TANZANIA is swiftly emerging as one of Africa’s most dynamic economies. Once defined by widespread poverty, the country is now enjoying steady growth across multiple sectors, including tourism, manufacturing, agriculture and finance.
According to the World Economic Forum, Tanzania’s wealth per capita rose by 92 percent between 2000 and 2015—from just $244 to $468. During that same period, the proportion of the population able to afford basic consumption increased by 6 percent, while extreme poverty fell by 2 percent.
This shift reflects long-term efforts to modernise the economy, attract global investment, and better utilise the country’s vast natural resources.
Investment and industry driving the boom
Tanzania is now regarded as a stable and investor-friendly destination, with New York-based magazine, Global Finance, noting a rapid socioeconomic transformation driven by major reforms. In 2023 alone, the country attracted $1.26bn in foreign direct investment.
Key growth areas include mining, energy, real estate, transportation and commercial agriculture. Investment has been bolstered by improved infrastructure, stronger legal protections for contracts, and reforms aimed at reducing bureaucratic red tape.
Tanzania’s mineral wealth — including gold, diamonds, silver, uranium and natural gas — remains a powerful draw. But tourism and finance are also rising fast, with increasing international interest in both sectors.
Steady leadership, strong outlook
Much of Tanzania’s momentum has been credited to former President John Magufuli and continued under President Samia Suluhu Hassan, whose administration has maintained a pro-business, development-focused agenda.
In 2020, the nation’s GDP grew by 4.8 percent to reach $87.3bn, up from $80.9bn in 2019. That makes it the second-largest economy in East Africa, after Kenya.
Looking ahead, Finance Minister Mwigulu Nchemba and Central Bank Governor Emmanuel Tutuba project economic growth to reach 6 percent in 2025, up from an estimated 5.4 percent in 2024. According to the International Monetary Fund, Tanzania’s economy is on track to hit $132bn by 2028.
Risks and regional ties
As with any fast-growing economy, there are challenges. Officials have warned that regional instability, fluctuations in global commodity prices, climate-related disasters, and a possible global slowdown could impact the country’s trajectory.
Nevertheless, Tanzania maintains strong trade relationships. Its main export markets include India, the UAE, South Africa, Kenya and Rwanda, while it imports heavily from China, India, the UAE, DR Congo and Saudi Arabia.
A wealthier future in sight
With foreign investment rising and key sectors expanding, Tanzania’s economic journey is entering a new phase. Once among the continent’s poorest nations, it is now on the path to becoming one of Africa’s wealthiest — a transformation rooted in stability, smart policy, and an ambitious national vision.
