Nearly all energy budget dedicated to development projects as Tanzania prioritizes growth

By The Respondents Reporter

The Ministry of Energy has presented a development-focused budget for the 2026/27 financial year, with almost the entire allocation directed toward expanding and improving energy infrastructure across the country.

Presenting the budget in Parliament on Wednesday, April 22, 2026, the Minister for Energy, Deogratius Ndejembi, announced that the ministry and its institutions will receive a total of Shilingi trillion 2.5254.

He told lawmakers that Shilingi trillion 2.4623, equivalent to 97.5 percent of the total budget, has been set aside for development projects. 

These funds will be used to expand electricity generation, strengthen transmission networks, improve distribution systems, and support other key energy initiatives aimed at boosting access and reliability for citizens and industries.

Out of the development budget, Shilingi trillion 1.6024 will come from domestic sources, reflecting the government’s increased capacity to finance major projects using local revenue. 

An additional Shilingi billion 859.9 will be provided by development partners to support ongoing and planned energy programmes.

The minister explained that only 2.5 percent of the total budget, equivalent to Shilingi billion 63.0, has been allocated for recurrent expenditure. 

This includes Shilingi billion 52.9 for operational costs and Shilingi billion 10.09 for salaries of ministry staff and personnel under the Petroleum Upstream Regulatory Authority (PURA).

He said this budget structure clearly shows the government’s commitment to prioritizing projects that directly benefit citizens, especially by increasing electricity access, supporting industrial growth, and improving energy reliability in both urban and rural areas.

According to him, continued investment in the energy sector is key to driving national development, attracting investment, and improving the quality of life for Tanzanians through stable and affordable energy services.

Minister Ndejembi concluded by requesting Parliament’s approval of the budget, saying it will enable the government to speed up implementation of energy projects that are expected to bring direct social and economic benefits to citizens across the country.

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