MWE Correspondent
The government of Tanzania has unveiled a comprehensive budget proposal worth TSh2.746 trillion (approximately $1.1 billion USD) for the Ministry of Transport in the 2025/2026 financial year, reflecting an ambitious national push to transform infrastructure and promote regional trade integration.
Presenting the budget in Parliament, Minister for Transport Prof. Makame Mbarawa outlined strategic allocations aimed at strengthening roads, railways, aviation, and maritime transport—all key pillars of Tanzania’s long-term economic vision.
Out of the total figure, TSh125 billion is earmarked for recurrent expenditures, which includes TSh96 billion for civil servants’ salaries and TSh28 billion for other operational costs. The bulk—TSh2.621 trillion—will support major development projects across the country.
Funding Structure
The proposed funds include TSh2.452 trillion from domestic sources, while TSh168 billion will come from foreign aid and TSh533 billion through concessional loans. These financial mechanisms aim to balance investment and debt sustainability, enabling Tanzania to undertake large-scale infrastructure upgrades.
Strategic Projects
One of the flagship projects is the Standard Gauge Railway (SGR), designed to connect Tanzania with regional neighbors like Rwanda, Burundi, and Uganda. Priority segments include Dar es Salaam to Morogoro and Morogoro to Makutupora, both under active construction.
The aviation sector will also benefit significantly, with plans to procure three new aircraft for Air Tanzania, including a cargo freighter capable of transporting up to 23 tonnes. This aligns with Tanzania’s goals to become a key player in the regional aviation market.
On the maritime front, the government is preparing to construct a new passenger and cargo vessel on Lake Tanganyika, one of the largest freshwater lakes in Africa. Additionally, key ports along the Indian Ocean—including Dar es Salaam Port—will undergo modernization under the Maritime Gateway Project.
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Airports and Regional Connectivity
The proposed budget includes funding for upgrading Kilimanjaro International Airport (KIA), focusing on capacity expansion, safety improvements, and passenger comfort. These changes aim to position KIA as a competitive gateway for tourism and business travel in East Africa.
Vision for Economic Transformation
Prof. Mbarawa emphasized that the ministry’s financial plan is aligned with Tanzania’s aspiration to become a transport and logistics hub in the East African Community (EAC), supporting not only domestic trade but also cross-border commerce.
“We’re not just building roads and railways,” said Mbarawa. “We’re laying the foundation for inclusive economic growth, industrial development, and job creation.”
Lawmakers will debate and review the budget in the coming weeks, with many expressing support for infrastructure-led growth that can catalyze investment and enhance Tanzania’s competitiveness in global markets.
