Tanzania in 2025: Economic Resilience and Democratic Transition Shape Nation’s Future

Economic Progress and Stability

Tanzania’s economic outlook remains favorable in 2025, with real GDP growth projected to reach 6 percent. The country has maintained strong economic performance with inflation remaining subdued at 3.3 percent, well below the Bank of Tanzania’s target of 5 percent.

The nation’s economic strength is particularly evident in its export sector, with strong performance in minerals and agricultural products, alongside record tourist arrivals. The high gold prices in 2025 are expected to further support export momentum and help reduce the current account deficit.

Political Landscape and Upcoming Elections

Tanzania, currently led by President Samia Suluhu Hassan, one of only two sitting female presidents in Africa, is preparing for national elections scheduled for October 2025. Recent developments include increased scrutiny of social media platforms, as evidenced by the Tanzania Communications Regulatory Authority’s (TCRA) 90-day suspension of Jamii Forums, citing concerns over content that allegedly disrespected the government and president.

Development Challenges and Opportunities

The country’s ambitious Tanzania Vision 2050 emphasizes the critical need to allocate sufficient resources to education and health services for its young and rapidly growing population, while creating an environment conducive to private sector-led growth and job creation.

Tanzania is also making significant strides in climate policy implementation, with the government strengthening its institutional framework for climate policies and public investment management. The country is working with international partners, including the IMF, World Bank, and other development partners, to build resilience and advance its climate agenda.

Looking Ahead

However, the country faces several challenges, including potential risks from geopolitical tensions, regional conflicts, sluggish global growth, a narrow tax base, and climate-related shocks. To address these challenges, Tanzania is focusing on improving its business environment, addressing infrastructure bottlenecks, and investing in human capital. The country is also working on deepening financial markets through digital solutions and increasing domestic revenue mobilization.