By Staff Reporter
While Africa’s overall economic outlook dims under global pressures, Tanzania is bucking the trend – and emerging as one of the continent’s fastest-growing economies.
That was the takeaway from the African Development Bank Group’s (AfDB) 2025 African Economic Outlook, released this week, which projects a mixed picture for the continent:
Africa’s GDP growth has been revised downward to 3.1% in 2023, with only modest improvements forecast for the years ahead.
But East Africa situation is upbeat, led by strong performers like Tanzania, charting a different course.
According to the report, East Africa’s economy is expected to grow by 5.9% in 2025 and 2026 – a sharp acceleration from 4.3% in 2024 and well above the continental average.
And among the standout economies driving that momentum? Tanzania.
“Tanzania’s growth is underpinned by resilient investment in infrastructure, strategic value chain development in agriculture and energy, and a digital economy that continues to expand access and opportunity,” the report said.
Rising star
The AfDB’s overall economic downgrade reflects headwinds beyond Africa’s control – particularly the effects of a Washington-led global tariff war, disrupted value chains and weak global demand.
The IMF, in its April 2025 update, cut global growth forecasts to 2.8% in 2025 and 3.0% in 2026.
In contrast, East African economies – notably Ethiopia, Rwanda, Uganda, Djibouti and Tanzania – are expected to sustain annual GDP growth above 6% through 2026.
What sets Tanzania apart is a policy environment focused on long-term resilience.
Public investment in power, roads, rail, ports and water infrastructure has helped unlock productivity across key sectors.
But one of the most significant drivers of inclusive growth has been financial innovation.
Digital finance dividend
Tanzania’s digital revolution – anchored in the explosion of mobile money platforms like Mpesa, Mix by Yas and Airtel Money – has transformed the way people transact, save and invest.
According to the Bank of Tanzania (BoT), more than 42 million mobile money accounts were active in 2023, processing over TSh 140 trillion ($56 billion) in transactions.
This digital infrastructure has proven especially vital for rural households and small businesses previously excluded from the formal financial system.
“Financial inclusion is not just a social objective – it’s an engine of economic growth,” said Dr. Natu El-maamry Mwamba, Permanent Secretary at the Ministry of Finance. She adds: “When citizens can access savings, credit, insurance, and payment systems, they become active economic agents.”
The country’s financial inclusion rate rose to 76.2% in 2023, up from just 16% in 2009 – one of the most dramatic improvements on the continent.
Diversification and the road ahead
The AfDB attributes East Africa’s economic strength in part to diversification.
Unlike many resource-dependent regions, East African economies are more balanced – with growing shares of manufacturing, agriculture, services, and intra-regional trade.
Tanzania, for example, has invested heavily in local agro-processing, renewable energy and industrial parks that support small and medium enterprises.
Combined with reforms in taxation and public finance, the country is creating the conditions for sustained, broad-based growth.
Yet, the AfDB report also issues a note of caution: inflationary pressures, global uncertainty and climate-related shocks remain risks to the outlook.
The report calls on African governments to reinforce macroeconomic stability, address supply-demand imbalances, and improve food and energy security.
A continental benchmark?
With many African economies facing slowdowns, Tanzania’s momentum offers a compelling counter-narrative – and a potential blueprint.
By combining public investment, financial innovation and regional integration, the country is positioning itself as one of the most dynamic economies on the continent.
“Africa needs success stories right now,” said Nazeem Hendricks, Senior Finance Specialist at South Africa’s National Treasury’s Jobs Fund, during the recent Africa Financial Inclusion Summit in Johannesburg. “Tanzania is one of them. It’s not just growing — it’s building systems that include everyone.”
Bottom line
While Africa’s economic narrative grows increasingly complex, Tanzania’s story is one of momentum, modernisation and inclusive growth.
And in today’s uncertain global economy, that may be exactly the kind of leadership Africa needs.
