Road project to strengthen Tanzania-Malawi economic ties

Works Minister Innocent Bashungwa. PHOTO | COURTESY

What you need to know:

  • The road extends to the ports of Itungi and Kiwira

Kyela. The construction of the 22-kilometre Ibanda-Kajunjumele road project has opened up opportunities for economic cooperation between Tanzania and Malawi, Works Minister Innocent Bashungwa has said.

The road extends to the ports of Itungi and Kiwira for transporting goods, especially coal, via maritime transport.

Mr. Bashungwa made the statement on Tuesday at a public rally in Njisi Village, Kasumulu Ward, bordering Tanzania and Malawi, while on an official visit with Finance Minister Mwigulu Nchemba.

"The aim is to strengthen economic ties between the two countries by transporting coal and cement raw materials, crops like rice and cocoa, and many other products produced by farmers in the country," he said.

He said it was now time for citizens to engage in producing productive crops that will have reliable markets in neighboring countries and be transported through the joint customs center between Tanzania and Malawi.

"We have come together with Finance Minister Mwigulu Nchemba to inspect the progress of road projects. The goal is to open up economic opportunities and cooperation between Tanzania and Malawi," he stated.

On his part, Dr. Nchemba directed the Tanzania Revenue Authority (TRA) to stop harassing traders by closing their shops, saying such a practice leads to an increase in smuggling goods into the country.

"The President wants tax rates to decrease. So, the system of collecting taxes by closing the shops is a form of harassing them, and that is not the government's directive. However, the President wants traders to voluntarily pay taxes," said Dr. Nchemba.

The Finance Minister also urged TRA to establish an effective revenue collection system that will improve relationships with traders and encourage them to pay taxes willingly.

Businessman Tauli Joel commended the Finance Minister for prohibiting the closure of traders' shops, who have in many cases been forced to do business in neighbouring Malawi.

"We are happy that the Finance Minister has stopped the closure of shops. This will help us grow our businesses and contribute to the economy of Tanzania," said Mr. Joel.

The Ibanda-Kajunjumele road project is one of several road projects being undertaken by the Tanzanian government to improve connectivity with neighboring countries.

The project is expected to be completed in 2024.