The plan serves as the opening year of the Fourth Five-Year National Development Plan (2026/27–2030/31), which is designed to lay the foundation for Tanzania’s economic transformation over the next quarter-century.
Presenting the State of the National Economy Report for 2025 in Parliament on Thursday, Minister of State in the President’s Office (Planning and Investment), Professor Kitila Mkumbo, said the development framework is guided by the theme: “Transformation for Inclusive Economic Growth and Employment Creation.”
According to Prof Mkumbo, the 2026/27 plan represents the first stage of implementing projects and reforms outlined under Vision 2050 and accounts for 18.1 per cent of the estimated 477.7 trillion shillings required to finance the entire Fourth Five-Year National Development Plan.
The government has identified five strategic priorities for the coming fiscal year: strengthening governance, democracy, peace and stability; building a competitive and inclusive economy; enhancing human capital and social development; promoting environmental sustainability and climate resilience; and accelerating transformative sectors such as energy, transport, research, innovation and digital technology.
The plan underscores the growing role of the private sector in Tanzania’s development agenda. Of the total investment requirement, approximately 60.1 trillion shillings, or 69.6 per cent, is expected to come from private-sector investment, while the public sector will contribute 26.2 trillion shillings.
Public institutions are projected to provide 5.5 trillion shillings, with the central government contributing the remaining 20.8 trillion shillings.
To drive implementation, authorities plan to launch 38 flagship projects drawn from 51 strategic projects grouped under seven major national transformation programmes.
Among the largest initiatives is the proposed Bagamoyo Maritime Ecology City and Integrated Transport Programme, which includes ten sub-projects aimed at strengthening logistics, trade and urban development.
Other flagship programmes include the Mchuchuma Coal and Liganga Iron Integrated Complex, the National Irrigation and Agro-Processing Industrial Transformation Programme, the Rare Earth Technology and Processing Hub in Dodoma, and the Liquefied Natural Gas (LNG) Processing Plant in Lindi.
The government also plans to advance a Modern Industrial and Blue Economy Hub in the Great Lakes Region and an Integrated Urban Development Programme to support rapid urbanisation and industrial expansion.
Prof Mkumbo said the success of the plan will depend on several critical factors, including continued political stability, peace and security, which he described as essential for sustaining economic activity and attracting investment.
Other key enablers include adherence to good governance and the rule of law, continued expansion of energy and transport infrastructure, greater adoption of digital technologies and innovation, and further improvements to the business and investment environment.
The government also highlighted the importance of strengthening resilience to climate change, natural disasters, disease outbreaks and global economic shocks, which have increasingly affected developing economies in recent years.
In addition, stable international financial and commodity markets, together with improved food production and food security, were identified as important conditions for achieving the plan’s objectives.
The 2026/27 National Development Plan represents Tanzania’s first major investment blueprint under Vision 2050 and is expected to guide the country’s efforts to build a more competitive, industrialised and inclusive economy over the coming decades.
Notes to Editors
– The 2026/27 National Development Plan is Tanzania's first implementation framework under Vision 2050, the country's new long-term development strategy.
– The plan has a total investment value of 86.3 trillion Tanzanian shillings (approximately US$33 billion).
– It represents the first year of the Fourth Five-Year National Development Plan (2026/27–2030/31), which is expected to require a total investment of 477.7 trillion shillings over five years.
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