DODOMA: TANZANIA has proposed a new revenue-sharing framework for key infrastructure funds aimed at strengthening financing for roads, rural electrification, water services, railways and special economic zones.
Presenting the Government Revenue and Expenditure Estimates for 2026/27 in the National Assembly today, Finance Minister Ambassador Khamis Mussa Omar said the government plans to amend several laws governing the Roads, Rural Energy, Water and Railway Funds.
Under the proposed changes, 70 percent of revenues collected from the respective sources will be transferred directly to the accounts of the funds to finance their operations and development activities.
Another 25 percent will be channelled to the Government’s Consolidated Fund to support broader public expenditure requirements, while the remaining five percent will be deposited into a special account at the Bank of Tanzania.
The special account will be used to finance infrastructure development in Export Processing Zones (EPZs) and Special Economic Zones (SEZs), including compensation for land acquired by the government for the establishment of industrial zones.
The proposed amendments will affect the Rural Energy Act, the Road and Fuel Tolls Act, the Railways Act, the Water and Sanitation Services Act and the Petroleum Act.
According to Ambassador Omar, the changes are intended to improve the liquidity of the funds and ensure the timely implementation of projects under their respective mandates.
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He said the reforms will also help accelerate the development of critical infrastructure in industrial and export-oriented investment zones, while enhancing the government’s capacity to meet key obligations, including debt servicing.
The government expects the new arrangement to improve the efficiency of infrastructure financing and support Tanzania’s broader industrialisation and economic transformation agenda