By Business Insider Reporter
Mental health challenges are no longer just a social or medical issue in Tanzania and across East Africa – they have become an economic burden silently draining national productivity, healthcare resources, and household incomes.
According to health experts, untreated mental health conditions such as depression, anxiety, and substance use disorders are increasingly costing the region billions in lost productivity.
In Tanzania, where over 80 percent of the workforce is employed in the informal sector, mental health struggles often go unnoticed, leading to absenteeism, reduced efficiency, and a high turnover of labour.
“Poor mental health directly affects workplace performance. A farmer struggling with depression may miss planting seasons; a trader battling anxiety may be unable to focus on business negotiations,” notes a Dar es Salaam–based psychiatrist. “The cumulative effect is slower economic growth and rising poverty levels.”
Across East Africa, the problem is amplified by a severe shortage of mental health professionals.
Tanzania has fewer than 60 psychiatrists for a population of 65 million, while Kenya and Uganda face similar gaps. This scarcity drives up costs for families seeking private care, often forcing them to sell assets or withdraw children from school – perpetuating cycles of poverty.
The economic losses are compounded by stigma. Many employees hide their struggles, leading to untreated illnesses that worsen over time.
In some cases, businesses quietly bear the hidden costs through rising accidents, poor decision-making, and reduced innovation.
A World Health Organization (WHO) study estimates that for every $1 invested in mental health care, economies gain US$4 in improved productivity.
Yet, East African governments still allocate less than 1 percent of national health budgets to mental health.
The regional integration agenda also risks being slowed down. Cross-border trade, small business resilience, and youth entrepreneurship – all crucial for East Africa’s growth – depend heavily on a healthy workforce.
But the rising prevalence of substance abuse among young people, coupled with urban stress and unemployment, threatens to derail these ambitions.
Tanzania has begun small steps – including community-based mental health programs and awareness campaigns – but experts argue that without scaled-up investment, the economic toll will keep climbing.
As East Africa positions itself for industrialisation and digital transformation, mental health could make or break the region’s economic trajectory. Healthy minds mean productive economies, but until the region treats mental health as a development priority, its economies will continue to lose silently.
