Tanzania’s Economic Growth Surges Under Sixth Administration

Tanzania’s Sixth Administration Praised for Economic Growth

Tanzania’s Sixth Administration has been commended for its role in driving economic growth, with experts citing key infrastructure projects and strategic policies as pivotal factors.

Speaking recently, the Governor of the Bank of Tanzania (BoT), Emmanuel Tutuba, confirmed that the country’s economy remains stable and is on a positive trajectory. He projected that Tanzania’s Gross Domestic Product (GDP) is expected to expand by approximately 6% in the second half of the 2024/2025 financial year.

Drivers of Economic Growth

According to Tutuba, this growth is fueled by several factors, including favorable weather conditions, timely availability of agricultural inputs, and continued investment in irrigation infrastructure, transportation services, and reliable electricity supply. Additionally, effective fiscal and monetary policies have contributed to economic stability.

Economic expert and University of Dar es Salaam (UDSM) professor, Haji Semboja, highlighted that under President Samia Suluhu Hassan’s leadership, Tanzania’s economic expansion has been propelled by the effective implementation of the “Kazi Iendelee” (Let the Work Continue) slogan.

“President Samia has successfully advanced economic projects initiated by her predecessor, many of which were only 20% to 30% complete. Today, some have reached 100%, opening up new economic opportunities,” noted Prof. Semboja.

He pointed to several major infrastructure projects, including the Standard Gauge Railway (SGR), which now offers passenger train services between Dar es Salaam and Dodoma. Another key project is the Julius Nyerere Hydropower Plant (JNHPP) on the Rufiji River, which was below 30% completion four years ago but now stands at 99%.

“These and other economic initiatives have strengthened Tanzania’s financial foundation, ensuring that the country moves forward without setbacks,” he added.

Expanding Economic Opportunities

Prof. Semboja further emphasized that new economic activities and job opportunities have emerged across various sectors, ensuring a broader distribution of wealth.

“Today, everyone is actively seeking opportunities for income generation. It is rare to hear someone say they rely on relatives for financial support. Economic prospects have significantly expanded,” he explained.

Overcoming Economic Challenges

Despite challenges such as the global economic impact of the Russia-Ukraine war, the lingering effects of the COVID-19 pandemic, and fluctuations in the US dollar, Tanzania has remained resilient.

UDSM economist, Prof. Humphrey Moshi, acknowledged President Samia’s commitment to large-scale strategic projects that have strengthened the country’s economic framework.

Economic analyst, Gabriel Mwang’onda, echoed these sentiments, noting that Tanzania’s economic trajectory has shown remarkable resilience and improvement over the past four years.

“We have emerged from the COVID-19 crisis, and GDP growth data indicates strong progress—from a 4% growth rate to 5.9%, now approaching 6%. This clearly shows that the economy is expanding,” said Mwang’onda.

He also highlighted increased budget allocations for the production sector, job creation within the healthcare industry, and improved access to medical supplies, which now reach over 80% of healthcare facilities.

Tanzania’s Growing Agricultural Output

In terms of agricultural productivity, Mwang’onda noted that Tanzania has solidified its position as a leading producer in Africa. Over the past four years, the country has overtaken Nigeria to become the continent’s second-largest maize producer. Similarly, Tanzania is now the second-largest tobacco producer in Africa and remains one of the few nations providing substantial fertilizer subsidies to farmers.

With continued investment in infrastructure and economic diversification, Tanzania is poised for sustained growth, solidifying its position as one of Africa’s emerging economic powerhouses.