Tanzania and Japan Forge Strategic Infrastructure Partnership: A New Era for Investment and Economic Growth

In a significant move to bolster economic development, Tanzania and Japan have agreed to enhance their cooperation in the transport and infrastructure sectors. This agreement was reached during a meeting between Tanzania’s Prime Minister Kassim Majaliwa and Japan’s Minister of Land, Infrastructure, Transport and Tourism, Hiromasa Nakano, in Tokyo on May 28, 2025.

The discussions, held on the sidelines of the Business, Investment, and Tourism Forum at Expo Osaka 2025, also involved talks with the Japan Infrastructure Development Association (JAIDA), focusing on opportunities in infrastructure development.

Strategic Importance of the Partnership

This collaboration is poised to have a transformative impact on Tanzania's infrastructure landscape. Japan's expertise in advanced infrastructure technology and project management can significantly contribute to Tanzania's ongoing efforts to modernize its transport systems.

The partnership aligns with Japan's Country Assistance Policy for Tanzania, which emphasizes support for infrastructure development to sustain economic growth and poverty reduction. Japan aims to assist in areas such as transport and traffic, electricity and energy, and water supply and resource management.

‍Opportunities for Business and Investment

The enhanced cooperation between Tanzania and Japan opens up numerous opportunities for investors and business entities:

Infrastructure Development: Enhancing Regional Connectivity Through Japanese Investment

Japanese investment in infrastructure projects, such as Tanzania's Standard Gauge Railway (SGR), has the potential to significantly accelerate the country’s development trajectory. The SGR is a modern railway system designed to improve the efficiency of freight and passenger transport across Tanzania and into neighboring landlocked countries like Rwanda, Burundi, Uganda, and the Democratic Republic of Congo. This enhanced connectivity can reduce transportation costs, shorten delivery times, and boost trade volume throughout the region.

By supporting the completion and expansion of the SGR and related infrastructure—such as ports, logistics hubs, and industrial zones—Japanese investment can help unlock Tanzania’s full trade potential. It also aligns with Japan’s broader strategy of supporting quality infrastructure in Africa, ensuring durability, environmental sustainability, and skill transfer to local workers. Ultimately, such collaboration can strengthen regional integration, stimulate job creation, and position Tanzania as a key logistics and trade corridor in East Africa.

Technology Transfer:

Japanese firms are known for their cutting-edge technologies, precision engineering, and effective project management practices. Through infrastructure collaborations in Tanzania, these companies can introduce advanced construction technologies—such as seismic-resistant building techniques, intelligent transport systems, and efficient tunneling and bridge construction methods. The adoption of these innovations can significantly enhance the quality, safety, and durability of infrastructure projects.

Moreover, technology transfer isn't limited to hardware or equipment—it also includes soft skills like project planning, quality control, and lean construction practices. By working alongside Tanzanian engineers, technicians, and project managers, Japanese firms can help build local expertise and institutional capacity. This not only ensures better execution of current projects but also strengthens Tanzania’s long-term ability to manage and maintain complex infrastructure independently

Private Sector Engagement: Japanese-Tanzanian cooperation is advancing infrastructure through public-private partnerships (PPPs), enabling the Tanzanian government to tap into private capital and technical expertise while offering investors a stable policy environment and long-term returns. These PPPs help reduce public spending, speed up project delivery, and open the door for Japanese firms to contribute to Tanzania’s development. In turn, Tanzania gains improved governance, shared risk, and access to global best practices in infrastructure planning and execution.

The agreement between Tanzania and Japan marks a pivotal step towards modernizing Tanzania's infrastructure and stimulating economic growth. By leveraging Japanese expertise and investment, Tanzania can accelerate its development agenda, offering lucrative opportunities for businesses and investors keen on participating in the country's transformation.