Tanzania’s Minister of Finance and Planning Mwigulu Nchemba had recently presented to Parliament his recommendations for the preparation of the national budget for 2022/23, suggesting an uncrease in spending of 7.4% to support key projects.
Minister Nchemba mentioned in his speech a total national government spending of TZS 39,387.5 billion for the year 2022/23, compared to TZS 36,681.9 billion in 2021/22.
He reminded that 2022/23 is the second year in the implementation of the 3rd Tanzania Five-Year Development Plan (FYDP III) 2021/22 – 2025/26, which aims at “Building a Competitive and Industrial Economy for Human Development”. Accordingly, in 2022/23, specific priority areas are:
- Stimulating a Competitive and Participatory Economy;
- Strengthening Industrial Production and Service Delivery Capacity;
- Business Promotion and Investment;
- Stimulating Human Development;
- Human Resource Development.
Nchemba also stressed that the Annual National Development Plan 2022/23 will include ongoing key development projects whose implementation its expected to have a broad and immediate impact on the economy.
The projects are:
Construction of Standard Gauge Railway (SGR);
Tanzania’s SGR uses electric locomotives and has the capacity to transport passengers and cargo shipments at 160 kilometers per hour.
The SGR will link Tanzania, from the port of Dar es Salaam to the neighboring countries of Rwanda, Burundi, and the Democratic Republic of the Congo.
The SGR consists of a network of 1,219 km developed in five phases:
Phase 1: Dar es Salaam – Morogoro (Km 300)
Dar es Salaam – Morogoro (300 km). Construction was inaugurated by the late Tanzania President John Pombe Magufuli on 12th April 2017. Construction is underway by YAPI MERKEZI contractor from Turkey in partnership with MOTA ENGIL AFRICA from Portugal.
Phase 2: Morogoro – Makutupora (Km 422)
Morogoro – Makutupora (Km 442). The construction of the project was launched by the late Tanzania President John Pombe Magufuli on 14th March 2018. The initial stages of construction have started under by YAPI MERKAZI.
Phase 3: Makutupora –Tabora (Km 294)
Makutupora –Tabora (Km 294+ km 78 of intersections). The agreement for the construction of the project with YAPI MERKAZI was signed by the Tanzania Railways Corporation (TRC) on behalf of the Government on 28th December 2021.
Phase 4: Tabora – Isaka (Km 130)
These phases, are in various stages of procurement.
Phase 5: Isaka – Mwanza (Km 249)
These phases, are in various stages of procurement.
Julius Nyerere Hydropower Project;
Tanzania Electric Supply Company Limited is developing the 2.1 Gigawatt hydropower plant on the Rufiji River. The dam wall will be 134 metres high and have a capacity of 34 million cubic metres. The main contractors are Arab Contractors and El Sewedy Electric.
Improving Tanzania Airlines (ATCL);
Air Tanzania is a government owned airline with a total of eight aircrafts in its fleet; Five Dash 8-Q400, Four Airbus A220-300 and two Boeing 787-8 Dreamliner. There are plans to integrate the Dash 8-Q300 that is in maintenance into the current fleet taking the total to 9 aircrafts by June 2021, an additional Dash 8-Q400 and two more Airbus A220-300 are expected to be delivered by July 2021 taking the total number of aircrafts to twelve.
Air Tanzania’s young fleet of sustainable aircraft has enabled it to maintain its position as the leading airline in Tanzania, providing extensive domestic connectivity with over 38 weekly flights to more than 15 destinations. Air Tanzania currently operates more than 10 domestic destinations from Dar es Salaam hub, namely: Dodoma, Kilimanjaro, Kigoma, Mpanda, Geita, Mbeya, Mtwara, Mwanza, Bukoba, Songea, Tabora, Arusha and Zanzibar. And regionally and intercontinental, ATCL operates to Mumbai (India) Hahaya (Comoros), Lusaka (Zambia), Harare (Zimbabwe), Bujumbura (Burundi), Entebbe (Uganda). Soon we will be adding Lubumbashi (DRC), Johannesburg (South Africa), Lagos (Nigeria), Accra (Ghana), Nairobi (Kenya), London (United Kingdom).
Oil Pipeline Raw from Hoima in Uganda to Tanga in Tanzania;
The pipeline will transport crude oil from Uganda to Tanga in Tanzania. The Tanzania section is roughly 1,150 kilometres long. Developed by a subsidiary of Total and front-end-engineering-and-design (FEED) work was carried out by Gulf Interstate Engineering Company. WorleyParsons is the main contractor.
Natural Gas Processing (LNG) in Lindi;
Under consideration since 2014 following the discovery, four years earlier, of large natural gas fields off the coast of Tanzania, the Lindi LNG Project involves the development and construction of an onshore LNG plant with two gas liquefaction trains that have a total production capacity of 10 million metric tons per year (mtpa). The plant will process and liquify approximately 36 trillion cubic feet of natural gas from Tanzania’s Block 2 which is operated and owned by Equinor and ExxonMobil, and Tanzania’s Blocks 1 and 4 that are operated by Shell (RDSa.L). Liquefied gas from the Lindi LNG plant, the construction cost of which is approximately US$ 30bn, will be used locally and also exported to international markets. The LNG project is expected to contribute about 7% towards the country’s economic growth.
Magadi Soda Project Engaruka;
National Development Corporation (NDC) is planning to build a soda ash extraction plant in Arusha Province of Tanzania.
The project involves the construction of an extraction plant with a processing capacity of 1 million tonnes of soda ash per year. It includes the construction of production units, processing units, drilling units, control rooms and storage units, and the installation of related equipment and machinery.
On June 11, 2014, NDC issued request for pre-qualification (RFQ) for the selection of a strategic partner with a submission deadline as on September 10, 2014.
In January 2016, public consultations held on the project.
Planning activities are underway.
Coal, Iron and Steel Project in Liganga;
The project involves the development of a coal mine with a production capacity of 3MTPA, 600 MW Thermal Power station, 220 kV Transmission line from Mchuchuma to Liganga, iron ore mine with a production capacity of 2.9MTPA and Iron and steel Complex with a production capacity of 1MTPA.
Ruhudji and Rumakali Hydropower Washing Project in Njombe;
The 222 MW Rumakali and 358 MW Rhuhudji projects are both located in the Njombe region and could double the total installed hydropower capacity in Tanzania, from 562 to 1142 MW.
Bridges and Highways construction;
Kilwa fishing Port and Vessels;
The government has set aside 50bn/- to be spent on construction of a modern fishing port in Kilwa District, Lindi region, as part of efforts to promote the fishing sector in the country.
Sugarcane Farm and Sugar Factory in Mkulazi;
The National Social Security Fund and the PPF Pensions Fund recently launched the 12,000-acre Mbigiri Farm and the 63,000-acre Mkulazi Farm in Morogoro region of eastern Tanzania. The schemes have also established the Mkulazi II Sugarcane Farming and Sugar Factory Project to run the farms. The project seeks to produce some 250,000 tonnes of sugar every year.
Oil and Gas Exploration at Eyasi-Wembere basin;
Tanzania is not an oil producing country but the country has some exploratory activities, with the Tanzania Petroleum Development Corporation (TPDC) announcing in October 2019 that it was embarking on a Sh2 billion oil exploration project in Eyasi Wembere basin. The exploration involves drilling of three oil wells with 300 metres depth each in Eyasi Wembere basin. The wells are drilled at Kining’inila Village in Igunga District and at Meatu in Simiyu region and Iramba in Singida region.
Oil and gas exploration at Mnazi Bay North basin;
Mnazi Bay Gas Field is located onshore southern Tanzania (Mtwara region), approximately 410 km south of Dar es Salaam, covering an area of 756 km2. The Mnazi Bay asset is operated by Maurel and Prom (M&P) (48.06%) with the Tanzania Petroleum Development Corporation (TPDC) (20%), and Wentworth Resources (31.94%) as joint venture partners. Total proved gas reserves at Mnazi Bay stand at 290 billion standard cubic feet. In 2019, gas production was 70 million cubic feet per day.
Special Economic Zones including Bagamoyo Special Economic Zone;
Bagamoyo Special Economic Zone will be built on a 9,000 Ha area. It Located 50km North of Dar es Salaam City. MTWARA SEZ/Freeport Zone will be built on a 2650 ha area. The project include industrial Parks, Logistics Centers, and FreePort Zone (10+100 ha) for Oil And Gas activities.
Lake Victoria to Dodoma water supply project;
An increase in population in Dodoma, the City’s water requirements now stands at 133.8 million litres per day while the production capacity in all sources stands at 66.7million litres, equivalent to 50.2 per cent.Feasilibilty studies of a huge water project that will see Dodoma region getting water from Lake Victoria via Singida region is in the pipeline.
Developing Human Resources for industrial development and social welfare including construction of 26 girls schools in all regions.
- Increases the GDP annual growth rate from 6% in 2021 to an average of 8% by 2026;
- Increases internal revenues from 15.9% of GDP in 2021/22 to 16.8% in 2025/26;
- Inflation to remain low between 3.0% and 5.0% over the medium term;
Foreign exchange reserves to meet the requirements of imports and foreign service for a period of not less than four months;
The creation of eight million new jobs in the private sector between 2021 and 2026.