DODOMA: The government has pledged to accelerate implementation of strategic infrastructure projects, strengthen mineral value addition and overhaul financing for development projects as it moves to drive the next phase of economic transformation under the 2026/27 Budget.
Prime Minister Dr Mwigulu Nchemba said the newly approved budget shifts the focus from planning to execution, with priority investments directed towards transport, energy, mining and other productive sectors expected to stimulate industrialisation, lower business costs and create employment.
Speaking while adjourning the third meeting of the 13th Parliament yesterday, Dr Nchemba said the government’s investment strategy is anchored in Vision 2050 and the Fourth Five-Year Development Plan, with infrastructure serving as a catalyst for inclusive economic growth.
“This budget will continue strengthening investment in productive sectors, infrastructure and social services. At the same time, we are reinforcing domestic revenue mobilisation to reduce dependence on foreign borrowing and aid,” he told Parliament.
The Prime Minister said additional resources have been channelled to strategic sectors to ensure flagship projects are completed on schedule and begin delivering economic returns.
Top among them is the Standard Gauge Railway (SGR), which the government considers critical to transforming Tanzania into a regional logistics and transport hub.
“We will intensify work on the remaining SGR sections so that by 2030 Tanzania has a railway linking Dar es Salaam to Mwanza,” Dr Nchemba said.
He said the railway, together with continued expansion of the Port of Dar es Salaam, roads and airports, will reduce transport costs, improve trade efficiency and strengthen Tanzania’s competitiveness within regional and international markets.
According to the Prime Minister, improved transport infrastructure will also unlock greater opportunities for agriculture, manufacturing, tourism and exports by connecting producers more efficiently with domestic and foreign markets.
The mining sector is also set to receive a major boost as the government intensifies efforts to promote value addition and maximise returns from the country’s mineral wealth.
Dr Nchemba said funding has been allocated to support the establishment of processing facilities for gold, nickel, graphite and uranium, while expanding geological surveys to improve knowledge of mineral deposits and attract fresh investment.
“The objective is to create an enabling environment for mineral processing industries, improve geological mapping and enable small-scale miners to access technology, markets and greater value from their minerals,” he said.
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He added that processing minerals locally rather than exporting raw materials will increase export earnings, create jobs and support industrial development.
Alongside the infrastructure drive, the government has announced reforms aimed at speeding up implementation of development projects across the country.
Responding to concerns raised by Members of Parliament during the budget debate, Dr Nchemba said the government will now channel 70 per cent of resources allocated to development funds directly to the respective implementing funds.
“Seventy per cent of development funds will be transferred directly to the respective funds so they can execute their core responsibilities more efficiently,” he said.
He said the decision will improve financing for projects in water, roads, electricity and other priority sectors while accelerating service delivery at community level.
The Prime Minister warned accounting officers and project managers against delays, poor workmanship or misuse of public funds.
“Those entrusted with these resources must complete projects on time, ensure value for money and deliver durable infrastructure. The government will take action against officials who fail to do so,” he said.
Dr Nchemba also highlighted measures taken by the government to shield the economy from rising global fuel prices triggered by instability in the Middle East.
“The government provided a subsidy of 50bn/- in May and 90bn/- in June to stabilise domestic fuel prices. We will continue monitoring global markets and take appropriate measures whenever necessary,” he said.
He said strategic investment in infrastructure, mining and development financing will remain central to achieving the country’s long-term ambitions under Vision 2050.
“Every shilling invested in development must translate into better infrastructure, expanded production, more jobs and improved services for wananchi,” the Prime Minister said, expressing confidence that the 2026/27 Budget will reinforce Tanzania’s economic transformation and lay a stronger foundation for sustainable and inclusive growth.
