Analysts forecast economic growth in 2026

DAR ES SALAAM: ANALYSTS have forecast 2026 as a year of robust economic growth for Tanzania, urging citizens to unite in support of national development, with a particular emphasis on the successful implementation of Vision 2050.

They say the anticipated socio-economic transformation will be driven by the country’s expanding economic infrastructure, including the Standard Gauge Railway (SGR), the Metre Gauge Railway, air transport, ports, road networks, improved electricity supply, as well as a growing and youthful workforce.

Speaking with the ‘Daily News’ yesterday, economist Dr Isaac Safari of St Augustine University of Tanzania (SAUT) said the country is well positioned to perform strongly economically due to supportive infrastructure and growing national commitment.

“2026 is a year of opportunity and success. By building on the existing socio-economic infrastructure, all Tanzanians should work hard wherever they are to contribute to national development,” Dr Safari said.

He noted that improved transport infrastructure has eased the movement of people and services, stimulating trade, investment and overall economic growth.

The completion of SGR Lots One and Two, which connect Dar es Salaam and Dodoma, has significantly improved passenger movement and business linkages between the two cities, he added. Dr Safari stressed the importance of collective effort in realising the National Development Vision 2050, whose implementation is scheduled to begin on July 1, 2026.

Under Vision 2050, Tanzania aims to achieve a one trillion US dollar economy, with a per capita income of 7,000 US dollars (over 17m/- ) within the next 25 years. Full implementation of the Vision is expected to elevate the country from lower-middle-income to upper-middleincome status.

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“The development we desire will be achieved by Tanzanians themselves,” Dr Safari emphasised. However, he said that to attain sustained macroeconomic growth, the country must continue prioritising domestic investors, particularly in key sectors such as agriculture and mining, while strengthening good governance to ensure a peaceful and productive environment.

He also underscored the importance of education reforms to ensure students acquire modern digital skills, including Information and Communication Technology (ICT). Economic consultant Mr Joseph Nkata, based at Austin Makwaia Makani Investment (AMMI) in Dar es Salaam, said that as the country prepares to implement Vision 2050, Tanzania is at a critical moment where ambition must be matched with effective execution.

“What is required now is speed, discipline and a rethinking of how growth itself is pursued,” Mr Nkata said.

He advised the country to rely more on domestic revenue sources, warning that excessive dependence on commercial borrowing at high interest rates could undermine long-term development.

“Such borrowing quietly crowds out spending on skills development, infrastructure and social investment. Redirecting borrowing towards concessional financing, cutting non-essential government expenditure and improving tax efficiency would create fiscal space for growth-enhancing priorities,” he said.

Financial economist Mr Paul Lucumay said he expects the introduction of a new long-term national development framework, alongside the next Five-Year Development Plan.

He added that ministries and local government authorities are likely to review and align their policies with the priorities of Vision 2050, particularly in industrialisation and value addition, the digital economy and innovation to facilitate investment and improve public service delivery.

Meanwhile, Ms Sylvia Kambi, a university graduate residing at Kimara, Dar es Salaam, said she expects the implementation of Vision 2050 to place stronger emphasis on youth empowerment and employment, particularly through the development of 21st-century skills.

She said this would enable many young people to contribute to the economy through self-employment and entrepreneurship, while also improving Tanzania’s competitiveness globally. Ms Kambi urged the government to prioritise digital infrastructure, ensuring reliable and widespread access to enable broader participation in the digital economy On his part, Mlaki Safaris Managing Director Mlaki Thomson said Tanzanians, especially the youth, should not wait passively for Vision 2050 to deliver results.

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“Young people must prepare themselves by acquiring relevant skills and knowledge so that they can actively participate in implementing the Vision and supporting national development,” he said.

Similarly, Ms Erica Chao of Arcatree Safaris noted that Vision 2050 places strong emphasis on the tourism sector as a key driver of the national economy. She said achieving the Vision’s goals would require moving away from outdated practices and embracing technology and innovation, including effective use of digital platforms and social media for service delivery and marketing.

“At Arcatree Safaris, we have already begun aligning our operations with Vision 2050 by abandoning routine practices and embracing technology. This has helped us achieve positive results,” Ms Chao said.

She urged Tanzanians, particularly the youth and public institutions, to embrace mindset change and adhere to the Vision’s priorities to ensure the country achieves its development goals over the next 25 years