Tanzania allocates US$985 million for connectivity infrastructure

Tanzania has allocated nearly US$985 million to the Ministry of Works for the 2026/27 financial year. This allocation represents a significant infrastructure initiative focused on enhancing national connectivity, opening regional trade corridors, alleviating urban congestion, and extending transport accessibility. The budget, introduced in Parliament by Minister for Works Abdallah Hamis Ulega, centers on roads, bridges, ferries, airports, expressways, public-private partnerships, and climate-resilient infrastructure for Tanzania’s development phase. The ministry is requesting approximately USD$985.15 million for recurrent expenditure and development projects. About US$947.85 million will fund development projects, while approximately USD 37.30 million will support recurrent expenditure. The development budget comprises approximately US$593.48 million from domestic sources and USD 354.37 million from external financing. According to the Ministry, Tanzania’s national road network managed by TANROADS spans 37,734.41 kilometres, with 12,225.26 kilometres constructed to bitumen standard. Since gaining independence in 1961 with only 1,360 kilometres of paved roads, successive governments have significantly expanded the network. Under the Sixth Phase government, Tanzania has constructed 1,495.45 kilometres of roads and 18 major bridges within five years. Between July 2025 and April 2026, the Government completed 243.13 kilometres of national roads to bitumen standard, rehabilitated 94.36 kilometres to gravel standard, finished nine major bridges, continued constructing 11 bridges, and prepared for 13 additional ones. The Minister stated that this investment reflects a broader national mission: connecting farmers to markets, patients to hospitals, students to schools, young people to jobs, and Tanzania to the regional economy. The construction sector continues as one of Tanzania’s most significant economic drivers. In 2025, it contributed 11.9 percent to GDP, ranking second among key sectors. The sector grew by 4.0 percent, compared to 3.0 percent in 2024, while creating 18,988 jobs for contractors, consultants, artisans, suppliers, youth, and women. A key regional focus for the 2026/27 plan is constructing roads connecting Tanzania with neighboring countries. These include the Tanga–Pangani–Makurunge road and Pangani Bridge linking Tanzania and Kenya; the Manyovu–Kasulu–Kabingo regional road connecting Tanzania and Burundi; the Kibondo–Mabamba road linking Tanzania and Burundi; the Lusahunga–Rusumo road connecting Tanzania, Rwanda and Burundi; and the Matai–Kasesya road connecting Tanzania and Zambia. These investments will support cross-border trade, regional tourism, agricultural value chains, mining logistics, industrial corridors, port access, and goods movement across the East African Community and the Southern African Development Community. The Ministry also intends to continue constructing roads serving strategic economic zones, including ports, railways, airports, industries, farms, mines, tourism areas, export processing zones, national capitals, and border security areas. Urban mobility represents another major component of the new budget. Tanzania will continue congestion-reduction projects in Dar es Salaam, Dodoma, Arusha, Mwanza, Mbeya, Iringa, Singida, and Pwani. In Dar es Salaam, priority works include Bus Rapid Transit Phase III from Maktaba to Julius Nyerere International Airport and Gongolamboto, Phase IV from Maktaba to Morocco, Mwenge, and Tegeta, and preparations for Phase V from Ubungo to the port, Tabata, and Kigogo. The Government will also advance flyover projects at Mwenge, Morocco, Tabata, Fire, Magomeni, and KAMATA, alongside major road expansions including Ubungo–Kimara, Mbagala–Kongowe–Mkuranga, Mwai Kibaki Road, and Kibaha–TAMCO. In Dodoma, the plan includes nearing completion of the 112.3-kilometre Outer Ring Road, expansion of the Dodoma–Morogoro corridor, and upgrades to the Dodoma–Iringa and Dodoma–Arusha routes. Arusha will benefit from the Arusha–Kisongo road expansion, Mbauda–Losinyai road construction, Tengeru–USA River expansion, and the Tengeru–Mererani road. The Ministry is also preparing to utilize infrastructure bonds for financing major maintenance and rehabilitation of key economic roads. These include Morogoro–Dodoma–Singida–Tabora–Shinyanga–Mwanza, Kongowe–Kibiti–Lindi–Mingoyo, Sirari–Musoma–Mwanza–Geita–Bukoba–Mutukula, Chalinze–Segera–Tanga–Moshi–Arusha, Babati–Singida, and Dar es Salaam–Morogoro–Iringa–Makambako–Mbeya–Tunduma. This financing approach reflects Tanzania’s increasing shift toward diversified infrastructure funding. The Government has also invited the private sector, financial institutions, domestic investors, and foreign investors to participate in road construction, building development, ferry operations, and workshop projects through public-private partnerships. Climate resilience remains a strong focus. After damage from El Niño rains and Cyclone Hidaya affected 63 bridges, 827 kilometres of roads, 84 kilometres of drains, and 225 culverts across 139 districts, the Government allocated approximately USD 213.95 million to restore damaged infrastructure. Through the CERC programme, 81 emergency bridge projects have been implemented in 22 mainland regions. Among these, 70 projects valued at approximately USD 159.23 million are being carried out by local contractors, while 11 projects worth about USD 54.72 million are being implemented by foreign contractors. Implementation has reached 97.6 percent. Ferry infrastructure continues to be a priority for communities separated by water and for Tanzania’s blue economy. The Ministry, through TEMESA, has completed ferry projects serving Kisorya–Rugezi and Bwiro–Bukondo, while new ferries at Ijinga–Kahangala, Nyakaliro–Kome, Buyagu–Mbalika, and Nyamisati–Mafia are at advanced stages. Additional rehabilitation works include MV Kilombero II, MV Nyerere, MV Magogoni, MV Ukara I, MV Kigamboni, and MV Pangani II. In aviation, the Ministry is overseeing construction, expansion, and rehabilitation of 10 airports. Msalato International Airport, designed as a strategic transport hub for central Tanzania and international connectivity, has reached 85.17 percent completion for infrastructure works under Package I and 71.52 percent for building works under Package II. Looking ahead, Tanzania is developing a national Expressway Master Plan with KOICA support, expected for completion in November 2028. The Government is also advancing the Kibaha–Chalinze–Morogoro Expressway, spanning 163.8 kilometres, under a PPP arrangement, alongside preliminary expressway studies for key Dar es Salaam and Arusha corridors.