The Future of Intra-Regional Trade: Infrastructure and Logistics Hubs

Daftar Isi

The Hidden Economic System Behind African Trade

When a truck departs from Dar es Salaam heading towards Kigali, Bujumbura or Lubumbashi, it is not just traveling along a stretch of road. It is navigating through an entire economic system that includes ports, highways, bridges, weighbridges, dry ports, rail yards and border posts. These elements play a crucial role in determining whether businesses can meet deadlines, factories can fulfill their commitments, and regions can truly benefit from the promise of regional integration.

Across Africa, there is a common belief that the future belongs to those who trade with their neighbors rather than distant markets. However, for many years, intra-African trade has remained far below its potential. One of the main reasons is not a lack of ambition but the high cost and complexity of moving goods between countries.

Every hour lost at a congested port, every detour around an impassable road, and every duplication of inspections at a border adds to the final product's cost. These costs quietly push regional traders out of the market and make imported goods, which are shipped through more efficient global supply chains, seem more attractive than they should.

This is why infrastructure alone is no longer sufficient. A country may have an impressive road network but still face high logistics costs if these roads are not part of an intelligent web of logistics hubs.

Modern trade is built on corridors and nodes: high-quality trunk and regional roads that link to ports, dry ports, inland container depots, logistics parks, industrial zones, and efficient border posts. In this model, a highway is not just a way of moving trucks; it is a conveyor belt feeding logistics “cities” where goods are stored, sorted, processed, repackaged, and forwarded deeper into the region.

Tanzania’s Experience with Regional Integration

Tanzania's experience highlights this shift. Over the last two decades, the national road network has been steadily upgraded and expanded, connecting the coast to the heart of the continent. Trunk roads now link Dar es Salaam, Tanga, and Mtwara to border posts serving Rwanda, Burundi, Uganda, the Democratic Republic of Congo, Malawi, and Zambia.

Bridges like Kigongo–Busisi over Lake Victoria, and bypass roads around growing cities, are being constructed not as stand-alone monuments but as part of a wider vision of corridors that reduce journey times and make access to the sea more reliable for neighboring countries.

At the same time, a new generation of logistics hubs is emerging. Dry ports and inland container depots close to Dar es Salaam, as well as inland facilities such as Kwala, are designed to decongest the port by swiftly moving containers inland for clearance and redistribution.

For transporters and importers in the region, this means fewer days waiting at the port, lower storage costs, and more predictable planning. For manufacturers and farmers, it opens up opportunities to add value along the corridor—such as through packaging, cold storage, light assembly, or agro-processing carried out near these hubs, rather than shipping raw products in and finished products out.

The Role of TANROADS in Shaping Corridors

For TANROADS, this interconnected reality has significant implications. When designing and maintaining a trunk road today, it is not seen as an isolated line on a map but as part of a living corridor that must serve ports, connect logistics hubs, and handle both regional transit and local economic activity safely and efficiently.

A road leading to a dry port or special economic zone must be built to handle high and growing axle loads, ensure reliable year-round access, and provide safe interaction between heavy trucks and surrounding communities. Investment decisions increasingly consider not only traffic volumes but also the strategic role of each link in supporting trade and industrialization.

Equally important is how we manage "soft" infrastructure. One-stop border posts, harmonized axle-load rules, digital weighbridge systems, road asset management tools, and corridor performance monitoring all contribute to ensuring that each kilometre of road delivers maximum economic value. When customs procedures are simplified, when data flows between agencies, and when vehicles can move through weighbridges and border posts with fewer delays, the same road becomes more productive for traders and transporters. In this way, physical infrastructure and regulatory reforms reinforce each other.

The Future of Trade in Africa

Looking ahead, the African Continental Free Trade Area adds urgency and opportunity to this agenda. As tariffs gradually fall, the decisive question will be whether our infrastructure and logistics ecosystems are efficient enough to carry the expected rise in trade.

Countries that combine high-quality corridors, smart logistics hubs, and investor-friendly regulations will become natural gateways for their regions. Tanzania is well-positioned to play this role for Eastern, Central, and Southern Africa, provided we stay the course: completing ongoing flagship projects, maintaining existing roads to high standards, and planning new investments with a clear regional lens.