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Tanzania
Tanzania is a country with strong economic dynamism and a steadily advancing development trajectory. In 2025, the economy recorded a solid real GDP growth rate of 5.87%, while inflation remained low at 3.32%, reflecting effective macroeconomic management and growing productive capacity. With a population of 70.54 million, Tanzania’s GDP reached 87.34 billion USD in 2025, reaffirming its position as one of the most significant and fast-expanding economies in East Africa. Despite this robust performance, the country continues to face important human development challenges. The Human Development Index stands at 0.555, placing Tanzania below the global average and highlighting the need for continued progress in education, healthcare, and living standards. Employment among individuals aged 15 and above is relatively high at 83.71%, reflecting widespread participation in economic activity. However, a substantial share of this employment remains concentrated in low-productivity informal and subsistence activities rather than in higher-value formal sector jobs, limiting productivity growth, income generation, and the pace of structural economic transformation.
GDP nominal
USD 87.34 billion (2025)
Inflation
3.32% (2025)
Real GDP growth
5.87% (2025)
Employment as a % of population 15+
83.71% (2025)
Population
70.54 million (2025)
Human development index
0.55 (2023)
Investment indicators
Foreign direct investment, net inflows (% of GDP)
General government investment (gross fixed capital formation) as a % of GDP
Private investment (gross fixed capital formation) as a % of GDP
Investment landscape
Key sectors
Agriculture
Agriculture is the backbone of Tanzania’s economy and remains the primary source of livelihood for the majority of the population. The sector directly and indirectly supports about 65 to 70% of Tanzanians, largely through smallholder farming, livestock rearing and fisheries. Tanzania is one of East Africa’s leading producers of staple crops including maize, rice, cassava and sorghum, while also being a major exporter of cash crops such as coffee, cotton, cashew nuts, tea, tobacco and cloves.…
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Industry
Tanzania’s industrial sector is expanding steadily, driven by government led industrialisation policies focused on import substitution and value addition. Manufacturing activity is concentrated in food and beverage processing, cement, textiles and garments, pharmaceuticals, leather goods, plastics, basic chemicals and light engineering. The country has also developed a strong construction materials industry, supported by large scale infrastructure investments. Special Economic Zones and…
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Energy
Tanzania’s energy sector is anchored by natural gas, hydropower and rapidly expanding renewable energy capacity. The country holds substantial offshore and onshore natural gas reserves, estimated at over 57 trillion cubic feet, primarily located in southern Tanzania. Gas production is already supplying domestic power generation, industrial users and households. Hydropower remains a key component of the energy mix, complemented by solar and wind projects. Tanzania is also positioning itself…
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Tourism
Tourism is one of Tanzania’s most prominent economic sectors, supported by world renowned natural and cultural attractions. The country hosts iconic destinations such as Serengeti National Park, Mount Kilimanjaro, Ngorongoro Crater, Zanzibar and Selous Game Reserve. Tanzania is consistently ranked among Africa’s top safari and adventure tourism destinations. The sector spans wildlife tourism, beach tourism, cultural tourism, conference tourism and luxury travel.
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Mineral Resources
Mining is a key driver of Tanzania’s export economy, supported by significant deposits of gold, diamonds, tanzanite, coal, nickel and industrial minerals. Tanzania is Africa’s fourth largest gold producer and the sole global source of tanzanite. Recent discoveries of nickel, graphite and rare earth elements have strengthened the country’s role in global energy transition mineral supply chains. The government has prioritised increased local participation and beneficiation within the sector.
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