Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania

Mega infrastructure projects are important for driving economic growth and development across nations, yet their impacts are often uneven, particularly in developing countries like Tanzania, where they leave vulnerable populations exposed to socio-economic challenges. This study examines the dynamic...

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Main Authors: Harold M.L. Utouh, Felician Andrew Kitole
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2025.2524572
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author Harold M.L. Utouh
Felician Andrew Kitole
author_facet Harold M.L. Utouh
Felician Andrew Kitole
author_sort Harold M.L. Utouh
collection DOAJ
description Mega infrastructure projects are important for driving economic growth and development across nations, yet their impacts are often uneven, particularly in developing countries like Tanzania, where they leave vulnerable populations exposed to socio-economic challenges. This study examines the dynamics of mega infrastructure projects using Likert scale, Structural Equation Modeling and Two-Stage Least Squares to assess perceptions, economic impacts and trade-offs using data sampled from 350 respondents. The findings reveal that while these projects boost income per capita, asset ownership and business ownership, they negatively affect quality of life, access to services and literacy rates. Moreover, correlation analysis confirms a negative relationship between economic growth and development, indicating a trade-off where gains in one area may lead to losses in another. The study recommends enhancing public participation through structured engagement mechanisms, ensuring equitable resource allocation by mandating dedicated social investments, integrating sustainability principles through comprehensive impact assessments and establishing strong monitoring frameworks to track both economic and socio-economic outcomes. These strategies are crucial not only for Tanzania but also for other developing nations, where balancing rapid economic growth with inclusive and sustainable development is essential to ensuring that infrastructure projects benefit all communities equitably and leave no population behind.
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spelling doaj-art-2a962f88638040f48e5fee46184fe5fa2025-08-20T02:36:02ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2524572Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from TanzaniaHarold M.L. Utouh0Felician Andrew Kitole1Department of Economics, Mzumbe University, Morogoro, TanzaniaDepartment of Economics, Mzumbe University, Morogoro, TanzaniaMega infrastructure projects are important for driving economic growth and development across nations, yet their impacts are often uneven, particularly in developing countries like Tanzania, where they leave vulnerable populations exposed to socio-economic challenges. This study examines the dynamics of mega infrastructure projects using Likert scale, Structural Equation Modeling and Two-Stage Least Squares to assess perceptions, economic impacts and trade-offs using data sampled from 350 respondents. The findings reveal that while these projects boost income per capita, asset ownership and business ownership, they negatively affect quality of life, access to services and literacy rates. Moreover, correlation analysis confirms a negative relationship between economic growth and development, indicating a trade-off where gains in one area may lead to losses in another. The study recommends enhancing public participation through structured engagement mechanisms, ensuring equitable resource allocation by mandating dedicated social investments, integrating sustainability principles through comprehensive impact assessments and establishing strong monitoring frameworks to track both economic and socio-economic outcomes. These strategies are crucial not only for Tanzania but also for other developing nations, where balancing rapid economic growth with inclusive and sustainable development is essential to ensuring that infrastructure projects benefit all communities equitably and leave no population behind.https://www.tandfonline.com/doi/10.1080/23322039.2025.2524572Mega infrastructure projectstrade-off analysiseconomic developmentinfrastructure dilemmasustainabilitygreen city
spellingShingle Harold M.L. Utouh
Felician Andrew Kitole
Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania
Cogent Economics & Finance
Mega infrastructure projects
trade-off analysis
economic development
infrastructure dilemma
sustainability
green city
title Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania
title_full Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania
title_fullStr Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania
title_full_unstemmed Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania
title_short Opportunity cost of mega infrastructure projects in Africa: Should development be traded for growth? Evidence from Tanzania
title_sort opportunity cost of mega infrastructure projects in africa should development be traded for growth evidence from tanzania
topic Mega infrastructure projects
trade-off analysis
economic development
infrastructure dilemma
sustainability
green city
url https://www.tandfonline.com/doi/10.1080/23322039.2025.2524572
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