The mobile money sector in Tanzania has experienced strong and continuous growth, with total transactions rising by 9% from 285.5 million in June 2024 to 310.9 million in September 2024. Major providers, including M-Pesa, Tigo Pesa, and Airtel Money, each recorded over 80 million transactions in September. Smaller players like Azam Pesa also saw significant growth, with transactions increasing from 1.8 million to 5.05 million. This growth reflects the increasing reliance on mobile money for day-to-day transactions and highlights the critical role of mobile financial services in enhancing financial inclusion across the country.

1. Number of Mobile Money Transactions:

• The total number of mobile money transactions grew significantly, with 310.9 million transactions recorded in September 2024, compared to 285.5 million in June 2024. This represents a 9% increase in the number of transactions over the three-month period.
• Breakdown of monthly transactions during the quarter:
  • July 2024: 282.9 million transactions
  • August 2024: 310.9 million transactions​.

2. Transaction Breakdown by Mobile Money Providers (September 2024):

• M-Pesa: 89.68 million transactions (up from 86.97 million in June 2024).
• Tigo Pesa: 87.92 million transactions (up from 86.97 million in June 2024).
• Airtel Money: 92.67 million transactions (up from 89.25 million in June 2024).
• Halo Pesa: 35.04 million transactions (up from 33.19 million in June 2024).
• Azam Pesa: 5.05 million transactions (up from 1.80 million in June 2024).
• T-Pesa: 0.50 million transactions​.

3. Historical Growth of Mobile Money Transactions:

• Over the past five years, mobile money transactions have increased from 3.02 billion in 2019 to 5.27 billion by 2023, showing a 19% annual growth rate.
• Despite the growth in total transactions, the average number of transactions per user has slightly decreased from 117 transactions per user in 2019 to 100 transactions per user in 2023​.

Summary:

• Mobile money transactions grew by 9% in the quarter ending September 2024, with a total of 310.9 million transactions in September alone.
• M-Pesa, Tigo Pesa, and Airtel Money remain the largest players in the market, with each recording over 80 million transactions in September 2024.
• Over the years, the volume of mobile money transactions has expanded significantly, showing the increasing reliance on mobile money services for financial transactions in Tanzania.

Numbers on mobile money transactions with key insights into the growth and usage of mobile financial services in Tanzania

The strong and continuous growth in the mobile money sector, with more people relying on mobile money for financial transactions. M-Pesa, Tigo Pesa, and Airtel Money dominate the space, but smaller players are also showing growth. The increasing number of transactions highlights the role of mobile money in enhancing financial inclusion and providing a convenient alternative to traditional banking. It shows that mobile money is a critical tool for economic empowerment and everyday financial management in Tanzania.

1. Steady Growth in Transaction Volumes:

• The 9% increase in mobile money transactions, rising from 285.5 million to 310.9 million in just three months, indicates that more people and businesses are increasingly using mobile money services for their financial activities. This growth reflects the importance of mobile money in day-to-day transactions, such as payments, transfers, and purchases.

2. Dominance of Major Players:

• M-Pesa, Tigo Pesa, and Airtel Money dominate the market, each recording over 80 million transactions in September 2024. Their combined market presence shows that Tanzanians trust these platforms for their financial needs, indicating strong brand recognition, reliability, and widespread service availability.
• The significant increase in transactions for smaller players like Azam Pesa (from 1.8 million to 5.05 million) shows that there is room for growth among newer or smaller mobile money providers, though the big three dominate most of the market.

3. Growing Financial Inclusion:

• The rise in transaction numbers suggests that more people are being included in the formal financial system through mobile money. This is particularly important in Tanzania, where access to traditional banking services can be limited, especially in rural areas. Mobile money bridges that gap, providing financial services to underserved populations.

4. Shift in Financial Behavior:

• The sustained growth in transaction volumes highlights a shift in financial behavior in Tanzania, where mobile money has become a primary method of transferring funds and conducting transactions. The convenience, accessibility, and speed of mobile money are contributing to its increasing popularity.

5. Historical Growth Indicates Long-Term Trend:

• The historical growth in mobile money transactions, from 3.02 billion in 2019 to 5.27 billion in 2023, shows that mobile money is not a temporary trend but a long-term shift in how financial transactions are conducted in Tanzania. This steady annual growth of 19% points to mobile money becoming increasingly central to the Tanzanian economy.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

In Tanzania, mobile money services have experienced significant growth, with the number of mobile money accounts rising by 9% from 55.7 million in June 2024 to 60.8 million in September 2024. This translates to an average monthly increase of 2.3%. The volume of mobile money transactions also saw a 9% rise, from 285.5 million in June 2024 to 310.9 million in September 2024. Dominated by M-Pesa, Tigo Pesa, and Airtel Money, these three providers account for nearly 90% of the market share. This growth highlights the increasing reliance on mobile platforms for financial transactions and the strong competition driving innovations in Tanzania’s digital financial landscape.

1. Number of Mobile Money Accounts:

• The total number of mobile money accounts increased from 55.7 million (June 2024) to 60.8 million (September 2024), marking an impressive growth of 9%.
• This growth translates to a monthly average increase of 2.3% in mobile money accounts during the quarter ending September 2024.

Breakdown by Mobile Money Providers:

• M-Pesa: 22.45 million accounts in September 2024 (an increase from 21.81 million in June 2024).
• Tigo Pesa: 19.49 million accounts in September 2024 (up from 18.51 million in June 2024).
• Airtel Money: 11.43 million accounts in September 2024 (up from 11.32 million in June 2024).
• Halo Pesa: 5.09 million accounts in September 2024 (up from 4.91 million in June 2024).
• Azam Pesa: 0.89 million accounts in September 2024 (up from 0.83 million in June 2024).
• T-Pesa: 1.45 million accounts in September 2024 (up from 1.44 million in June 2024).

This data shows that M-Pesa, Tigo Pesa, and Airtel Money dominate the mobile money market, together accounting for 89% of the total mobile money accounts in the country​.

2. Idadi ya Miamala ya Pesa Mtandao (Number of Mobile Money Transactions):

• The total number of mobile money transactions also experienced a rise, with 310.9 million transactions in September 2024 compared to 285.5 million in June 2024, representing a 9% increase.
• Monthly breakdown of transactions during the quarter ending September 2024:
  • July 2024: 282.9 million transactions
  • August 2024: 310.9 million transactions​

Breakdown by Mobile Money Providers:

• M-Pesa: 89.68 million transactions in September 2024 (an increase from 86.97 million in June 2024).
• Tigo Pesa: 87.92 million transactions in September 2024 (up from 86.97 million in June 2024).
• Airtel Money: 92.67 million transactions in September 2024 (up from 89.25 million in June 2024).
• Halo Pesa: 35.04 million transactions in September 2024 (up from 33.19 million in June 2024).
• Azam Pesa: 5.05 million transactions in September 2024 (up from 1.80 million in June 2024).
• T-Pesa: 0.50 million transactions in September 2024​.

3. Historical Growth in Mobile Money Transactions:

• Over the past five years, the mobile money market has shown significant growth in transactions. The number of transactions increased from 3.02 billion in 2019 to 5.27 billion by 2023, representing an annual growth rate of 19%​.
• The average number of transactions per user, however, declined slightly from 117 transactions per user in 2019 to 100 transactions per user in 2023​.

4. Market Share:

• M-Pesa continues to dominate the mobile money market with a 36.9% market share, followed by Tigo Pesa with 32.1%, and Airtel Money with 18.8%​.
• Other providers, like Halo Pesa, Azam Pesa, and T-Pesa, make up the remaining 11%, indicating a highly competitive landscape but with clear leaders​.

Summary:

• Strong Growth: The mobile money market in Tanzania is growing rapidly, with both the number of accounts and transactions rising by 9% between June and September 2024.
• Market Dominance: M-Pesa, Tigo Pesa, and Airtel Money dominate the market, controlling nearly 90% of the market share.
• Historical Growth: Over the last five years, the number of mobile money transactions has almost doubled, reflecting the increasing use of digital financial services across Tanzania.

Mobile money services with insights about the digital financial landscape in Tanzania:

Mobile money has become central to financial inclusion efforts, providing accessible financial services to millions who might otherwise be unbanked. The strong competition among key providers ensures that consumers continue to benefit from innovative, efficient, and increasingly affordable services. Mobile money is driving not just digital finance but also broader economic growth, especially as more people and businesses engage in digital transactions.

1. Rapid Adoption and Growth:

• The growth in the number of mobile money accounts from 55.7 million to 60.8 million (a 9% increase) in just three months shows the widespread adoption of mobile financial services. This indicates that Tanzanians are increasingly turning to mobile platforms for everyday financial activities like transfers, bill payments, and savings.

2. Mobile Money as a Key Financial Service:

• With 310.9 million mobile money transactions in September 2024 alone, mobile money has become an essential part of the financial system in Tanzania. This volume of transactions indicates that mobile money is a primary method for many people to conduct financial transactions, both in urban and rural areas.

3. Dominance of Major Providers:

• M-Pesa, Tigo Pesa, and Airtel Money dominate the market, holding nearly 90% of the total market share. This indicates a high level of competition among these major players, which likely benefits consumers by offering competitive rates, better services, and innovative products. The dominance of these three providers also suggests that they have built a strong trust and user base over time.

4. Growing Inclusivity in Financial Services:

• The increase in mobile money accounts and transactions shows that digital financial services are playing a key role in financial inclusion. Individuals who may not have access to traditional banking services can easily access mobile money services, allowing them to participate in the economy and handle their finances more efficiently.

5. Competition Among Providers:

• M-Pesa remains the largest provider with a 36.9% market share, but Tigo Pesa (32.1%) and Airtel Money (18.8%) are also significant players, meaning no single company monopolizes the market. This competition ensures that providers are likely to continue improving their services, offering better pricing and convenience to users to maintain or increase their market share.

6. Increasing Transaction Volumes:

• The steady increase in the number of transactions, growing from 285.5 million in June 2024 to 310.9 million in September 2024, highlights that users are not only signing up for mobile money services but also actively using them. This rise shows a deeper integration of mobile money into everyday life, from sending money to family and friends to making business payments.

7. Digital Finance as an Economic Driver:

• Mobile money has become a major driver of the Tanzanian economy. The rise in transactions and accounts suggests that businesses, individuals, and government entities are increasingly relying on mobile money to facilitate commerce, pay salaries, and provide financial services in both urban and rural areas.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

Tanzania's internet landscape is rapidly expanding, primarily driven by mobile networks. The total number of internet subscriptions rose by 5%, from 39.3 million in June 2024 to 41.4 million by September 2024. Mobile internet remains dominant, with 22.9 million high-speed mobile lines (3G, 4G, 5G), while 18.3 million still use 2G services. Vodacom leads the market with a 32.5% share, followed by Airtel (27.9%) and Tigo (25.1%). Though fixed internet services, particularly fiber-optic connections, are slowly growing, mobile remains the primary access mode. This rapid connectivity growth supports Tanzania's digital transformation.

1. Number of Internet Lines:

• The total number of internet subscriptions increased from 39.3 million in June 2024 to 41.4 million in September 2024, a growth of 5% in just three months.
• The increase highlights the growing demand for internet services across Tanzania, driven by the need for digital communication, entertainment, education, and online business.

2. Breakdown of Internet Subscriptions by Technology:

The internet subscriptions are categorized based on the technology used to access the service. Here is the breakdown for September 2024:

• Mobile Wireless Internet (2G, 3G, 4G, 5G):
  • This is the most common form of internet access in Tanzania. It accounts for the majority of internet lines, with 22.9 million lines subscribed to high-speed mobile internet (e.g., 3G, 4G, 5G), an increase from 22.1 million in June 2024.
  • 2G services still serve 18.3 million subscribers, highlighting that a significant portion of the population uses basic mobile internet services like GPRS and EDGE.
• Fixed Wireless Internet:
  • This category includes services like WiMAX and is used less frequently. The number of subscriptions here is relatively low, with 59,743 fixed wireless lines in September 2024, a slight increase from 52,893 in June 2024.
• Fixed Wired Internet:
  • Fiber to the Home (FTTH): 10,449 lines in September 2024, up from 9,028 in June 2024.
  • Fiber to the Office (FTTO): 59,743 lines in September 2024, up from 52,893 in June 2024.
  • Other Fixed Wired Internet: 59,605 lines in September 2024, up from 49,905 in June 2024​.

This shows that while mobile internet dominates, there is gradual growth in wired internet services, especially for homes and offices.

3. Internet Market Share by Providers:

The mobile internet market is dominated by a few key providers:

• Vodacom holds the largest share with 32.5% of the market.
• Airtel follows with 27.9%.
• Tigo controls 25.1%.
• Halotel has 10.8%.
• TTCL holds the smallest share at 3.7%​.

This data indicates that most Tanzanians access the internet through mobile networks, with Vodacom, Airtel, and Tigo being the primary providers.

4. Historical Growth in Internet Subscriptions:

• Over the past few years, there has been a significant increase in internet subscriptions, reflecting the growing importance of internet access in everyday life and business.
• The number of internet subscriptions increased from 22 million in 2019 to 41.4 million by September 2024. This shows that internet penetration has nearly doubled in the past five years, driven by mobile internet expansion and the rollout of higher-speed technologies like 4G and 5G​.

5. Average Monthly Data Usage:

• The report also highlights that the average monthly data usage per internet user is growing, indicating that Tanzanians are increasingly consuming more digital content.
• This rise can be attributed to the increased use of smartphones, the availability of affordable data packages, and growing digital literacy.

6. International Internet Capacity:

• The international internet capacity available for Tanzania continues to grow, supporting faster internet speeds and larger amounts of data transmission.
• The report notes an increase in international bandwidth capacity, which allows for improved internet services nationwide, especially in urban centers where demand is highest​.

Summary:

1. Strong Growth: The number of internet subscriptions grew by 5% in just three months, reaching 41.4 million by September 2024. Mobile internet dominates this growth, particularly through 3G and 4G technologies.
2. Mobile Internet Leads: Mobile internet is the most popular means of access, with 22.9 million high-speed mobile lines. However, a significant portion of users still relies on 2G services (18.3 million), showing that not all regions are fully transitioned to faster networks.
3. Market Dominance by Vodacom, Airtel, and Tigo: The internet market is dominated by Vodacom, Airtel, and Tigo, which together hold over 85% of the mobile internet market.
4. Fixed Wired Internet Slowly Expanding: Although mobile internet dominates, there is slow but steady growth in fiber-optic connections for homes and offices, indicating gradual improvement in infrastructure for fixed wired internet services.
5. Rising Data Consumption: The rise in internet subscriptions and increased data usage reflects the growing digital transformation of Tanzania, where more people are accessing the internet for communication, entertainment, business, and education.

Internet services with insights into the country's digital landscape and internet usage trends

Tanzania’s internet landscape is rapidly expanding, with a heavy reliance on mobile networks for access. This growth tells us that the country is becoming more digitally connected, which is essential for economic development, social inclusion, and modernization. The ongoing rollout of faster mobile technologies (4G, 5G) and the gradual expansion of fixed internet services suggest that Tanzania is on a path towards better digital infrastructure, though there are still gaps in rural and underserved areas.

Overall, the numbers reflect a positive digital trend, with increasing connectivity enabling more Tanzanians to participate in the global digital economy.

1. Rapid Internet Expansion:

• The increase in internet subscriptions from 39.3 million to 41.4 million in just three months (a 5% growth) indicates that internet access is becoming increasingly widespread. This points to a growing demand for connectivity, driven by factors such as the need for online communication, education, entertainment, and business.

2. Dominance of Mobile Internet:

• The overwhelming majority of internet users access the internet via mobile wireless technologies (2G, 3G, 4G, 5G), with 22.9 million users on high-speed mobile networks (up from 22.1 million). 2G services are still in use by 18.3 million subscribers, showing that many regions rely on slower, basic mobile internet. This suggests that while faster networks are growing, there is still a significant reliance on older, slower technologies in rural areas.

3. Mobile Operators as Key Providers:

• The mobile internet market is dominated by Vodacom (32.5% market share), Airtel (27.9%), and Tigo (25.1%). This strong presence indicates that these companies are the primary drivers of internet access across Tanzania, especially in areas where fixed internet infrastructure is limited. The data tells us that mobile internet is more accessible and convenient for most people compared to fixed connections.

4. Slow Growth in Fixed Internet Services:

• Despite mobile internet’s dominance, there is gradual growth in fixed wired internet services, especially fiber-to-the-home (FTTH) and fiber-to-the-office (FTTO), which saw an increase in subscriptions. This growth is particularly important for businesses and urban users who require faster, more reliable internet. However, the numbers remain relatively small, indicating that infrastructure for fixed internet is still in the early stages of development.

5. Increased Data Usage:

• The growth in internet subscriptions and the rise in average monthly data usage suggest that Tanzanians are consuming more online content than ever before. This points to increasing digital engagement through activities such as streaming, online learning, and e-commerce.

6. Improved International Internet Capacity:

• The report mentions an increase in international bandwidth capacity, which enhances the country’s ability to support higher data speeds and volumes. This improvement is crucial for handling the growing number of users and their increasing data demands, especially in urban centers.

7. Digital Transformation and Economic Impact:

• The rapid growth in internet usage indicates that Tanzania is undergoing a digital transformation, with internet services becoming integral to the economy. This growth supports sectors such as e-commerce, digital banking, online education, and telehealth. It also facilitates communication and access to information, both crucial for development.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

Katika robo ya mwaka inayomalizika mwezi Septemba 2024, sekta ya mawasiliano nchini Tanzania ilionyesha ukuaji mzuri, huku idadi ya lines za simu ikiongezeka kutoka milioni 76.6 hadi milioni 80.7, sawa na ongezeko la asilimia 5.4. Pamoja na ukuaji wa akaunti za pesa mtandao kutoka milioni 55.7 hadi milioni 60.8, ukionyesha ongezeko la asilimia 9, M-Pesa iliongoza soko ikiwa na asilimia 36.9 ya hisa. Aidha, usajili wa intaneti uliongezeka kutoka milioni 39.3 hadi milioni 41.4, ukuaji wa asilimia 5. Takwimu hizi zinaashiria upanuzi mkubwa wa huduma za kidijitali, ukionesha kuongezeka kwa uunganisho na ushiriki wa kifedha, ingawa utegemezi wa teknolojia ya 2G unaonyesha haja ya uwekezaji zaidi katika intaneti ya kasi ya juu, hasa katika maeneo ya vijijini.

1. Takwimu za Mawasiliano ya Simu:
   • Idadi ya watumiaji wa lines za simu iliongezeka kutoka milioni 76.6 mwezi Juni 2024 hadi milioni 80.7 mwezi Septemba 2024, ikiwakilisha ukuaji wa asilimia 5.4.
   • Kanda yenye watumiaji wa lines za simu ni Dar es Salaam ikiwa na mistari milioni 14.8, ikifuatiwa na Mwanza yenye mistari milioni 5.3.
2. Takwimu za Pesa Mtandao:
   • Akaunti za pesa mtandao ziliongezeka kutoka milioni 55.7 mwezi Juni 2024 hadi milioni 60.8 mwezi Septemba 2024, ikionyesha ongezeko la asilimia 9.
   • M-Pesa inashikilia soko la pesa mtandao kwa asilimia 36.9 ya hisa ya soko, ikifuatiwa na Tigo Pesa kwa asilimia 32.1 na Airtel Money kwa asilimia 18.8.
3. Takwimu za Huduma ya Intaneti:
   • Usajili wa intaneti ulishuka kutoka milioni 39.3 mwezi Juni 2024 hadi milioni 41.4 mwezi Septemba 2024, ukuaji wa asilimia 5.
   • Broadband ya simu inaongoza ikiwa na mistari milioni 22.9 ya intaneti ya kasi ya juu, ikifuatiwa na teknolojia ya 2G yenye mistari milioni 18.3.

Takwimu zinatoa maoni kadhaa muhimu kuhusu ukuaji na mwelekeo katika sekta ya mawasiliano na huduma za kidijitali nchini Tanzania

Takwimu hizi zinaonyesha ukuaji mzuri katika sekta ya mawasiliano, huku huduma za simu, pesa mtandao, na ufikiaji wa intaneti zikipanuka kwa haraka. Inaonyesha kuongezeka kwa ushiriki wa kidijitali nchini Tanzania, huku pesa mtandao ikiongoza mabadiliko ya kifedha na intaneti ya simu ikitengeneza msingi wa ufikiaji mtandaoni. Hata hivyo, utegemezi wa teknolojia ya 2G unaonyesha kuwa kuna haja ya uwekezaji zaidi katika intaneti ya kasi ya juu, hasa katika maeneo ya vijijini, ili kufunga pengo la kidijitali.

1. Kuongezeka kwa Uunganisho na Ufikiaji wa Kidijitali:
   • Ukuaji wa asilimia 5.4 katika watumiaji wa lines za simu (kutoka milioni 76.6 hadi milioni 80.7) unaonyesha kuongezeka kwa ufikiaji wa huduma za simu, ambayo inawezekana imesababishwa na kuongezeka kwa mahitaji ya mawasiliano, intaneti ya simu, na huduma za kidijitali.
   • Dar es Salaam na Mwanza zinakuza usajili wa watumiaji wa lines za simu, ikionyesha kwamba maeneo ya mijini yanapata faida kubwa kutokana na maendeleo ya mawasiliano.
2. Upanuzi wa Haraka wa Huduma za Pesa Mtandao:
   • Ukuaji wa asilimia 9 katika akaunti za pesa mtandao (kutoka milioni 55.7 hadi milioni 60.8) unaonyesha jinsi pesa mtandao inavyokuwa chombo muhimu kwa ushiriki wa kifedha, ikiwwezesha Watanzaia wengi kupata huduma za kifedha za kidijitali.
   • M-Pesa inaongoza soko kwa asilimia 36.9 ya hisa, ikifuatiwa na Tigo Pesa na Airtel Money, ikionyesha ushindani mkali lakini pia matumizi ya pesa mtandao kwa manunuzi, akiba, na biashara.
3. Kuongezeka kwa Ujumuishaji wa Intaneti:
   • Ukuaji wa asilimia 5 katika usajili wa intaneti (kutoka milioni 39.3 hadi milioni 41.4) unaonyesha kwamba ufikiaji wa intaneti unapanuka, huku Watanzaia wengi wakijiunga mtandaoni.
   • Broadband ya simu (mamilioni 22.9 ya usajili) ndiyo njia kuu ambayo watu wanapata intaneti, wakati 2G inabaki kuwa muhimu, ikionyesha tofauti ya kidijitali kati ya wale wenye ufikiaji wa intaneti ya kasi ya juu na wale wanaotegemea mitandao ya polepole.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

As of September 2024, Tanzania's telecommunications sector continues to expand rapidly, with mobile subscriptions reaching 80.7 million, a 5.4% increase from June's 76.6 million. Leading operators like Vodacom, Tigo, and Airtel dominate the market, while the number of M2M lines grew by 4.8%, reflecting progress in IoT adoption. Infrastructure development also surged, with 8,583 telecommunication towers and increasing 5G mast installations. Smartphone penetration climbed to 33.85%, further boosting digital access, especially in urban areas like Dar es Salaam, which leads with 14.8 million mobile lines.

1. Number of Mobile Lines:
   • As of September 2024, the number of registered mobile lines reached 80.7 million, up from 76.6 million by June 2024, representing a 5.4% increase.
   • During the quarter, there was an average 1.7% monthly increase in the registration of mobile and landline subscriptions.
   • Table 1.1.1 shows mobile line registrations for service providers (P2P - Person to Person):
     • Vodacom: 24.1 million
     • Airtel: 19.5 million
     • Tigo: 23.4 million
     • Halotel: 10.9 million
     • TTCL: 1.5 million
2. Machine to Machine (M2M) Lines:
   • M2M lines increased from 0.97 million (June 2024) to 1.02 million (September 2024), a 4.8% increase.
   • Vodacom leads in M2M line registrations, holding 56.2% of the market, followed by Airtel with 32.7%, and Halotel with 5.9%.
3. Number of Telecommunication Towers:
   • The total number of telecommunication towers in Tanzania reached 8,583 by September 2024.
     • Dar es Salaam leads with 1,156 towers, followed by Mwanza with 423 towers.
     • The region with the fewest towers is Katavi (94 towers).
4. Number of Communication Masts (2G, 3G, 4G, 5G):
   • As of September 2024, the number of masts was:
     • 2G: 13,579
     • 3G: 12,637
     • 4G: 12,260
     • 5G: 834 (an increase of 6% compared to previous months).
     • Dar es Salaam leads in all categories of communication masts.
5. Distribution of Mobile Lines by Region:
   • The top five regions with the highest number of mobile lines are:
     • Dar es Salaam: 14.8 million
     • Mwanza: 5.3 million
     • Arusha: 4.9 million
     • Mbeya: 4.6 million
     • Dodoma: 4.3 million
6. Communication Devices Using SIM Cards:
   • Smartphones have reached 33.85% penetration among the population by September 2024, up from 31.55% in June.
   • Feature phones have a penetration rate of 84.83%.

Statistics on mawasiliano ya simu from Tanzania for the period ending September 2024 with insights into the country's communication landscape

Tanzania’s telecommunication sector is rapidly expanding, with significant growth in mobile subscriptions, infrastructure, and smart device penetration. The dominance of key operators, the rise in machine-to-machine communications, and the growth of mobile money highlight the central role of telecommunications in the country’s digital and economic development. There’s clear momentum towards greater connectivity and access, particularly in urban areas, but there’s also growing attention to rural regions.

1. Rapid Growth in Mobile Subscriptions:

• The increase in mobile subscriptions from 76.6 million to 80.7 million in just three months (a growth of 5.4%) reflects the rapid expansion of mobile network penetration across Tanzania. This suggests an increasing reliance on mobile communication as a key part of daily life and business.

2. Dominance of Major Telecom Operators:

• Vodacom, Tigo, and Airtel dominate the market, with Vodacom holding the largest share of 24.1 million P2P lines. This indicates that these providers are trusted by consumers for personal and business communication, while smaller players like TTCL and Halotel hold niche market shares.

3. Machine to Machine (M2M) Connectivity:

• The rise in M2M connections (from 0.97 million to 1.02 million) shows growing adoption of technologies such as IoT (Internet of Things). This is crucial for industries that require automated communications, like logistics, smart utilities, and agriculture, reflecting progress in technology integration across sectors.

4. Infrastructure Development:

• The increase in the number of minara ya mawasiliano (telecommunication towers), now at 8,583 towers, and the spread of 2G, 3G, 4G, and 5G networks show strong investment in telecom infrastructure. This expansion is vital for improving service quality, reaching underserved areas, and supporting the ongoing digital transformation in Tanzania.

5. Urban Dominance:

• Major cities, such as Dar es Salaam and Mwanza, have significantly higher mobile line subscriptions and towers. Dar es Salaam, in particular, leads in both categories, with 14.8 million subscriptions and 1,156 towers. This suggests that urban areas are benefiting more from telecommunication advancements, although rural areas are also seeing gradual improvements.

6. Increase in Smart Device Usage:

• The growth in smartphone penetration from 31.55% to 33.85% indicates a growing shift from basic phones to smartphones, aligning with global trends. This shift implies increasing access to mobile internet services, digital content, and mobile applications.

7. Competitive Mobile Money Market:

• The mobile money sector is highly competitive, with M-Pesa, Tigo Pesa, and Airtel Money controlling 89% of the market. This reflects the importance of mobile money in daily transactions and financial services across Tanzania, showing strong integration between telecom services and financial inclusion.

Source: Takwimu za Mawasiliano Robo ya mwaka inayoishia Septemba 2024

Sub-Saharan Africa's economic outlook for 2024 presents a picture of gradual recovery, with growth projected to rise from 2.4% in 2023 to 3% in 2024, and reaching 4% by 2025-2026. This recovery is driven by improving private consumption and investment, fueled by easing inflation, which is expected to decline from 7.1% in 2023 to 4.8% in 2024, allowing for potential monetary policy rate cuts. However, the region’s macroeconomic performance remains challenged by high public debt, estimated at 58% of GDP in 2024, and a fiscal deficit projected to improve to 3.3% of GDP. Risks to the outlook include conflict (e.g., in Sudan), climate-related disasters, and the region's vulnerability to external shocks, with 53% of low-income countries facing high risk of debt distress. Addressing these challenges requires fiscal reforms and targeted investments to ensure sustained growth and stability.

1. Growth Outlook in Sub-Saharan Africa:

• Growth Recovery: Economic activity in Sub-Saharan Africa is expected to grow by 3% in 2024, up from 2.4% in 2023, and further accelerate to 4% by 2025-2026​.
• Per Capita Growth: Real income per capita is forecasted to grow by 0.5% in 2024 and 1.4% in 2025​.
• Strong Performers: Countries like Côte d’Ivoire (6.5%), Uganda (6%), and Tanzania (5.4%) are among the top performers expected to post over 5% growth in 2024​.

2. Growth Environment:

• Private Consumption and Investment: These are the main drivers of growth recovery, boosted by easing inflation which is expected to decline from 7.1% in 2023 to 4.8% in 2024​.
• Inflation Decline: Inflation is declining across the region, with around 70% of countries expected to register lower inflation rates in 2024​.
• Monetary Policy: As inflation cools, countries may pursue monetary policy rate cuts, fostering greater investment​.

3. Sub-Saharan Africa's Macroeconomic Performance:

• Public Debt: Government debt remains high at around 58% of GDP in 2024. Sub-Saharan African countries are expected to pay US$19 billion in public external debt service, mostly to private creditors​.
• Fiscal Balance: The median fiscal deficit is projected to decrease from 3.9% of GDP in 2023 to 3.3% of GDP in 2024, with efforts to raise revenue and reduce expenditure​.

4. Risks to the Outlook:

• High Debt: An elevated debt burden reduces the fiscal space for governments to invest in critical infrastructure and human capital​.
• Conflict and Climate Change: Ongoing conflict, such as in Sudan, and climate-related disasters, including floods and droughts, are key risks affecting growth and food security in the region​.

The Africa's Pulse October 2024 report key points about Sub-Saharan Africa's economic outlook

Sub-Saharan Africa is experiencing a gradual recovery in economic growth, but significant challenges like high debt, conflict, climate change, and limited fiscal space present risks to sustained progress. The region needs to address these challenges through fiscal reforms, targeted investments, and efforts to enhance macroeconomic stability.

1. Economic Growth Recovery: The region's economy is projected to grow by 3% in 2024, up from 2.4% in 2023, with further acceleration to 4% by 2025-2026. This is driven mainly by private consumption and investment, supported by easing inflation and anticipated interest rate cuts. However, the growth recovery remains modest compared to other global regions.
2. Inflation and Consumption: Inflation is expected to decline from 7.1% in 2023 to 4.8% in 2024, improving the purchasing power of households, which in turn supports private consumption. This cooling of inflation allows for potential monetary policy easing, encouraging investment and economic activity.
3. Macroeconomic Performance: Despite growth prospects, the region faces significant challenges:
   • High Debt Levels: Public debt remains at 58% of GDP, with US$19 billion in debt service payments, mostly owed to private creditors. This reduces the fiscal space for essential investments in infrastructure and social services.
   • Fiscal Balance: Fiscal deficits are improving slightly, from 3.9% of GDP in 2023 to 3.3% in 2024, thanks to revenue collection efforts and spending cuts. However, the region's debt burden continues to limit overall progress.
4. Risks to the Outlook:
   • Conflict and Climate Change: Ongoing conflicts, such as the war in Sudan, and extreme weather events (floods, droughts) are major risks to economic stability. These challenges undermine growth, disrupt food security, and exacerbate poverty in affected countries.
   • Vulnerability: Over 53% of low-income countries in Sub-Saharan Africa are at high risk of debt distress, and many countries are vulnerable to external shocks due to their high reliance on global financing and commodity exports.

Source: Africa’s Pulse October 2024 report

Tanzania's economic outlook for 2024 shows strong growth potential, with a projected GDP increase of 5.4%, significantly higher than the 3% average for Sub-Saharan Africa (SSA). As part of the East African Community (EAC), which is forecasted to grow by 4.7% in 2024, Tanzania benefits from macroeconomic stability and strategic investments in infrastructure, particularly in energy, telecommunications, and transport. These investments, combined with stable inflation, are expected to boost private consumption and investment. However, Tanzania's public debt is projected to rise from 42.5% to 48.4% of GDP, reflecting infrastructure spending, while the fiscal deficit is expected to stabilize at 3.3% of GDP. Risks remain, especially around rising debt and climate-related challenges like droughts and floods, which could impact agriculture and economic stability. Despite these risks, Tanzania's growth prospects remain robust in comparison to other SSA countries.

1. Growth Outlook

• Tanzania is expected to experience GDP growth of 5.4% in 2024, outperforming the regional average growth of 3% for SSA​.
• The East African Community (EAC), which includes Tanzania, is one of the strongest economic performers in SSA, with expected growth of 4.7% in 2024 and 5.7% by 2025–26​.

2. Growth Environment

• Tanzania benefits from macroeconomic stability and rising investments in sectors like energy, telecommunications, and transport, which help enhance productivity. The country’s inflation rate is expected to stabilize, supporting private consumption and investment​.
• Private consumption is expected to increase as inflation eases across SSA, with countries like Tanzania reaping benefits from stable inflation and favorable monetary policies, further bolstering growth​.

3. Macroeconomic Performance

• Government debt in Tanzania is estimated to rise slightly from 42.5% of GDP in 2023 to 48.4% of GDP in 2024, reflecting investments in key infrastructure projects​.
• In terms of sectoral performance, Tanzania’s growth is bolstered by services and infrastructure projects in energy and transport. Investment in these areas is critical for sustaining long-term growth​.
• Fiscal Balance: Tanzania's fiscal deficit is expected to improve slightly, with a fiscal deficit of around 3.3% of GDP in 2024​.

4. Risk Outlook

• High Debt: Public debt remains a key risk in Tanzania, as in many other SSA countries. The rising debt levels could strain fiscal resources, especially in a region where debt service obligations are already significant​.
• Climate Change and Conflict: Tanzania is exposed to climate risks and ongoing economic volatility in the region, which could affect agriculture and food security. Extreme weather events such as droughts or floods are persistent risks across the region​.

Tanzania's economic position relative to other Sub-Saharan African (SSA) countries

Tanzania's economy is performing well relative to other Sub-Saharan African countries, with solid growth prospects and important investments. However, the country must address challenges related to debt and climate change to ensure that growth is sustainable.

1. Tanzania’s Strong Growth Outlook: With a projected GDP growth of 5.4% in 2024, Tanzania is set to grow much faster than the Sub-Saharan African average of 3%. This positions Tanzania as one of the leading economies in the region, especially within the East African Community (EAC) where growth is also expected to be robust.
2. Growth Environment: Tanzania benefits from macroeconomic stability and is making significant investments in energy, transport, and telecommunications. These investments are crucial for reducing productivity bottlenecks and fostering economic expansion. Stable inflation will also boost private consumption and investment, further enhancing growth.
3. Macroeconomic Performance: Tanzania's debt level is rising but remains relatively manageable. The government is using this debt to finance critical infrastructure, which is essential for long-term economic development. The country’s fiscal deficit is also improving, suggesting prudent fiscal management.
4. Risk Outlook: Despite its positive growth outlook, Tanzania faces risks related to its rising debt levels, which could become a burden if not managed properly. Additionally, climate-related risks such as droughts and floods, which are common in SSA, pose threats to Tanzania’s agricultural sector and overall economic stability.

Source: Africa’s Pulse October 2024 report

Uwiano wa Deni la Serikali ya Tanzania kwa Pato la Taifa ulikuwa asilimia 38.3% mwaka 2022, ukipanda hadi asilimia 53.4% kufikia katikati ya mwaka 2023, huku deni la taifa likifikia Dola za Kimarekani bilioni 42.68, kutoka Dola za Kimarekani bilioni 38.27 mnamo Juni 2022. Pato la Taifa (GDP) la Tanzania lilifikia kiwango cha juu kabisa cha Dola za Kimarekani bilioni 79.16 mwaka 2023, likionyesha ukuaji mzuri wa uchumi na wastani wa ukuaji wa asilimia 5.5% kwa mwaka. Hata hivyo, deni linaongezeka kwa kasi zaidi kwa asilimia 6% kwa mwaka, jambo ambalo linaashiria ongezeko la wastani la uwiano wa deni kwa Pato la Taifa, unaotarajiwa kufikia asilimia 54.7% ifikapo mwaka 2030. Ukuaji wa deni la Tanzania unaonyesha uwekezaji unaoendelea kwenye miundombinu lakini unahitaji usimamizi wa deni kwa umakini ili kudumisha utulivu wa kifedha.

1. Uwiano wa Deni la Serikali kwa Pato la Taifa:

• 2022: Deni la serikali ya Tanzania lilikuwa asilimia 38.30% ya Pato la Taifa. Uwiano huu unaonyesha ukubwa wa deni la serikali ukilinganishwa na uzalishaji wa uchumi wa nchi.
• Mwelekeo wa Kihistoria:
  • Kati ya mwaka 2001 na 2022, wastani wa Uwiano wa Deni la Serikali kwa Pato la Taifa ulikuwa asilimia 35.26%.
  • Uwiano wa juu zaidi ulirekodiwa mwaka 2001 kwa asilimia 50.20%, wakati nchi ilikuwa ikifanya marekebisho ya kimuundo na kukabiliana na mzigo mkubwa wa deni.
  • Uwiano wa chini zaidi ulikuwa mwaka 2008, kwa asilimia 21.50%, kufuatia mipango ya kupunguza deni kama vile mpango wa Nchi Masikini Zinazodaiwa Sana (HIPC), ambao ulisababisha kupungua kwa deni la Tanzania.

2. Mwelekeo wa Pato la Taifa (GDP):

• Kwa kipindi cha miaka 1960 hadi 2023, Pato la Taifa la Tanzania limekua kwa kiasi kikubwa. Wastani ulikuwa Dola za Kimarekani bilioni 19.48.
• Thamani ya juu zaidi ya GDP ilifikiwa mwaka 2023, ikiwa ni Dola za Kimarekani bilioni 79.16, ikionyesha ukuaji wa kudumu wa uchumi kwa miaka mingi.
• Mwaka 1960, GDP ya Tanzania ilikuwa ndogo sana, kwa Dola za Kimarekani bilioni 2.65, ikionyesha ukubwa wa uchumi muda mfupi baada ya kupata uhuru.

3. Hali ya Deni la Taifa kufikia Juni 2023:

• Kufikia mwisho wa Juni 2023, deni la taifa la Tanzania, ambalo linajumuisha deni la umma la ndani na nje pamoja na deni la sekta binafsi ya nje, lilikuwa Dola za Kimarekani milioni 42,681.
• Kiwango hiki cha deni kilikuwa ni asilimia 53.4% ya Pato la Taifa. Ongezeko hili linaonyesha kukopa kwa ajili ya miradi ya maendeleo, pamoja na kuongezeka kwa mahitaji ya mikopo kutoka kwa sekta binafsi.
• Takwimu za Juni 2022 zinaonyesha deni la taifa lilikuwa Dola za Kimarekani milioni 38,265.63, ikionyesha ongezeko kubwa la deni kwa mwaka mmoja, ongezeko la takriban asilimia 11.5% katika hali ya kawaida.

Utabiri wa Uwiano wa Deni la Serikali ya Tanzania kwa Pato la Taifa hadi mwaka 2030

• Kiwango cha ukuaji wa Pato la Taifa: asilimia 5.5% kwa mwaka (wastani wa ukuaji wa hivi karibuni).
• Kiwango cha ukuaji wa deni: asilimia 6% kwa mwaka (ikizingatiwa uwekezaji wa umma unaoendelea na maendeleo ya miundombinu).

Jedwari la Utabiri wa Uwiano wa Deni la Serikali ya Tanzania kwa Pato la Taifa hadi mwaka 2030

Dhana:

• Kiwango cha ukuaji wa GDP: asilimia 5.5% kwa mwaka, kikionyesha mwelekeo wa ukuaji wa hivi karibuni wa uchumi wa Tanzania.
• Kiwango cha ukuaji wa deni: asilimia 6% kwa mwaka, kikionyesha kuendelea kwa ukopaji kwa ajili ya miundombinu, maendeleo, na programu zingine za kitaifa.
• Uwiano wa deni kwa Pato la Taifa: unatarajiwa kuongezeka kidogo kutokana na ukuaji wa deni kuzidi ukuaji wa Pato la Taifa.

Hali ya Uchumi wa Tanzania na Sera ya Fedha:

1. Mwelekeo wa Deni la Serikali:
   • Uwiano wa Deni la Serikali kwa Pato la Taifa umekuwa ukibadilika kwa muda, ikiwa na kiwango cha juu mwaka 2001 (50.20%) na kiwango cha chini mwaka 2008 (21.50%) kutokana na mipango ya msamaha wa deni kama vile HIPC.
   • Uwiano wa sasa wa deni kwa Pato la Taifa, asilimia 38.30% mwaka 2022, ni wa wastani ukilinganisha na viwango vya kihistoria. Hata hivyo, ongezeko la uwiano huu hadi asilimia 53.4% mwaka 2023 linaonyesha mzigo wa deni unaoongezeka kutokana na kuongezeka kwa mikopo kwa ajili ya miradi ya maendeleo na uwekezaji wa miundombinu.
   • Utabiri unaonyesha uwiano wa deni kwa Pato la Taifa utaendelea kuongezeka hadi mwaka 2030, kufikia asilimia 54.7%.
2. Ukuaji wa Uchumi:
   • Uchumi wa Tanzania umekuwa ukikua kwa kasi, na GDP kufikia kiwango cha juu cha Dola za Kimarekani bilioni 79.16 mwaka 2023.
   • Ukuaji wa wastani wa asilimia 5.5% kwa mwaka unatarajiwa kuendelea, ikionyesha mwenendo mzuri wa uchumi wa Tanzania.
3. Ukuaji wa Deni kuzidi Ukuaji wa Pato la Taifa:
   • Wakati GDP inaendelea kukua, deni la serikali linakua kwa kasi zaidi (asilimia 6% ikilinganishwa na ukuaji wa asilimia 5.5% wa GDP). Hii inaashiria kuwa Tanzania inakopa kwa kasi zaidi kuliko inavyokua kiuchumi.
4. Uendelevu wa Deni na Hatari:
   • Ongezeko la uwiano wa deni kwa Pato la Taifa linaonyesha umuhimu wa kudhibiti deni ili kuhakikisha kuwa linaendelea kuwa la kudumu. Wakati uwiano wa deni wa takribani asilimia 54-55% unafikiriwa kuwa wa kudhibitiwa, ni muhimu kuzingatia sera za kifedha kwa umakini.
   • Hatari za nje kama vile hali ya uchumi wa dunia, viwango vya riba, na mabadiliko ya sarafu yanaweza kuongeza mzigo wa deni. Kwa mfano, ikiwa deni la nje la Tanzania litaongezeka na deni hilo liko katika sarafu za kigeni, kushuka kwa thamani ya shilingi ya Tanzania kunaweza kufanya ulipaji wa deni kuwa ghali zaidi.
5. Madhara kwa Sera za Serikali:
   • Usimamizi wa deni utakuwa wa muhimu kwa Tanzania kudumisha utulivu wa kifedha. Serikali inapaswa kusawazisha mikopo na uwezo wake wa kuzalisha mapato, kuepuka viwango vya juu vya deni ambavyo vinaweza kuzuia ukuaji wa uchumi.
   • Uwekezaji unaoendelea katika miundombinu na maendeleo ni muhimu ili kusaidia ukuaji wa Pato la Taifa, lakini mipango ya makini inahitajika ili kuhakikisha kuwa fedha za mikopo zinatumiwa kwa ufanisi na miradi inazalisha mapato ambayo yanaongeza tija.
   • Tanzania pia inapaswa kuzingatia kuanika uchumi wake ili kupunguza utegemezi wa mambo ya nje na kuongeza uwezo wake wa kustahimili mshtuko wa kiuchumi.

Hitimisho:

Ukuaji wa deni la Tanzania na ukuaji wa Pato la Taifa unaonyesha fursa pamoja na changamoto. Ingawa nchi inawekeza katika mustakabali wake, kusimamia kasi ya mikopo na kuhakikisha ukuaji wa uchumi endelevu itakuwa muhimu kwa kudumisha utulivu wa muda mrefu wa kifedha. Ikiwa usimamizi wa deni utafanywa vizuri, ongezeko la uwiano wa deni kwa Pato la Taifa linaweza kusaidia maendeleo. Lakini ikiwa deni litashindwa kudhibitiwa au kutatizwa na mishtuko ya nje, linaweza kuleta matatizo kwa utulivu wa kifedha.

The Bank of Tanzania's Statement of Financial Position as of September 30, 2024, reflects significant developments in the country's economic landscape. Total assets grew by 1% to TZS 25.86 trillion, driven by a 66.7% increase in loans and receivables and a 5.4% rise in foreign currency marketable securities. At the same time, advances to the government decreased by 10.6%, indicating fiscal discipline. The bank’s equity rose by 7%, with reserves growing by 7.4%, showcasing stronger financial stability. These trends highlight key aspects of Tanzania’s economic development, focusing on sustainable growth and investment stability.

Assets

• Cash and Cash Equivalents: TZS 5.88 trillion, a slight decrease from TZS 6.09 trillion in August 2024.
• Special Drawing Rights (SDRs): TZS 5.84 billion, an increase from TZS 5.74 billion the previous month.
• Gold: TZS 84.48 billion, up from TZS 79.66 billion in August, reflecting a 6% increase.
• Quota in IMF: TZS 1.46 trillion, up from TZS 1.44 trillion, representing a marginal increase.
• Foreign Currency Marketable Securities: TZS 8.54 trillion, up from TZS 8.10 trillion, showing a 5.4% increase.
• Government Securities: TZS 1.95 trillion, slightly up from TZS 1.91 trillion.
• Advances to Government: TZS 4.44 trillion, down significantly from TZS 4.96 trillion, representing a decrease of around 10.6%.
• Loans and Receivables: TZS 1.17 trillion, up from TZS 699.11 billion, indicating a notable 66.7% increase.
• Equity Investments: TZS 157.48 billion, up from TZS 140.56 billion (a 12% increase).
• Other Assets: TZS 1.06 trillion, a small decline from TZS 1.11 trillion in August.

Total Assets

• The total assets of the bank as of September 30, 2024, amounted to TZS 25.86 trillion, compared to TZS 25.61 trillion at the end of August 2024, representing a growth of 1% month-on-month.

Liabilities

• Currency in Circulation: TZS 8.47 trillion, up from TZS 8.32 trillion, an increase of 1.7%.
• Deposits from Banks and Non-Bank Financial Institutions: TZS 2.67 trillion, down slightly from TZS 2.73 trillion.
• Foreign Currency Financial Liabilities: TZS 6.11 trillion, up from TZS 5.83 trillion, indicating a 4.9% increase.
• BoT Liquidity Papers: TZS 529.73 billion, down from TZS 536.83 billion.
• IMF Related Liabilities: TZS 1.17 trillion, unchanged from the previous month.

Total Liabilities

• The total liabilities stood at TZS 22.95 trillion, compared to TZS 22.90 trillion at the end of August, showing a slight increase of 0.2%.

Equity

• Authorized and Paid-up Capital: TZS 100 billion, unchanged.
• Reserves: TZS 2.81 trillion, up from TZS 2.62 trillion, reflecting a 7.4% increase.

Total Equity

• The total equity increased to TZS 2.91 trillion from TZS 2.72 trillion, representing a growth of 7%.

Summary

• The Bank of Tanzania saw a moderate increase in both its total assets and liabilities between August and September 2024. The most notable changes were in advances to the government, which dropped by 10.6%, and loans and receivables, which rose by 66.7%. Additionally, equity growth was largely driven by an increase in reserves, marking a 7.4% rise.

Key insights into Tanzania’s economic development by reflecting the central bank’s financial activities and its role in supporting the economy

1. Increase in Foreign Currency Marketable Securities

• The growth of foreign currency marketable securities (up 5.4% from August to September 2024) indicates a higher investment in foreign assets. This reflects an increase in Tanzania's foreign reserves, which supports the country's external trade and provides a buffer against external shocks like fluctuating commodity prices or global financial instability. Strong foreign reserves are a positive signal of economic stability and can improve investor confidence.

2. Reduction in Advances to the Government

• The 10.6% decline in advances to the government (from TZS 4.96 trillion to TZS 4.44 trillion) suggests a reduction in central bank lending to the government, which could signal improved fiscal discipline or alternative sources of government funding (such as tax revenues or external financing). This is important for Tanzania's economic stability, as overreliance on central bank borrowing can lead to inflationary pressures. The reduction could also indicate that the government is focusing on sustainable debt management practices, which contributes to long-term economic growth.

3. Loans and Receivables Growth

• The 66.7% increase in loans and receivables points to a rise in lending to the private sector or other entities, which is essential for economic development. Increased credit availability can drive business investment, expand production capacity, and boost employment opportunities, thereby stimulating economic growth. This growth in loans might be supporting sectors such as agriculture, manufacturing, and services, which are critical for Tanzania’s development.

4. Growth in Currency in Circulation

• The increase in currency in circulation by 1.7% (from TZS 8.32 trillion to TZS 8.47 trillion) could indicate a growing economy with rising demand for cash as businesses expand and consumer spending increases. This is a sign of economic activity and a more robust domestic market. However, excessive currency issuance without corresponding growth in goods and services can lead to inflation, so maintaining a balance is important.

5. Stable IMF and Foreign Liabilities

• The stability of IMF-related liabilities and moderate increases in foreign currency financial liabilities suggest that Tanzania is managing its external obligations in a stable manner. This is crucial for maintaining a positive international reputation and avoiding excessive debt burdens that could slow economic progress.

6. Increase in Gold and SDRs Holdings

• The increase in gold reserves (up 6%) and Special Drawing Rights (SDRs, up 1.6%) signifies that Tanzania is strengthening its reserve assets, which enhances financial stability. These reserves can be used to support the shilling in times of exchange rate volatility or economic distress, promoting macroeconomic stability.

7. Reserves and Equity Growth

• The 7.4% increase in reserves and a 7% rise in total equity reflect the Bank of Tanzania's efforts to build a stronger financial position. Higher reserves provide a buffer for economic risks and allow the central bank to better support the economy through monetary policy, which is essential for fostering growth and controlling inflation.

Conclusion

• The Bank of Tanzania’s financial position reveals positive signs for the country's economic development. The central bank’s strategy of increasing foreign reserves, reducing government dependency on central bank advances, and expanding loans and receivables aligns with key development goals such as fostering fiscal stability, supporting private sector growth, and maintaining monetary stability. These trends support Tanzania’s long-term goals of sustainable economic growth, diversification, and poverty reduction.

Tanzania's Government Debt to GDP ratio stood at 38.3% in 2022, rising to 53.4% by mid-2023 as the national debt reached USD 42.68 billion, up from USD 38.27 billion in June 2022. The country’s GDP hit an all-time high of USD 79.16 billion in 2023, reflecting strong economic growth with an average annual growth rate of 5.5%. However, debt is growing faster at 6% annually, signaling a moderate rise in the debt-to-GDP ratio, which is projected to reach 54.7% by 2030. Tanzania’s growing debt suggests ongoing investment in infrastructure but calls for careful debt management to maintain fiscal stability.

1. Government Debt to GDP Ratio:
   • 2022: Tanzania's government debt was 38.30% of the country's GDP. This ratio indicates the size of the government's debt in relation to the country's economic output.
   • Historical Trend:
     • Between 2001 and 2022, the Government Debt to GDP ratio averaged 35.26%.
     • The highest ratio recorded was in 2001 at 50.20%, a time when the country was undergoing structural reforms and grappling with high debt burdens.
     • The lowest ratio was in 2008, at 21.50%, following debt relief initiatives like the Heavily Indebted Poor Countries (HIPC) program, which led to significant reductions in Tanzania's debt burden.
2. GDP Trend:
   • Over the period from 1960 to 2023, Tanzania’s GDP grew significantly. On average, it was around USD 19.48 billion.
   • The highest GDP value was reached in 2023, at USD 79.16 billion, showcasing the steady growth of the economy over the years.
   • In 1960, Tanzania’s GDP was much smaller, at USD 2.65 billion, reflecting the economy's size shortly after gaining independence.
3. National Debt Stock as of June 2023:
   • By the end of June 2023, Tanzania's national debt, which includes both public domestic and external debt as well as private sector external debt, stood at USD 42,681 million.
   • This debt level represented 53.4% of GDP. This increase reflects borrowing for development projects, as well as increased demand for credit by the private sector.
   • June 2022 figures show the national debt at USD 38,265.63 million, indicating a significant increase in debt over the course of a year, a rise of approximately 11.5% in nominal terms.

Forecast Tanzania's Government Debt to GDP ratio until 2030

• GDP growth rate: 5.5% per year (average recent growth rate).
• Debt growth rate: 6% per year (assuming continued public investment and infrastructure development).

Forecast Table: Tanzania's Government Debt to GDP Ratio (2024–2030)

Assumptions:

• GDP growth rate: 5.5% per annum, reflecting recent growth trends in Tanzania’s economy.
• Debt growth rate: 6% per annum, reflecting continued borrowing for infrastructure, development, and other national programs.
• Debt to GDP ratio remains slightly increasing due to debt growth outpacing GDP growth slightly.

Tanzania's economic situation and fiscal policy

1. Government Debt Trends:

• Tanzania's Government Debt to GDP ratio has fluctuated over time, with a relatively high point in 2001 (50.20%) and a significant low in 2008 (21.50%) due to debt relief initiatives like HIPC.
• The current debt-to-GDP ratio, 38.30% in 2022, is moderate compared to historical highs. However, the increase in the ratio to 53.4% in 2023 indicates a rising debt burden due to higher borrowing for development projects and infrastructure investments.
• The forecast suggests the debt-to-GDP ratio will continue to rise moderately until 2030, reaching around 54.7%. This is not yet alarming, but continued growth in debt without corresponding economic growth may increase debt-servicing challenges.

2. Economic Growth:

• Tanzania’s economy has experienced steady GDP growth, with GDP reaching an all-time high of USD 79.16 billion in 2023.
• The forecasted GDP growth at an annual rate of 5.5% reflects a positive trend, suggesting that Tanzania will continue to grow, though the government will need to ensure that this growth is sustainable and inclusive.

3. Debt Growth Outpacing GDP:

• While GDP is growing, the government debt is growing at a slightly faster rate (6% vs. 5.5% GDP growth). This implies that Tanzania is borrowing more quickly than it is growing economically.
• A rising debt-to-GDP ratio indicates that the government is relying on debt to finance its projects. If this borrowing leads to productive investments, such as in infrastructure or social services, the economy will benefit in the long term. However, if the debt becomes unsustainable or poorly managed, it could create fiscal pressures.

4. Debt Sustainability and Risks:

• The projected increase in the debt-to-GDP ratio through 2030 highlights the importance of debt sustainability. While a ratio around 54-55% is manageable, it signals a need for vigilance in fiscal policy.
• External factors such as global economic conditions, interest rates, and currency fluctuations could exacerbate debt burdens. For example, if Tanzania’s external debt (part of the national debt) grows in foreign currencies, currency depreciation could make debt repayments more costly.

5. Implications for Policy:

• Debt management will be critical for Tanzania to maintain fiscal stability. The government must balance borrowing with its ability to generate revenue, avoiding excessive debt levels that could hinder growth.
• Continued investment in infrastructure and development is necessary to support GDP growth, but careful planning is essential to ensure that borrowed funds are used effectively and that projects yield returns that boost productivity.
• Tanzania should also focus on diversifying its economy to reduce dependence on external factors and enhance resilience to economic shocks.

Conclusion:

Tanzania's rising debt levels and growing GDP reflect both opportunities and challenges. While the country is investing in its future, managing the pace of borrowing and ensuring sustainable economic growth will be key to maintaining long-term stability. If well-managed, the projected rise in the debt-to-GDP ratio can support development, but mismanagement or unforeseen shocks could put fiscal stability at risk.