Robust economic growth signals long-term stability

DAR ES SALAAM: TANZANIA’S economic performance during President Dr Samia Suluhu Hassan’s first year in her second term provides encouraging evidence that sustained reforms, strategic public investment and prudent economic management are laying a strong foundation for long-term stability and inclusive prosperity.

With real GDP growth reaching 5.9 per cent in 2025, up from 5.6 per cent in 2024, the economy continues to demonstrate resilience and an increasingly diversified growth base.

Inflation remained within the Bank of Tanzania’s target range, while improved sovereign credit assessments have strengthened confidence in the country’s economic outlook.

Growth across finance, electricity, mining, information and communication, transport and manufacturing demonstrates that Tanzania is gradually expanding beyond traditional economic drivers.

Equally important is agriculture, which remains central to livelihoods, food security and economic activity. The challenge now is to translate this momentum into greater domestic value addition, productive employment and improved household incomes.

Infrastructure investment is another important pillar of this transformation. The completion of 78 out of 81 emergency road and bridge projects by April 2026 demonstrates the government’s commitment to restoring connectivity following weather-related destruction.

The completion of nine major bridges, alongside extensive road construction and maintenance, further strengthens links between communities, markets and economic centres.

These investments are not merely physical achievements. Reliable transport infrastructure reduces business costs, facilitates agricultural marketing, improves access to essential services and creates opportunities for communities previously constrained by poor connectivity.

Projects such as the Katuma River Bridge illustrate how infrastructure can directly support trade and regional integration. Nevertheless, sustained progress will depend on addressing remaining challenges.

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Industrial production remains uneven, infrastructure maintenance requires consistent financing, and climate resilience must become central to future planning.

Similarly, macroeconomic stability must translate into more formal jobs, higher real wages and wider economic participation. The positive sovereign outlook from Fitch Ratings, alongside Moody’s affirmation of Tanzania’s credit rating, reinforces confidence in the country’s fiscal management and growth prospects.

Such recognition, however, should be viewed as an opportunity to deepen reforms rather than a reason for complacency.

Ultimately, Tanzania’s long-term economic success will not be measured by GDP growth and completed infrastructure alone, but by how effectively these achievements improve ordinary citizens’ lives.

Sustaining investment, strengthening productive industries and expanding employment opportunities will ensure that today’s economic resilience becomes tomorrow’s shared prosperity