Tanzania Economic Data & Projections

Tanzania Economic Outlook

One of Africa’s fastest-growing economies:

Tanzania has maintained robust economic growth over the past two decades, with GDP expansion averaging 6-7% annually before the COVID-19 pandemic. The economy is largely driven by agriculture, mining, tourism, and infrastructure development. With a population exceeding 60 million, Tanzania is increasingly positioning itself as a key economic player in East Africa.

Natural resources and diversification:

The country is endowed with abundant natural resources, including gold, natural gas, and vast arable land. Gold remains Tanzania’s largest export, but the government has made efforts to diversify by promoting manufacturing, renewable energy, and services. The country also has a growing tourism sector, with attractions like Mount Kilimanjaro, Serengeti National Park, and Zanzibar drawing millions of visitors annually.

Infrastructure and industrialization push:

The Tanzanian government has prioritized large-scale infrastructure projects, such as the Standard Gauge Railway (SGR) and the expansion of Dar es Salaam Port, to boost regional trade. Efforts to industrialize through special economic zones and agro-processing have gained traction, though challenges remain in terms of investment climate and bureaucratic hurdles.

Challenges and risks:

Despite its impressive growth, Tanzania faces structural weaknesses, including high poverty levels, an underdeveloped financial sector, and regulatory uncertainty, particularly concerning foreign investment policies. Access to electricity and quality infrastructure remains a challenge for businesses, while dependence on agriculture makes the economy vulnerable to climate shocks.

Tanzania’s economic outlook:

Tanzania’s economic prospects are bright, with the country poised for continued strong growth, supported by public infrastructure investment, a growing middle class, and regional trade opportunities. However, sustaining high growth rates will require improved governance, policy consistency, and efforts to boost private-sector confidence. If reforms are implemented effectively, Tanzania has the potential to become a major industrial and trade hub in East Africa.

Tanzania's Macroeconomic Analysis:

Nominal GDP of USD 79.6 billion in 2024.

Nominal GDP of USD 78.0 billion in 2023.

Nominal GDP of USD 78.0 billion in 2023.

GDP per capita of USD 1,231 compared to the global average of USD 10,589.

GDP per capita of USD 1,231 compared to the global average of USD 10,589.

GDP per capita of USD 1,220 compared to the global average of USD 10,589.

Average real GDP growth of 5.9% over the last decade.

Average real GDP growth of 6% over the last decade.

Average real GDP growth of 6% over the last decade.

Sector Analysis

In 2022, services accounted for 28.9% of overall GDP, manufacturing 8.4%, other industrial activity 39.0%, and agriculture 23.7%. Looking at GDP by expenditure, private consumption accounted for 53.8% of GDP in 2023, government consumption 8.1%, fixed investment 40.3%, and net exports -2.2%.

International trade

In 2023, manufactured products made up 11.9% of total merchandise exports, mineral fuels 3.6%, food 33.1%, ores and metals 5.0% and agricultural raw materials 3.1%, with other categories accounting for 43.3% of the total. In the same period, manufactured products made up 67.0% of total merchandise imports, mineral fuels 21.6%, food 8.8%, ores and metals 1.4% and agricultural raw materials 1.1%, with other goods accounting for 0.1% of the total. Total exports were worth USD 9.20 billion in 2024, while total imports were USD 14.50 billion.