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Tanzania’s TZS 2.87T Transport Budget Boosts Regional Logistics, with TZS 1.51T Allocated to SGR

Tanzania’s TZS 2.87 trillion Transport Budget 2026/27 directs 95.62% to development across rail, aviation, ports, and maritime infrastructure to position the country as the regional logistics hub of Eastern, Central, and Southern Africa. The Standard Gauge Railway (SGR) alone receives TZS 1.51 trillion in domestic financing plus TZS 61.84 billion from the OPEC Fund, equivalent to 55% of the entire development envelope.

The budget was presented to the National Assembly by Minister of Transport Prof. Makame Mbarawa on 13 May 2026 in Dodoma, and marks an increase of about 4.6% from the TZS 2.75 trillion approved for 2025/26. The single largest line item is the Standard Gauge Railway (SGR), which receives TZS 1.51 trillion in domestic financing, equivalent to 55% of the entire development envelope.

The Ministry has requested Parliament to approve TZS 2,872,738,082,000 for Vote 62 for the 2026/27 financial year. Development expenditure accounts for TZS 2,746,696,846,000 (95.62%), with TZS 2,452,512,444,000 (89.29% of development) financed from domestic sources and TZS 294,184,402,000 (10.71%) from external sources.

Recurrent expenditure accounts for TZS 126,041,236,000 (4.38%), of which TZS 100,135,087,000 covers staff salaries for the Ministry and its institutions and TZS 25,906,149,000 covers other operational charges. External financing for the 2026/27 budget is drawn from the World Bank (WB) and the European Investment Bank (EIB) for the Dar es Salaam Maritime Gateway Project, the Japan International Cooperation Agency (JICA) for Lake Tanganyika port works, the OPEC Fund for International Development for SGR Lot 7, the World Bank for the Tanzania Intermodal Railway Project (TIRP II), the Government of Korea for the Modernized Railway Training Centre, and the Swedish development finance institution SWEDFUND for the Dar es Salaam Monorail feasibility study.

Read more at: https://www.tanzaniainvest.com/transport/transport-budget-2026-2027

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