The Parliament of the United Republic of Tanzania has approved a total of TZS 2.872 trillion for the Ministry of Transport for the 2026/2027 financial year, in a major move that strengthens the government’s ambition of turning Tanzania into a leading transport and logistics hub for East and Central Africa.
The approval of the budget, presented by the Minister for Transport Makame Mbarawa, reflects the government’s continued focus on large-scale infrastructure development as a key driver of economic growth, regional integration and industrial expansion.
Out of the total approved budget, TZS 2.746 trillion has been allocated for development projects, while TZS 126.041 billion will be used for recurrent expenditure.
The budget signals a long-term national strategy aimed at modernising and integrating all key transport modes, including rail, ports, aviation and maritime systems, into a coordinated and efficient network that supports both domestic and regional trade.
A major focus remains on railway development, especially the continued expansion of the Standard Gauge Railway (SGR), which is one of the government’s flagship infrastructure projects.
The SGR is expected to significantly reduce transport costs, improve the speed and reliability of cargo movement, and strengthen Tanzania’s position as a gateway for landlocked neighbouring countries such as Rwanda, Burundi, Uganda, Zambia and the Democratic Republic of Congo.
The government also plans to continue rehabilitating the Meter Gauge Railway network as well as the TAZARA railway line, with the aim of restoring efficiency in older transport corridors and improving cross-border connectivity.
These investments are expected to enhance regional trade and support industrial growth by ensuring faster movement of goods across key economic zones.
In addition, the government will begin feasibility studies for the introduction of a metropolitan railway system in Dar es Salaam.
The project is expected to address increasing urban congestion in the country’s commercial capital and provide a modern, efficient public transport alternative for the city’s fast-growing population.
The ports sector has also received significant attention in the approved budget. Through the Tanzania Ports Authority (Tanzania Ports Authority), the government will continue implementing major improvements at both ocean and inland ports.
A key project is the Dar es Salaam Maritime Gateway Project (Dar es Salaam Maritime Gateway Project), which aims to expand cargo handling capacity, modernise port infrastructure and improve operational efficiency.
These improvements are expected to strengthen Tanzania’s competitiveness as a regional trade hub serving neighbouring countries including Zambia, Rwanda, Burundi, Uganda and the Democratic Republic of Congo.
The government is also planning upgrades at Bagamoyo, Mtwara, Kigoma, Mwanza North and Mbamba Bay ports as part of a wider strategy to decentralise economic opportunities and expand trade routes across the Indian Ocean and the Great Lakes region.
The aviation sector is also a key beneficiary of the budget, with continued investments through the Tanzania Airports Authority (Tanzania Airports Authority).
The government plans to construct, rehabilitate and upgrade several airports including those in Mwanza, Arusha, Serengeti, Mtwara, Kagera, Kilimanjaro and Julius Nyerere International Airport.
These upgrades are expected to improve tourism flows, attract investment and enhance regional connectivity.
At the regulatory level, the Tanzania Civil Aviation Authority (Tanzania Civil Aviation Authority) will continue strengthening aviation safety oversight and operational standards.
The government is also investing in modern air navigation systems and technical capacity building to ensure compliance with international aviation requirements.
Plans to establish an aviation training college are also included, aimed at developing skilled professionals for the growing aviation industry.
In the maritime sector, the Tanzania Shipping Agencies Corporation (Tanzania Shipping Agencies Corporation) continues to play a central role in ensuring maritime safety, regulating shipping services and supporting vessel agency operations.
The approved budget is expected to enhance maritime transport safety across both the Indian Ocean and the Great Lakes, especially as regional trade volumes continue to rise.
The government also plans to rehabilitate and construct new vessels to improve passenger and cargo transport services in lake and coastal regions.
This initiative is expected to boost local trade, tourism and investment while improving mobility for communities living around major water bodies.
The national carrier, Air Tanzania Company Limited (Air Tanzania Company Limited), will also continue to receive government support through fleet expansion and service improvement.
In recent years, the airline has expanded its domestic and international routes, becoming a key symbol of Tanzania’s growing presence in African aviation markets.
The continued expansion is expected to support tourism growth, facilitate business travel and improve air cargo services.
Overall, the 2026/2027 transport budget reflects a comprehensive national investment strategy aimed at transforming Tanzania’s transport system into a fully integrated and modern network.
By strengthening railways, ports, airports and maritime infrastructure, the government aims to reduce transport costs, improve efficiency and enhance the country’s competitiveness in regional and global trade.
If successfully implemented, the projects outlined in the budget are expected to significantly reshape Tanzania’s economic landscape, positioning the country as a major logistics and transport hub in East and Central Africa while accelerating long-term national development.
