TANZANIA AT GLANCE
Tanzania, Strategic Location for Investors
Country Overview
Tanzania is a union between Tanganyika and the Zanzibar islands. The country’s total area covers 947,300 Km2, including landmass and the three large freshwater lakes, namely Victoria, Tanganyika, and Nyasa, which form boundaries with neighboring countries. Mount Kilimanjaro, the tallest mountain in Africa, is a dormant volcano, rising to 5,895 Meters, and is the only snowcapped mountain in Africa, thus, a major tourist attraction in the northeast of the country. Mount Meru, rising to 4,565 Meters is found to the west of Kilimanjaro and is also of volcanic origin.
Population Outlook
In 2022, The United Republic of Tanzania conducted the 6th Population and Housing Census (PHC). The results indicate that Tanzania's population was 61,741,120 compared to the projected population of 59,441,988 in 2021. This makes Tanzania the second most populated country in the East African region preceded by the Democratic Republic of Congo (DRC).
Tanzania has over hundred and fifty ethnic community groups; however, they are united by a common language known as Kiswahili. Kiswahili is the national language in daily use and English is the official medium of communication in secondary schools, academic institutions, and business settings. Political System and Governance
Political Overview
The President of Tanzania is the Head of State and Head of Government and is elected every 5 years and can only serve for a maximum of two terms. 23 INVESTMENT GUIDE 2024 – 2025 The central government comprises three organs, which are: the President and Cabinet (the ‘executive branch; (ii) the Judiciary; and (iii) the Parliament. Parliamentary elections take place every 5 years and several political parties participate. The current constitution provides for the rule of law, separation of powers, and political pluralism.
The Economy Tanzania is a rapidly growing market; it ranks among the 20 fastest-growing economies in the world. The country has exhibited a GDP growth rate of around 7% for the past 10 years and it is predicted by the IMF and World Bank to continue this rapid growth for the next decade. Over the past two decades, it has been transformed from a centrally planned economy to a market-oriented system through the successful implementation of free-market orientated reforms.
Economic Outlook
The Government has encouraged private sector-led growth through the restoration of market forces and less Government intervention in commercial activities. Overall, the reforms have resulted in positive growth trends and impressive macroeconomic indicators with inflation rates falling from 27.4% in 1995 to 3.1% in 2024. The recent discovery of large quantities of natural gas on the East Coast, and the interest that investors have shown in this field is a positive sign of rapid advancement of the economy. Recent reforms are intended to improve infrastructures and private sector growth through Public-Private Partnerships (PPP).
Macroeconomic Performance & Outlook
GDP Growth:
Tanzania's economy shows robust expansion, with growth reaching 5.5% in 2024 and projected to accelerate to 6% in 2025, driven by agriculture, manufacturing, and tourism.
Inflation & Fiscal Stability:
Inflation remains subdued at 3.2% (2nd 2025), below the central bank’s 5% target. The fiscal deficit narrowed to 3.5% of GDP (2022/23) and is expected to stabilize at 2.5% by 2025, supported by revenue reforms.
External Sector:
The current account deficit improved from 7.3% of GDP (2022) to 2.6% (2024/2025), fueled by mineral exports (gold), tourism recovery, and declining oil imports. Foreign reserves stand at $6 billion a recent high
Poverty & Employment: Poverty rates remain high at 27.7% (2020), though unemployment declined to **9.3% (2021/22). Structural challenges persist in shifting labor from agriculture (65% employment) to higher-productivity sectors.
Credit to private sector grew by 16.7% in the second quarter of 2025. Non-performing Loans decreased to 3.4% in May 2025 the tolerable threshold of 5%.
Government Initiatives and Development Vision
Vision 2050: Aims to transition Tanzania into a middle-industrialized economy via private sector-led growth, human capital development, and climate resilience.
Business Environment Program (2025–2027): TZS 100B budget* to boost SME finance, digital adoption, and regulatory efficiency.
Infrastructure Development
Tanzania is currently undergoing a massive and ambitious infrastructure development drive, recognizing it as a critical enabler for economic growth, industrialization, and regional trade. The government's vision, outlined in plans like Tanzania's Development Vision 2025 and the Five-Year Development Plan, prioritizes significant investments across various sectors.
Key overview of key infrastructure development areas:
Transport Infrastructure (Railways, Roads, Ports, Aviation):
Standard Gauge Railway (SGR): This is the flagship project, aiming to revolutionize freight and passenger transport across the country and connect to neighboring landlocked countries (Burundi, Rwanda, Uganda, DRC).
The SGR has already drastically reduced travel times (e.g., Dar es Salaam to Dodoma from 10 hours by bus to 3.5 hours by train), lowered transportation costs for businesses, created thousands of direct and indirect jobs, and boosted local manufacturing of construction materials.
Port Modernization and New Development:
Existing Ports: Major upgrades are underway at the ports of Dar es Salaam, Mtwara, and Tanga to increase their cargo handling capacity and efficiency. Improvements are also being made to dry ports and inland container depots.
Bagamoyo Port: The ambitious Bagamoyo Port project, intended to be East Africa's largest and significantly decongest Dar es Salaam, is being revived. After years of stalled negotiations, the Tanzanian government has reaffirmed its commitment, indicating that construction could proceed with the government's initial funding, with investors joining later. This project is envisioned alongside a massive Special Economic Zone.
Aviation:
Massive investments in new aircraft for Air Tanzania and the development of new airports aim to enhance air travel and boost tourism.
Energy Infrastructure:
Julius Nyerere Hydropower Project (JNHPP):
This mega-dam on the Rufiji River is a cornerstone of Tanzania's energy security and industrialization drive.
All nine turbines, collectively generating 2,115 megawatts, are fully operational as of April 2025. This significantly exceeds Tanzania's current peak demand, positioning the country for energy self-reliance and potential electricity exports to neighbors like Zambia.
Provides stable, affordable electricity for homes and industries, reducing reliance on fossil fuels and mitigating power deficits.
Natural Gas Development: Significant offshore natural gas discoveries continue to attract investment, with plans for a Liquefied Natural Gas (LNG) plant and expansion of gas-to-power generation.
Rural Electrification: Ongoing programs, often with support from partners like the World Bank (e.g., TREEP), have dramatically increased electricity access in rural areas, connecting millions of people, healthcare facilities, and schools.
Renewable Energy: Exploration and investment in solar, wind, and geothermal energy sources are also part of the long-term energy mix.
Tanzania offers a high-growth market with streamlined regulations via TISEZA, sectoral incentives, and infrastructure upgrades. Prioritizing SEZs, agro-processing, tourism infrastructure, and climate-resilient projects aligns with government agendas. Short-term risks require due diligence, but medium-term prospects are strengthened by Vision 2050 reforms and IMF-backed stability.
Tanzania is committed to upholding democratic values, good governance, human rights and freedom of speech as key ingredients of our tradition rooted in the belief that if we want to reach far, we must work together with others, while upholding ethos of the international community.
Welcome to invest in Tanzania the land of endless opportunities!