Dar es Salaam. Tanzania has assured the public that all ongoing development projects will continue as planned, despite concerns raised by some development partners following the election-related unrest of October 29.
Speaking in Dar es Salaam yesterday, Chief Government Spokesman Gerson Msigwa said the country was financing most of its flagship projects using domestic resources and would continue to do so even if some partners temporarily withhold funds.
“We use our own funds to build these projects. If we secure financing from outside, we borrow and repay later,” he said.
He said it was unfortunate that some people misunderstand the difference between loans and grants. “We get loans and we repay them, which is why a significant portion of our domestic revenue goes to debt servicing.
We do this because we borrowed to build the Standard Gauge Railway, roads, expand water and electricity supply, and improve health services,” Mr Msigwa said.
While acknowledging that there may be challenges in accessing funds from some development partners, he expressed confidence that dialogue would resolve any concerns. “This is not the first time development partners have made such remarks. But we sit down, talk and things move forward,” he said.
Mr Msigwa said President Samia Suluhu Hassan’s remarks during the swearing-in of new ministers in Dodoma on Tuesday, last week were aimed at reassuring Tanzanians that the government has a “Plan B” should development partners withdraw support.
President Hassan noted that Tanzania previously enjoyed strong donor trust, which made financing readily available. She warned, however, that the October 29 unrest could erode that confidence and slow progress on current and planned projects.
“What happened has tainted our image, and this is likely to reduce our resource base. We must therefore use the resources we have to attract more funding so that the projects we promised are delivered with speed,” she said.
She directed the newly appointed ministers to intensify efforts to secure financing, stressing she would not tolerate poor performance.
“Minister who fall short of expectations will be relieved of their duties,” she said.
EU financing challenged
Amid this backdrop, reports indicate that the European Union’s planned 2025 Annual Action Plan (AAP) financing for Tanzania has been formally challenged after key committees of the European Parliament adopted a motion objecting to the funds.
The resolution cites “serious concerns over democratic backsliding, human-rights deficiencies, and the conduct of the October 2025 elections.”
The motion was jointly tabled by the Committee on Foreign Affairs (AFET) and the Committee on Development (DEVE), and passed with 53 votes in favour, two against, and one abstention.
Domestic revenue
Tanzania’s 2025/26 budget, approved in June, stands at Sh56.49 trillion. Of this, Sh40.47 trillion is expected from domestic revenue, foreign grants will contribute Sh1.07 trillion, while a further Sh14.95 trillion will come from domestic and external loans.
Mr Msigwa said ongoing projects will soon begin to deliver major economic benefits. “Tanzania is now one of the few countries making rapid economic progress. Many are surprised to see a country once struggling now connected to Dodoma via the SGR,” he said.
He said urban commuter trains will operate on elevated tracks in Dar es Salaam and Dodoma, running from Kawe, Mbezi, Mlimani City and Kariakoo, with a branch from Bibi Titi Road to Ali Hassan Mwinyi Road.
Dar es Salaam alone is expected to host a 160-kilometre commuter rail network, while the SGR station plan includes 105 kilometres of urban rail lines.
Ports, aviation and transport expansion
He said the goal is to ensure cargo arriving at Tanzanian ports is efficiently transported to neighbouring countries. Revenue collections at Dar es Salaam Port, he added, have risen from Sh900 billion to Sh1.8 trillion annually.
On Bagamoyo Port, he said construction equipment is already on the way. The project aims to build 28 berths, starting with 14. “Construction will begin even if investors do not come. Tanzania will implement the project on its own,” he said.
The government will also add eight more aircraft to the national airline, bringing the fleet to 24. Three new strategic international routes will be launched this year, including Cape Town and Accra.
The target is to reach 50 domestic and international destinations by 2030 and serve three million passengers, up from 1.5 million currently.
Mr Msigwa said ongoing campaigns against Tanzania aim to “undermine the government’s achievements”, but insisted the economy remains resilient. He projected economic growth of 6 percent by the end of the year.
Tanzania ‘still safe’ for tourists
Responding to concerns over tourism safety, he said Tanzania remains a safe destination. “It is safe for anyone wishing to visit Kilimanjaro, Ngorongoro, or Serengeti.
Our sites are safe, services improve daily, accessibility is good, and we guarantee your happiness,” he said.
He assured visitors that their safety and that of their children is guaranteed during their stay in Tanzania.
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