Dodoma. Tanzania’s minister for Industry and Trade, Judith Kapinga, has tabled a Sh137.81 billion budget proposal for the 2026/27 financial year, outlining an ambitious agenda focused on industrial expansion, innovation, youth entrepreneurship and private sector growth.
Presenting the ministry’s estimates in Parliament on Friday, May 22, Ms Kapinga said the proposed budget seeks to accelerate industrial transformation and strengthen Tanzania’s competitiveness in domestic and international markets.
She asked Parliament to approve a total of Sh137,812,633,000 for Vote 44 under the Ministry of Industry and Trade.
Of the amount, Sh104.12 billion has been allocated for recurrent expenditure, while Sh33.69 billion is earmarked for development expenditure.
Ms Kapinga said Sh78.05 billion of the recurrent budget would finance salaries, while Sh26.07 billion would cover other operational expenses.
“All development funds will come from domestic sources,” she told Parliament.
She said the ministry’s plan and budget for 2026/27 were prepared in line with several national frameworks, including Tanzania Development Vision 2050, the Fourth Five-Year National Development Plan for 2026/27 to 2030/31, the ruling CCM party’s 2025 election manifesto, ministerial strategic plans, sector laws and policy directives issued by senior government leaders.
“The ministry’s priorities are aligned with the country’s broader economic transformation agenda,” Ms Kapinga said.
She outlined seven major priorities that will guide implementation during the 2026/27 fiscal year.
The government plans to continue implementing flagship and strategic industrial projects aimed at stimulating industrial growth and increasing national productivity.
The ministry also intends to strengthen industrial production capacity and improve service delivery by enhancing the business environment.
This includes the construction of industrial clusters and industrial estates targeting small and medium-sized enterprises.
Ms Kapinga said the government would continue promoting industrial and commercial development through innovation, modern technology and skills training.
“We will continue stimulating industrial and trade development through innovation and the use of modern technology, education and skills development,” she said.
The minister added that improving access to finance and capital for entrepreneurs and industrial producers remains a major priority for the coming financial year.
She said the government also plans to improve the business environment further in order to stimulate private sector growth and attract more investment into productive sectors of the economy.
Another key focus area is market expansion for Tanzanian products and services both locally and internationally.
The ministry also plans to establish and strengthen Innovation and Business Hubs targeting young entrepreneurs.
Ms Kapinga described the initiative as a strategic tool for accelerating economic growth and preparing young people for the changing global economy.
“I wish to emphasise and provide detailed clarification regarding the ministry’s plan to establish Innovation and Business Hubs for youth as an important tool for stimulating national economic growth,” she told Parliament.
“These centres will enable young people with innovative business ideas to access a conducive environment for developing and managing competitive businesses in domestic and international markets.”
She said rapid technological advancement and the rise of the digital economy require Tanzania to invest more heavily in youth innovation and entrepreneurship.
“At a time when the world is changing rapidly through technological development, the digital economy and knowledge-based systems, it is important for our country to invest in innovation and youth entrepreneurship,” she said.
The minister noted that global trade is increasingly shifting towards digitally delivered services.
“Digital trade sales are expected to become twice as large as trade in goods,” Ms Kapinga said.
“There is every reason to ensure that young people entering the labour market benefit from these rapidly expanding global opportunities.”
The budget speech also reflected the government’s broader push to industrialise the economy, expand value addition and reduce reliance on imports.
Ms Kapinga said Tanzania has already made progress in some industrial subsectors, including edible oil production.
She told Parliament that the country currently has 1,604 edible oil processing industries, including micro, small, medium and large-scale factories.
According to the minister, the factories have a combined installed production capacity of more than 2.5 million tonnes annually and have created thousands of direct and indirect jobs across the country.
However, she acknowledged that domestic production still falls short of national demand, underscoring the need for continued investment in industrial production capacity and value addition.
The minister also reaffirmed the government’s commitment to improving the investment climate and strengthening collaboration with private sector players.
In recent months, the ministry has held discussions with major investors, including manufacturing and technology firms, as part of efforts to accelerate industrial growth and encourage technology transfer.
Ms Kapinga has repeatedly stressed the importance of modern technology, digital innovation and industrial competitiveness in Tanzania’s long-term economic agenda.
Earlier this month, she also highlighted opportunities arising from China’s zero-tariff policy for African exports, saying the initiative could help Tanzania expand exports and industrial output.
The ministry’s budget proposals now await parliamentary debate and approval before implementation begins in the 2026/27 financial year.
