2020/21 and 2024/25, port customs duties contributed an average of 40% of all revenue collected by the Tanzania Revenue Authority.
- In 2025, the Transport Sector generated US$2.79 billion in foreign exchange earnings, up from US$2.35 billion in 2024.
- The sector’s foreign exchange earnings increased by 18.72% between 2024 and 2025.
- Total exports in 2025 amounted to US$17.59 billion, with the Transport Sector contributing 15.86%.
- In 2024, total exports were US$15.97 billion, with transport contributing 14.72%.
- The Transport Sector has continued to provide 198,480 jobs through infrastructure construction and transport services.
- The SGR construction project has provided approximately 181,056 jobs, including 30,176 direct jobs and 150,880 indirect jobs.
- Airport construction has created 11,680 jobs.
- Air transport services have created 3,983 jobs.
- Port infrastructure development has created 1,761 jobs.
- Installation of meteorological equipment and systems has created 73 jobs.
- Sectoral training institutions, namely NIT and DMI, account for 152 jobs.
- Transport services support productive sectors including agriculture, fisheries, mining, tourism, manufacturing and trade.
- The sector supports regional trade with neighbouring countries including the Democratic Republic of Congo, Zambia, Rwanda, Burundi, Malawi and Uganda.
- 90% of all goods entering Tanzania pass through maritime transport routes.
Written by Phillippa Dean
