By Correspondents Peter Haule and Jordan Mbwambo, Dodoma
Tanzania’s economic transformation agenda will remain a long-term priority, aimed not only at accelerating growth but also at ensuring that expansion translates into jobs, higher incomes and improved welfare for citizens, Finance Minister Ambassador Khamis Mussa Omar has said.
Speaking during a meeting with a delegation from Moody’s Investors Service at Treasury Square in Dodoma, Ambassador Omar said the government’s reform drive is focused on building a resilient, inclusive and investment-friendly economy.
The Moody’s team was led by Mr. John Walsh and is in Tanzania as part of an ongoing sovereign credit assessment of the country’s performance and outlook in international capital markets.
Growth momentum amid global shocks
Despite a challenging global environment marked by the Covid-19 pandemic, rising inflation and tighter global financial conditions, Ambassador Omar said Tanzania’s economy has continued to demonstrate resilience.
He noted that the economy grew by 5.4 percent last year and is projected to expand further to around 6 percent in the 2025/26 financial year.
“Tanzania’s economy has continued to strengthen despite global economic disruptions,” the minister said, adding that macroeconomic stability remains a cornerstone of the government’s policy framework.
Inflation, he noted, has remained subdued for several consecutive years, staying below the five percent threshold and fluctuating between 2.9 and 3.4 percent – levels that support purchasing power and investor confidence.
Infrastructure investment at the centre
Ambassador Omar underscored that investment needs remain substantial, particularly in strategic infrastructure such as ports, airports, railways and road networks, which are critical to unlocking productivity and regional trade.
He highlighted ongoing flagship projects, including the Standard Gauge Railway (SGR), the Julius Nyerere Hydropower Project and sustained investment across key social and economic sectors.
“These large-scale strategic projects are expected to further stimulate economic growth, strengthen resilience and accelerate social development,” he said.
Moody’s cites policy stability, reforms
For his part, Moody’s team leader John Walsh said the agency’s decision to upgrade Tanzania’s sovereign credit rating to B1 with a stable outlook reflects the country’s demonstrated economic and financial resilience in recent years.
“The upgrade to B1 was driven by Tanzania’s macroeconomic stability and policy consistency, even in the face of global economic shocks,” Walsh said.
He noted that Tanzania maintained solid growth despite the impacts of the Covid-19 pandemic, global inflationary pressures and rising international interest rates.
According to Walsh, the rating action was also influenced by ongoing structural reforms being implemented under the International Monetary Fund (IMF) programme, which is nearing completion.
“The upgrade reflects improvements in macroeconomic policy credibility and government-led reforms under the IMF-supported programme,” he said.
Addressing long-standing challenges
Walsh added that the government has made notable progress in tackling long-standing structural challenges, including low domestic revenue mobilisation and weaknesses in policy implementation.
The current assessment, he explained, aims to evaluate progress achieved over the past two years, identify remaining risks and assess the direction of reforms going forward.
“The objective is to develop a comprehensive picture of Tanzania’s current economic conditions, the gains already made, and the measures being taken to ensure sustainable growth and long-term fiscal stability,” he said.
Strong signal to investors
The latest assessments by both Moody’s and Fitch Ratings place Tanzania at B1 (stable outlook) and B+ (stable outlook), respectively—ratings that signal improving credit fundamentals and rising confidence among international investors.
For Tanzania, the endorsements reinforce its positioning as a relatively safe and increasingly attractive destination for investment in East Africa, particularly as the government doubles down on reforms, infrastructure expansion and macroeconomic discipline. As global capital becomes more selective, Tanzania’s message to markets is clear: stability, reform and growth remain firmly on course.
