Tanzania has announced a major $985 million budget for the Ministry of Works for the 2026/27 financial year as the country moves to improve transport, reduce congestion and strengthen links with neighbouring countries across East and Southern Africa.
The budget was presented in Parliament by Minister for Works Abdallah Hamis Ulega, who said the government wants to use transport infrastructure to improve daily movement for millions of people while supporting trade and economic growth.
The plan focuses heavily on roads, bridges, ferries, airports and expressways, with the government saying better transport systems are important for commuters, businesses and regional connections.
According to the ministry, about $947.85 million of the budget will go directly to development projects, while around $37.30 million will support daily operations and recurrent expenditure. The development budget will be funded through both local and external financing, with domestic sources contributing about $593.48 million and foreign financing accounting for around $354.37 million.
ALSO READ Dar es Salaam BRT May Introduce Facial and Palm Recognition for Passengers
Tanzania says the investment is meant to make travel easier inside the country while also improving transport links with neighbouring countries such as Kenya, Uganda, Rwanda, Burundi, Zambia, Malawi, Mozambique and the Democratic Republic of Congo.
For public transport users, the projects are expected to improve road conditions, reduce travel delays and support smoother movement for buses, freight trucks and private vehicles. Fast-growing cities such as Dar es Salaam, Dodoma and Mwanza are also expected to benefit from projects aimed at reducing traffic congestion and improving urban mobility.
The government says Tanzania’s national road network under TANROADS now covers 37,734.41 kilometres. Out of this, 12,225.26 kilometres have already been upgraded to bitumen standard.
Under the Sixth Phase Government alone, Tanzania says it has built 1,495.45 kilometres of roads and completed 18 major bridges within five years.
Between July 2025 and April 2026, the government completed 243.13 kilometres of national roads to bitumen standard and rehabilitated another 94.36 kilometres to gravel standard. During the same period, nine major bridges were completed while construction continued on 11 others. Preparations are also ongoing for 13 more bridge projects.
The government says many of the projects are designed to improve access to markets, schools, hospitals and workplaces while helping public transport move more efficiently across the country.
Minister Ulega said the wider goal is to connect communities and strengthen Tanzania’s role in the regional economy through better transport infrastructure.
The construction sector continues to play a major role in Tanzania’s economy. In 2025, the sector contributed 11.9 percent to the country’s GDP and became one of the fastest-growing sectors after recording 40 percent growth compared to 3 percent in 2024.
The ministry also said the sector created nearly 19,000 jobs for contractors, consultants, technicians, suppliers, youth and women involved in infrastructure projects.
A major part of the 2026/27 plan will focus on roads connecting Tanzania to neighbouring countries as the government pushes to improve regional transport corridors and position the country as a stronger transport and trade hub in East Africa.
