PM flags medium term plan, cites council loans as 5.0pc

By Guardian Correspondent , The Guardian
Published at 11:48 AM Feb 07 2026
Prime Minister Dr. Mwigulu Nchemba
Photo: File
Prime Minister Dr. Mwigulu Nchemba

IMPLEMENTING the fourth national five-year development plan is designed to deliver structural reforms that will transform mindsets, improve performance and increase efficiency in government operations, the government has affirmed.

Prime Minister Dr. Mwigulu Nchemba said in remarks to the legislature adjournment session yesterday that the government is charting a bold path to become a regional hub for transport, trade, industry and the distribution of goods, as part of its commitment to inclusive economic growth, job creation and transformative reforms.

 “These reforms are expected to drive economic productivity, attract investments and create new employment opportunities, while fostering stronger integration of multiple sectors of economic activity,” he said.

The plan will focus on ongoing flagship projects, strategic initiatives, national debt management, public sector salaries and essential social services as laid out in previous development plans, he said.

At the start of the session, the government presented the medium-term budget framework for 2026/27–2028/29 and proposals for the upcoming five-year national development plan (2026/27–2030/31).

“This plan will stimulate productivity, enhance Tanzania’s competitiveness regionally and internationally, and strengthen linkages across various economic sectors. Our vision is to position Tanzania as the hub for transport, goods distribution, industry and trade across Africa,” he declared.

He instructed regional secretariats to allocate five percent of local council revenue loans specifically for women, youth and persons with disabilities, to support entrepreneurial projects, business improvement programmes and job creation.

Local authorities need to prioritise local investors in tenders and contracts while supporting the growth of small and medium enterprises through citizen participation and affordable financing mechanisms, he said.

Stressing transparency in project implementation, he asked local authorities to report revenue and expenditure to MPs, councillors and other relevant stakeholders.

“All project details, including implementation stages and costs, must be made available to MPs, district officers, mayors, council chairmen and ward councillors. Transparency ensures that development initiatives are closely monitored and benefit citizens,” he said.

MPs need to actively oversee development projects in their constituencies, participate in foundation-laying and project inaugurations and ensure regular reporting on progress, he said.

Acknowledging the critical role of private enterprise in national development, the premier urged public institutions and state firms to take note of reduced reliance on central subsidies by June 2029 in ensuring that the private sector’s contributions in projects are recognised and valued.

“Private sector participation must be respected and be made visible. Their involvement is essential to achieving the national vision and accelerating development,” he added.