The Government has been praised for reducing reliance on foreign funding in the implementation of energy projects, a move that is expected to strengthen project sustainability and support Tanzania’s economic growth.
Member of Parliament for Itilima, Njalu Silanga (CCM), commended the Ministry of Energy while contributing to the debate on the 2026/27 budget estimates.
He said the shift towards greater use of domestic resources gives confidence that energy projects will be implemented more efficiently and with fewer disruptions.
He explained that dependence on external financing often comes with delays and conditions, which can slow down project execution.
By increasing the use of local funds, the government is creating a more reliable financing system for the energy sector, which remains a key driver of industrialisation and economic development.
For the 2026/27 financial year, the Ministry of Energy has requested Parliament to approve a budget of TZS 2.53 trillion for its operations and institutions.
Of this amount, TZS 2.46 trillion, equivalent to 97.5 percent, has been allocated to development projects, highlighting the government’s strong focus on expanding energy infrastructure.
Out of the development budget, TZS 1.6 trillion will come from domestic sources, while TZS 859.92 billion will be financed through external funds.
The increased share of local financing signals a strategic effort to build a self-reliant energy sector.
The move is expected to speed up the implementation of major energy projects, improve electricity access across the country, and support economic activities, especially in industries that depend on reliable power supply.
