Tanzania’s Ministry of Transport has presented a TZS 2.87 trillion budget for the 2026/27 financial year, with a strong focus on transforming the country into a regional logistics hub for Eastern, Central, and Southern Africa.The budget allocates about 95.

62% of total spending to development projects across rail, ports, aviation, and maritime infrastructure, reflecting the government’s long-term strategy to improve connectivity and trade efficiency.The largest share of funding goes to the Standard Gauge Railway (SGR), which receives TZS 1.51 trillion in domestic financing plus additional external support, representing more than half of the entire development budget.

Key SGR works include completion of major sections such as Morogoro–Makutupora and continued construction of extensions toward Tabora, Mwanza, Kigoma, and Burundi.

Other railway initiatives include rehabilitation of the metre gauge network under TIRP II, modernization of TAZARA in cooperation with Zambia and China, and training centre upgrades supported by international partners.

In aviation, funds are allocated to Air Tanzania fleet expansion, upgrades at major airports such as Julius Nyerere International Airport, Kilimanjaro International Airport, and regional airports across the country.

The maritime and ports sector also receives significant investment, including modernization of the Dar es Salaam Maritime Gateway Project, improvements at Lake Tanganyika ports, and expansion of marine services vessels across major lakes.External financing from institutions such as the World Bank, EIB, JICA, and OPEC Fund supports several projects.

The budget also emphasizes private sector participation and aligns with Tanzania’s Vision 2050 and the Fifth National Development Plan, aiming to strengthen trade corridors, boost cargo handling capacity, and increase regional transit trade.