BOA TZ hails budget’s focus on private sector growth

DAR ES SALAAM: BANK of Africa (BOA) Tanzania has said the government’s 62.3 tri/- budget for 2026/27 is expected to strengthen private sector growth, boost investment and enhance economic activity through increased spending on infrastructure and business reforms.

The budget, aligned with Tanzania’s Development Vision 2050 and the Fourth National Development Plan, is expected to create a more conducive environment for businesses while supporting inclusive and sustainable economic growth.

Speaking after Finance Minister, Khamis Mussa Omar presented the budget in Parliament on Thursday, BOA Tanzania Acting Managing Director, Mr Wasia Mushi said the spending plan demonstrates the government’s commitment to building a resilient and competitive economy through digital transformation, sustainable fiscal policies and increased private sector participation.

“The increased participation of the private sector in investment and business activities is a positive sign that the Government is committed to implementing reforms and promoting an inclusive economy for Tanzanians,” Mr Mushi said.

He noted that the budget’s focus on improving the business environment and implementing policy reforms has been well received by stakeholders in the banking and wider economic sectors.

According to him, efforts to reduce bureaucracy, reform the tax system and eliminate overlapping responsibilities among public institutions will make it easier to do business and speed up the implementation of strategic projects.

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Mr Mushi also underscored the importance of the government”s continued investment in major infrastructure projects, including the Standard Gauge Railway (SGR), roads and energy, saying such investments will increase capital circulation, create opportunities for businesses and attract further investment.

“These projects serve as catalysts for private sector growth, job creation and broader economic expansion,” he said.

The budget will help attract both domestic and foreign investment, widen the tax base and encourage voluntary tax compliance, while reinforcing the role of the private sector as a key driver of economic growth and development.

Mr Mushi further commended government efforts to formalise the informal sector, saying the move will improve access to markets and financial services such as loans and insurance, while creating more employment opportunities.

BOA Tanzania also reaffirmed its commitment to supporting the government’s financial inclusion agenda through innovative banking solutions for individuals, small and medium-sized enterprises (SMEs) and corporate clients.

He said the bank recently launched an SME Hub and a specialised programme offering financial solutions, advisory services and business support to entrepreneurs to improve access to credit and enhance business competitiveness.