The International Company involved in assessing countries' creditworthiness in the global capital markets, Fitch Ratings, anticipates that Tanzania's economy will grow by 5.9% in 2025.
It stated that this growth will be driven by sectors such as agriculture, mining, tourism, and investments in infrastructure projects like the modern railway (SGR) and the Mwalimu Nyerere power project.
Additionally, the company has assigned Tanzania a Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B+' with a Stable Outlook.
These factors collectively demonstrate the ongoing international confidence in the fundamentals of Tanzania's economy and its efforts to implement various reforms in its policies.
In their recently published report, they said that this affirmation is supported by robust growth in Gross Domestic Product (GDP), low inflation, sound economic policy management, and strengthened cooperation with international institutions.
Fitch has commended Tanzania for controlling inflation, which has remained within the Bank of Tanzania's target range of 3% to 5%, by improving public financial management, where debts awaiting payment to suppliers and VAT refunds have decreased from 1.2% of GDP in 2022 to 0.4% by March 2025.
Fitch also indicated that based on these results, they expect the policy direction to remain stable under the leadership of President Samia Suluhu Hassan, which will continue to attract development partners and investors to the country.
The report further states that Tanzania has managed to maintain foreign exchange reserves, which reached $5.7 billion by March 2025, equivalent to the ability to cover imports of goods and services for 4.2 months.
Moreover, Fitch added that the increase in foreign exchange reserves, continued effective implementation of economic policies, and ongoing attraction of private sector investors could enable Tanzania to achieve a higher rating.