Mining, agriculture lead Tanzania’s economic growth in 2025

ZANZIBAR: Mining, agriculture, construction, and tourism were the main drivers behind Tanzania’s economic growth in 2025, with the country’s GDP expanding by 5.8percent, President Samia Suluhu Hassan announced in her year-end address. The growth marked an increase from 5.2percent in 2024.

Speaking from Tunguu, Zanzibar, President Samia highlighted that deliberate government investment in strategic infrastructure, coupled with strong sectoral contributions, had strengthened the economy.

“Our economy has continued to grow due to deliberate investments in strategic infrastructure and strong contributions from sectors such as mining, agriculture, construction, finance, services, and tourism,” she said.

Mining remained a key source of foreign exchange, contributing significantly to government revenue. Agriculture, which employs more than 65 percent of Tanzanians, continued to be the backbone of rural livelihoods and food security.

“We are proud that despite challenges, the agriculture sector continues to provide both sustenance and income for millions of Tanzanians,” she added.

Construction activities surged in major urban centers, driven by public investments in roads, energy, and water projects.

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Tourism, particularly safaris and coastal destinations, recorded strong gains with international arrivals rebounding following global travel recovery. The sector contributed substantially to foreign exchange earnings and employment.

President Samia said inflation remained manageable at 3.4percent, which helped ease pressure on household living costs, especially food prices. Foreign exchange reserves reached $6.6 billion, sufficient to cover more than five months of imports, reflecting Tanzania’s growing financial stability. Public debt also remained sustainable, as the government focused on repaying high-interest loans and restructuring others to reduce interest costs.

“The government is continuing with plans to repay expensive loans faster and extend repayment periods to ease the burden on public finances,” the President said.

Looking ahead to 2026, she stressed that sustaining growth would require strong domestic production, private investment, and continued political stability. She encouraged citizens to work collectively, with unity and patriotism, to ensure that economic gains translate into improved living standards, jobs, and better public services.