Tanzania’s Ministry of Works presents a TZS 2,467.3 billion (approximately USD 949 million) development budget for fiscal year 2026/27, with 37% sourced from external financiers, covering roads, bridges, airports, ferries, and government buildings, and an explicit call for private-sector investment through public-private partnerships (PPPs).
Minister of Works Abdallah Ulega tabled the budget in Parliament on 20 May 2026 in Dodoma.
The total budget for the ministry combines the development allocation of TZS 2,467.3 billion with a recurrent budget of TZS 97.1 billion, bringing the full envelope to TZS 2,564.4 billion (approximately USD 986 million).
Of the development budget, TZS 1,544.9 billion (approximately USD 594 million) comes from domestic sources, including TZS 1,047.4 billion from the Road Fund, and TZS 922.5 billion (approximately USD 355 million) from external financiers.
In FY2025/26, the ministry received TZS 1,395.7 billion of its TZS 1,813.2 billion development budget allocation by April 2026, a release rate of 77%.
Roads and Bridges
The ministry manages Tanzania’s national road network of 37,734 km, of which 12,225 km is paved.
In FY2025/26, 81 emergency bridge projects costing TZS 556.9 billion (approximately USD 214 million) were implemented across 22 mainland regions under the Contingent Emergency Response Component (CERC) programme, addressing damage from the El-Nino rains and Cyclone Hidaya. 97.6% of the programme is complete, with 78 of 81 projects finished. In FY2025/26, the ministry paved 243.13 km by April 2026 against a full-year target of 450 km.
For the FY2026/27, the Tanzania National Roads Agency (TANROADS) is allocated TZS 926.9 billion from the Road Fund for maintenance, rehabilitation, and operations in 2026/27.
TANROADS plans to build 260.5 km of paved national roads, rehabilitate 87.5 km of paved roads, construct 16 bridges, and carry out feasibility studies and detailed engineering on 7,020.79 km of roads.
The Dodoma Outer Dual Carriageway Ring Road (km 112.3) is at 93-95% completion across its two lots and receives TZS 50.0 billion (approximately USD 19 million) in 2026/27 for contractor payments and the start of a 6.3 km inner ring road.
The Tanga-Pangani-Makurunge road (km 174.5), including the 525m Pangani Bridge connecting to Kenya, receives TZS 66.4 billion (approximately USD 26 million), with the Tanga-Pangani section at 77% complete and the Pangani bridge at 64%.
The Arusha-Moshi-Himo-Holili corridor receives TZS 83.9 billion (approximately USD 32 million), covering the 18 km Mianzini-Ngaramtoni stretch (54% complete), the Tengeru-USA River widening, a new 560m Kikafu bridge, Moshi urban roads, and the start of the Tengeru-Mererani (km 28) road.
The Geita-Bulyanhulu-Kahama road (km 120) receives TZS 46.7 billion (approximately USD 18 million), with the Kahama-Bulyanhulu Junction-Kakola section (km 73.9) at 60% and the Geita-Bulyanhulu Junction section now under construction.
The Makambako-Songea road and Songea bypass receive TZS 42.3 billion (approximately USD 16 million), predominantly from external financing, with construction on the Lutukila-Songea section (km 95.18) and the 11 km bypass now starting.
The Sumbawanga-Mpanda-Nyakanazi corridor (km 803.6) receives TZS 58.9 billion (approximately USD 23 million), combining domestic and external funds for multiple sections including the Kagwira-Karema Port road and the Kibaoni-Mlele Junction (km 50) stretch.
The Kidahwe-Kasulu-Kibondo-Nyakanazi road (km 341.25) receives TZS 33.2 billion (approximately USD 13 million) for three active sections, with the Kanyani-Mvugwe stretch at 98.5% and Mvugwe-Nduta Junction at 97%.
The Manyoni-Itigi-Tabora road receives TZS 6.5 billion (approximately USD 2.5 million), mainly from external sources, as contractor payment for completed sections.
The road to Kabanga Nickel in Kagera Region (Nyakahura-Kumubuga-Rulenge-Kabanga Nickel, km 141) receives TZS 1.5 billion (approximately USD 577,000) in 2026/27 for preparatory works on three sections totalling the full route, including the 32 km Rulenge-Kabanga Nickel section directly serving the project.
The Iringa-Ruaha National Park road (km 104) and the Iringa (Ipogolo)-Kilolo road (km 33.2) together receive TZS 41.3 billion (approximately USD 16 million), with the majority from external financing. The Iringa-Kilolo road is at 95% completion.
The Makutano-Natta-Mugumu/Loliondo-Mto wa Mbu road (km 185) receives TZS 9.8 billion (approximately USD 3.8 million), with construction continuing on the Sanzate-Natta section (km 40) and new starts planned on Waso-Loliondo (km 10) and Mto wa Mbu-Selela (km 23), serving the northern tourism and wildlife circuit.
The Isaka-Lusahunga road and Nyakanazi border OSIS (One Stop Inspection Station) receives TZS 29.3 billion (approximately USD 11 million), with the Lusahunga-Rusumo section (km 92) at 41% and the border post serving Rwanda-Burundi transit trade.
The Kasulu-Manyovu road (km 68), connecting Tanzania and Burundi, receives TZS 19.4 billion (approximately USD 7.5 million) primarily from external financiers, with the road itself completed and work now continuing on the Manyovu/Mugina One-Stop Border Post.
The access roads to SGR stations receive TZS 13.0 billion (approximately USD 5 million), covering seven station access roads and feasibility studies for a further six.
The Dar es Salaam-Kibaha-Chalinze-Morogoro Expressway (km 163.8), to be developed as a PPP, receives TZS 4.2 billion (approximately USD 1.6 million) for preparatory works and ongoing procurement of a new investor for the Kibaha-Chalinze section (km 78.9), following the withdrawal of the original investor.
The Ministry also plans infrastructure bonds to fund major rehabilitation on strategic road corridors, including Morogoro-Dodoma-Singida-Mwanza, Dar es Salaam-Morogoro-Iringa-Mbeya-Tunduma, and the Sirari-Musoma-Geita-Bukoba routes.
Dar es Salaam Urban Congestion Programme
Bus Rapid Transit (BRT) Phases 1-5 receive TZS 213.8 billion (approximately USD 82 million), with 99% for Phase 3 (CBD-Gongolamboto, km 23.3) almost complete, Phase 4 (Morocco-Mwenge-Tegeta and Mwenge-Ubungo, km 30.1) at 46-53% across its sections, and Phase 5 (Ubungo-Harbour, Tabata-Kigogo, km 27.6) entering procurement.
Two flyovers at the Mwenge and Morocco intersections are planned through a JICA-financed arrangement, with negotiations ongoing.
The Dar es Salaam roads congestion programme (beyond BRT) receives TZS 9.4 billion (approximately USD 3.6 million) for multiple urban road sections, including Kibamba-Kisopwa-Kwembe (km 14.66) and Kongowe-Mjimwema-Kivukoni (km 25.1), with further preparatory work on Mwai Kibaki Road widening (km 9.1).
Airports
Airport infrastructure across the ministry receives TZS 119.9 billion (approximately USD 46 million) in 2026/27, split between TZS 45.8 billion domestic and TZS 74.0 billion external financing.
The Msalato International Airport in Dodoma receives TZS 34.1 billion (approximately USD 13 million), with the majority from external financing, for continued construction of the new international terminal.
Kigoma Airport receives TZS 19.6 billion (approximately USD 7.5 million) for a new passenger terminal, apron rehabilitation, control tower, weather station, airfield lighting, and security fencing.
Regional airports in Iringa (Phase 2), Musoma, Lake Manyara, and Tanga collectively receive TZS 42.1 billion (approximately USD 16 million).
Shinyanga Airport receives TZS 5.8 billion and Sumbawanga Airport TZS 3.9 billion for runway, apron, terminal, and navigational aid works.
Mwanza Airport receives TZS 4.5 billion for runway expansion and rehabilitation, and Songwe Airport TZS 4.5 billion for runway safety area works and terminal completion.
JNIA Terminal 3 in Dar es Salaam receives TZS 54 million for contractor and consultant payment, with construction continuing.
Ferries
The ferries and terminal infrastructure programme receives TZS 28.4 billion (approximately USD 11 million) in 2026/27.
Five new Lake Zone ferries are earmarked for procurement and delivery, with one additional new ferry under construction for the Boza-Kuruti, Shungumbweni, and Kisiju coastal routes.
TZS 9.6 billion covers the completion of four ferries under construction (Ijinga-Kahangala, Nyakarilo-Kome, Nyamisati-Mafia, and Buyagu-Mbalika).
TZS 8.9 billion covers major rehabilitation of 14 existing vessels, including MV Tanga, MV Kome II, MV Nyerere, MV Mafanikio, MV Kigamboni, MV Ukara I and II, and MV Pangani II.
TZS 5.2 billion covers construction and rehabilitation of 14 new ferry terminals and 8 terminal upgrades across Lake Victoria, Lake Nyasa, and the coast.
TEMESA, the government plant and ferry operations agency, plans to carry 20.8 million passengers and 674,220 vehicles across 32 government ferries at 22 stations in 2026/27.
Government Buildings
Government housing and buildings receive TZS 24.7 billion (approximately USD 9.5 million), including TZS 5.3 billion for the Temeke Kota public servants housing development, TZS 5.0 billion for 110 units in Dodoma’s Nzuguni B area, TZS 3.7 billion for Arusha Kaloleni Block I, and TZS 1.8 billion for 144 affordable housing units under preparation.
The Tanzania Building Agency (TBA) has separately identified 149 underdeveloped land sites across all mainland Tanzania regions for PPP development.
PPP Pipeline and Private Sector Openings
The ministry explicitly invites private sector participation in roads, ferries, workshops, and buildings under the public-private partnership (PPP) framework aligned with Tanzania’s Vision 2050.
Active PPP processes include: the Dar es Salaam-Chalinze-Morogoro Expressway (km 163.8), with procurement of a new investor ongoing; the Igawa-Songwe-Tunduma road (km 218), entering PPP preparation; the Handeni-Kibirashi-Kibaya-Singida corridor (km 324), under PPP scoping; and the Temeke Kota PPP land development contract, in final signing stages.
The Contractors Assistance Fund (CAF) operates to provide bid bonds and advance payment guarantees to domestic contractors.
Infrastructure bonds are planned to fund rehabilitation on major economic corridors, with the Road Fund Board separately pursuing capital market financing.
Tanzania’s Works Sector in 2025
Tanzania’s construction sector grew 4.0% in 2025, up from 3.0% in 2024, and accounted for 11.9% of GDP, the second largest sectoral contribution.
The sector produced 18,988 jobs in 2025.
TANROADS manages a road network of 37,734 km. As of April 2026, 12,225 km is paved. Since independence in 1961, when the paved network was 1,360 km, the government of President Samia Suluhu Hassan added 1,495 km of paved road and 18 major bridges between 2021 and 2025.
The Road Fund expects to collect TZS 1,362.7 billion in 2026/27 for national and district road maintenance, distributed across TANROADS (TZS 926.9 billion), the Ministry of Works (TZS 103.0 billion), TARURA for district roads (TZS 279.0 billion), and the Road Fund Board itself (TZS 22.8 billion).
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