Tanzania Accelerates Flagship Infrastructure and Economic Diplomacy Push

Dodoma’s state leadership confirmed significant advancements in the Third National Five-Year Development Plan, registering strides in infrastructure, agriculture, energy, justice reform and foreign investment initiatives. In a parliamentary session, Planning and Investment Minister Professor Kitila Mkumbo detailed over 193 development schemes—among them 17 flagship mega-projects—now underway.

Irrigation farming has expanded, with irrigated areas growing from approximately 695,000 ha in 2019/20 to 727,280 ha by 2022/23, driven by intensified use of quality seedlings and fertilisers. Concurrently, the National Irrigation Commission reported plans for over 800 new irrigation schemes in the 2023/24 financial year, reinforcing targets to reach 1.2 million hectares under cultivation by 2025.

Transport infrastructure remains a cornerstone of the FYDP III agenda with considerable progress on the Standard Gauge Railway. The Dar es Salaam–Makutupora segment stands nearly complete at 99%, the Morogoro–Makutupora stretch at 96.6%, while Tabora–Makutupora, Isaka–Mwanza, and Tabora–Isaka present completion rates of 14%, 56% and 5%, respectively. Construction is also visible at the Mwanza–Isaka link and the Kigongo–Busisi bridge near Mwanza, which is now 88% built.

Energy sector expansion includes the Julius Nyerere Hydropower Project, now at 97% completion, and operational starts at Kinyerezi I and Rusumo, boosting national generation capacity from 1,872 MW to 2,138 MW by March 2024.

Water, sanitation and rural access have also improved markedly. The Rural Water Supply and Sanitation Agency reported household water connections rising from 64.8% in 2019 to 74.5% by June 2024, benefitting over 9,000 villages and connecting over 2.8 million rural dwellers.

In the judicial sphere, FYDP III envisages expanded legal infrastructure, aiming to increase functional High Court regions from 69 in 2019 to nationwide coverage, enhance legal aid representation, and integrate ICT systems in courts. Targeted construction includes 139 district courts, 791 primary courts, ten regional Attorney-General offices, and seven national prosecution offices by 2025/26.

Tanzania has reinforced its anti-corruption drive through the Prevention and Combating of Corruption Bureau, which traced and recovered over TZS 215 bn by mid-2020 and has seen prosecution rates of 82% in corruption filings—up from 10% during FYDP II.

On the diplomacy and foreign investment front, the Plan sets ambitious targets: expanding bilateral, regional and international engagements from 50 meetings in 2019/20 to 250 by 2025; increasing Tanzanian participation in peacekeeping missions from 2,303 to 3,500 personnel; launching ten new embassies and six consulates; and signing 80 memoranda of understanding—up from 15. It further seeks to raise foreign investment from 86 projects to 430, and boost tourist arrivals from 1.6 million to 8 million by 2025.

Prime Minister Kassim Majaliwa underscored the importance of economic diplomacy in leveraging FYDP III initiatives, working alongside Foreign Affairs Minister Liberata Mulamula to mobilise ambassadors toward investment promotion and tourism outreach.

Private-sector partnerships are integral to funding the development agenda. The government projects an FYDP III budget of TZS 114.8 trn, to be sourced through public funds and private contributions, supported by institutional reforms such as PPP Act amendments and recapitalisation of investment banks.

Complementing these financing reforms, investment registration surged 15.2% in 2023, with the total value of registered projects jumping to US $8.66 bn, signalling heightened investor confidence aligned with Plan priorities.

Dar es Salaam’s urban transit ecosystem is also evolving. BRT Phase II has concluded construction and is scheduled to begin operations in February 2025, expanding the system’s reach beyond the initial 21 km of dedicated bus lanes.

Across sectors, the government projects FYDP III initiatives will generate eight million new jobs by mid-2026, emphasising the centrality of private enterprise—especially MSMEs—in achieving sustainable growth.

Investment in infrastructure, agriculture, energy and legal systems demonstrates both scale and direction in Tanzania’s trajectory under FYDP III. The strategic aggregation of diplomacy and private finance aims to translate capital-intensive flagship projects into improved human development outcomes and economic diversification.