Tanzania’s Minister of Finance and Planning Mwigulu Nchemba has recently presented to Parliament his reccomendations 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:
(i) Stimulating a Competitive and Participatory Economy;
(ii) Strengthening Industrial Production and Service Delivery Capacity;
(iii) Business Promotion and Investment;
(iv) Stimulating Human Development;
(v) 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), and specfifically the Mtwara-Mbamba Bay railway and its Mchuchuma and Liganga branches ;
- Julius Nyerere Hydropower Project;
- Improving Tanzania Airlines (ATCL);
- Oil Pipeline Raw from Hoima in Uganda to Tanga in Tanzania;
- Natural Gas Processing (LNG) in Lindi;
- Magadi Soda Project Engaruka;
- Coal, Iron and Steel Project in Liganga;
- Ruhudji Hydropower Washing Project in Njombe;
- Rumakali Hydropower Project in Njombe;
- Bridges and Highways construction;
- Kilwa fishing Port and Vessels;
- Sugarcane Farm and Sugar Factory in Mkulazi;
- Oil and Gas Exploration at Eyasi-Wembere basin;
- Oil and gas exploration at Mnazi Bay North basin;
- Special Economic Zones including Bagamoyo Special Economic Zone;
- Lake Victoria to Dodoma water supply project;
- Developing Human Resources for industrial development and social welfare including construction of 26 girls schools in all regions.
Objectives of FYDP III
(i) Increases the GDP annual growth rate from 6% in 2021 to an average of 8% by 2026;
(ii) Increases internal revenues from 15.9% of GDP in 2021/22 to 16.8% in 2025/26;
(iii) Inflation to remain low between 3.0% and 5.0% over the medium term;
(iv) Foreign exchange reserves to meet the requirements of imports and foreign service for a period of not less than four months;
(v) The creation of eight million new jobs in the private sector between 2021 and 2026.