Young Tanzanian eyes Vision 2050 logistics opportunities

At 27, Hamisi Tollah is looking beyond securing a job in the transport sector. He wants to build a logistics company that can tap Tanzania’s growing role as a gateway to landlocked markets in eastern and southern Africa. Mr Tollah, a 2023 graduate of the National Institute of Transport (NIT) with a degree in logistics and transport management, is seeking strategic investors and business partners to establish a Sh2.5 billion company that will focus mainly on transit cargo moving between Tanzania and neighbouring countries, particularly Zambia, Malawi, Rwanda and Burundi. Mr Tollah estimates that his proposed BigDollar Logistics Company Limited (BDL) would require an initial fleet of 10 trucks worth about Sh2.5 billion, while expanding to 50 trucks that could cost up to Sh11.8 billion. He sees the ambitions outlined in Tanzania’s Vision 2050, particularly its focus on integrated logistics, industrialisation and regional economic integration, as an opportunity for young entrepreneurs to participate in the country’s long-term economic transformation. “I want to establish a successful quality logistics company that will tap into the supply chain in East Africa and Africa in general in the future,” Mr Tollah told The Citizen. His company is still in the paper. His 54-page business plan details all the aspects of business model, target markets, operations, revenue, human resources and the possible challenges and opportunities. His proposed business model goes beyond trucking. BDL would offer freight transportation, parcel delivery, warehousing, vehicle rental and leasing, container services, freight brokerage and partnerships with other transport and logistics companies. The company would target manufacturers, exporters and importers, mining firms, agribusinesses, construction companies and other businesses requiring reliable movement and storage of goods. Born at Mkundi Village in Tandahimba District of Mtwara Region, Mr Tollah said his experience working with established logistics companies had helped him identify some of the challenges that can affect the sector, including vehicle breakdowns, high operating costs, cargo and fuel theft, delivery delays and shortages of professional drivers. “I know how to use a trucking company to make money. This is a business that I was trained to use to solve problems and turn them into opportunities,” he said. He said his experience with companies operating fleets of up to 400 trucks had also exposed him to fleet management, customer relations, contract acquisition and the use of technology to monitor transport operations. “I have logistics networks and a team, a customer base, tracking systems and high professional driver management. All these are forces to turn targets into business results,” he said. The entrepreneur's primary focus is the transit market, which he believes offers opportunities because Tanzania provides access to the Indian Ocean for several landlocked countries. He cited Zambia, Malawi, Rwanda, Burundi, Uganda and the Democratic Republic of Congo as potential markets served through Tanzania's transport corridors. The proposed company would, for example, transport cargo from Dar es Salaam to destinations such as Ndola in Zambia, while also handling domestic cargo between Dar es Salaam and cities including Dodoma, Mwanza, Arusha and Mbeya. Mr Tollah said industries such as mining, manufacturing, agribusiness, construction and e-commerce generate demand for the movement of raw materials, processed products and finished goods across borders. He plans to use fleet-management systems and data to monitor vehicles, control operating costs and improve delivery reliability. “The business that I was trained for is to solve problems and turn them into opportunities,” he said. “When I was dealing with big logistics companies, I learnt how to secure tenders and contracts by creating strong quality logistics companies.” According to his business plan, the initial investment in 10 trucks could potentially be recovered within two years, while an investment supporting a 50-truck fleet could have a projected return period of between two and three years, depending on operating conditions. BDL's expansion strategy would depend on securing customers with regular transit requirements and sufficient financial capacity to meet logistics costs, while retaining flexibility to adjust its operations according to market conditions. Mr Tollah is now seeking investors capable of financing the purchase of between 10 and 50 trucks, saying the proposed company would provide investors with detailed and transparent presentations on its business model and financial projections. For him, the project represents more than the establishment of another trucking company. He sees it as a chance for a young Tanzanian entrepreneur to participate in the logistics infrastructure underpinning Tanzania's regional trade ambitions. “Tanzania's geographical position gives us an opportunity,” he said. “The goal is to build a high-quality logistics company that can grow with the regional market and provide reliable solutions to customers.”