AGP Executive Report

Drug Control Warning: Tanzania launched a nationwide “Safe Transport Without Drugs” film campaign after cases where passengers and transport workers were arrested for unknowingly carrying parcels linked to narcotics. Market Access for Farmers: Tanzania secured South Africa’s market for fresh bananas after technical talks on plant health rules, expected to boost exports and farmer incomes. EV Push: Government tax exemptions on electric mobility products aim to cut EV prices and speed adoption, with public institutions told to start buying EVs. Aviation & Trade Links: Musoma and Shinyanga airports are nearing readiness for renewed passenger services after upgrades and flight tests, improving regional connectivity. Lake Tanganyika Transport: MV Liemba restoration is 75% complete, with trial operations due in July and a return to service targeted for August. Finance for Real Growth: Bank of Tanzania’s 60th anniversary saw President Samia urge reforms that translate into higher incomes, business growth, and affordable credit. Gold & Industry Deals: Caro Holdings agreed to buy a 49% interest in Goldrange’s Tanzania gold assets in Bukombe and Chato, funding an initial drilling campaign. Agri Skills & Inclusion: BoT and WFP trained 150+ young farmers and women in financial literacy to improve planning and access to services. Pop Culture & Creativity: Swahili KomikCon drew 150+ fans and creators, pushing local storytelling in Tanzania’s creative industries.

Electric Mobility Push: Tanzania’s 2026/27 budget proposes VAT exemptions on EV-charging equipment and cuts EV import duty from 25% to 10%, with public institutions told to start procuring electric and gas-powered vehicles—expected to lower upfront costs and speed adoption. Vision 2050 Budget Drive: Government unveiled a Sh86.3trn national development plan and a Sh62.33trn budget for 2026/27, targeting 6.3% growth, 1.7m jobs, tighter inflation (3–5%), and higher domestic revenue to fund Vision 2050 priorities like energy, transport, R&D and digital transformation. Aviation & Regional Connectivity: Musoma and Shinyanga airports are nearing completion of upgrades, with Musoma passenger flights expected to resume in July 2026 and Shinyanga later this year, boosting tourism and investment access. Agriculture Finance Skills: Bank of Tanzania and WFP trained 150 young farmers and women in financial literacy to improve planning and farm returns. Lake Tanganyika Trade Boost: MV Liemba restoration is 75% complete, with trial operations in July and a return to service in August, supporting passenger and cargo movement across the corridor. EV Charging Rollout: Autel, UNDP and TANESCO launched public EV charging stations, starting with Dodoma as a flagship demonstration site. Child Labour in Cotton: Tanzania and partners launched a joint push against child labour in the cotton sector, focusing on safer working conditions and mechanisation. Digital Connectivity Deal: EU-backed support includes €37m for the Blue-Raman cable extension linking Djibouti, Somalia, Kenya and Tanzania, strengthening East Africa’s international connectivity. Finance Sector Accountability: President Samia urged banks to translate macro gains into affordable credit and real income growth for farmers, SMEs and entrepreneurs.

Tanzania’s Vision 2050 push: Dodoma says the 2026/27 budget is a “special” launchpad for socio-economic transformation, with Sh62.33tn planned spending and 86.3tn for the first phase of the Vision 2050 development plan, alongside targets to lift growth to 6.3% and raise domestic revenue as donor grants fall. Budget for industry and jobs: The government pairs the plan with tax breaks and VAT exemptions for new businesses and manufacturers, plus continued fuel support, while also prioritising industrialisation, rail expansion (TAZARA revitalisation and SGR links) and digital reforms. Clean energy and mobility: New incentives include VAT exemptions for EV charging equipment, lower EV import duty, and broader support for CNG and electric transport, with public institutions told to shift to cleaner vehicles. Digital payments mandate: From July 2026, key sectors will be required to use digital payments to cut cash and improve oversight. Health financing via levies: Tanzania proposes higher tobacco and sugar levies to fund Universal Health Insurance, plus protections for local water bottlers. Investment momentum: Tanzania reports a record 915 investment projects worth $10.95bn registered in 2025, spanning manufacturing, transport, tourism and agriculture. Regional context: EAC budgets are tabled as partner states align on people-centred, pro-growth spending, while SADC central bank chiefs meet in Dar es Salaam to discuss resilience to global headwinds. Construction and infrastructure links: A Tanzania delegation visits Ashghal’s pavilion at Project Qatar 2026, signalling continued interest in engineering and contracting partnerships.

Budget Push for Industry & Jobs: Tanzania tabled a Sh62.3trn 2026/27 budget, pairing a 12-month tax holiday for newly registered businesses with VAT exemptions on investment inputs and a permanent removal of VAT deferment limits for imported capital goods—aimed at cutting costs for manufacturers and boosting formalisation. Digital Payments Rollout: From July 2026, public transport and other key services will require digital payments, as the government targets a cash-lite economy and expands TIPS usage. Clean Energy Incentives: New tax breaks are set to accelerate CNG and electric vehicle adoption, including VAT exemptions across the CNG value chain and support for conversion equipment. Rail & Industrialisation Focus: The budget doubles down on industrial growth and transport, including continued TAZARA revitalisation and SGR construction to strengthen logistics and regional trade. Fuel & Food Shock Warning: Officials warn Middle East conflict could lift Tanzania’s fuel and fertiliser costs, with diesel already rising despite subsidies. Public Fleet Electrification: Government directed public institutions to prioritise electric and gas-powered vehicles to reduce operating costs and petroleum dependence. Health Funding via Levies: Parliament approved plans to raise Sh7.5bn from extra sugar and cigarette levies to back Universal Health Coverage. Tax Relief for Digital Economy: Fees for online content licences are set to drop sharply to help youth participation and expand digital services. Green Finance Spotlight: KCB disbursed about Sh48.8bn in green loans across renewable energy, agriculture, clean transport and climate-smart projects, while screening large volumes for environmental and social risk. Tazara@50 Regional Trade Story: Tazara launched month-long golden jubilee activities, framing the rail line as a corridor for economic transformation for Tanzania and Zambia. Food Price Pressure Watch: A new analysis flags a looming food crisis risk tied to fuel and fertiliser disruptions, noting Tanzania’s recent price rises in staples like cooking oil, potatoes, bananas, bread and onions.

Budget Watch: Tanzania’s 2026/27 Budget (Sh62.3trn) is set to balance revenue collection with growth, with Finance Minister Khamis Mussa Omar flagging targeted tax relief and reforms to widen the tax base—tax experts warn that higher VAT/excise could squeeze household purchasing power if disposable income isn’t protected. Economic Outlook: Tanzania’s economy grew 5.9% in 2025 as Vision 2025 wrapped up and Vision 2050 begins, with agriculture still the biggest GDP contributor and construction, mining, and electricity also showing momentum. Cost of Living: Rising global oil prices and Strait of Hormuz disruptions are feeding into higher fuel costs, keeping inflation and transport pressures on the agenda as lawmakers expect relief measures. Coffee Upswing: A global Arabica/Robusta price rally is boosting Tanzania’s coffee prospects as production rises and direct exports expand—industry players push for quality, competitiveness, and better market access. Agribusiness Finance: NBC launched a sisal-focused financing drive in Tanga to expand formal services for farmers and strengthen value chains. Trade & Investment Ties: Tanzania and Egypt discussed expanding trade, logistics, livestock cooperation, and customs classification updates. Aviation & Connectivity: Air Tanzania begins scheduled flights to Sumbawanga (to Tabora and Dar), cutting travel time for traders and investors. Mining & Industry: Evolution Energy Minerals confirms drill-ready copper targets at the Chikundo project after soil sampling. Women & Climate Resilience: Maasai women in northern Tanzania are turning drought into income through fodder farming, building resilience as livestock losses mount. Health Infrastructure: Parliament’s health committee urges upgrading Benjamin Mkapa Hospital to national status to expand specialist care and reduce costly overseas referrals.

Tanzania Budget & Vision 2050: Tanzania unveiled a 62.3tn/- shillings (about $24bn) budget framework for 2026/27, the first year of implementing Development Vision 2050, with priority spending on the standard gauge railway, roads, water services, energy and human capital. Aviation Safety & Connectivity: ACI Africa, via Tanzania’s Airfield Ground Lighting inspection and audit training, is strengthening airport safety skills across the region, while Air Tanzania has started scheduled flights to Sumbawanga linking it with Tabora and Dar es Salaam. Ports & Logistics: Dar es Salaam port activity is surging, led by RoRo, container and dry bulk growth—an early sign of faster trade flows and higher demand for cargo movement. Mining & Energy Investment: Kabanga nickel cleared a key regulatory step after talks with President Samia, and the long-stalled Mkuju River uranium project is gaining momentum following Russia engagement; meanwhile Tanzania also pitched geothermal and other energy opportunities at WGC 2026. Trade Partnerships: Egypt and Tanzania discussed expanding trade, updating customs product lists and HS codes, and boosting livestock and halal-compliant meat trade. Digital & Telecom: 5G coverage reached 32.83% of the population, though land coverage remains limited, highlighting the need to close the urban-rural gap. Industry Skills & Research: University of Dar es Salaam research week pushed stronger mineral research and exploration to unlock value for renewable energy and digital transformation.

Port & Logistics: Tanzania’s port system logged strong cargo growth, led by RoRo traffic and DP World container volumes, with RoRo units up 88% year-on-year and containers up 57%—a sign of stronger regional trade flows. Industrial Engineering: Nuberg EPC secured a contract to review, design, procure, install and commission a 45 TPD chlor-alkali plant in Mlandizi, targeting commissioning by January 2027. Textiles & Trade Links: Singapore’s First Lady toured a Dar cotton clothing production centre, highlighting Tanzania’s textile value chain and pushing deeper Tanzania–Singapore cooperation. Bilateral Deals (Trade/Skills/Digital): Tanzania and Singapore signed five agreements during a state visit, covering trade facilitation, double taxation, public service capacity building, and cooperation on digital transformation and skills. Carbon Markets: Singapore and Tanzania agreed to explore Article 6 carbon credit cooperation under the Paris Agreement, aiming for a legally binding implementation framework. Shipping Costs: Maersk doubled peak surcharges on China–East Africa routes to US$2,000 per 40-foot container, with Dar es Salaam charges rising further amid congestion—raising import costs for Tanzania. Clean Cooking & Energy Transition: Shinyanga’s charcoal trade is being pushed toward formal, sustainable control as Tanzania targets 80% clean cooking adoption by 2034. Mining & Resources (Uranium): Tanzania’s Mkuju River uranium project gained momentum after Samia’s Russia visit, with officials saying it is moving closer to full implementation. Zanzibar Finance: Zanzibar plans a stock exchange and investment bank to unlock long-term capital for tourism, infrastructure, fisheries and manufacturing. AFCON 2027 Prep: Tanzania is stepping up AFCON 2027 readiness with stadium upgrades, training facilities and transport coordination reviewed by senior officials.

Tanzania–Singapore Deal Push: President Tharman Shanmugaratnam’s historic state visit to Tanzania is already translating into signed agreements and a clear agenda on trade, investment, logistics, tourism, digital transformation, agriculture, health and skills—aimed at building resilient supply chains and new corridors for business. Uranium Momentum: Tanzania’s $1bn Mkuju River uranium project is getting fresh momentum after President Samia’s Russia trip, with the minerals minister saying infrastructure tenders have started and major developments could follow soon. Zanzibar Capital Market Plan: Zanzibar will set up a stock exchange and an investment bank under the 2026/27 budget, a move meant to unlock long-term financing for tourism, fisheries, blue economy and manufacturing. Shipping Costs Hit Trade: Maersk has doubled peak surcharges on China–East Africa cargo to $2,000 per 40-foot container, with Dar es Salaam facing higher charges tied to port congestion—raising costs for importers and temperature-sensitive goods. Clean Energy Legacy: EnDev’s 13-year clean energy impact in Tanzania is highlighted, with nearly two million people benefiting from cleaner cooking and off-grid electricity solutions. Seed Sector Roadmap: Tanzania launched a national seed strategy and investment plan in Dodoma to improve seed availability, quality control and private-sector participation through 2030. Charcoal Crackdown Spotlight: Shinyanga’s charcoal smugglers are reported using “rat paths” and informal routes to evade forest checkpoints, underscoring enforcement and supply-chain pressures.

Tanzania–Russia Investment Push: Tanzania expects to attract over $2bn in investment from Russia in the next 3–5 years, with focus on agriculture, mining (uranium and nickel), energy projects and digital partnerships after President Samia’s Russia visit. Seed Sector Upgrade: Tanzania launched a Tanzania Seed Sector Development Strategy and Investment Plan to 2030 in Dodoma, aiming to improve seed availability, quality assurance, and private-sector investment. Clean Energy Jobs: d.light Tanzania highlighted its solar expansion since 2019, moving households from kerosene to PAYG solar and expanding employment while advancing the clean energy agenda. Cross-Border Trade Facilitation: The East African Business Council urged Tanzania and Burundi to publish a clear list of commonly traded goods under the EAC Simplified Trade Regime to cut non-tariff barriers and help women and youth traders at Kobero–Kabanga OSBP. Digital Payments Growth: Bank of Tanzania data shows cross-border mobile money inflows rose 33.45% to Sh698bn in 2025, driven by a growing regional digital payments ecosystem. Governance Watch: Tanzania’s charcoal trade in Shinyanga is reported as overwhelmingly illegal, pointing to major forest governance gaps. Maritime Industry Spotlight: Forbes Africa profiled Dar es Salaam Merchant Group’s “class one” shipbuilding capability, citing its MV Liemba reconstruction and new vessel plans.

Tanzania–EU trade and industry finance: The European Parliament voted to block €150m in development funding to Tanzania, citing unaddressed concerns over the 2025 election and rights issues, as Samia Suluhu heads to Moscow—an external funding risk for projects tied to industrial and social development. Digital payments and regional trade: Tanzania’s cross-border mobile money inflows jumped 33.45% to Sh698bn in 2025, showing how mobile finance is becoming core infrastructure for regional commerce. Agribusiness productivity: COPRA distributed improved sesame seeds to over 9,000 farmers in Lindi, Mtwara and Ruvuma, with beneficiaries linking better yields to household education plans. Energy and climate resilience: Experts warn El Niño could bring higher rainfall but also floods and disease risks, pushing farmers and livestock keepers to prepare. Governance and informal fuel markets: A Shinyanga charcoal probe says 95% of charcoal enters markets illegally, highlighting enforcement gaps that affect forestry, jobs and supply chains. Maritime and logistics cost pressure: CMA CGM introduced inland emergency fuel surcharges on India–Africa cargo, including Tanzania, as volatile energy markets raise transport costs. Sustainable tourism and marine conservation: Zanzibar highlighted its mandatory travel insurance scheme after a repatriation case, while Beyond Green spotlighted coral reef restoration efforts in Tanzania’s tourism waters.

Tourism & Risk Management: Zanzibar used the Karibu-KiliFair 2026 exhibition to defend its mandatory travel insurance, saying it fully covered repatriation costs after American influencer Ashley Robinson died while visiting the islands. Maritime & Energy Logistics: Adani Ports (APSEZ) won a 10-year marine services contract for Argentina’s first LNG export project to India, including tug, offshore logistics, crew transfer and supply support under a $70m investment. Trade Costs & Supply Chains: Maersk raised peak season surcharges on China/Hong Kong–East Africa routes, with container fees jumping to $1,000–$2,000 for Kenya and Tanzania, raising pressure on importers and consumer prices. Standards & Fuel Integrity: SICPA Tanzania showcased its fuel integrity solution at TBS’s 50th anniversary, aimed at detecting adulteration and illicit trade in the petroleum supply chain. Finance for Industry: Access Bank Tanzania highlighted a $500m IFC-backed financing partnership to support tourism SMEs and local-currency investment. Mining & Clean Energy: Tanzania pushed ahead on uranium ambitions, with the Mkuju River project positioned to supply about 4% of global output once operational. Regional Infrastructure: Yapi Merkezi began settling SGR construction mineral levy arrears to Nzega District Council, with staged payments tied to the Tabora–Isaka works.

Tanzania–Russia Economic Push: President Samia Suluhu Hassan says Tanzania won’t pick blocs, but her Russia visit is already expected to unlock over $2bn in investment and business in 3–5 years, with talks also touching pharma manufacturing and vaccine production. Air Connectivity for Trade & Tourism: Air Tanzania is set to launch direct flights linking Dar es Salaam, Moscow and Zanzibar from July 2, aiming to boost investor travel and tourism. Standards & Fuel Integrity: SICPA Tanzania showcased its fuel integrity solution at TBS’s 50th anniversary, targeting fuel adulteration, smuggling and illicit trade. Tourism Infrastructure Drive: Tanzania is investing about 146.6bn/- to upgrade roads, airstrips and visitor facilities in the southern safari circuit to attract more private investment and visitors. Uranium for Clean Energy: The Mkuju River project is positioned to supply around 4% of global uranium output once operational, strengthening Tanzania’s role in the clean power supply chain. Financial Inclusion: NBC launched “Tunakuona Mbali” to expand formal banking access, including for Tanzanians abroad, with products for saving, business and education. Regional Trade & Logistics: Dar es Salaam port cargo growth is driving demand for heavy-duty trucks, while Tanzania also seeks stronger trade ties with Nigeria under AfCFTA. Public Health Watch: Ebola concerns remain in focus regionally, with preparedness and border response measures highlighted in neighbouring Kenya.

Port & Logistics Push: Tanzania’s Port of Dar es Salaam cargo volumes jumped from 16.2m tonnes (2020/21) to 27.7m tonnes (2024/25), driving a surge in demand for heavy-duty trucks as haulage firms and local assemblers scale up production. Trade Diplomacy: Tanzania’s High Commission in Abuja is stepping up business-to-business engagement with Nigeria, including at FAB West Africa 2026, to expand markets for tea, coffee, cashews, spices and value-added foods. EAC Policy Risk: A Kenya Finance Bill 2026 excise-duty clause could erase up to a third of Sh350b in regional trade by removing EAC-origin exemptions—raising alarms for manufacturers and traders. Agribusiness Protection: Tanzania will bar buyers with outstanding debts to coffee farmers from purchasing next season, aiming to curb payment disputes and protect growers. Tourism & Investment: UNDP is promoting Lake Victoria Basin tourism and investment as a jobs engine, linking the lake region to the northern safari circuit. Aviation Link: Samia announced direct Air Tanzania flights connecting Dar es Salaam, Moscow and Zanzibar from July 2, boosting tourism and investor travel. Finance for Diaspora: TCB and CPS Africa signed a deal to help diaspora Tanzanians access mortgage financing for Fumba Town in Zanzibar. Shipping Incident: A Tanzania-registered container vessel, Golden Star 1, sank off Batam; all nine crew were rescued and authorities issued navigation warnings.

Air Connectivity & Trade: Samia Suluhu Hassan announced direct Air Tanzania flights linking Dar es Salaam, Moscow and Zanzibar from July 2, aiming to boost tourism, investment and trade with Russia. Investment & Industrialisation: At SPIEF, Tanzania pitched five priority projects to investors, led by the Bagamoyo Special Economic Zone and the Mangapwani transshipment port, alongside mining, fertiliser manufacturing and nuclear energy. Agribusiness Policy: Tanzania barred debt-default coffee buyers from next season, with licences withheld for any buyer owing farmers, as the government pushes for fair payments and stronger coffee competitiveness. Food & Consumer Protection: Tanzania’s coffee and food supply chain also faces enforcement pressure as authorities move to stop unsafe trade, including a crackdown that led to destruction of expired soya chunks in Malawi (regional signal for standards). Tourism & Regional Growth: UNDP is set to unlock Lake Victoria Basin tourism and jobs by linking the lake region with the northern safari circuit, while Belgium Airlines’ maiden flight to KIA highlights growing air links for Tanzania’s tourism industry. Logistics Watch: A Tanzania-registered container vessel, Golden Star 1, sank off Batam; crew were rescued and authorities issued navigation warnings. Environment & Cities: Urban expansion is worsening plastic waste dumping and blocked drainage, raising flooding and disease risks. Energy Connectivity: Ethiopia says it is pushing renewable power links in East Africa and is exploring selling electricity to Tanzania. Finance & Business: Equity Bank opened a Zanzibar Supreme Banking Center for investors and high-net-worth clients, supporting local business growth.

Food & Trade Diplomacy: Tanzania’s High Commission in Abuja says it will take a Tanzania Pavilion to the Food & Beverage West Africa (FAB) 2026 exhibition in Lagos from June 9, pitching premium tea and coffee, cashew nuts, spices and value-added drinks to Nigerian buyers and investors. Investment & Industry Push: President Samia Suluhu Hassan used SPIEF to invite global partners into five priority projects, including the Bagamoyo SEZ and Mangapwani transshipment port, while also signalling interest in joint fertilizer production and nuclear energy talks with Rosatom. SME Finance: Stanbic Bank Tanzania secured a Sh70bn facility to expand SME lending, with focus on sustainable agriculture and value chains. Digital Payments Momentum: Bank of Tanzania data shows Tanzania’s cash-lite shift is accelerating, with merchants accepting digital payments rising to 2.79m in 2025. Environment & Climate Resilience: Tanzania unveiled a Sh7tn five-year environmental programme under Vision 2050, and World Environment Day activities highlighted climate-smart agriculture support, including an award for TADB. Regional Connectivity: Communities along the Katoma–Kanyigo–Bukwali corridor are hopeful as plans for road upgrades could unlock trade with Uganda.

SPIEF & Trade/Industry: At SPIEF in St. Petersburg, President Vladimir Putin called Tanzania a “gateway” for East Africa’s trade, while President Samia Suluhu Hassan used the forum to pitch five flagship investment projects—Bagamoyo SEZ, Mangapwani transshipment port, plus mining, tourism, fertiliser manufacturing and nuclear energy—alongside plans to boost exports to Russia and talks with Rosatom on nuclear power. SME & Finance: Stanbic Bank Tanzania secured a Sh70bn facility to expand SME lending, targeting sustainable agriculture and value chains. Payments & Digital Economy: Bank of Tanzania data shows Tanzania is becoming more “cash-lite,” with merchants accepting digital payments rising to 2.79m in 2025 and P2B transactions up sharply. Climate/Environment & Agriculture: Tanzania launched a Sh7tn, 2026–2030 environmental transformation programme tied to Vision 2050, and TADB received recognition for climate-smart agriculture financing. Logistics/Ports: TEAGTL set a new record at Dar es Salaam port with 85,243 TEUs handled in May 2026. Investment Climate (Zanzibar): Zanzibar President Mwinyi highlighted reforms and infrastructure upgrades to attract investors, positioning the islands as a logistics and trade hub. Youth & Innovation: The Vijana Uchumi Challenge 2026 advanced 100 finalists from 7,852 applications, with ICT/digital services leading ideas.