Tanzania Tables Key Projects for 2022 and 2023

Mwigulu Nchemba

Tanzania’s Minister of Finance and Planning Mwigulu Nchemba has recently presented to Parliament his reccomendations for the preparation of the national budget for 2022/23, suggesting an uncrease in spending of 7.4% to support key projects.

Minister Nchemba mentioned in his speech a total national government spending of TZS 39,387.5 billion for the year 2022/23, compared to TZS 36,681.9 billion in 2021/22.

He reminded that 2022/23 is the second year in the implementation of the 3rd Tanzania Five-Year Development Plan (FYDP III) 2021/22 – 2025/26, which aims at “Building a Competitive and Industrial Economy for Human Development”. Accordingly, in 2022/23, specific priority areas are:

(i) Stimulating a Competitive and Participatory Economy;

(ii) Strengthening Industrial Production and Service Delivery Capacity;

(iii) Business Promotion and Investment;

(iv) Stimulating Human Development

(v) Human Resource Development.

Nchemba also stressed that the Annual National Development Plan 2022/23 will include ongoing key development projects whose implementation its expected to have a broad and immediate impact on the economy.

The projects are:

  1. Construction of Standard Gauge Railway (SGR), and specfifically the Mtwara-Mbamba Bay railway and its Mchuchuma and Liganga branches ;
  2. Julius Nyerere Hydropower Project;
  3. Improving Tanzania Airlines (ATCL);
  4. Oil Pipeline Raw from Hoima in Uganda to Tanga in Tanzania;
  5. Natural Gas Processing (LNG) in Lindi;
  6. Magadi Soda Project Engaruka;
  7. Coal, Iron and Steel Project in Liganga;
  8. Ruhudji Hydropower Washing Project in Njombe;
  9. Rumakali Hydropower Project in Njombe;
  10. Bridges and Highways construction;
  11. Kilwa fishing Port and Vessels;
  12. Sugarcane Farm and Sugar Factory in Mkulazi;
  13. Oil and Gas Exploration at Eyasi-Wembere basin;
  14. Oil and gas exploration at Mnazi Bay North basin;
  15. Special Economic Zones including Bagamoyo Special Economic Zone;
  16. Lake Victoria to Dodoma water supply project;
  17. Developing Human Resources for industrial development and social welfare including construction of 26 girls schools in all regions.
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Objectives of FYDP III

(i) Increases the GDP annual growth rate from 6% in 2021 to an average of 8% by 2026;

(ii) Increases internal revenues from 15.9% of GDP in 2021/22 to 16.8% in 2025/26;

(iii) Inflation to remain low between 3.0% and 5.0% over the medium term;

(iv) Foreign exchange reserves to meet the requirements of imports and foreign service for a period of not less than four months;

(v) The creation of eight million new jobs in the private sector between 2021 and 2026.