Tanzania’s financial transactions landscape is undergoing a significant digital transformation, with Electronic Fund Transfers (EFT) surging by 44.7% in volume from 14.57 million in 2020 to 21.08 million in 2024, while cheque transactions continue to decline. The value of EFT transactions grew by 77%, reaching TZS 16,769.88 billion in 2024, signaling a strong shift toward digital payments. Conversely, TZS cheque usage dropped by 36% in volume and 17% in value, while USD cheque transactions plummeted by 44% in volume and 35.7% in value over the same period. This trend reflects the increasing adoption of faster, more secure electronic payment methods, reducing reliance on traditional cheques in Tanzania's financial system.

The data from Electronic Fund Transfers (EFT), Tanzanian Shilling (TZS) cheque transactions, and United States Dollar (USD) cheque transactions highlight key shifts in Tanzania's financial landscape, indicating a preference for digital payments while traditional cheque usage declines.

1. Electronic Fund Transfers (EFT): Strong and Consistent Growth

• Volume of transactions rose from 14.57 million in 2020 to 21.08 million in 2024, reflecting a 44.7% increase over five years.
• Value of transactions increased from TZS 9,479.10 billion in 2020 to TZS 16,769.88 billion in 2024, growing by 77% over the period.
• The growth rate in volume and value remained positive every year, with double-digit growth in 2023 (13%) and 2024 (11%).

What It Means:

✅ Rising preference for digital payments as more businesses and individuals shift from paper-based payments to electronic fund transfers.
✅ Higher transaction values indicate increased economic activity, financial inclusion, and confidence in digital banking infrastructure.

2. TZS Cheque Transactions: Steady Decline

• The volume of TZS cheque transactions fell by 36%, from 651,829 in 2020 to 418,388 in 2024.
• The value of transactions dropped from TZS 2,118.08 billion in 2020 to TZS 1,758.04 billion in 2024, a 17% decline.
• The rate of decline accelerated over time, with a 14% drop in cheque volume and a 7% drop in cheque value in 2024 alone.

What It Means:

✅ Paper-based payments are rapidly declining, as businesses and individuals move towards faster, more efficient digital alternatives.
✅ Reduced cheque dependency indicates financial sector modernization, possibly driven by regulatory support and increased banking efficiency.

3. USD Cheque Transactions: Sharpest Decline

• Volume of USD cheque transactions declined by 44%, from 113,643 in 2020 to 63,244 in 2024.
• Value of transactions dropped from USD 238.22 million in 2020 to USD 153.04 million in 2024, a 35.7% reduction.
• The biggest single-year drop occurred in 2024, with a 28% decline in volume and 20% decline in value.

What It Means:

✅ Foreign currency cheque usage is declining even faster than local cheque transactions, signaling an even greater shift towards electronic payments in international trade and finance.
✅ Declining USD cheque usage could indicate improved international banking channels, such as wire transfers, mobile money, and SWIFT transactions.

Final Thought: Digital Over Paper-Based Transactions

The trends in TACH transactions clearly show that Tanzania is moving towards a digital payment ecosystem. Electronic Fund Transfers (EFT) are rising, while cheque transactions (both TZS and USD) are declining. This shift suggests:

• A more efficient banking system where businesses prefer instant fund transfers over cheques.
• A likely policy push towards financial digitization, reducing reliance on paper-based transactions.
• Stronger financial inclusion, as electronic transactions make payments faster, cheaper, and more accessible to a wider population.

TACH Transactions Trends (2020–2024)

The data from Electronic Fund Transfers (EFT), Tanzanian Shilling (TZS) cheque transactions, and United States Dollar (USD) cheque transactions highlight key shifts in Tanzania's financial landscape, indicating a preference for digital payments while traditional cheque usage declines.

1. Electronic Fund Transfers (EFT): Strong and Consistent Growth

Key Takeaways:

✅ Transaction volume grew by 44.7% from 14.57 million in 2020 to 21.08 million in 2024.
✅ Transaction value surged by 77% from TZS 9,479.10 billion to TZS 16,769.88 billion.
✅ The growth rate remained positive every year, with strong double-digit increases in 2023 and 2024.

What It Means:

• Increasing adoption of electronic payments by businesses and individuals.
• Higher transaction values signal economic expansion and greater financial activity.

2. TZS Cheque Transactions: Steady Decline

Key Takeaways:

❌ Cheque volume dropped by 36% from 651,829 in 2020 to 418,388 in 2024.
❌ Cheque value declined by 17%, from TZS 2,118.08 billion to TZS 1,758.04 billion.
❌ The decline accelerated over time, with 14% fewer cheques in 2024 compared to 2023.

What It Means:

• Businesses and individuals are reducing cheque usage, shifting to faster and more secure electronic payment methods.
• Financial sector modernization is accelerating, with paper-based payments becoming obsolete.

3. USD Cheque Transactions: Sharpest Decline

Key Takeaways:

❌ USD cheque volume declined by 44% from 113,643 in 2020 to 63,244 in 2024.
❌ USD cheque value dropped by 35.7%, from USD 238.22 million to USD 153.04 million.
❌ The biggest single-year decline happened in 2024, with a 28% drop in volume and 20% drop in value.

What It Means:

• International trade and corporate transactions are shifting towards electronic alternatives like wire transfers and SWIFT payments.
• Foreign currency cheque usage is declining even faster than local cheque transactions, suggesting increased adoption of digital banking solutions.

Final Thought: The Rise of Digital Transactions

The TACH transaction trends from 2020 to 2024 clearly show Tanzania’s transition towards a digital payment ecosystem:
✅ Electronic Fund Transfers (EFT) are rapidly increasing, showing confidence in digital banking.
❌ Cheque transactions (both TZS and USD) are steadily declining, highlighting the phasing out of paper-based payments.

Tanzania's merchant ecosystem has experienced remarkable growth, with the number of registered merchants rising from 33,037 in 2020 to over 1.3 million in 2024. This rapid expansion has driven a surge in transactions, increasing from 24 million in 2020 to over 329 million in 2024, with transaction values soaring from TZS 1.62 trillion to TZS 26.9 trillion over the same period. Dar es Salaam leads in merchant adoption, contributing significantly to the rise in digital payments, followed by Mwanza and Mbeya. These figures highlight the increasing role of merchants in Tanzania’s digital economy, reflecting broader economic growth and financial inclusion.

The data in Annex K: Merchant Statistics provides a detailed breakdown of merchant distribution, transaction volume, and transaction value across different regions of Tanzania for the years 2020 to 2024.

1. Merchant Distribution

• Merchant distribution by region: This table outlines the number of merchants by region for 2020–2024, showing growth in the number of merchants in each area. For instance:
  • Dar es Salaam stands out with significant growth, increasing from 13,164 merchants in 2020 to 394,863 merchants in 2024.
  • Mwanza also shows significant growth, from 1,587 merchants in 2020 to 117,530 merchants in 2024.
  • Arusha has the third-largest growth, increasing from 2,973 merchants in 2020 to 67,336 merchants in 2024.
• Institutional Category Breakdown:
  • Electronic Money Issuers (EMIs) dominate the merchant landscape, growing significantly over the years. They reached 1,189,384 merchants in 2024, compared to 12,103 in 2020.
  • Banks and Financial Institutions and Non-banks (Aggregators) make up the remainder, with the number of banks increasing modestly over the period, while non-banks (aggregators) show large growth, especially in 2024 (reaching 127,803 merchants).

2. Number of Merchant Transactions

• Transactions by region: This table provides transaction volume data per region for 2020–2024.
  • Dar es Salaam continues to lead in transaction volumes, increasing from 3.5 million transactions in 2020 to 122.8 million in 2024.
  • Mwanza follows closely, with a surge from 3.3 million transactions in 2020 to 32.3 million in 2024.
  • Mbeya also shows growth, reaching 26.99 million transactions in 2024 from 4.2 million in 2020.
• Institutional Categories:
  • Electronic Money Issuers continue to be the primary driver of transaction volume, with 286.7 million transactions recorded in 2024, up from 19.5 million in 2020.
  • Banks and Financial Institutions show steady growth, while Non-banks (Aggregators) display the largest increase, reflecting a shift in the market.

3. Merchant Transaction Value

• Transaction Value by Region: The total transaction values in Tanzanian Shillings (TZS) for each region.
  • Dar es Salaam remains the highest in transaction value, reaching 8.83 trillion TZS in 2024, up from 435 billion TZS in 2020.
  • Mwanza follows with 2.33 trillion TZS in 2024, a significant rise from 155.5 billion TZS in 2020.
  • Mbeya shows significant growth, moving from 199.2 billion TZS in 2020 to 1.81 trillion TZS in 2024.
• Institutional Categories:
  • Electronic Money Issuers (EMIs) lead in transaction value, with 16.16 trillion TZS in 2024.
  • Banks and Financial Institutions also have notable figures, jumping from 300.7 billion TZS in 2020 to 9.6 trillion TZS in 2024.
  • Non-banks (Aggregators) show an increase in transaction value, totaling 1.16 trillion TZS in 2024.

Summary Insights:

• The number of merchants and transaction volumes are growing at a fast pace, particularly in major cities like Dar es Salaam and Mwanza.
• The rise in the number of merchants is accompanied by a significant increase in transaction volume and value, with Electronic Money Issuers (EMIs) dominating the market.
• Non-banks (Aggregators) are playing a larger role in the market, especially in 2024, indicating a shift towards digital financial solutions beyond traditional banks.

Merchant Statistics

Table 1: Merchant Distribution by Region

Merchant Transactions by Region (Number of Transactions)

Merchant Transaction Value (TZS Billion)

Tanzania's participation in regional payment systems has shown dynamic growth, with EAPS transactions reaching TZS 614.2 billion in 2024, a 56% increase from 2023. Meanwhile, SADC RTGS transactions nearly doubled regionally, but Tanzania's share remains 0.37% in volume and 0.16% in value. Kenyan Shilling transactions surged by 310.21% in 2023, while Ugandan Shilling transactions grew in volume (22%) but declined in value (24.58%) in 2024. These trends highlight increasing cross-border trade and digital payment adoption, though Tanzania's engagement in regional platforms remains relatively low.

Tanzania's participation in regional payment systems has seen fluctuating trends, reflecting shifts in trade dynamics, economic integration, and digital adoption.

1. EAPS Transactions in Tanzania Shillings (TZS)
   • The volume of transactions peaked in 2022 at 13,730 before dropping significantly to 5,571 in 2023 and stabilizing at 5,893 in 2024.
   • Despite volume fluctuations, transaction value surged from TZS 167.1 billion in 2020 to TZS 614.2 billion in 2024, with a 56% increase in 2024 alone.
2. EAPS Transactions in Kenya Shillings (KES)
   • The volume of transactions fluctuated, dropping by 17% in 2022, rising in 2023, but falling again in 2024 to 4,569 transactions.
   • However, the transaction value grew steadily, reaching TZS 49.4 billion in 2024, driven by a 310.21% surge in 2023 and a 28% increase in 2024.
3. EAPS Transactions in Uganda Shillings (UGX)
   • The transaction volume increased by 22% in 2024, reaching 715 transactions.
   • However, the value dropped by 24.58% in 2024, indicating a possible decrease in high-value transactions.
4. SADC RTGS Transactions
   • Regional transactions nearly doubled from 493,805 in 2023 to 993,639 in 2024, showcasing growing cross-border trade and remittances.
   • Tanzania's contribution to total SADC RTGS transactions remains small, at 0.37% in volume and 0.16% in value in 2024.
   • Tanzania's RTGS transaction value grew by 36.57% in 2024, reaching ZAR 4.15 billion, following an exceptional 287% increase in 2023.

Tanzania's participation in regional payment systems has shown fluctuating trends over the years, reflecting changes in trade activity, economic integration, and the adoption of digital transactions.

Table 1: EAPS Transactions in Tanzania Shillings (TZS)

• The volume of transactions peaked in 2022 at 13,730 before dropping to 5,571 in 2023 and slightly recovering to 5,893 in 2024.
• The value of transactions has grown significantly, reaching TZS 614.2 billion in 2024, a 56% increase from 2023.

Table 2: EAPS Transactions in Kenya Shillings (KES)

• The volume of transactions fluctuated, dropping by 17% in 2022, recovering in 2023, and falling again in 2024 to 4,569 transactions.
• The value of transactions surged by 310.21% in 2023 and increased by 28% in 2024, reaching TZS 49.4 billion.

Table 3: EAPS Transactions in Uganda Shillings (UGX)

• The volume of transactions grew by 22% in 2024, reaching 715 transactions.
• However, the value of transactions declined by 24.58% in 2024, indicating a drop in high-value transactions.

Table 4: SADC RTGS Transactions

• Regional transactions nearly doubled from 493,805 in 2023 to 993,639 in 2024, highlighting increased cross-border trade and remittances.
• Tanzania’s share of total SADC RTGS transactions remains low, at 0.37% in volume and 0.16% in value in 2024.
• Tanzania's RTGS transaction value grew by 36.57% in 2024, reaching ZAR 4.15 billion, following an exceptional 287% increase in 2023.

Key Insights

• Digital payments continue to dominate regional transactions, with strong growth in electronic transfers.
• Kenya Shilling transactions have seen the highest volatility, with a sharp rise in value in 2023.
• SADC RTGS transactions have surged, but Tanzania’s contribution remains minimal.
• Uganda Shilling transactions increased in volume but declined in value, suggesting a shift toward smaller transactions.

Tanzania has experienced a steady decline in foreign aid, with official development assistance (ODA) dropping from $761 million in 2013 to $389 million in 2024 and further projected to fall to $118 million in 2025. With ODA accounting for 8.55% of the country's Gross National Income (GNI) of $79 billion, this decline signals the need for stronger domestic revenue generation, increased private sector participation, and enhanced public-private partnerships (PPPs). As tax revenue remains at only 11% of GDP, Tanzania must prioritize economic reforms to sustain growth amid shifting donor priorities.

Tanzania has experienced a fluctuating trend in Official Development Assistance (ODA) disbursements, with a peak of $761 million in 2013 followed by a gradual decline to $389 million in 2024 and a further projected drop to $118 million in 2025. This reduction has several critical implications:

1. Reduced Future Aid – Strengthening Domestic Revenue
   • In 2024, ODA accounts for 8.55% of Tanzania’s Gross National Income (GNI), indicating its significance in the economy.
   • Government tax revenue stands at 11% of GDP, which is relatively low compared to regional benchmarks (e.g., Kenya at 16% and South Africa at 25%).
   • With declining aid, Tanzania must improve tax collection efficiency, broaden the tax base, and formalize informal sectors to increase revenue generation.
2. Economic Independence – Strengthening Public Finance Management
   • The country’s GNI per capita is $1,200, showing that despite economic growth, a large portion of the population still has low-income levels.
   • Public debt management and financial discipline will be critical to ensure sustainability while reducing dependence on external funding.
3. Donor Shifts – Strategic Adaptation
   • The World Bank Group remains the top donor ($1.095 billion), followed by the U.S. ($429 million) and the Global Fund ($225 million).
   • The decline in aid could mean donors are shifting priorities, focusing on humanitarian crises or new sectors like climate resilience and digital transformation.
   • Tanzania must align its national development plans with donor interests to maintain strategic funding.
4. Public-Private Partnerships (PPP) – Mobilizing Investments
   • The sharp drop in aid from $647 million in 2023 to $118 million in 2025 suggests a pressing need for alternative financing models.
   • Attracting private sector investments in infrastructure, energy, agriculture, and technology through PPP frameworks can bridge the financing gap.
   • Strengthening investment policies and reducing bureaucratic hurdles will make Tanzania more attractive to investors.

The decline in foreign aid is a wake-up call for Tanzania to enhance tax policies, strengthen financial management, align with shifting donor priorities, and attract private sector investment. By focusing on these areas, Tanzania can transition towards sustainable economic growth and reduce its reliance on foreign assistance.

The declining foreign aid to Tanzania highlights key economic challenges and the urgent need for policy shifts:

1. Foreign Aid is Declining

• Tanzania's ODA disbursements peaked at $761 million in 2013 but have been fluctuating since.
• By 2024, aid dropped to $389 million and is projected to decline further to $118 million in 2025.
• This indicates a long-term reduction in donor dependency, forcing Tanzania to seek alternative funding sources.

2. Tanzania Must Strengthen Domestic Revenue Collection

• Tax revenue as a percentage of GDP is only 11%, much lower than in peer countries (e.g., Kenya ~16%).
• With GNI at $79 billion and GNI per capita at $1,200, the economy is growing, but tax efficiency needs improvement.
• Expanding the tax base and formalizing the informal sector can help replace lost donor funding.

3. Donor Priorities are Shifting

• The World Bank ($1.095 billion) remains the largest donor, followed by the U.S. ($429 million) and Global Fund ($225 million).
• Aid cuts suggest donors are redirecting funds to other priority countries or shifting towards new focus areas like climate resilience, technology, and security.
• Tanzania must align its policies with emerging donor interests to maintain funding for key projects.

4. Public-Private Partnerships (PPP) are Essential

• With aid dropping from $647 million in 2023 to a projected $118 million in 2025, Tanzania must fill the funding gap through private investments.
• Attracting private sector participation in infrastructure, agriculture, and industrialization is crucial for long-term economic sustainability.

5. The Path to Economic Independence

• The decline in aid can push Tanzania towards self-reliance, but it requires stronger fiscal management, industrialization, and investment-friendly policies.
• Strengthening PPP frameworks, improving business environments, and reducing bureaucratic barriers will be key to ensuring sustainable economic growth.

Conclusion

The figures tell us that Tanzania can no longer rely on foreign aid as a major economic driver. The country must boost domestic revenue, attract private investments, and adapt to changing donor priorities to ensure stable and sustainable growth.

Table: Tanzania’s ODA Disbursements (2001-2025)

Tanzania has received significant Official Development Assistance (ODA) over the years, with disbursements peaking at $761M in 2013 before gradually declining to $389M in 2024 and a projected $118M in 2025. ODA accounted for 8.55% of GNI, with major donors including the World Bank ($1.095B) and the United States ($429.5M). As Tanzania's GNI reached $79B (2024) and tax revenue stood at 11% of GDP, the decline in aid signals a transition towards economic self-reliance.

An overview of official development assistance (ODA) disbursements to Tanzania in U.S. dollars, showing the financial support received from international donors over the years:

1. Disbursements Overview

• Definition: Disbursements represent the actual funds paid by federal agencies in a fiscal year to fulfill government obligations.
• Trends: The total ODA received by Tanzania has fluctuated over the years, peaking in 2013 at $761M, followed by a decline and recovery in later years.

2. Key ODA Donors to Tanzania

These organizations and countries provided the highest amounts in recent years:

• World Bank Group: $1.095B (largest donor)
• United States: $429.5M
• Global Fund: $225.0M
• France: $132.4M
• Canada: $101.8M

3. Economic and Social Indicators

• Population: 70.5 million (with 38.9% urban and 61.1% rural)
• Gross National Income (GNI): $79 billion
• GNI per capita: $1,200
• ODA as % of GNI: 8.55% (Tanzania's economy is significantly supported by foreign aid)
• ODA per capita: $41.13 (per person aid distribution)
• Government Tax Revenue: 11% of GDP (shows the domestic revenue generation capacity)

4. Trends in ODA Disbursements to Tanzania (2001-2025)

• 2001-2005: Disbursements ranged between $44M - $98M, showing slow but steady growth.
• 2006-2013: Rapid increase from $121M in 2006 to a peak of $761M in 2013.
• 2014-2019: Decline and fluctuation, reaching $647M in 2019.
• 2020-2024: Decline in disbursements, dropping to $389M in 2024.
• 2025 (Projected): A sharp decline to $118M, indicating a possible reduction in ODA support.

5. Insights

• The significant peak in 2013 suggests major funding projects or increased donor confidence.
• The decline post-2014 suggests changes in donor priorities, Tanzania’s economic status, or governance reforms.
• The projected drop in 2025 could indicate Tanzania’s transition away from dependency on foreign aid.

Key figures and trends for Tanzania’s ODA disbursements, economic indicators, and donor contributions:

Table: Tanzania’s ODA Trends and Economic Indicators (2001-2025)

ODA disbursements to Tanzania reveals several key insights about the country's economic reliance on aid, fiscal trends, and potential shifts in donor priorities:

1. Tanzania's Economic Dependency on ODA

• ODA as a Percentage of GNI (8.55%): This indicates that a significant portion of Tanzania’s economy still depends on foreign aid. A high ODA-to-GNI ratio suggests limited domestic revenue generation capacity.
• ODA Per Capita ($41.13): Each Tanzanian receives an average of $41.13 in aid, reflecting Tanzania’s classification as a low-income country.

2. Trends in Foreign Aid

• 2001-2005: Low Disbursement ($44M - $98M)
  • Aid was relatively low, likely due to limited donor commitments or governance concerns.
• 2006-2013: Rapid Increase in Aid ($121M - $761M)
  • This period saw a significant increase in aid, peaking in 2013 ($761M), possibly due to large-scale development projects or donor confidence.
• 2014-2019: Decline and Fluctuation ($599M - $647M)
  • Aid dropped post-2013, which could indicate a shift in donor priorities towards other regions or sectors.
• 2020-2024: Continuous Decline ($588M - $389M)
  • This drop might reflect Tanzania’s economic growth, reducing eligibility for certain types of aid.
• 2025 (Projected): Sharp Decline ($118M)
  • If this projection holds, it suggests that donors are reducing their financial commitments significantly.

3. Shift in Tanzania’s Financial Landscape

• Government Tax Revenue (11% of GDP)
  • Relatively low compared to international benchmarks (15-20%), showing limited domestic revenue collection.
• GNI ($79B) & GNI Per Capita ($1.2K)
  • As GNI improves, Tanzania may move towards middle-income status, leading to reduced ODA eligibility.

4. Implications for Tanzania

• Reduced Future Aid: Tanzania may need to increase domestic revenue generation through better tax policies and private sector growth.
• Economic Independence: Declining aid could push Tanzania towards self-reliance, but it requires stronger public finance management.
• Donor Shifts: The decline could mean donors are redirecting funds to other priority countries or investing in different economic sectors.
• Public-Private Partnerships (PPP): To fill the funding gap, Tanzania must attract private sector investments for infrastructure and development.

Final Thought

Tanzania is transitioning away from heavy aid dependence, which is a sign of economic progress. However, the country must strengthen its domestic revenue base, improve fiscal policies, and attract private investment to sustain growth without relying on ODA.

Table: Tanzania’s ODA Disbursements (2001-2025)

Tanzania's external debt reached USD 33.91 billion in January 2025, placing it among the top 10 most indebted African countries. This marks a significant rise from USD 2.47 billion in 2011, reflecting increased borrowing for infrastructure and economic development. The central government holds 77.4% of the debt, with USD 185.4 million paid for debt servicing in December 2024. Despite this, Tanzania’s debt-to-GDP ratio remains at 47.2%, below the IMF’s 55% risk threshold. However, careful debt management is crucial to ensure economic stability and sustainable growth.

​As of January 2025, Tanzania's external debt stood at approximately USD 33,905.10 million, a slight decrease from USD 34,075.50 million in December 2024. This positions Tanzania among the top ten African countries with substantial external debt.​

Historical Context: Over the years, Tanzania's external debt has exhibited significant growth:​

• December 2011: USD 2,469.70 million​
• December 2023: USD 29,541.7 million ​
• November 2024: USD 33,137.7 million ​
• December 2024: USD 34,075.50 million​
• January 2025: USD 33,905.10 million​

Composition of External Debt: The central government holds the majority of this debt, accounting for approximately 77.4% as of December 2024. The remaining portion is attributed to the private sector. ​

Debt Service and Disbursements: In December 2024, Tanzania received external loan disbursements totaling USD 376.8 million, primarily allocated to the central government. During the same period, the country serviced its external debt with payments amounting to USD 185.4 million, which included USD 111.2 million in principal repayments and USD 74.2 million in interest payments. ​

Public Debt Relative to GDP: As of November 2024, Tanzania's total public debt, encompassing both external and domestic obligations, was USD 38,243.5 million. This figure represents approximately 47.2% of the nation's Gross Domestic Product (GDP). ​

International Financial Support: In December 2024, the International Monetary Fund (IMF) completed a review under the Extended Credit Facility arrangement with Tanzania, resulting in an immediate disbursement of about USD 148.6 million. Additionally, the IMF approved a disbursement of approximately USD 55.9 million under the Resilience and Sustainability Facility, totaling USD 204.5 million in financial support. ​

These figures underscore Tanzania's significant external debt position within Africa, highlighting the importance of ongoing fiscal management and international financial collaborations.

Top ten African countries with high external debt based on 2025 data:

1. South Africa – USD 176,314 million (Sep 2024)
2. Egypt – USD 155,204 million (Sep 2024)
3. Tunisia – TND 128,856 million (Sep 2024)
4. Mauritius – MUR 96,713 million (Dec 2024)
5. Angola – USD 50,260 million (Dec 2023)
6. Nigeria – USD 42,900 million (Sep 2024)
7. Namibia – NAD 36,036 million (Jun 2024)
8. Tanzania – USD 33,905 million (Jan 2025)
9. Malawi – MWK 5,887,049 million (Dec 2023)
10. Burundi – BIF 1,873,263 million (Dec 2024)

Tanzania’s external debt and its position among African countries with significant debt levels:

1. Tanzania’s Debt Growth is Significant

• Tanzania's external debt has increased dramatically from USD 2.47 billion in 2011 to USD 33.91 billion in January 2025.
• This consistent rise reflects increased borrowing for infrastructure, public services, and economic projects but also raises concerns about debt sustainability.

2. Tanzania is Among Africa’s Top 10 Most Indebted Countries

• At USD 33.91 billion, Tanzania ranks 8th in Africa for external debt.
• While this debt level is high, it is still lower than economies like South Africa (USD 176.3B), Egypt (USD 155.2B), and Nigeria (USD 42.9B).

3. Most of Tanzania’s Debt is Public

• 77.4% of Tanzania’s external debt is held by the central government, meaning the government is the primary borrower.
• This suggests reliance on international loans for development, infrastructure, and fiscal needs.

4. Debt Servicing is a Major Challenge

• In December 2024, Tanzania borrowed USD 376.8M but also had to repay USD 185.4M (including interest payments).
• This means that a significant portion of revenues is spent on debt servicing, which could limit spending on public services.

5. IMF and International Financial Support Play a Key Role

• The IMF provided USD 204.5M in December 2024 to support Tanzania’s financial stability.
• This suggests Tanzania relies on international financial institutions to manage its debt obligations and sustain economic programs.

6. Tanzania’s Debt-to-GDP Ratio is Still Manageable

• Tanzania’s total public debt (domestic + external) was USD 38.24 billion, accounting for 47.2% of GDP in November 2024.
• While below the IMF’s 55% risk threshold, continued borrowing without sufficient economic growth could lead to debt distress.

7. Comparison with Other African Countries

• South Africa and Egypt have the highest external debts, but their economies are larger and more diversified.
• Nigeria has slightly higher debt than Tanzania, but its economy benefits from oil revenues.
• Tanzania’s debt is higher than Malawi, Burundi, and Namibia, suggesting it is borrowing at a faster rate.

Final Conclusion

Tanzania's rising external debt reflects ambitious economic growth plans but also poses risks of debt distress if borrowing continues at this rate without sufficient revenue growth. Proper debt management, economic diversification, and increased exports are crucial to ensuring sustainability.

Challenges and Policy Recommendations

Women and youth make up a significant portion of Tanzania’s workforce, yet they face major challenges in accessing formal employment, securing decent wages, and overcoming social and economic barriers. According to the 2025 Employment Study, women and youth account for over 60% of informal employment, highlighting the urgent need for policy interventions to improve job opportunities and workforce inclusion.

This article examines the barriers affecting women and youth in employment, presents statistical insights, and offers policy recommendations to promote greater economic participation.

Employment Status of Women and Youth in Tanzania

• 65% of women and 72% of youth are employed in the informal sector, where wages are lower and job security is minimal.
• Only 20% of women and 25% of youth have formal jobs, mainly in education, healthcare, and administrative roles.
• Unemployment among youth (33%) is nearly twice as high as the national average, highlighting the difficulty young people face in finding jobs.

Key Challenges Facing Women and Youth in Employment

1. Gender Discrimination and Societal Expectations

Women face discriminatory hiring practices, lower wages, and limited leadership opportunities.

• 29% of women cited gender-based hiring discrimination, making it harder to access high-paying jobs.
• 26% struggle with balancing work and family responsibilities, as childcare support is limited.
• 18% face financial barriers, preventing them from starting businesses or investing in skills training.

2. Limited Access to Skills Training and Education

Many young workers and women in rural areas lack technical skills, reducing their job prospects.

• 72% of formally employed women and 80% of formally employed youth have a bachelor’s degree or higher, showing that education plays a key role in accessing formal jobs.
• However, many young workers (88%) lack post-secondary education, limiting their access to structured employment.

3. High Unemployment Among Youth

Young people struggle with job market entry, as employers prefer experienced workers.

• 60% of young workers with less than one year of experience are in informal jobs, as formal employment requires prior experience.
• Only 5% of inexperienced youth find formal jobs, highlighting the need for internship and apprenticeship programs.

4. Financial and Business Challenges for Women and Youth Entrepreneurs

Many women and youth prefer self-employment, but lack financial resources to grow their businesses.

• 31% of women and youth entrepreneurs struggle to access capital for business expansion.
• 25% cite high-interest rates, making loans unaffordable.

Opportunities for Improving Women and Youth Employment

1. Expanding Technical and Vocational Training Programs

Providing job-specific skills can help women and youth access higher-paying employment.

• 37% support digital and ICT skills training, as tech-related jobs provide higher wages and flexible work opportunities.
• 32% prefer entrepreneurship training, enabling women and youth to create businesses.

2. Expanding Financial Access for Women and Youth

Providing affordable credit and microfinance services can support entrepreneurial growth.

• 38% of respondents support low-interest business loans to help young entrepreneurs grow.
• 34% prefer government-backed grants, reducing financial risks for startups.

3. Strengthening Workplace Gender Equality Policies

Companies should enforce policies that promote equal pay, leadership opportunities, and workplace safety.

• 40% job growth expected if companies enforce equal pay policies.
• 35% increase projected if workplaces offer childcare support.

Conclusion and Policy Recommendations

Women and youth remain marginalized in Tanzania’s labor market, facing high unemployment, financial challenges, and limited access to skills training. Addressing these barriers will create a more inclusive workforce.

Key Policy Recommendations:

1. Expand Vocational Training – Strengthen ICT, digital marketing, and entrepreneurship programs.
2. Improve Financial Access – Provide low-interest loans and microfinance for women and youth-led businesses.
3. Strengthen Job Market Entry Programs – Promote internships, apprenticeships, and mentorship programs.
4. Enhance Workplace Gender Policies – Enforce equal pay, leadership training, and flexible work arrangements.

NOTE:

The research and case studies presented in this report were conducted by Tanzania Investment and Consulting Group Limited (TICGL) to analyze employment trends, macroeconomic stability, and job creation dynamics in Tanzania. The study covered a sample size of 2,500 respondents, representing diverse economic sectors and geographic regions. A mixed-methods approach was employed, integrating quantitative surveys (85%), structured interviews (10%), and focus group discussions (5%) to gather both statistical data and qualitative insights. The research was conducted across six key regions: Dar es Salaam (25% of respondents), Mwanza (18%), Arusha (15%), Dodoma (14%), Mbeya (12%), and Morogoro (16%), ensuring a balance between urban and rural employment patterns.

The findings indicate that Tanzania’s workforce is 71.8% informal (25.95 million workers) and 28.2% formal (10.17 million workers), highlighting a significant divide in job security, wages, and access to social protection. Among the 2,500 surveyed individuals, formal employment accounts for 23% (550 individuals), predominantly in government (32% of formal jobs), banking and financial services (25%), manufacturing (18%), and education and healthcare (15%). On the other hand, informal employment constitutes 49% (1,170 individuals), with key sectors including agriculture (35% of informal workers), small businesses and trade (28%), transportation (15%), and casual labor (12%). The remaining 27% (650 individuals) were unemployed, with youth unemployment (ages 18–35) reaching 33%, significantly higher than the national average of 9.2%.

Employment trends indicate that formal employment is projected to rise to 38% by 2030, driven by industrialization, digital transformation, and policy reforms. However, major barriers continue to slow the transition, including limited job availability (42%), skills mismatches (26%), and bureaucratic challenges (21%). The study also found that women make up 65% of the informal workforce, primarily due to barriers in accessing formal jobs, while 72% of youth are engaged in informal employment due to limited entry-level job opportunities.

To bridge the gap between formal and informal employment, Tanzania must focus on expanding SME growth, strengthening vocational training programs, improving access to financial services for small businesses, and reducing bureaucratic hurdles for business registration. This report emphasizes the key trends, challenges, and opportunities shaping Tanzania’s employment landscape and highlights the role of public-private partnerships, investment in digital workforce expansion, and targeted policy interventions in creating a more structured and inclusive workforce by 2030.

Macroeconomic stability is a key driver of job creation and economic growth in Tanzania. Stable economic conditions—such as low inflation, consistent GDP growth, controlled fiscal deficits, and a favorable investment climate—create an environment where businesses expand, investments increase, and employment opportunities grow. According to the 2025 Employment Study, macroeconomic conditions directly influence both formal and informal employment trends in Tanzania.

This article explores how macroeconomic stability affects job creation, using figures from the study, and highlights policy recommendations for ensuring sustainable employment growth.

Macroeconomic Indicators and Employment Trends in Tanzania

• GDP growth has steadily increased from 5.2% in 2023 to a projected 6.0% in 2025, boosting business confidence and job creation.
• Inflation has declined, improving consumer purchasing power and reducing business costs.
• Fiscal deficits are being controlled, allowing more government spending on infrastructure and job-creating sectors.
• Unemployment is decreasing, reflecting stronger macroeconomic conditions.

How Macroeconomic Stability Affects Job Creation

1. GDP Growth and Employment Expansion

A growing economy creates more jobs, especially in high-growth industries such as manufacturing, services, and ICT.

• Manufacturing employment is projected to grow by 18%, driven by industrialization and PPP investments.
• ICT and digital economy jobs are expected to increase by 22%, supported by fintech and e-commerce growth.

2. Inflation and Wage Stability

Stable inflation supports higher real wages and business expansion, improving employment conditions.

• As inflation decreases, wages increase, improving living standards.
• Lower inflation helps businesses expand, creating more job opportunities.

3. Fiscal Policies and Government Investment in Job-Creating Sectors

Government spending plays a major role in employment, especially in infrastructure, public services, and industrialization.

• 30% increase in infrastructure investment has boosted construction jobs and industrial expansion.
• 18% increase in public service jobs, including education and healthcare employment.

4. Exchange Rate Stability and Foreign Direct Investment (FDI)

A stable exchange rate makes Tanzania more attractive to investors, boosting job creation in export-driven sectors.

• A stronger exchange rate has encouraged more FDI, supporting job creation in manufacturing, tourism, and agribusiness.

Challenges to Job Creation Despite Macroeconomic Stability

• 30% of respondents identified a skills gap, meaning economic growth is not fully translating into employment.
• 25% cited slow SME growth, showing that businesses still struggle despite macroeconomic improvements.

Opportunities to Enhance Job Creation Through Macroeconomic Stability

1. Expanding Vocational Training and Skills Development

Aligning skills with market demand can reduce unemployment and improve workforce readiness.

• 40% job growth expected if digital and ICT skills training is expanded.
• 30% increase in employment projected through technical education programs.

2. Strengthening SME Growth for Job Creation

Supporting small and medium enterprises (SMEs) can expand formal employment opportunities.

• 35% increase in SME jobs expected with better access to financing.

3. Enhancing Investment in Industrialization and PPPs

Boosting Public-Private Partnerships (PPPs) and industrial growth can increase formal employment opportunities.

• 40% job growth expected in Special Economic Zones (SEZs), promoting manufacturing and trade.

Conclusion and Policy Recommendations

Macroeconomic stability has played a crucial role in Tanzania’s job creation efforts, improving GDP growth, investment inflows, and employment expansion. However, structural challenges such as skills gaps, slow SME growth, and youth unemployment still need to be addressed.

Key Policy Recommendations:

1. Invest in Workforce Skills Development – Expand vocational and digital skills training to align with market needs.
2. Support SME Growth and Entrepreneurship – Provide affordable financing, business training, and regulatory reforms.
3. Encourage Foreign Investment in Job-Creating Sectors – Strengthen FDI incentives in manufacturing, ICT, and agribusiness.
4. Expand Infrastructure and Industrialization Projects – Develop Special Economic Zones (SEZs) to create more formal jobs.
5. Ensure Policy Stability and Economic Reforms – Maintain low inflation, stable exchange rates, and fiscal discipline to support long-term job creation.

NOTE:

The research and case studies presented in this report were conducted by Tanzania Investment and Consulting Group Limited (TICGL) to analyze employment trends, macroeconomic stability, and job creation dynamics in Tanzania. The study covered a sample size of 2,500 respondents, representing diverse economic sectors and geographic regions. A mixed-methods approach was employed, integrating quantitative surveys (85%), structured interviews (10%), and focus group discussions (5%) to gather both statistical data and qualitative insights. The research was conducted across six key regions: Dar es Salaam (25% of respondents), Mwanza (18%), Arusha (15%), Dodoma (14%), Mbeya (12%), and Morogoro (16%), ensuring a balance between urban and rural employment patterns.

The findings indicate that Tanzania’s workforce is 71.8% informal (25.95 million workers) and 28.2% formal (10.17 million workers), highlighting a significant divide in job security, wages, and access to social protection. Among the 2,500 surveyed individuals, formal employment accounts for 23% (550 individuals), predominantly in government (32% of formal jobs), banking and financial services (25%), manufacturing (18%), and education and healthcare (15%). On the other hand, informal employment constitutes 49% (1,170 individuals), with key sectors including agriculture (35% of informal workers), small businesses and trade (28%), transportation (15%), and casual labor (12%). The remaining 27% (650 individuals) were unemployed, with youth unemployment (ages 18–35) reaching 33%, significantly higher than the national average of 9.2%.

Employment trends indicate that formal employment is projected to rise to 38% by 2030, driven by industrialization, digital transformation, and policy reforms. However, major barriers continue to slow the transition, including limited job availability (42%), skills mismatches (26%), and bureaucratic challenges (21%). The study also found that women make up 65% of the informal workforce, primarily due to barriers in accessing formal jobs, while 72% of youth are engaged in informal employment due to limited entry-level job opportunities.

To bridge the gap between formal and informal employment, Tanzania must focus on expanding SME growth, strengthening vocational training programs, improving access to financial services for small businesses, and reducing bureaucratic hurdles for business registration. This report emphasizes the key trends, challenges, and opportunities shaping Tanzania’s employment landscape and highlights the role of public-private partnerships, investment in digital workforce expansion, and targeted policy interventions in creating a more structured and inclusive workforce by 2030.

Digital technology is transforming Tanzania’s employment landscape by expanding job opportunities, increasing business efficiency, and driving innovation. The 2025 Employment Study found that 82% of respondents believe digitalization has significantly increased employment opportunities, particularly in sectors like e-commerce, financial services, and remote work.

This article explores how digital technology is shaping employment trends, the impact of digital platforms, and the challenges and opportunities for workers in Tanzania.

Impact of Digitalization on Employment

• 82% of respondents believe digital technology has expanded job opportunities.
• 16% reported job losses due to automation replacing traditional roles.
• Only 2% stated that digitalization had no impact, showing that technology is reshaping Tanzania’s job market.

Key Ways Digital Technology is Driving Employment Growth

1. E-Commerce and Online Businesses

The rise of online marketplaces, digital payments, and mobile banking has allowed small businesses and entrepreneurs to create new jobs.

• 35% of respondents engage in e-commerce, selling goods through platforms like Facebook and Instagram.
• 29% run businesses on social media, leveraging digital advertising to reach customers.
• 25% work in online service industries, including freelance writing, web development, and virtual assistance.

2. Mobile Money and Digital Financial Services

Mobile money services like M-Pesa and Tigo Pesa have created jobs in financial technology, agency banking, and mobile payments.

• 42% of respondents reported employment growth in mobile money services.
• 34% work in fintech startups, supporting innovations in digital banking and online payments.

3. Digital Platforms for Employment Matching

Technology has improved access to job opportunities through digital job portals and remote work platforms.

• 36% of respondents use job search platforms like BrighterMonday to find formal employment.
• 32% work remotely via global platforms like Upwork and Fiverr.

4. Digital Transformation in Traditional Sectors

Technology is improving employment opportunities in agriculture, manufacturing, and retail.

• 28% of digital jobs are in agriculture, using e-farming apps for market access.
• 22% are in manufacturing, where automation increases efficiency.
• 35% work in retail, using digital payments and online stores.

Challenges in Digital Employment Growth

Despite its benefits, digital technology also presents challenges that need to be addressed.

• 44% of respondents lack affordable internet, making online job access difficult.
• 36% identified a skills gap, meaning workers need training in digital literacy.

Opportunities for Expanding Digital Employment

1. Expanding Digital Skills Training

To bridge the skills gap, more investment is needed in technical education and IT training.

• 38% of respondents want training in ICT, coding, and data analytics.
• 35% prefer digital marketing skills, which are crucial for online business growth.

2. Promoting Digital Infrastructure Development

Expanding internet coverage and reducing data costs can improve employment access.

• 45% job growth expected if internet access becomes more affordable.
• 38% increase projected if 5G networks expand to rural areas.

3. Strengthening E-Government and Digital Policy

Simplifying online business registration and tax filing can increase formal employment.

• 40% job growth expected if business registration becomes fully digital.

Conclusion and Policy Recommendations

Digital technology is a major driver of employment in Tanzania, but internet access, digital literacy, and policy support are needed to maximize its impact.

Key Recommendations:

1. Expand ICT and Digital Skills Training – Invest in coding, e-commerce, and fintech skills.
2. Lower Internet and Smartphone Costs – Provide affordable data plans and digital devices.
3. Develop Digital-Friendly Policies – Simplify online business registration and tax compliance.
4. Encourage Remote Work and Digital Startups – Create incentives for tech-based employment.

NOTE:

The research and case studies presented in this report were conducted by Tanzania Investment and Consulting Group Limited (TICGL) to analyze employment trends, macroeconomic stability, and job creation dynamics in Tanzania. The study covered a sample size of 2,500 respondents, representing diverse economic sectors and geographic regions. A mixed-methods approach was employed, integrating quantitative surveys (85%), structured interviews (10%), and focus group discussions (5%) to gather both statistical data and qualitative insights. The research was conducted across six key regions: Dar es Salaam (25% of respondents), Mwanza (18%), Arusha (15%), Dodoma (14%), Mbeya (12%), and Morogoro (16%), ensuring a balance between urban and rural employment patterns.

The findings indicate that Tanzania’s workforce is 71.8% informal (25.95 million workers) and 28.2% formal (10.17 million workers), highlighting a significant divide in job security, wages, and access to social protection. Among the 2,500 surveyed individuals, formal employment accounts for 23% (550 individuals), predominantly in government (32% of formal jobs), banking and financial services (25%), manufacturing (18%), and education and healthcare (15%). On the other hand, informal employment constitutes 49% (1,170 individuals), with key sectors including agriculture (35% of informal workers), small businesses and trade (28%), transportation (15%), and casual labor (12%). The remaining 27% (650 individuals) were unemployed, with youth unemployment (ages 18–35) reaching 33%, significantly higher than the national average of 9.2%.

Employment trends indicate that formal employment is projected to rise to 38% by 2030, driven by industrialization, digital transformation, and policy reforms. However, major barriers continue to slow the transition, including limited job availability (42%), skills mismatches (26%), and bureaucratic challenges (21%). The study also found that women make up 65% of the informal workforce, primarily due to barriers in accessing formal jobs, while 72% of youth are engaged in informal employment due to limited entry-level job opportunities.

To bridge the gap between formal and informal employment, Tanzania must focus on expanding SME growth, strengthening vocational training programs, improving access to financial services for small businesses, and reducing bureaucratic hurdles for business registration. This report emphasizes the key trends, challenges, and opportunities shaping Tanzania’s employment landscape and highlights the role of public-private partnerships, investment in digital workforce expansion, and targeted policy interventions in creating a more structured and inclusive workforce by 2030.

Public-Private Partnerships (PPPs) have become a key strategy for job creation and economic growth in Tanzania. By combining government support and private sector investment, PPPs help expand formal employment opportunities in key sectors such as infrastructure, manufacturing, agriculture, and digital services. According to the 2025 Employment Study, over 40% of new formal jobs in the last five years have been created through PPPs.

This article examines how PPPs contribute to formal employment growth, the challenges facing their implementation, and policy recommendations for maximizing their impact.

The Impact of PPPs on Formal Employment Growth

• 35% of formal jobs created through PPPs are in construction and infrastructure, due to large-scale public projects.
• 22% of new formal jobs are in manufacturing, where PPPs have boosted industrial production.
• 18% are in agribusiness, where PPP-funded processing plants and value chain projects have expanded employment.

How PPPs Are Expanding Formal Employment

1. Infrastructure Development and Construction Jobs

PPPs increase investments in roads, ports, energy, and urban development, creating thousands of formal jobs.

• 40% of infrastructure-related PPP jobs come from road and bridge construction projects.
• 30% are in energy projects, including hydropower and renewable energy initiatives.

2. Industrialization and Manufacturing Jobs

PPPs have boosted Tanzania’s industrialization agenda, helping to expand manufacturing jobs.

• 28% of PPP-supported manufacturing jobs are in textile and apparel production, driven by export-focused factories.
• 22% are in food processing, where PPP-funded factories are improving agricultural value chains.

3. Agriculture and Agribusiness Development

PPPs have helped modernize agriculture and expand agribusiness employment.

• 40% of new agriculture-related PPP jobs are in large-scale commercial farming, providing formal employment to rural workers.
• 35% are in agro-processing, creating jobs in food packaging, grain milling, and dairy processing.

4. Digital Economy and ICT Jobs

PPP collaborations in technology and digital services are creating new job opportunities in fintech, e-commerce, and software development.

• 35% of PPP-funded digital jobs are in e-commerce, where partnerships between telecom companies and fintech firms are driving job growth.
• 30% of formal ICT jobs are in mobile banking and digital financial services.

Challenges Facing PPPs in Employment Creation

Despite their success, PPPs in Tanzania face challenges that limit their full employment potential.

• 31% of respondents cited limited private sector funding, slowing down PPP project expansion.
• 26% of respondents identified bureaucracy as a key obstacle, delaying project approvals and implementation.
• 21% noted a skills gap, making it difficult to fill high-tech jobs in manufacturing and ICT.

Opportunities to Strengthen PPPs for Job Creation

1. Expanding PPP Investments in Emerging Sectors

By focusing on high-growth industries, PPPs can create long-term employment opportunities.

• Green energy PPPs can boost employment in solar and wind power projects.
• Digital economy PPPs can support tech startups and digital job creation.

2. Improving Skills Development and Workforce Readiness

Investing in training programs can close the skills gap and ensure local workers benefit from PPP projects.

• 40% more jobs could be created by expanding vocational training programs in PPP projects.
• 35% job growth is expected if universities partner with PPPs to train students in job-ready skills.

3. Reducing Bureaucracy and Improving Regulatory Efficiency

Streamlining PPP approvals can accelerate job creation.

• 50% more PPP projects could be launched if approval processes are shortened.
• 30% job growth is expected if business taxation for PPPs is simplified.

Conclusion and Policy Recommendations

PPPs have proven to be a key driver of formal employment growth in Tanzania, especially in infrastructure, manufacturing, agriculture, and ICT. However, regulatory challenges, financial limitations, and skills gaps remain barriers to maximizing their impact.

Key Policy Recommendations:

1. Increase Private Sector Funding for PPPs – Offer incentives and tax breaks for private investors in employment-generating projects.
2. Expand Vocational Training – Ensure PPP projects include skills development programs to create a skilled workforce.
3. Reduce Bureaucracy in PPP Approvals – Establish faster approval systems and streamlined regulations.
4. Strengthen Digital Economy PPPs – Encourage public-private collaborations in fintech, e-commerce, and tech startups.
5. Promote Sustainable and Green PPP Investments – Focus on renewable energy and climate-friendly infrastructure projects.

NOTE:

The research and case studies presented in this report were conducted by Tanzania Investment and Consulting Group Limited (TICGL) to analyze employment trends, macroeconomic stability, and job creation dynamics in Tanzania. The study covered a sample size of 2,500 respondents, representing diverse economic sectors and geographic regions. A mixed-methods approach was employed, integrating quantitative surveys (85%), structured interviews (10%), and focus group discussions (5%) to gather both statistical data and qualitative insights. The research was conducted across six key regions: Dar es Salaam (25% of respondents), Mwanza (18%), Arusha (15%), Dodoma (14%), Mbeya (12%), and Morogoro (16%), ensuring a balance between urban and rural employment patterns.

The findings indicate that Tanzania’s workforce is 71.8% informal (25.95 million workers) and 28.2% formal (10.17 million workers), highlighting a significant divide in job security, wages, and access to social protection. Among the 2,500 surveyed individuals, formal employment accounts for 23% (550 individuals), predominantly in government (32% of formal jobs), banking and financial services (25%), manufacturing (18%), and education and healthcare (15%). On the other hand, informal employment constitutes 49% (1,170 individuals), with key sectors including agriculture (35% of informal workers), small businesses and trade (28%), transportation (15%), and casual labor (12%). The remaining 27% (650 individuals) were unemployed, with youth unemployment (ages 18–35) reaching 33%, significantly higher than the national average of 9.2%.

Employment trends indicate that formal employment is projected to rise to 38% by 2030, driven by industrialization, digital transformation, and policy reforms. However, major barriers continue to slow the transition, including limited job availability (42%), skills mismatches (26%), and bureaucratic challenges (21%). The study also found that women make up 65% of the informal workforce, primarily due to barriers in accessing formal jobs, while 72% of youth are engaged in informal employment due to limited entry-level job opportunities.

To bridge the gap between formal and informal employment, Tanzania must focus on expanding SME growth, strengthening vocational training programs, improving access to financial services for small businesses, and reducing bureaucratic hurdles for business registration. This report emphasizes the key trends, challenges, and opportunities shaping Tanzania’s employment landscape and highlights the role of public-private partnerships, investment in digital workforce expansion, and targeted policy interventions in creating a more structured and inclusive workforce by 2030.