Key View

• We forecast that Tanzania’s real GDP growth will accelerate to 5.7% in 2023, from an estimated 5.4% in 2022 on strong private sector investment and a robust infrastructure pipeline.
• Meanwhile, net exports will offer limited tailwinds to real GDP as stronger gold exports are largely offset by high demand for capital imports.
• In 2024

Latest Development: The Bank of Tanzania (BoT) held its benchmark interest rate at 5.00% at its May 22 monetary policy meeting—the sixteenth consecutive hold since the bank cut rates by 200 basis points (bps) in 2020, as it sought to stimulate the economy during the coronavirus pandemic. In its policy statement, the BoT highlighted ongoing

Key View: We hold a strong positive outlook for Tanzania's clothing and footwear segment. While spending growth will be expanding from a low base, the segment is the fourth largest spending category by consumers, and over the medium term (2023-2027) rising disposable incomes, growth of the urban and young consumer base, and the increased

Key View: Over the medium term (2022-2026), we forecast a strong expansion of Tanzania’s soft drinks sector, with carbonated drinks demand driving the sector’s expansion. The presence of Coca Cola and Pepsi in Tanzania have served to make carbonated drinks highly accessible and affordable. Furthermore, demand for fruit and vegetable juices and

Key View

• In Tanzania, we maintain a positive outlook for consumer spending in 2023, with an increase in growth which is in line with increasing economic activity. Wages in the public sector are set to rise, resulting in elevated consumer consumption, and lower cost credit in the agricultural sector will also help to boost consumer activity.
• I

Key View

• At Fitch Solutions, we forecast that the BoT will hold the policy rate at 5.00% until H223, before hiking by 100 basis points to 6.00% by end-2023.
• Tanzania’s weak transmission mechanism will see the central bank use money supply instead of the discount rate to reduce price pressures until H223.
• That said, risks remain tilted to the

Key View

• At Fitch Solutions, we believe that risks to social stability in Tanzania will remain mixed in 2023, as the impact of water shortages is offset by easing inflation.
• Meanwhile, the policy-making process score will remain high, reflecting President Samia Suluhu Hassan’s strengthening control over the ruling party and our belief that

Key View

• We have a positive outlook for consumer spending in 2022 and 2023 as we project growth to accelerate in line with increasing economic activity. Rising public sector wages and increased job creation in the agricultural industry, supported by lower loan interest rates will be the main drivers of spending growth.
• While we project

Key View

• At Fitch Solutions, we forecast that rising expenditure will help to cushion households against elevated inflation levels, limiting the impact on social stability.
• We expect investment inflows to continue to tick up on the back of improving relations with foreign governments and multinational organisations.
• Meanwhile, we believe

Key View

• At Fitch Solutions, we forecast that Tanzania’s economic growth will accelerate to 5.4% in 2022, from an estimated 5.2% in 2021, driven by spending on large-scale infrastructure projects.
• Private consumption will continue to tick up on the back of rising wages and lower-cost credit for the agricultural sector.
• In 2023, we forecast