Twenty-six of the 43 people on board the Precision Air flight were initially rescued and sent to hospital.
The two pilots survived the crash and managed to speak to local officials from the cockpit but the prime minister says they may have since died.
Rescue workers and local fishermen have been trying to reach those inside.
The plane crashed near the shore at the end of the Bukoba airport runway, so rescuers were able to wade through the water to bring some of those onboard the flight to safety.
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