In a clear statement of intent to strengthen Tanzania’s industrial base, the Ministry of Industry and Trade has proposed a budget of 135.8 billion Tanzanian shillings for the 2025/2026 financial year.
Presented by Minister Dr. Selemani Jafo during the 24th session of the 19th Parliamentary Meeting in Dodoma, the budget emphasizes structural transformation through enhanced industrial development, improved business conditions, and investment promotion.
Of the total budget, 93.9 billion/- (69%) is allocated to recurrent expenditure, while 41.9 billion/- (31%) is earmarked for development spending.
A closer look reveals that just 819.4 million/- is reserved for staff salaries—less than 1% of the total while 18.1 billion/- will go toward routine operations and institutional running costs.
This structure suggests that the Ministry is operating with a lean workforce while prioritizing operational efficiency and service delivery.
However, the relatively limited development share may raise concerns regarding the pace and scale of actual industrial transformation, especially in a climate where infrastructure and sector-specific investments are crucial.
The development budget is supported through a blend of domestic funding (27.9 billion/-) and international development partner contributions (14 billion/-).
This dual-funding model is consistent with Tanzania’s recent strategy of leveraging international partnerships to complement local efforts in industrialization.
However, dependence on donor funding for nearly 33% of development projects introduces a degree of uncertainty, especially given global aid volatility.
Ensuring timely disbursement and alignment with national priorities will be key to implementation success.
Minister Jafo underscored that the budget aims to enhance the investment environment, foster the growth of local industries, and increase the contribution of manufacturing to the national economy.
These goals align with the broader objectives of the Third Five-Year Development Plan (FYDP III), which positions industrialization as a central driver of inclusive and sustainable growth.
Yet, the lack of detailed allocations to specific industries or initiatives such as agro-processing, textile manufacturing, or industrial parks makes it difficult to assess how far the proposed budget will go in catalyzing sector-wide transformation.
While the Ministry’s direction is clear, execution remains the critical hurdle. In previous years, similar budgets have faced implementation challenges due to bureaucratic delays, limited institutional capacity, and underperformance in development project delivery.
Furthermore, for Tanzania to truly elevate its industrial sector, issues such as unreliable power supply, infrastructure bottlenecks, and access to affordable credit for small and medium enterprises (SMEs) must be addressed in tandem. The current budget does not explicitly allocate resources toward solving these systemic challenges.
The Ministry of Industry and Trade’s 2025/26 budget outlines an ambitious agenda to accelerate industrial development and enhance trade competitiveness.
However, with nearly 70% of the budget directed toward recurrent costs, and only a modest portion committed to development some of which hinges on external funding the realization of these goals may prove challenging without complementary reforms and effective execution.
As Parliament debates the proposal, stakeholders will be watching closely to see whether the budget translates into concrete action particularly in job creation, SME support, and increased manufacturing output.
In a competitive regional landscape, Tanzania cannot afford to let industrial ambition remain just a line item in the national budget.