Tanzania allocates 1.27tri/- for railway infrastructure with the bulk of it earmarked for SGR project
DODOMA: TANZANIA has allocated 1.27tri/- for the construction and rehabilitation of railway infrastructure in the 2026/27 financial year, with the bulk of the funding earmarked for the country’s flagship Standard Gauge Railway (SGR) project.
Presenting the Government Revenue and Expenditure Estimates for 2026/27 in Parliament today, Finance Minister Ambassador Khamis Mussa Omar said 1.12tri/- of the allocation will be directed to the continued construction of the SGR network.
The investment underscores the government’s commitment to modernising transport infrastructure and strengthening regional connectivity through a railway system designed to facilitate faster and more efficient movement of passengers and cargo.
“The government has allocated 1.27tri/- for the construction and rehabilitation of railway infrastructure, including 1.12tri/- for the Standard Gauge Railway project,” Ambassador Omar told lawmakers.
The SGR project is expected to improve transport efficiency, reduce logistics costs and enhance Tanzania’s competitiveness as a trade and transport hub for East and Central Africa.
The railway sector remains among the largest recipients of development funding in the 2026/27 budget, reflecting its strategic role in supporting economic growth, industrialisation and regional integration.
In a separate allocation, the government has earmarked 870.4bn/- for the implementation of urban and rural water supply projects, including the development of the National Water Grid and construction of major water storage facilities.
Ambassador Omar said the funding will support efforts to expand access to safe and reliable water services while strengthening water security for households, agriculture and industrial activities.
“The government has allocated 870.4bn/- for the implementation of urban and rural water projects,” he said while presenting the budget estimates.
Among the key projects to receive funding is the Kidunda Dam, a strategic water infrastructure project expected to improve water supply in Dar es Salaam, Coast and Morogoro regions.
The investment forms part of the government’s broader strategy to address rising water demand driven by rapid urbanisation, population growth and expanding economic activities.
Authorities expect the projects to improve access to clean water, support public health and enhance the resilience of communities and industries against future water shortages.
