Tanzania’s National Development Plan for 2025/26 outlines strategic priorities to sustain economic growth, enhance infrastructure, and improve social services. With a projected GDP growth of 6.0%, the plan emphasizes industrialization, investment, agriculture, and public-private partnerships (PPP) to drive development. Key focus areas include energy expansion, transport modernization, job creation, and food security, ensuring a resilient and self-sufficient economy while preparing for Vision 2050.

Key Highlights and Figures:

1. Economic Performance (2024/2025)

• Global Economy: Growth was 3.2% in 2024 and is projected to be 3.3% in 2025. Growth is slowing due to aging populations, reduced productivity in developed countries, and geopolitical tensions.
• Regional Economy:
  • SADC: Growth declined from 5.2% in 2023 to 5.1% in 2024, expected to reach 4.1% in 2025.
  • EAC: Growth slowed from 3.9% in 2023 to 3.4% in 2024, projected to recover to 5.7% in 2025.
• Tanzania’s GDP Growth:
  • Grew by 5.6% in 2024 (Jan-Sept) vs. 5.1% in 2023.
  • Expected to grow 6.0% in 2025 and 6.1% in 2026.
• Inflation:
  • Fell to 3.1% in 2024 (vs. 3.8% in 2023).
  • Tanzania’s inflation target is 3.0%-5.0%, within EAC limits (below 8%).

2. Development Achievements (2019/20 – 2024/25)

3. Budget for 2025/26

• Total Budget: TZS 57.04 trillion
• Development Budget: TZS 19.47 trillion (34.1% of total budget)
• Sources:
  • Domestic funds: TZS 13.32 trillion
  • External funding: TZS 6.15 trillion
• Private Sector Role: Emphasizing Public-Private Partnerships (PPP) to fund development projects.

4. Key Priority Areas for 2025/26

1. Competitive and Inclusive Economy – Infrastructure (transport, ICT, energy), improving business environment.
2. Manufacturing and Services – Boosting industrial productivity.
3. Investment and Trade – Improving regulatory frameworks, tax policies.
4. Human Development – Education, health, water, land planning, youth skill development.
5. Human Capital Development – Strengthening technical and vocational training.

5. Major Government Plans

• Malaria Eradication Campaign: Government to intensify control using locally produced chemicals.
• Reduced Foreign Aid Dependence: Strengthening AIDS Trust Fund, leveraging PPP models for funding.

The plan aligns with Tanzania’s Vision 2025 and is part of the Third Five-Year National Development Plan (2021/22 – 2025/26). The government aims to complete ongoing projects while preparing for Vision 2050. The focus remains on sustaining economic growth, improving social services, and enhancing private sector involvement.

Tanzania’s National Development Plan for 2025/26, outlining the country’s economic performance, achievements, budget allocations, and strategic priorities.

1. Economic Growth & Stability

• Tanzania’s economy is growing steadily, with GDP increasing from 5.1% in 2023 to 5.6% in 2024, and projected at 6.0% in 2025.
• Inflation has remained low and stable at 3.1%, which is within the government’s target range of 3.0% - 5.0%.
• The East African Community (EAC) and SADC economies are slowing due to inflation, global debt, and geopolitical instability, but Tanzania is expected to maintain growth.

2. Development Achievements (2019 – 2024/25)

The government has made significant progress in infrastructure, energy, agriculture, health, and education:

• Electricity production increased from 1,602 MW to 3,077 MW.
• Villages connected to electricity: 8,587 → 12,318 (100% target met).
• Food security remains strong (114% in 2019 → 128% in 2024).
• Tourism has recovered, with tourist numbers growing from 1.03 million (2019) to 4.24 million (2024), boosting foreign exchange earnings.
• Irrigated agriculture expanded to 983,466 hectares, supporting food production.

3. Budget Priorities for 2025/26

• The total budget is TZS 57.04 trillion, with 34.1% (TZS 19.47 trillion) dedicated to development projects.
• Funding sources:
  • TZS 13.32 trillion from domestic revenue.
  • TZS 6.15 trillion from external financing.
• Public-Private Partnerships (PPP) will be expanded to reduce dependence on foreign aid.

4. Key Priorities for 2025/26

• Infrastructure Development: Completion of SGR railway, road networks, ports, and energy projects.
• Agriculture & Food Security: Expanding irrigation, mechanization, and agribusiness investment.
• Industrialization & Investment: Encouraging local and foreign investment in manufacturing and services.
• Health & Education:
  • Expanding public health services and strengthening malaria eradication programs.
  • Enhancing vocational and technical training to improve youth employment.

5. Future Outlook

• Tanzania is on track to maintain strong economic growth and complete Vision 2025 goals before transitioning to Vision 2050.
• Self-sufficiency in key sectors like food, energy, and healthcare will be prioritized.
• Private sector involvement will be key to funding national projects through PPPs.

Overall Message

• Tanzania is making solid progress toward economic transformation and social development.
• The government is reducing dependency on foreign aid while boosting domestic investment.
• Key focus areas in 2025/26: Economic growth, infrastructure, agriculture, manufacturing, education, and healthcare.