ZANZIBAR: PRESIDENT of Zanzibar, Dr Hussein Ali Mwinyi has commended the Bank of Tanzania (BoT) for its instrumental role in driving the country’s economic growth.
Speaking during an iftar event organised by BoT on Tuesday evening, President Mwinyi said his government values the contribution of the bank in planning and driving the economy forward for the benefit of the citizens.
He expressed his satisfaction with the financial guidance provided by the BoT in managing Zanzibar’s economy, saying the current economic success in Tanzania, including Zanzibar is driven by the strong financial management being implemented by BoT.
Dr Mwinyi also commended the Bank for maintaining the annual tradition of bringing together BoT stakeholders during the month of Ramadan.
He said that the Tanzanian economy grew by 5.4 per cent in the mainland, while Zanzibar’s economy grew by 7 per cent.
The BoT Zanzibar branch Chairperson for Tanzania Union of Industrial and Commercial Workers (TUICO), Nuhu Namanje expressed the bank’s pride in serving the government and the public at large.
Meanwhile, BoT dismissed misleading reports circulating in various media outlets claiming that the Tanzanian shilling is the worst-performing currency globally.
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The BoT Governor, Mr Emmanuel Tutuba said in a statement issued recently that between July and December of the previous year, the shilling sharply appreciated by 9.51 per cent, becoming the bestperforming currency globally.
However, the trend reversed starting in January 2025. “This is consistent with the seasonal nature of foreign exchange flows in the country and the Bank’s foreign exchange policy, which allows exchange rate flexibility,” he noted.
He added that Tanzania’s macroeconomic indicators show strong growth, stable prices, a narrowing current account deficit and a resilient financial sector that supports stable Tanzanian shilling in the medium to long term.
The economy grew by 5.4 per cent in 2024, making it one of the fastest growing economies in Africa.
Inflation remains stable and low at 3.1 per cent in February this year, decreasing from 4.6 per cent in 2022.
Contrary to the assertion made in the published article, Mr Tutuba said the national debt is sustainable, with the debt to GDP ratio remaining low at 41.1 per cent in 2023/24, below the IMF recommended threshold of 50 per cent.
The current account deficit narrowed significantly from 3.7 per cent in 2023 to 2.7 per cent of GDP in 2024 due to improved exports, specifically from agriculture, mining and tourism.
“This explains the sharp appreciation of the shilling, which was observed towards the end of December last year,” he said.
Moreover, the performance aligns with reports published by the World Bank, the Bank for International Settlements, the IMF and global credit rating agencies.
The Bank assured the public that it will continue to fulfill its core mandate of ensuring price stability by implementing monetary policy measures geared towards achieving macroeconomic stability, including the shilling stability
