Uganda and Tanzania are entering a major phase of infrastructure-led growth. Both countries are undergoing large-scale investments in transport networks, industrial zones, and urban development.
In fact, Uganda has allocated over 30% of its annual expenditure to infrastructure, including more than 1,200 km of new and upgraded roads, while Tanzania targeted $15 billion in investments in 2025 which were focused on transport, industrial zones, and urban development.
The above transformation is not only changing how people move but how cities are planned, buildings operate, and how digital infrastructure underpins economic activity.
It is also here where the concept of “connected corridors” is taking root; physical infrastructure and digital connectivity working together to realise a development success story.
The cities of tomorrow
In Tanzania, Dar es Salaam continues to expand its Bus Rapid Transit (BRT) system; phase 1 alone carries over almost 200 000 passengers daily, making it one of the busiest BRT systems in Africa. Future expansions (Lines 4 and 5) are expected to significantly increase coverage, reduce congestion, and cut emissions.
At the same time, Tanzania’s administrative capital Dodoma is undergoing speedy development. Major infrastructure initiatives such as the Msalato International Airport and new government precinct developments are reshaping the city.
Approximately 17 kilometres from the old city centre, new planned districts are being developed to house ministries, offices, and residential areas, helping to decentralise activity and reduce congestion while creating a more organised urban environment.
Uganda is experiencing a similar transformation. Hoima, now official recognised as a city, is transforming into an industrial hub, anchored by the government-backed Kabalega Industrial Park, spanning nearly 30 km², which will host Uganda’s second international airport, an oil refinery, petrochemical industries, and logistics facilities.
These investments are directly tied to Uganda’s oil discoveries in the Albertine Graben and are accelerating infrastructure development and business attraction in the region.
The connected corridors that drive this momentum
However, in order to Tanzania and Uganda to truly meet the demands of it expanding infrastructure, it must also look beyond the physical transport expansion.
The digital economy and its many elements like fibre networks, mobile broadband, and cloud infrastructure are vitally important.
For one, reliable digital connectivity enables e-government services, digital payments, cloud-based platforms, and data-driven decision making across industries.
And as economies digitise , the ability to manage and process data efficiently has a direct impact on the pace of economic growth.
The next step is keeping trend with the demands of the digital era is ensuring accurate and secure data to allow for efficient and scaled and scale services. Here, the robustness of data management systems will increasingly determine how quickly economies can grow and innovate.
This, in turn, is driving demand for modern, energy-efficient data centres across East Africa. Again, these facilities play a critical role in hosting, aggregating, and processing the vast volumes of data generated by businesses, governments, and citizens.
Locally hosted data centres also help reduce latency, improve security, and enable organisations to deploy cloud-based services closer to end users. This capability is becoming essential for industries such as financial services, healthcare, logistics, and digital public services.
The bottom line
At Schneider Electric we believe modernising digital infrastructure will deliver meaningful value.
However, it goes beyond technology, in East Africa, our partnerships with institutions like Nakawa Vocational Training College in Uganda and Don Bosco Kiitec in Tanzania are equipping young professionals to sustain advanced energy and digital systems.
These collaborations ensure infrastructure investment translates into locally driven growth. Furthermore, public–private partnerships and regional cooperation unlock productivity, mobility, and inclusion.
Ultimately, infrastructure growth in Tanzania and Uganda should be anchored in digital advancement, driven by secure data that optimises operations. Data centres will play a critical role in this process, enabling efficient data management and large-scale deployment.
Share
