Tanzania's Ministry of Water has unveiled a budget of approximately TShs 1.12 trillion (around $431 million) for the 2026/2027 financial year, setting out an ambitious agenda to expand clean water coverage, modernise infrastructure, and address the growing pressures of climate change across the country.
Presenting the budget speech to Parliament in Dodoma, Minister for Water Hon. Jumaa Aweso (MP) centred his address on water security as a cornerstone of Tanzania's social and economic development. "For the 2026/27 financial year, the Ministry will continue to enhance the management and development of water resources with the aim of ensuring water security and availability for social, economic, and ecological activities," he stated.
Smart meters is the solution. There will be no water disconnections on weekends or public holidays, and the customer will be notified in advance before service is cut
Among the headline commitments is the finalisation of the National Water Master Plan and continued rollout of the National Water Grid Project, an initiative designed to channel water from lakes and rivers to chronically underserved regions. Climate adaptation also features prominently, with plans to construct or rehabilitate 33 existing dams, design and build 34 new ones, and conduct environmental assessments for two further sites. Rooftop rainwater harvesting will be encouraged at household level. "We do not need every sector to build its own dam. Instead, let us build multi-purpose dams. Through this cooperation, we will also promote rainwater harvesting through rooftops and reservoirs," Aweso said.
Reaching the unserved
On service delivery, the Ministry aims to complete 992 rural water projects, 196 urban schemes, and 26 sanitation works, while launching new projects in 314 of the 1,575 villages currently without clean water access. Schools and health facilities will receive dedicated attention, with the Ministry coordinating across government agencies to guarantee reliable supply to critical public institutions.
Tanzania is developing a dedicated Water Sector Bond to attract capital from domestic and foreign investors, as part of a broader ambition to source 70% of water sector investment from private funds
Tackling water loss is a further priority, with plans to deploy electronic metering, smart management systems, and prepaid meters, backed by stricter enforcement against infrastructure vandalism and illegal connections. Rollout has already gained momentum: as of April 2026, 23,156 units had been installed across rural and urban areas, up from 13,526 in 2025, with a target of 1,114,133 meters for urban customers by 2030. "Smart meters is the solution. There will be no water disconnections on weekends or public holidays, and the customer will be notified in advance before service is cut," Aweso said.
Opening the door to private capital
Financing strategy received significant attention. The Ministry is developing a dedicated Water Sector Bond to draw capital from domestic and foreign investors, within a broader Vision 2050 target of 70% of sector investment coming from private sources. The National Water Policy (2025 edition) has been updated to facilitate greater participation from the private sector, non-governmental organisations, and development partners.
That push is already taking shape beyond the parliamentary chamber. At a PPP conference held in Dar es Salaam over the weekend, Deputy Minister Kundo Mathew made a frank appeal to investors, warning that the country could not meet its water targets by relying solely on government funding. The Ministry has developed a private sector engagement strategy to structure that collaboration, backed by an enabling policy, legal and regulatory framework. The government views the water sector as a critical pillar of Vision 2050, with PPPs seen as a key mechanism for mobilising capital, introducing modern technology, improving management efficiency, and accelerating service delivery.
