DODOMA, Tanzania: Tanzania aims to position itself as a regional hub for transport, logistics, manufacturing and trade under a sweeping medium-term development strategy designed to lift productivity, create jobs and strengthen the country’s competitiveness across Africa, Prime Minister Mwigulu Nchemba said on Friday.
Addressing parliament at the close of its second session, Nchemba said the government’s upcoming Fourth Five-Year National Development Plan (2026/27–2030/31) would pursue “transformational reforms” to drive inclusive economic growth, boost employment and reshape systems, attitudes and performance across the public sector.
“The objective is to make Tanzania a centre for transport and the movement of goods, industry and commerce in the African region,” Nchemba told lawmakers, adding that the reforms were expected to raise productivity, enhance regional and global competitiveness and deepen linkages between key sectors of the economy.
The remarks come as Tanzania seeks to capitalise on major investments in ports, railways, roads and energy, and to strengthen its role as a gateway for landlocked neighbours in East and Central Africa.
Nchemba was presenting preparations for the government’s Medium-Term Plan and Budget Framework for 2026/27–2028/29, alongside proposals for the 2026/27 National Development Plan. Parliament was adjourned until March 31, 2026.
Spending priorities and fiscal discipline
Outlining planning guidelines, the prime minister said the government would prioritise funding for ongoing and signed projects, as well as commitments carried over from earlier development plans. Key areas of expenditure will include flagship and strategic projects, servicing the national debt, public sector wages and essential social services.
He also directed senior officials to intensify implementation across six priority areas, including ensuring a five-percentage-point increase in council-level loans for women, youth and people with disabilities, financed from local government own-source revenues.
Regional authorities were instructed to oversee the pooling of part of these funds to invest in projects that improve the business environment and entrepreneurship, with the aim of attracting investment and expanding job opportunities for these groups.
Nchemba urged government entities to give priority to domestic investors in public procurement, contract terms and settlement of claims, and to develop strategies to nurture small, medium and large enterprises through citizen participation, capacity-building and access to affordable finance.
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He also set a deadline of June 2029 for commercially oriented public institutions and state-owned enterprises to reduce reliance on central government subsidies, freeing fiscal space for broader development spending.
In a push for greater accountability, the prime minister ordered local authorities to increase transparency in project implementation, ensuring that revenue flows and project details are routinely shared with members of parliament, councillors and district officials.
“All projects under implementation should not be shrouded in secrecy,” he said, stressing that transparency would enable elected representatives to better monitor development initiatives in their constituencies.
Nchemba called on lawmakers to closely track development projects in their constituencies, including laying foundation stones and commissioning completed works, and to use local and national forums to raise issues and provide oversight.
He also emphasised the importance of partnering with the private sector at all stages of planning and execution, saying its contribution to achieving Tanzania’s long-term national vision was “significant and indispensable”.
“The private sector must be respected so that its contribution is visible,” he said.
