Tanzania's TZS 1.8 Trillion Healthcare Budget For 2026–2027 Supports The Country's Efforts To Achieve 80% Self-Sufficiency In Drug Manufacturing By 2030
Posted on : Monday, 6th July 2026
For the 2026–2027 fiscal year, Tanzania's Minister of Health, Mohamed Mchengerwa, presented a TZS 1.8 trillion budget, of which TZS 1.15 trillion (64%) was allocated to development. The budget supports the ongoing implementation of universal health insurance, a new TZS 1.2 trillion Muhimbili National Hospital, and a pharmaceutical manufacturing initiative aimed at achieving 80% self-sufficiency in healthcare goods by 2030.
In May 2026, in Dodoma, Minister of Health Mohamed O. Mchengerwa submitted the budget to the National Assembly.
Compared to the TZS 1.76 trillion authorized for 2025–2026, the 2026–2027 allocation is essentially flat.
Eleven strategic initiatives are funded by the budget, including the expansion of specialized services, digital health systems, local pharmaceutical manufacture and health financing.
For the 2026–2027 fiscal year, the Ministry has asked Parliament to approve TZS 1 for the Ministry of Health and its organizations.
By March 2026, the Ministry had received 63% of the 2025/26 budget, with recurrent expenditure financed at 76% and development projects at 56%.
Programs addressing HIV/AIDS, tuberculosis, malaria, immunization, nutrition, safe blood and maternal and child health continued to receive external funding from the Global Fund, the Global Alliance for Vaccines and Immunization (GAVI), the World Bank, the Health Basket Fund (HBF), the United Nations Children's Fund (UNICEF) and the United Nations Population Fund (UNFPA).
TZS 76.20 billion from Ministry headquarters, TZS 165.80 billion from regional referral hospitals and TZS 505.20 billion from institutions and national, specialized and zonal hospitals make up the Ministry's projected revenue collection of TZS 747.20 billion for 2026–2027.
The Government built 10 new regional referral hospitals, rebuilt 50 older hospitals, completed 980 dispensary structures, erected 390 health facilities and increased oxygen plants from 25 to 61.
26,770 patients from other nations were drawn to expert and super-specialist treatments, boosting medical tourism and health diplomacy.
During 2025/26, 11 new pharmaceutical and medical device factories were established, and the Mloganzila Pharmaceutical and Medical Devices Special Economic Zone, a Bio-Equivalent Laboratory, and a cooperation with Sartorius advanced the basis for self-sufficiency.
