What You Need to Know
The Tanzania Railways Corporation (TRC) has successfully reduced its dependence on government subsidies, as announced by Transport Minister Prof Makame Mbarawa. This achievement aligns with the Ministry’s financial plans for 2025/26, focusing on development projects and enhancing institutional performance. The upcoming budget review aims to ensure accountability among officials and optimize the 62
Africa-Press – Tanzania. THE Tanzania Railways Corporation (TRC) has begun operating more independently, reducing its reliance on government subsidies.
Minister for Transport, Prof Makame Mbarawa, said this in Dodoma recently while officiating at the Ministry of Transport Workers’ Council meeting for 2026.
“This is a significant and historic milestone and we commend TRC for this achievement,” he said.
Prof Mbarawa said the improvement reflects the Ministry’s plan for the 2025/26 financial year, which focused on implementing development projects and strengthening institutional performance.
He said the upcoming mid-year budget review will help identify departments, units and institutions that have not met their targets in line with approved plans.
According to him, the move will strengthen accountability among officials responsible for implementing the Ministry’s budget and work plan approved by Parliament.
“I expect you to deliberate on this budget thoroughly so that each one of you understands your responsibilities and how to implement them in line with the MediumTerm Expenditure Framework (MTEF) and the Ministry’s work plan,” he said.
Looking ahead, Prof Mbarawa said the transport sector will remain a priority in the 2026/27 budget, particularly in the implementation of development projects.
Approximately 2.872trl/-, equivalent to 4.6 per cent of the total government budget of 62.334trl/-, has been allocated for development projects and other activities under the Ministry of Transport.
“It is our collective responsibility to ensure that all allocated funds are utilised for intended purposes,” he said.
He said the Workers’ Council meeting provides a platform for Ministry staff to contribute their views and build a common understanding in the implementation of the Ministry’s plan and budget.
“Personally, I am pleased with this approach, as it strengthens transparency, inclusivity and accountability in planning and the use of public funds,” he said.
He added that the approach helps staff understand allocations, planned activities and their role in achieving national and international targets.
The Tanzania Railways Corporation has faced challenges in financial sustainability, often relying heavily on government subsidies to operate. Recent efforts to enhance independence reflect broader economic reforms aimed at improving efficiency and accountability within public institutions. The government’s commitment to the transport sector is evident in the allocation of significant funds for development projects, indicating a strategic focus on infrastructure improvement and economic growth. These initiatives are crucial for the country’s overall development and connectivity.
