Government allocates Sh2.28 trillion to spur infrastructure development

Dodoma. The government is increasing the budget for the ministry of Works by 29 percent for the 2025/26 financial year.

This move aims to enhance the development of roads, bridges, and public infrastructure while strengthening the capacity of local contractors and ensuring development centres around human dignity. 

For this financial year, a total of Sh2.28 trillion is proposed for the Ministry of Works, which represents an increase of Sh510.90 billion from the previous year. 

The minister for Works, Mr Abdallah Ulega, presented this budget in Parliament on Monday, highlighting a strategic push to expedite the construction and rehabilitation of roads, bridges, airports, and public buildings nationwide.

“The government has made significant progress in infrastructure development, but challenges persist, especially in accessing certain areas during specific seasons,” stated Mr Ulega.

“This budget is a commitment to improving connectivity and ensuring that our people live with dignity.” Of the requested Sh2.28 trillion, Sh2.19 trillion—amounting to 96 percent—is designated for development projects, an increase from Sh1.687 trillion allocated in 2024/25.

By April 2025, the government had already allocated Sh1.535 trillion for these projects.

The development budget will be funded through Sh1.21 trillion from domestic sources, which includes Sh688.76 billion from the Road Fund and Sh520.47 billion from the Consolidated Fund, alongside Sh980.5 billion in external support.

Mr Ulega outlined key priorities for 2025/26, which include expanding road and bridge networks to underserved regions, reducing traffic congestion, strengthening local contractors, installing 5,200 street lights in over 200 towns, and introducing automated weighbridge to combat corruption.

“In line with President Samia Suluhu Hassan’s directive to prioritize infrastructure development around people’s welfare, the Ministry is committed to ensuring no Tanzanian faces undignified conditions due to damaged or inaccessible infrastructure,” he noted, referencing recent flood damage in southern regions and Morogoro.

To tackle corruption at weighbridges, the Minister announced the introduction of advanced automated machines and cameras to reduce human interaction.

“We have listened to complaints from drivers and road users, and this modern system will enhance transparency and efficiency,” he said. 

To support the local construction industry, the government has raised the threshold for projects awarded to Tanzanian contractors from Sh10 billion to Sh50 billion.

“This will improve cash flow in the local economy and enhance the capacity of domestic firms to undertake large-scale projects,” he added.

Mr Ulega also highlighted the near-completion of the 3.2-kilometre Magufuli Bridge in Mwanza, which will become the longest in East Africa. 

Once operational, it will reduce travel time across the Lake Zone from two hours to just three minutes. 

He also mentioned the launch of Bakhresa Group’s ferry services in Kigamboni as an important step in alleviating urban transport challenges.

During the budget debate, the Chairperson of the Parliamentary Committee on Infrastructure, Mr Moshi Kakoso, praised the government’s increased allocation, particularly for development projects that align with the Ministry’s priorities.

However, Mr Kakoso noted that the budget increase is primarily driven by a 79.55 percent rise in external financing, compared to just a 5.9 percent growth in domestic funding. 

“The Committee urges the government to strengthen its capacity to finance development projects internally. Relying on external sources, which can often be delayed and conditional, risks slowing project completion,” he stated.

The Committee also expressed concerns over delays in payments to contractors and consulting engineers, arguing that such delays disrupt financial flows and hinder citizens’ ability to repay loans.

It reiterated the need for a sustainable strategy to ensure prompt debt payments and support for local contractors in taking on more infrastructure projects.