Tanzania in 2025: Economic Resilience Meets Political Transition as Nation Approaches Critical Crossroads
Economic Progress and Development
Tanzania’s economy is showing remarkable resilience, with real GDP growth projected to reach 6 percent in 2025. The country maintains robust growth with low inflation, currently at 3.3 percent, well below the Bank of Tanzania’s target of 5 percent.
The country’s economic strength is particularly evident in its export sector, driven by strong mineral and agricultural exports, record tourist arrivals, and benefiting from high gold prices in 2025.
Political Landscape and Upcoming Elections
Tanzania, a nation of 69 million people, is preparing for national elections in October 2025. The country, which spans over 1,000 km and borders eight other countries, is currently led by President Samia Suluhu Hassan, one of only two sitting female presidents in Africa.
President Hassan’s leadership has marked a significant shift in Tanzania’s political atmosphere. Since taking office, she has implemented reforms to restore civic rights, including lifting bans on media outlets, releasing imprisoned opposition leaders, and creating a more open environment for political dialogue. In January 2023, she removed the previous administration’s ban on opposition party rallies.
Development Challenges and Future Outlook
To achieve poverty reduction and shared prosperity, Tanzania faces the crucial task of creating more and better jobs through private sector-driven growth. While maintaining robust GDP growth, the country needs to accelerate structural transformation and lift workers from low-productivity sectors toward more productive employment through improved education and health outcomes.
The country is actively implementing climate adaptation and mitigation policies to strengthen resilience to climate-related risks. The government has begun strengthening its institutional framework for climate policies and public investment management, with support from the IMF, World Bank, and other development partners to catalyze support for the climate agenda.
International Support and Investment
The International Monetary Fund continues to support Tanzania’s development, with recent discussions held in April 2025 leading to potential access to SDR 326.47 million (approximately US$440.8 million) in financial support. The country is also receiving support to enhance value addition in agribusiness and light manufacturing, while improving access to finance through partnerships with international organizations including CIDA, the EU, GIZ, DIFD, Japan Trust Fund, and USAID.
