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Home Lead Story

Premier Nchemba raises red flag on spending as infrastructure outlays rise

Tanzania Monitor Reporter by Tanzania Monitor Reporter
February 19, 2026
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Premier Nchemba raises red flag on spending as infrastructure outlays rise
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DAR ES SALAAM: Prime Minister Mwigulu Nchemba has issued a stern warning to public officials and contractors, insisting that every shilling allocated to development projects must deliver tangible value as Tanzania accelerates infrastructure spending to support industrialisation and regional trade.

Speaking during a multi-day tour of Tanga Region, Nchemba inspected a series of projects spanning healthcare, water supply, energy distribution, transport links and higher education facilities. The visit formed part of a broader government push to tighten oversight as public investment rises.

“We cannot accept waste, weak supervision or substandard work,” he said after inaugurating a new oxygen production plant at Lushoto District Hospital. “Public funds must translate into services that directly improve people’s lives.”

The plant, built at a cost of 526.8 million Tanzanian shillings, can fill up to 120 large oxygen cylinders daily, reducing reliance on distant refilling centres and strengthening emergency response capacity in remote areas. Officials said the facility has already produced more than 1,400 large cylinders and 200 small ones.

During inspections in Handeni and Kilindi districts, the prime minister cited irregularities including poor construction standards, questionable documentation, missing electronic tax receipts and the use of substandard materials.

He ordered responsible officials to recover any misused funds and directed the Prevention and Combating of Corruption Bureau to investigate suspected cost inflation.

PM Nchemba warns against ‘cost escalation’ as cover for graft

Nchemba also toured the Mkata power substation, part of a wider effort to stabilise electricity supply for industry and households. In rural areas, he inspected water projects expected to benefit more than 36,000 residents, saying reliable water access remains central to health and economic productivity.

The prime minister reviewed progress on the Pangani Bridge project, valued at over 100 billion shillings, which will replace ferry crossings and allow 24-hour connectivity along a key transport corridor linking northern Tanzania to coastal trade routes.

He also assessed work on the East African Crude Oil Pipeline, a $5.65 billion regional energy project connecting Uganda’s oil fields to Tanzania’s port of Tanga. Currently more than 80 per cent complete, the pipeline is expected to begin operations in 2026.

Nchemba warned against abuse of local content regulations, saying companies falsely registering as Tanzanian to secure contracts would face closure.

The tour highlights growing emphasis on fiscal discipline and delivery standards as Tanzania positions itself as a regional infrastructure and logistics hub in East Africa.

Tags: development projectsgovernment oversighthealthcare investmentindustrialisationLushoto District Hospitaloxygen plantRegional Trade

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