Tanzania shines as SADC economic powerhouse

DAR ES SALAAM: TANZANIA continues to shine as a beacon of economic stability and growth within the Southern African Development Community (SADC), according to the latest regional report.

The findings of the report, reviewed during the 61st Meeting of the Committee of Central Bank Governors (CCBG) in Gaborone, Botswana, recently, praised the nation’s exceptional macroeconomic performance.

The Bank of Tanzania Governor, Emmanuel Tutuba, represented the country at the high-level meeting. It shows that while the SADC region’s economy slowed to 3.0 per cent in 2024, Tanzania’s economy defied the trend by registering a 5.5 per cent growth rate, the second highest in the bloc.

This robust performance, driven by resilient domestic activity, stands in stark con- trast to the mixed fortunes of its peers, with some countries like Botswana and South Africa experiencing negative or minimal growth.

Tanzania’s track record of stability is particularly impressive, having maintained manageable fiscal balances and low inflation even amid global economic shocks.

The country’s growth ac- celerated in 2024, thanks to increased exports, favourable weather and improved ac- cess to electricity.

This stable and prudent macroeconomic management, supported by natural endowments and favourable demographics, has positioned Tanzania as an economic anchor in the region.

In addition to its strong growth, Tanzania has been a standout performer in managing inflation.

While the regional average eased to 9.0 per cent, a majority of SADC nations remained above the macroeconomic convergence target of 37 per cent.

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Tanzania was one of only seven member states to suc- cessfully contain inflation within this range, underscoring the effectiveness of its monetary policies.

The report also revealed that Tanzania is a rare success story in regional trade.

While most SADC countries are net importers, Tanzania recorded a notable trade surplus of 2.0 billion US dollars (about 4.94tri/-), a testament to its strong export performance and positive contribution to regional trade integration.

The SADC Macroeconomic Convergence Index further validated Tanzania’s consistency, reaffirming its position as a reliable performer in maintaining economic stability year after year.

The SADC Macroeconomic Convergence Index also reaffirmed Tanzania’s position as one of the most consistent performers in maintaining economic stability year after year.

The 61st Meeting of the CCBG, chaired by the Committee’s Chairperson who is also the Governor of the South African Reserve Bank, Mr Lesetja Kganyago, provided an opportunity for the leaders to deliberate on various strategic issues aimed at stimulating economic growth, strengthening banking supervision and financial sector stability, as well as advancements in payment systems.