DODOMA: TANZANIA has made significant strides in economic growth and poverty reduction over the past four years, thanks to strategic investments and policy reforms aimed at fostering sustainable development.
From 2020 to 2024, the government prioritised energy, water, healthcare, education and transportation to enhance the country’s economic resilience and improve citizens’ quality of life.
The country’s real Gross Domestic Product (GDP) growth rate increased from 4.8 per cent in 2020 to 5.1 per cent in 2023.
Prime Minister Kassim Majaliwa in Dodoma during the party’s Extraordinary General Meeting. Inflation was successfully controlled, falling from 3.1 per cent in 2020 to 3 per cent in 2024, while domestic revenue grew significantly, rising from 8.1tri/- in 2020 to 13.54tri/-in 2024.
To ensure a broader tax base, the number of registered taxpayers increased to 6.4 million during this period, reflecting improved tax compliance and efficient collection mechanisms.
At the same time, the government eliminated 374 non-essential taxes, making the business environment more conducive for economic activity and investment.
A cornerstone of the government’s development agenda has been the fight against poverty, with a focus on raising living standards and empowering citizens economically.
The Tanzania Social Action Fund (TASAF) extended support to 1,357,965 households in 17,260 villages, streets and wards across Mainland Tanzania and Zanzibar.
These programmes have been instrumental in reducing poverty levels, especially among vulnerable populations.
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During the same period, 17,421 projects in health, education and water sectors were implemented, creating temporary employment for 662,374 households.
These projects not only provided essential services but also created opportunities for income generation in underserved areas. In addition, 240.9bn/- in interest-free loans were disbursed through the Women, Youth and People with Disabilities Development Fund.
This initiative has supported small businesses, empowered marginalised groups and stimulated economic activity at the grassroots level.
To promote entrepreneurship, 164,443 young people who graduated from secondary and higher education institutions received training in business skills. The country’s financial sector recorded remarkable progress between 2020 and 2024, providing a strong foundation for economic growth.
Foreign exchange reserves reached 5.05 billion US dollars in 2024, sufficient to cover 4.1 months of imports. Export earnings increased significantly, rising from 8.81 billion US dollars in 2020 to 14.66 billion US dollars in 2024.
Revenue collection by the Tanzania Revenue Authority (TRA) also improved dramatically, with monthly collections rising from 1.47tri/- in November 2020 to 2.37tri/- in November 2024.
These gains have enabled the government to invest in infrastructure and social services, further supporting economic development. Verified debts amounting to 3.47tri/- were cleared during this period, benefiting contractors, service providers and suppliers.
The government also extended loans worth 693.9bn/- to more than 1.7 million beneficiaries in agriculture, livestock and fisheries sectors, supporting productivity and rural livelihoods.
In a bid to modernise agriculture and ensure food security, the Tanzania Agricultural Development Bank (TADB) significantly increased its capital from 60bn/- in 2020 to 438bn/- in 2024.
Recognising the critical role of the private sector in driving economic growth, the government implemented key reforms to create a more investor-friendly environment.
Sixty-two laws were amended and 374 unnecessary fees and levies were eliminated. The One-Stop Centre system was streamlined to include seven government institutions, enabling investment permits to be processed within three days. As a result, 1,282 projects worth 15.1bn/- were registered, projected to create 248,309 jobs.
To enhance digital governance, the Government Enterprise Service Bus (GovESB) system was established, enabling seamless communication and data sharing among 80 public institutions. This initiative has improved efficiency, transparency and service delivery across government agencies.
The government’s efforts to strengthen the economy and reduce poverty are not just numbers on paper they represent tangible improvements in the lives of Tanzanians.
Investments in social and economic infrastructure have laid the groundwork for sustainable development and created opportunities for millions of citizens.
