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Tanzania has unveiled a bold plan to reshape its economy through strategic investments and expanded partnerships with the private sector.
The country’s new investment and planning budget for the 2025/2026 financial year was presented to Parliament on April 24 by Minister of State in the President’s Office, Professor Kitila Mkumbo.
The budget presentation, delivered during the 11th sitting of the 12th Parliament in Dodoma, focuses heavily on Public-Private Partnerships (PPPs) as a key avenue to fund large-scale infrastructure and development projects. It’s a direction the government says will drive long-term economic transformation and create more jobs across the country.
“Our aim is to ensure sustainable development by working more closely with the private sector,” said Prof. Mkumbo during his address. “These projects are not just about numbers—they’re about improving lives, creating opportunities, and laying a solid foundation for the next generation.”
With an estimated allocation of TSh 16.4 trillion, the budget will be sourced from domestic revenues, development partners, and both local and foreign loans offered on concessional terms. The money will go toward various priority areas, including roads, energy, water, and economic zones.
One of the flagship projects mentioned in the budget is the long-awaited Bagamoyo Special Economic Zone, which the government hopes will become a major driver of foreign direct investment and industrial development. In addition, a new regional investment office is planned for Njombe to support investors in the southern highlands—part of a broader effort to make investment services more accessible throughout the country.
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A notable feature of this year’s budget is the planned restructuring of the country’s investment institutions. The Tanzania Investment Centre (TIC) and the Export Processing Zones Authority (EPZA) will be merged to form a single, stronger agency to manage and promote private sector investment.
“We’re working to simplify the investment process and remove bureaucratic bottlenecks,” Prof. Mkumbo said. “By creating a more investor-friendly environment, we’re showing that Tanzania is open for business—and serious about it.”
The government also intends to update laws governing key sectors such as agriculture, tourism, mining, and trade. A new Public Investment Law is in the pipeline to provide clearer rules on how public funds are used in development projects.
Ultimately, the goal is for Tanzania to rank among the top five investment destinations in Africa by the end of 2025. The government has set an ambitious target of attracting 1,500 new projects and $15 billion in investment capital.
