Hassan Magulumali
Tanzania’s Parliament is concluding discussions on the proposed National Development Plan for the 2027/2028 financial year, with the government outlining an ambitious Sh89.3 trillion investment programme aimed at strengthening economic growth, expanding employment opportunities and improving the country’s competitiveness.
The plan, presented by Minister of State in the President’s Office responsible for Planning and Investment, Professor Kitila Mkumbo, identifies six strategic priorities designed to build a strong, inclusive and competitive economy through macroeconomic stability, financial resilience and improved external sector performance.
Under the proposed financing framework, the government intends to strengthen collaboration between the public and private sectors, with the private sector expected to contribute 70 per cent of total investment while the government provides the remaining 30 per cent.
The Sh89.3 trillion development programme is expected to receive funding from three major sources. Government budget allocations are projected to contribute Sh20.7 trillion, commercially operated public corporations are expected to provide Sh6.3 trillion, while the private sector is projected to contribute the largest share of Sh62.3 trillion.
The financing structure reflects the government’s intention to position private investment as a major driver of economic transformation while maintaining public sector responsibility for strategic infrastructure, essential services and the creation of an enabling business environment.
During parliamentary discussions, lawmakers advised the government to develop stronger strategies for maximising the country’s natural and economic resources to accelerate growth, create employment and reduce dependence on foreign aid.
The legislators emphasised the importance of ensuring that Tanzania benefits more significantly from its wealth of natural resources, including minerals, natural gas, agricultural land, forests and other productive assets.
They also called for greater investment in local industries and value addition, arguing that processing raw materials domestically could create more employment opportunities, increase government revenue and strengthen the country’s position in regional and international markets.
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Agriculture, mining, manufacturing, energy, tourism and infrastructure are among the sectors that offer opportunities for expanding productive capacity and attracting both domestic and foreign investment.
Strengthening agriculture is particularly important because of its contribution to employment, rural livelihoods and food security. Improved irrigation, modern farming technologies, access to affordable financing, storage facilities and agro-processing could help increase productivity while reducing post-harvest losses.
In the mining sector, greater local processing and stronger participation of Tanzanian businesses could help ensure that the country captures more economic value from its mineral resources. Similarly, investments in energy and transport infrastructure could reduce production costs and improve the competitiveness of domestic industries.
The proposed 70 per cent private sector contribution also places significant responsibility on the government to maintain a predictable investment environment. This includes improving access to financing, strengthening regulatory institutions, reducing unnecessary administrative barriers and ensuring that public infrastructure supports business expansion.
However, attracting the projected private investment will require careful implementation of policies and confidence among investors. The government will also need to ensure that public-private partnerships provide value for money, protect public interests and distribute economic benefits fairly.
The development plan comes at a time when many African economies are seeking to strengthen domestic revenue mobilisation, expand industrial production and reduce vulnerability to external economic shocks.
For Tanzania, reducing dependence on external assistance will require a stronger productive economy capable of generating sufficient domestic revenue to finance development priorities. This will depend on expanding the tax base, improving public investment efficiency and creating an environment where businesses can grow and generate employment.
The proposed Sh89.3 trillion programme therefore represents a significant development financing ambition, with its success depending on the government’s ability to mobilise the projected resources and translate investment commitments into measurable economic and social outcomes.
As Parliament concludes its deliberations, attention will increasingly turn to implementation, accountability and ensuring that the proposed investments contribute to sustainable economic growth, improved living standards and greater economic independence for Tanzania.
