By Alfred Zacharia
Tanzania’s economy has seen impressive growth in 2024, proving that the country’s efforts to strengthen its economic foundations are paying off.
In her New Year's message on December 31, President Dr. Samia Suluhu Hassan shared the good news, noting that the year was filled with success and positive economic milestones.
Tanzania’s GDP grew by 5.4% in the first half of 2024, a healthy increase compared to 4.8% in the same period of 2023, regardless the global challenges many countries are facing today, including inflation and supply chain disruptions.
“2024 was a year of blessings and success; we must thank God for everything. Our country's economy continued to improve and benefit the citizens,” said President Samia, highlighting how the growth has directly improved the lives of Tanzanians.
The economy’s resilience is largely attributed to sound fiscal policies, strategic investments, and a favorable global environment.
One of the key successes is Tanzania's ability to control inflation. Despite global price hikes, inflation in Tanzania remained steady at 3%, well within the government’s target.
In addition, the country’s national debt stayed manageable, ensuring economic stability.
“The national debt also remained sustainable,” she note, emphasizing that Tanzania’s financial management has positioned the country for continued growth.
The country has also seen a remarkable rise in investment as from January to November 2024, the Tanzania Investment Center (TIC) recorded 865 new projects worth a total of 7.7 billion US dollars.
This surge in investment reflects growing confidence in Tanzania’s business environment and signals that the country is becoming an increasingly attractive destination for both domestic and foreign investors.
When compared to other East African nations, Tanzania’s performance stands out. Kenya, the region’s largest economy, is projected to grow by 5.1% in 2024.
Uganda’s economy is expected to expand by 5.5%, mainly driven by its emerging oil sector, while Rwanda’s economy is set to grow by 7.2%, thanks to its focus on industrialization and services.
Tanzania’s growth rate of 5.4% in 2024 is right in line with these projections, showing that the country is maintaining a solid pace despite regional competition.
One of Tanzania’s strengths is its ability to keep inflation under control. For example, Kenya’s inflation rate stood at 9.2% in 2024, while Uganda’s was around 8.4%.
Tanzania’s inflation control has been a key driver of its economic stability and has set it apart from its neighbors in East Africa.
Agriculture remains the backbone of Tanzania’s economy, employing more than 60% of the population and contributing around 30% to GDP.
The government has been working to modernize the agricultural sector through technology, improved farming techniques, and climate-resilient practices.
Agriculture, along with ongoing infrastructure development, is expected to remain a key driver of economic growth in the coming years.
Investments in infrastructure are also crucial to Tanzania’s future growth. Major projects like the Standard Gauge Railway and port expansions are helping to enhance trade and connectivity within the country and across the region.
These investments are expected to stimulate industrial growth, boost exports, and create thousands of jobs, making Tanzania even more attractive to investors.
The country’s industrialization efforts are starting to bear fruit, with manufacturing expected to grow significantly over the next few years.
According to the World Bank, Tanzania’s manufacturing sector is projected to grow at an average rate of 6.5% annually between 2024 and 2026. As the country diversifies its economy beyond agriculture, this industrial growth is expected to create more jobs and reduce reliance on imports.
The future looks bright for Tanzania, with the World Bank and the International Monetary Fund (IMF) projecting steady growth in the coming years.
Tanzania’s GDP growth is expected to average 5.5% in 2025, driven by continued investments in infrastructure, agriculture, and manufacturing.
The African Development Bank (AfDB) also notes that Tanzania’s economic outlook remains positive, citing the country’s sound policies and strategic investments as key factors in its growth.
However, Tanzania still faces challenges. Global economic uncertainties, such as fluctuating commodity prices and supply chain disruptions, could have an impact.
Additionally, the agricultural sector remains vulnerable to climate change, which could affect crop yields and food security.
The government has been addressing these risks by promoting climate-smart agriculture and improving water management to protect the sector.
Despite these challenges, Tanzania’s economic performance in 2024 shows that the country is on a steady path to prosperity.
President Samia’s message that “2024 was a year of blessings and success” reflects the nation’s achievements and the optimism for the future.
With a focus on industrialization, infrastructure development, and sustainable agricultural practices, Tanzania is well-positioned to continue growing and achieving its economic goals.
As Tanzania moves forward, it is clear that the country’s economic growth is not only benefiting its people but also making it a key player in East Africa’s economic landscape.
The continued focus on sound policies, strategic investments, and building a diversified economy will help ensure that Tanzania remains resilient and competitive in an ever-changing global market.
With its steady growth and bright future, Tanzania is setting an example for other nations in the region and beyond.