PART II: ECONOMIC SERVICES SECTORS

4.6 Transport

A. Overall Contribution to Economy

The transport is an important linking sector, in that it permits the transportation of goods and services between and within production and market centres. The transport sector contributes 5.6% to GDP and accounts for 16% of total public expenditures. Trade liberalization has resulted in an increased availability of vehicles and spare parts and the transportation of goods and services has increased in the rural areas.

The transport sector includes two railway systems, marine transport on the coast and inland waterways, as well as road transport. It is the stated objective of the government to enhance transport safety and environmental protection, through taking steps to review and update national legislation in transport operations and safety requirements.¹

Structural adjustment has resulted in the privatisation of some parastatals in this sector and indicates that increasing attention will need to be paid to environmental and regulatory measures.

The specific targets of the Investment Promotion Policy include: investment in road haulage, air charters and airlines, and coastal shipping.²

1. The Rolling Plan and Forward Budget for Tanzania for the Period 1994/5 - 1996/7 Vol. 1 Planning Commission and Ministry of Finance, July, 1994.
2. National Investment Promotion Policy, GoT, 1995.