According to the African Development Bank (AfDB) African Economic Outlook 2026, Tanzania’s economy continued to show strong performance in 2025, recording a GDP growth rate of 6.0%, up from 5.5% in 2024.This growth was mainly driven by agriculture, mining, construction, and strong demand from both investment and household consumption.Inflation remained stable at around 3.3%, while private sector credit expanded significantly, showing increased financial activity in the economy.The AfDB projects that Tanzania’s growth will moderate slightly to 5.

4% in 2026 due to external pressures such as global supply chain disruptions and energy price shocks linked to geopolitical tensions, before recovering to 6.1% in 2027 as infrastructure investment and improved business conditions support expansion.Inflation is expected to rise modestly to about 3.8% in 2026 and remain within the central bank’s target range, showing continued macroeconomic stability.

The report also highlights improvements in fiscal and external balances, including a narrowing current account deficit, stronger foreign reserves, and a relatively stable exchange rate.Public debt is considered sustainable despite a slight increase.On the sector side, Tanzania is advancing major development plans, including a TZS 1.8 trillion health budget aimed at boosting local pharmaceutical production toward 80% self-sufficiency by 2030.The tourism sector is also being prioritized with a TZS 334.35 billion budget targeting 20% contribution to GDP, USD 4.4 billion in earnings, and 5.93 million tourist arrivals.

Additionally, Tanzania Impact Investment Forum (TIIF) 2026 in Dar es Salaam is expected to bring together investors and stakeholders to support blended finance and sustainable development.Overall, the outlook shows steady growth with medium-term resilience despite global risks.