National Parks

The tourism sector in Tanzania saw a significant boost in the number of visitors and earnings from national parks:

• Number of Visitors: Increased by 56% to 619,184 visitors.
• Earnings: Increased by 37.5% to TZS 149.0 billion.

This performance improvement can be attributed to both government and private sector initiatives to promote tourism activities. The Northern zone accounted for the majority of visitors and earnings, with the following shares:

• Northern Zone:
  • Number of Visitors: 72.1%
  • Earnings: 71.2%

Museums

The museums also experienced growth in visitor numbers and earnings, particularly in the quarter ending March 2024. Here are the details:

• Number of Visitors: Increased by 34.2% to 21,101 visitors compared to the corresponding quarter in 2023.
• Earnings: Grew by 42.3% to TZS 203.4 million.

Dar es Salaam zone continued to dominate in both the number of visitors and earnings:

• Dar es Salaam Zone:
  • Number of Visitors: 77.4%
  • Earnings: 86.2%

Table 1: Earnings and Number of Visitors to National Parks

Unfortunately, Table 3.9 was not provided, but from the context, it is evident that the Northern zone played a critical role in tourism revenue.

Table 1: Earnings and Number of Visitors to Museums

Hence

• The number of visitors to national parks and museums in Tanzania has significantly increased.
• Earnings from tourism activities in these areas have also grown, showcasing the positive impact of promotional efforts.
• The Northern zone and Dar es Salaam zone are the primary contributors to tourism revenues in national parks and museums, respectively.

Implications for Tanzania's Economic Development

The increase in tourism activities, both in terms of visitors and earnings, signifies positive strides in Tanzania's economic development. The sector's growth supports various facets of the economy, including employment, regional development, infrastructure, and foreign exchange earnings, all contributing to a robust and diversified economic landscape. Continued focus on promoting tourism through strategic initiatives and investments will likely yield long-term economic benefits for Tanzania:

1. Economic Growth and Revenue Generation

The substantial growth in tourism contributes directly to the national economy by generating revenue. The increase in earnings from national parks (37.5% to TZS 149.0 billion) and museums (42.3% to TZS 203.4 million) indicates a strong inflow of funds, which can be reinvested into further development projects across various sectors.

2. Employment Opportunities

Tourism is labor-intensive and supports a wide range of employment opportunities. The increased number of visitors likely leads to more jobs in hospitality, tour operations, transportation, and conservation efforts. This can help reduce unemployment rates and improve living standards for those working in these sectors.

3. Regional Development

The dominance of the Northern zone in national park tourism (72.1% of visitors and 71.2% of earnings) and the Dar es Salaam zone in museum visits (77.4% of visitors and 86.2% of earnings) suggests focused regional development. The benefits include improved infrastructure, better services, and increased investments in these regions, which can have a ripple effect on local economies.

4. Foreign Exchange Earnings

Tourism is a significant source of foreign exchange. The increase in international visitors boosts foreign currency reserves, which are vital for stabilizing the local currency and funding imports. This enhances Tanzania's balance of payments and economic stability.

5. Private Sector Growth

The improved performance attributed to both government and private sector initiatives highlights the importance of public-private partnerships. Encouraging private investments in tourism can lead to the development of new attractions, better facilities, and innovative services, fostering a competitive and dynamic economic environment.

6. Infrastructure Development

The growth in tourism necessitates improved infrastructure, such as transportation, communication, and hospitality facilities. Investments in these areas not only benefit tourists but also enhance the overall infrastructure, making it easier for businesses and individuals to operate, thereby boosting economic activities.

7. Cultural Preservation and Education

Museums play a critical role in preserving cultural heritage and educating the public. The increased number of visitors to museums signifies a growing interest in cultural and historical awareness. This can lead to better preservation efforts and educational programs, contributing to national identity and pride.

8. Diversification of the Economy

Reliance on multiple sectors, including tourism, helps diversify the economy and reduce dependence on agriculture or mining. A diversified economy is more resilient to shocks, such as commodity price fluctuations or adverse weather conditions, ensuring sustainable economic growth.

9. Sustainable Development

Promoting tourism, particularly eco-tourism in national parks, aligns with sustainable development goals. Conservation efforts funded by tourism revenue help preserve natural resources and biodiversity, ensuring that tourism growth does not come at the expense of environmental degradation.

Foreign Exchange Market in Tanzania

The foreign exchange market in Tanzania is integral to the country's monetary policy and economic stability:

Foreign Exchange Operations

• Bank of Tanzania's Interventions: The Bank of Tanzania actively intervenes in the interbank foreign exchange market (IFEM) to manage liquidity and stabilize the exchange rate. In the second quarter of 2024, the Bank of Tanzania sold USD 185 million to the market, compared to USD 131.5 million in the previous quarter.

Exchange Rate Movements

• Mainland Tanzania:
  • Depreciation: The Tanzania Shilling (TZS) depreciated by 2.2% against the US Dollar in the second quarter of 2024, which was a faster rate than the 1.8% depreciation in the first quarter.
  • Quarterly Average: The average exchange rate in the IFEM was TZS 2,375.5 per USD in June 2024, up from TZS 2,330.7 per USD in March 2024.
• Zanzibar:
  • Exchange Rate: The exchange rate also showed depreciation similar to the mainland, reflecting overall market trends and pressures.

Foreign Exchange Reserves

• Adequacy: Foreign exchange reserves remained adequate, standing at USD 5,239.3 million at the end of June 2024. This level of reserves covers more than 4.5 months of projected imports of goods and services, thus providing a buffer against external shocks.

Foreign Exchange Inflows and Outflows

• Tourism and Exports: Inflows increased from tourism, traditional exports like coffee and cashew nuts, and mineral exports, particularly gold.
• Outflows: Major outflows were due to the importation of goods and services necessary for economic activities.

Current Account Balance

• Deficit:
  • Mainland Tanzania: The current account deficit narrowed to USD 959.2 million in the quarter ending June 2024, compared to USD 977.8 million in the corresponding quarter in 2023.
  • Surplus:
    • Zanzibar: The current account surplus increased to USD 421.5 million in the year ending June 2024, from USD 411.5 million in the corresponding period in 2023.

Regulatory and Market Developments

• Market Reforms: The Bank of Tanzania is continuously implementing reforms to enhance the efficiency and transparency of the foreign exchange market. This includes measures to improve the regulatory framework and increase market liquidity.

The foreign exchange market in Tanzania plays a crucial role in maintaining economic stability. The Bank of Tanzania's interventions, adequate foreign exchange reserves, and continuous market reforms help manage the exchange rate and support the country's economic objectives.

Indicators of Economic Development

The foreign exchange market's performance, as reflected in these indicators, tells a positive story about Tanzania's economic development. While managing currency depreciation remains a challenge, the adequate foreign exchange reserves, increased inflows from key sectors, improved current account balance, and proactive regulatory reforms all point towards a stable and growing economy. These factors contribute to an environment conducive to sustainable economic development, attracting foreign investment, and enhancing the overall economic health of the country.

1. Currency Depreciation:
   • Depreciation Rate: The Tanzania Shilling (TZS) depreciated by 2.2% in the second quarter of 2024, compared to a 1.8% depreciation in the first quarter.
   • Impact: While depreciation can indicate economic challenges, it can also make exports cheaper and more competitive internationally. This mixed effect needs to be balanced carefully by the Bank of Tanzania to avoid inflationary pressures while promoting exports.
2. Foreign Exchange Reserves:
   • Reserves Adequacy: Foreign exchange reserves stood at USD 5,239.3 million, covering more than 4.5 months of imports.
   • Economic Stability: Adequate reserves signify economic stability and the ability to withstand external shocks. It also reflects prudent economic management and a buffer for future uncertainties.
3. Tourism and Export Inflows:
   • Increased Inflows: Significant inflows from tourism and traditional exports (like coffee and cashew nuts) and mineral exports (especially gold).
   • Economic Growth: These inflows are critical for foreign currency earnings, supporting the balance of payments and promoting sectors like agriculture, mining, and tourism, which are pivotal for economic development.
4. Current Account Balance:
   • Mainland Tanzania: The current account deficit narrowed to USD 959.2 million, indicating an improvement in the trade balance.
   • Zanzibar: The current account surplus increased to USD 421.5 million, highlighting positive economic activity and better trade performance.
   • Trade and Investment: These figures suggest an improving trade environment, attracting investment, and enhancing economic growth prospects.
5. Bank of Tanzania's Interventions:
   • Market Stability: Selling USD 185 million to stabilize the market shows active management of the foreign exchange environment.
   • Confidence: Such interventions help in maintaining market confidence and ensuring liquidity, essential for economic stability and growth.
6. Regulatory Reforms:
   • Market Efficiency: Continuous reforms aimed at enhancing the regulatory framework and improving market liquidity are indicative of a proactive approach to fostering a robust economic environment.
   • Economic Development: Effective regulatory frameworks encourage investment, enhance transparency, and contribute to a more resilient and dynamic economy.

Soko la Fedha za Kigeni Tanzania

Soko la fedha za kigeni Tanzania ni sehemu muhimu ya sera ya fedha ya nchi na utulivu wa kiuchumi:

Shughuli za Fedha

• Muingilio wa Benki Kuu ya Tanzania: Benki Kuu ya Tanzania huingilia kati kwa ufanisi katika soko la fedha za kigeni la benki kati (IFEM) kusimamia ukwasi na kuimarisha kiwango cha kubadilisha fedha. Katika robo ya pili ya mwaka 2024, Benki Kuu ya Tanzania iliuza TZS milioni 185 kwa soko, ikilinganishwa na TZS milioni 131.5 katika robo iliyopita.

Mabadiliko ya Viwango vya Kubadilisha Fedha

• Tanzania Bara:
  • Kushuka kwa Thamani: Shilingi ya Tanzania (TZS) ilishuka kwa thamani kwa 2.2% dhidi ya Dola ya Marekani katika robo ya pili ya mwaka 2024, kiwango kilicho kasi zaidi kuliko kushuka kwa 1.8% katika robo ya kwanza.
  • Wastani wa Robo: Wastani wa kiwango cha kubadilisha fedha katika IFEM ulikuwa TZS 2,375.5 kwa TZS kwa Dola ya Marekani mnamo Juni 2024, kutoka TZS 2,330.7 kwa TZS kwa Dola ya Marekani mnamo Machi 2024.
• Zanzibar:
  • Kiwango cha Kubadilisha Fedha: Kiwango cha kubadilisha fedha pia kilionyesha kushuka kwa thamani sawa na Tanzania Bara, ikiakisi mwelekeo na shinikizo za soko kwa ujumla.

Akiba ya Fedha za Kigeni

• Utoaji wa Akiba: Akiba ya fedha za kigeni ilibaki kuwa ya kutosha, ikiwa na TZS milioni 5,239.3 mwishoni mwa Juni 2024. Kiwango hiki cha akiba kinatosha kufunika zaidi ya miezi 4.5 ya uagizaji bidhaa na huduma, hivyo kutoa kinga dhidi ya misukosuko ya nje.

Mapato na Matumizi ya Fedha za Kigeni

• Utalii na Mauzo ya Nje: Mapato yaliongezeka kutoka utalii, mauzo ya nje ya jadi kama kahawa na korosho, na mauzo ya madini, hasa dhahabu.
• Matumizi: Matumizi makubwa yalitokana na uagizaji wa bidhaa na huduma muhimu kwa shughuli za kiuchumi.

Mizania ya Akaunti ya Hivi Sasa

• Upungufu:
  • Tanzania Bara: Upungufu wa akaunti ya sasa ulipungua hadi TZS milioni 959.2 katika robo iliyoishia Juni 2024, ikilinganishwa na TZS milioni 977.8 katika robo inayofanana ya mwaka 2023.
• Ziada:
  • Zanzibar: Ziada ya akaunti ya sasa iliongezeka hadi TZS milioni 421.5 katika mwaka ulioishia Juni 2024, kutoka TZS milioni 411.5 katika kipindi kinachofanana cha mwaka 2023.

Maendeleo ya Kisheria na Soko

• Maboresho ya Soko: Benki Kuu ya Tanzania inaendelea kutekeleza maboresho ili kuongeza ufanisi na uwazi wa soko la fedha za kigeni. Hii inajumuisha hatua za kuboresha mfumo wa udhibiti na kuongeza ukwasi wa soko.

Soko la fedha za kigeni Tanzania lina jukumu muhimu katika kudumisha utulivu wa kiuchumi. Muingilio wa Benki Kuu ya Tanzania, akiba ya kutosha ya fedha za kigeni, na maboresho endelevu ya soko husaidia kudhibiti kiwango cha kubadilisha fedha na kusaidia malengo ya kiuchumi ya nchi.

Viashiria vya Maendeleo ya Kiuchumi

Utendaji wa soko la fedha za kigeni, kama unavyoonyeshwa na viashiria hivi, unaonyesha hadithi nzuri kuhusu maendeleo ya kiuchumi ya Tanzania. Wakati kudhibiti kushuka kwa thamani ya sarafu kunabaki kuwa changamoto, akiba ya kutosha ya fedha za kigeni, ongezeko la mapato kutoka sekta muhimu, maboresho katika mizania ya akaunti ya sasa, na maboresho ya kisheria yanayofanywa yanaonyesha uchumi imara na unaokua. Vipengele hivi vinachangia mazingira yanayowezesha maendeleo endelevu ya kiuchumi, kuvutia uwekezaji wa kigeni, na kuimarisha afya ya kiuchumi ya nchi kwa ujumla.

1. Kushuka kwa Thamani ya Sarafu:

• Kiwango cha Kushuka: Shilingi ya Tanzania (TZS) ilishuka kwa thamani kwa 2.2% katika robo ya pili ya mwaka 2024, ikilinganishwa na kushuka kwa 1.8% katika robo ya kwanza.
  • Athari: Ingawa kushuka kwa thamani kunaweza kuonyesha changamoto za kiuchumi, pia kunaweza kufanya mauzo ya nje kuwa nafuu na yenye ushindani kimataifa. Athari hizi mchanganyiko zinahitaji kusimamiwa kwa uangalifu na Benki Kuu ya Tanzania ili kuepuka shinikizo la mfumuko wa bei wakati wa kukuza mauzo ya nje.

Akiba ya Fedha za Kigeni:

• Utoaji wa Akiba: Akiba ya fedha za kigeni ilifikia TZS milioni 5,239.3, ikitosha kufunika zaidi ya miezi 4.5 ya uagizaji bidhaa.
  • Utulivu wa Kiuchumi: Akiba ya kutosha inaashiria utulivu wa kiuchumi na uwezo wa kukabiliana na misukosuko ya nje. Pia inaonyesha usimamizi wa busara wa kiuchumi na kinga kwa ajili ya kutokuwa na uhakika wa siku zijazo.

Mapato kutoka Utalii na Mauzo ya Nje:

• Ongezeko la Mapato: Mapato makubwa kutoka utalii na mauzo ya nje ya jadi (kama kahawa na korosho) na mauzo ya madini (hasa dhahabu).
  • Ukuaji wa Kiuchumi: Mapato haya ni muhimu kwa mapato ya fedha za kigeni, kusaidia mizania ya malipo na kukuza sekta kama kilimo, madini, na utalii, ambazo ni muhimu kwa maendeleo ya kiuchumi.

Mizania ya Akaunti ya Hivi Sasa:

• Tanzania Bara: Upungufu wa akaunti ya sasa ulipungua hadi TZS milioni 959.2, ikionyesha kuboreshwa kwa mizania ya biashara.
• Zanzibar: Ziada ya akaunti ya sasa iliongezeka hadi TZS milioni 421.5, ikiashiria shughuli za kiuchumi chanya na utendaji bora wa biashara.
  • Biashara na Uwekezaji: Takwimu hizi zinaonyesha mazingira yanayoboreshwa ya biashara, kuvutia uwekezaji, na kuongeza matarajio ya ukuaji wa kiuchumi.

Muingilio wa Benki Kuu ya Tanzania:

• Utulivu wa Soko: Kuuza TZS milioni 185 ili kuimarisha soko kunaonyesha usimamizi wa kazi wa mazingira ya fedha za kigeni.
  • Imani: Muingilio huu husaidia kudumisha imani ya soko na kuhakikisha ukwasi, muhimu kwa utulivu wa kiuchumi na ukuaji.

Maboresho ya Kisheria:

• Ufanisi wa Soko: Maboresho endelevu yanayolenga kuboresha mfumo wa udhibiti na kuongeza ukwasi wa soko yanaonyesha njia ya makusudi ya kukuza mazingira ya kiuchumi yenye nguvu.
  • Maendeleo ya Kiuchumi: Mifumo madhubuti ya udhibiti inahimiza uwekezaji, kuongeza uwazi, na kuchangia uchumi imara na unaobadilika.

Overview of Tanzania's Monetary Policy

The Bank of Tanzania's primary goal in monetary policy is to maintain price stability and support economic growth. The current monetary policy framework involves several key elements:

1. Policy Rate: The central bank rate (policy rate) was maintained at 6% for the quarter ending September 2024. This decision aligns with the goal to keep inflation below the target of 5%.
2. Inflation:
   • Mainland Tanzania: Inflation remained low at 3-4% over the past year. In April and May 2024, it was recorded at 3% and 3.1% respectively.
   • Zanzibar: Inflation declined to the medium target of 5%.
3. GDP Growth:
   • Mainland Tanzania: Real GDP growth was 5.1% in 2023, up from 4.7% in 2022. The growth was driven by sectors such as agriculture, mining, quarrying, construction, and financial intermediation. The first and second quarters of 2024 showed strong growth at 5% and 5.4% respectively.
   • Zanzibar: The economy grew by 7.4% in 2023, compared to 6.8% in 2022, mainly driven by tourism-related activities, construction, and real estate.
4. Private Sector Credit Growth: Estimated at 16.4% during the second quarter of 2024, compared with 17.1% in the preceding quarter. The banking sector remained liquid, profitable, and well-capitalized, with an improved asset quality as reflected by a lower Non-Performing Loan (NPL) ratio of 4.4% in May 2024.
5. Current Account:
   • The current account deficit narrowed to USD 959.2 million in the quarter ending June 2024, from USD 977.8 million in the corresponding quarter in 2023.
   • In Zanzibar, the current account surplus increased to USD 421.5 million in the year ending June 2024, compared to USD 411.5 million in the corresponding period in 2023.
6. Foreign Exchange Reserves: Remained adequate, above USD 5 billion at the end of June 2024, covering more than 4 months of projected imports. The foreign currency liquidity improved due to increased inflows from tourism, gold, and traditional exports.
7. Exchange Rate: The exchange rate depreciated by around 2.2% in the quarter, faster than the 1.8% depreciation in the first quarter of 2024. In the retail market, the depreciation rate was around 3.2% for the quarter.

Instruments and Implementation

The Bank of Tanzania uses various monetary policy instruments, including:

• Repurchase Agreements (Repo and Reverse Repo)
• 35-day and 91-day Treasury Bills
• Statutory Minimum Reserve Requirement Ratio (SMR)
• Sale or Purchase of Foreign Currency in the Interbank Foreign Exchange Market
• Standing Lending Facilities (Intraday and Lombard Loan Windows)

These instruments help to align the operating target variable (7-day interbank interest rate) along the policy rate. The implementation is characterized by high transparency, with regular communication of MPC decisions to banks and the public.

The monetary policy implementation during April-June 2024 was deemed successful, with the 7-day interbank rate staying within +/- 200 basis points of the policy rate and showing improvement compared to the preceding quarter.

The bank also aims to improve the money market through reforms such as the ‘Frontclear’ umbrella guarantee facility, reviewing the collateral framework for government securities, the regulatory framework for liquid assets eligibility, and the pricing framework for monetary policy instruments.

Tax Collection Efficiency Mark Tanzania's Fiscal Year 2023/2024

First Quarter (Robo ya Kwanza: July-September)

For the first quarter of 2022/2023, the actual tax collection was TZS 5,924,493.01 million. The target for the first quarter of 2023/2024 was set at TZS 6,745,293.35 million. The actual collection for this period in 2023/2024 was TZS 6,574,845.86 million, which is approximately 2.53% below the target but represents a year-over-year increase of 10.96% from the previous year's actual collection.

Second Quarter (Robo ya Pili: October-December)

In the second quarter of 2022/2023, the actual tax collection was TZS 6,561,658.01 million. The target for the second quarter of 2023/2024 was set at TZS 7,460,410.20 million. The actual collection for this period in 2023/2024 was TZS 7,341,719.12 million, falling short of the target by approximately 1.59%. However, this is a year-over-year increase of 11.88% from the actual collection of the previous year.

Third Quarter (Robo ya Tatu: January-March)

The actual tax collection for the third quarter of 2022/2023 was TZS 5,936,715.24 million. The target for the same quarter in 2023/2024 was TZS 6,966,477.40 million. The actual collection in 2023/2024 was TZS 6,634,890.46 million, which is about 4.77% below the target. Despite missing the target, this still marks an 11.76% increase from the previous year's actual collection.

Fourth Quarter (Robo ya Nne: April-June)

For the fourth quarter of 2022/2023, the actual tax collection stood at TZS 5,715,589.31 million. The target for the fourth quarter of 2023/2024 was TZS 7,125,289.72 million. The actual collection for this period in 2023/2024 was TZS 7,087,140.82 million, which is just 0.54% below the target. This represents a significant year-over-year increase of 23.98% from the previous year's actual collection.

Annual Totals

The total actual tax collection for the year 2022/2023 was TZS 24,138,455.57 million. The target for the year 2023/2024 was TZS 28,297,470.67 million. The total actual collection for 2023/2024 came to TZS 27,638,596.26 million, which is approximately 2.33% below the target. However, this reflects an overall increase of 14.47% from the previous year’s total actual collection.

Summary

• First Quarter: 10.96% increase in actual collections year-over-year, but 2.53% below the 2023/2024 target.
• Second Quarter: 11.88% year-over-year increase, 1.59% below the 2023/2024 target.

Third Quarter (continued)

• Third Quarter: 11.76% year-over-year increase in actual collections, but 4.77% below the 2023/2024 target. This indicates a strong year-over-year growth, though slightly below the set target for 2023/2024.

Fourth Quarter (Robo ya Nne: April-June)

• Fourth Quarter: The year-over-year increase in actual collections was 23.98%, the highest among all quarters, demonstrating significant improvement compared to the same period in the previous year. The actual collection was only 0.54% below the target for 2023/2024, indicating a very close achievement of the set goal.

Annual Totals

• Annual Totals: For the entire fiscal year, the total actual tax collection in 2023/2024 was TZS 27,638,596.26 million, which is a 14.47% increase from the previous year's total of TZS 24,138,455.57 million. Despite the increase, the total collection was 2.33% below the overall target of TZS 28,297,470.67 million for 2023/2024.

Conclusion

The data highlights a consistent year-over-year increase in tax collections across all quarters, showing significant progress in tax revenue generation:

• First Quarter: 10.96% increase, 2.53% below target.
• Second Quarter: 11.88% increase, 1.59% below target.
• Third Quarter: 11.76% increase, 4.77% below target.
• Fourth Quarter: 23.98% increase, 0.54% below target.
• Annual Increase: 14.47% overall increase, 2.33% below annual target.

The tax collection performance for 2023/2024 demonstrates strong growth in comparison to 2022/2023, with each quarter showing improvements despite slight shortfalls in meeting the targeted figures. The most notable growth occurred in the fourth quarter, indicating a positive trend towards the end of the fiscal year.

Tanzania across the fiscal years 2022/2023 and 2023/2024 provides several insights into the country's economic development

Tanzania in 2023/2024 indicates a robust and growing economy, marked by substantial improvements in tax revenue. The consistent growth in tax collections, despite falling slightly short of ambitious targets, suggests effective economic policies and a resilient economic structure. These positive indicators are likely to contribute to further economic development, enhanced public services, and improved infrastructure, setting a solid foundation for Tanzania's future growth and prosperity.

Strong Economic Growth

Year-over-Year Increase in Tax Collection:

• The consistent year-over-year increases in tax collections across all quarters indicate strong economic growth. The significant increases, especially the 23.98% growth in the fourth quarter, suggest robust economic activity and improvements in the efficiency of tax collection mechanisms.

Improved Tax Collection Efficiency

Narrow Gaps Between Targets and Actual Collections:

• The relatively small percentage differences between the targets and actual collections (e.g., 2.53% below target in the first quarter, 1.59% below target in the second quarter) demonstrate improved accuracy in setting realistic tax revenue targets and enhanced efficiency in tax collection. This improvement can be attributed to better compliance, stronger enforcement of tax laws, and possibly broadening the tax base.

Economic Stability and Resilience

Sustained Growth Across Quarters:

• The sustained growth across all four quarters, with increases ranging from 10.96% to 23.98%, reflects economic stability and resilience. This indicates that the economy is not only growing but also capable of maintaining momentum despite potential challenges.

Potential Areas for Improvement

Meeting Targets:

• While the actual collections have shown significant improvements, the fact that they fell slightly short of the targets (e.g., 2.33% below the annual target) suggests room for further enhancements. On addressing the shortfall could involve strengthening tax administration and compliance efforts further, reducing tax evasion, and fostering an even more conducive business environment.

Positive Economic Indicators

Increased Revenue for Development:

• The increased tax revenue provides the government with more resources for development projects, social services, and infrastructure improvements. This is critical for sustained economic development and improving the quality of life for citizens.

Encouraging Investment

Confidence in Economic Policies:

• The positive trends in tax collection can boost confidence among investors and international stakeholders in Tanzania's economic policies and governance. This could lead to increased foreign and domestic investments, further spurring economic growth.

Source: TRA-2024

Maendeleo ya Kiuchumi ya Tanzania: Utulivu, Ukuaji, na Uangalifu wa Kifedha

Hali ya Kiuchumi ya Dunia

• Ukuaji na Mfumuko wa Bei: Ukuaji wa uchumi wa dunia umeimarika, ukichochewa na utendaji bora wa uchumi wa nchi zilizoendelea na zinazoendelea. Mfumuko wa bei unashuka lakini bado uko juu ya viwango vya kabla ya janga kutokana na kulegezwa kwa sera za ukali na kupungua kwa bei za nishati na chakula.

Utendaji wa Kiuchumi wa Ndani

Mfumuko wa Bei

• Mfumuko wa Bei wa Jumla: Ulibaki ndani ya lengo la asilimia 5, ukiwa asilimia 3.1 mnamo Mei 2024. Mfumuko wa bei wa msingi ulikuwa asilimia 3.6.
• Mfumuko wa Bei wa Chakula: Ulipungua hadi asilimia 1.6 kutoka asilimia 8.5 mwaka mmoja uliopita, ikionyesha upatikanaji wa chakula sokoni licha ya kuongezeka kwa gharama za usafirishaji.
• Nishati, Mafuta, na Huduma za Umma: Mfumuko wa bei uliongezeka hadi asilimia 9.8 mnamo Mei 2024 kutoka asilimia 9.3 mnamo Aprili 2024 kutokana na kuongezeka kwa bei za mkaa wa miti, kuni, na bei za pampu za ndani.

Pesa na Mikopo

• Ugavi wa Pesa: Ugavi mpana wa fedha (M3) uliongezeka kwa asilimia 12.2 mnamo Mei 2024, ukichochewa na mikopo kwa sekta binafsi.
• Mikopo kwa Sekta Binafsi: Ukuaji ulikuwa asilimia 16.5 mnamo Mei 2024, na sekta za kilimo, viwanda, na ujenzi zikionyesha ukuaji mkubwa zaidi.

Viwango vya Riba

• Viwango vya Mikopo: Kiwango cha jumla cha riba ya mikopo kilipungua hadi asilimia 15.23 mnamo Mei 2024 kutoka asilimia 15.42 mnamo Aprili 2024. Kiwango cha riba kilichokubaliwa kilipungua hadi asilimia 12.68 kutoka asilimia 13.95.
• Viwango vya Amana: Kiwango cha jumla cha riba ya amana kiliongezeka hadi asilimia 8.05 kutoka asilimia 7.44, ikionyesha kupungua kwa tofauti ya riba.

Masoko ya Fedha

• Hati za Serikali: Mnada wa hati za hazina na dhamana za serikali ulishinda, na wastani wa mavuno ya hati za hazina ukipungua hadi asilimia 7.86 kutoka asilimia 10.33. Mavuno ya dhamana za miaka 15 yaliongezeka hadi asilimia 15.16 kutoka asilimia 13.66 mnamo Februari 2024.
• Soko la Fedha Kati ya Mabenki: Thamani ya jumla ya miamala mnamo Mei 2024 ilikuwa TZS bilioni 1,581.2, na kiwango cha riba cha IBCM kiliongezeka hadi asilimia 7.34 kutoka asilimia 7.02.
• Soko la Kubadilisha Fedha za Kigeni Kati ya Mabenki: Iliimarika kwa dola za Kimarekani milioni 10.3 zilizofanyiwa biashara mnamo Mei 2024 ikilinganishwa na dola za Kimarekani milioni 2.3 mnamo Aprili 2024. Shilingi ilipungua thamani kwa asilimia 11.6 kwa mwaka.

Shughuli za Bajeti ya Serikali

• Mapato na Matumizi: Mapato ya ndani kwa Aprili 2024 yalikuwa TZS bilioni 2,119, sawa na asilimia 94.1 ya lengo. Matumizi ya serikali yalikuwa TZS bilioni 2,480.4, yakilenga matumizi ya kipaumbele na TZS bilioni 1,882.8 kwa matumizi ya kawaida na TZS bilioni 597.5 kwa matumizi ya maendeleo.

Maendeleo ya Deni

• Deni la Taifa: Jumla ya deni ilikuwa dola za Kimarekani milioni 43,119.8 mwishoni mwa Mei 2024, na deni la nje likiwa asilimia 72.4. Deni la nje lilikua kwa asilimia 1 mwezi kwa mwezi hadi dola za Kimarekani milioni 31,212.4.

Utendaji wa Kiuchumi Zanzibar

• Mfumuko wa Bei: Ulibaki ndani ya malengo.
• Shughuli za Bajeti ya Serikali: Zililenga kudumisha utulivu wa kifedha.
• Utendaji wa Sekta ya Nje: Mwelekeo mzuri uliendelea katika biashara na utalii.

Viashiria hivi vikuu vya kiuchumi vinaonyesha hali ya sasa ya kiuchumi na mwelekeo wa Tanzania, kuonyesha mazingira thabiti ya mfumuko wa bei, ukuaji wa ugavi wa fedha, kuimarika kwa shughuli za soko la fedha, na viwango vya deni vinavyoweza kudhibitiwa. Shughuli za bajeti ya serikali zinalenga ukusanyaji wa mapato na udhibiti wa matumizi, zikiwa na msisitizo kwenye miradi ya maendeleo na utulivu wa kifedha.

Viashiria muhimu vya kiuchumi vinapendekeza mambo kadhaa kuhusu maendeleo ya kiuchumi ya Tanzania:

Viashiria vinaonyesha mwelekeo mzuri kwa ujumla wa maendeleo ya kiuchumi ya Tanzania, ukijulikana na mfumuko wa bei thabiti, ukuaji wa ugavi wa fedha na mikopo, usimamizi mzuri wa kifedha, na hali ya deni inayoweza kudhibitiwa. Msimamo kwenye kilimo, maendeleo ya miundombinu, na utulivu wa soko la fedha unalingana na malengo ya ukuaji wa kiuchumi endelevu. Kuendelea kuzingatia maeneo haya, pamoja na hatua za kuboresha mazingira ya biashara na hali ya uwekezaji, kutakuwa muhimu kwa kudumisha na kuharakisha mwelekeo huu wa ukuaji.

Mazingira Thabiti ya Mfumuko wa Bei

• Mfumuko wa Bei wa Chini: Kiwango cha mfumuko wa bei wa jumla kimehifadhiwa ndani ya lengo la nchi la asilimia 5, kikiwa asilimia 3.1 mnamo Mei 2024. Utulivu huu unaonyesha sera bora za kifedha na za kimonetari, kuhakikisha utulivu wa bei na kulinda nguvu ya ununuzi ya watumiaji.
• Udhibiti wa Bei za Chakula: Kupungua kwa kiasi kikubwa kwa mfumuko wa bei wa chakula kutoka asilimia 8.5 hadi asilimia 1.6 kwa mwaka kunaonyesha upatikanaji wa kutosha wa chakula, ikionyesha maboresho katika uzalishaji wa kilimo na usambazaji.

Ukuaji Chanya wa Pesa na Mikopo

• Ukuaji wa Ugavi wa Pesa: Ukuaji wa asilimia 12.2 wa ugavi mpana wa fedha (M3) unaashiria mahitaji mazuri ya pesa yanayochochewa na shughuli za kiuchumi. Ukuaji huu ni muhimu kwa kuunga mkono shughuli za biashara na uwekezaji.
• Upanuzi wa Mikopo kwa Sekta Binafsi: Ukuaji wa asilimia 16.5 wa mikopo kwa sekta binafsi, hasa katika kilimo, viwanda, na ujenzi, unaonyesha imani katika sekta hizi na uwezo wao wa kuchochea ukuaji wa kiuchumi. Msimamo kwenye kilimo ni muhimu kwa uchumi wa kilimo kama Tanzania.

Kuimarika kwa Hali ya Masoko ya Fedha

• Hati za Serikali: Kujaa kwa mnada wa hati za hazina na dhamana za serikali kunaonyesha imani kubwa ya wawekezaji katika hati za serikali, ikitoa serikali fedha muhimu kwa ajili ya miradi ya maendeleo.
• Utulivu wa Soko la Kati ya Mabenki: Miamala ya soko la fedha kati ya mabenki inayofanyika kwa nguvu na kiwango cha riba cha soko la fedha kati ya mabenki kinachoimarika kinaonyesha utulivu wa ukwasi katika sekta ya benki, ikiunda mazingira ya kifedha yanayoaminika kwa biashara.

Shughuli za Bajeti ya Serikali na Usimamizi wa Kifedha

• Ukusanyaji wa Mapato: Uwezo wa serikali kukusanya asilimia 94.1 ya lengo lake la mapato unaonyesha sera nzuri za kodi na hatua za kiutawala. Mapato haya ni muhimu kwa ufadhili wa huduma za umma na miundombinu.
• Udhibiti wa Matumizi: Matumizi ya serikali yaliyopangwa vizuri, yakilenga matumizi ya kipaumbele, yanaonyesha usimamizi mzuri wa kifedha. Ugawaji wa fedha nyingi kwa matumizi ya maendeleo unaonyesha kujitolea kwa ukuaji wa kiuchumi wa muda mrefu.

Viwango vya Deni Vinavyoweza Kudhibitiwa

• Hali ya Deni Inayoweza Kudhibitiwa: Jumla ya deni la taifa, ikiwa na ongezeko dogo, na deni la nje linalosimamiwa kwa ufanisi, inapendekeza kuwa Tanzania inahifadhi deni katika viwango vinavyoweza kudhibitiwa. Usimamizi mzuri wa deni ni muhimu kwa kuepuka migogoro ya kifedha na kuhakikisha utulivu wa kiuchumi.

Maendeleo ya Kisekta

• Sekta ya Kilimo: Msimamo kwenye kilimo kupitia mikopo iliyoongezeka na usambazaji bora wa chakula ni muhimu kwa uchumi ambapo sehemu kubwa ya idadi ya watu inategemea kilimo kwa maisha.
• Utalii na Biashara: Mapato yaliyoimarika kutoka kwa utalii na mauzo ya nje ya kilimo yanachangia vyema kwenye utendaji wa sekta ya nje, kuunga mkono akiba za fedha za kigeni na utulivu wa kiuchumi.

Madhara ya Kuongezeka kwa Deni la Taifa kwenye Thamani ya Shilingi ya Tanzania

Kuongezeka kwa deni la taifa la Tanzania, hasa deni la nje, kuna uhusiano mkubwa na kushuka kwa thamani ya shilingi ya Tanzania. Uhusiano huu una athari mbalimbali za kiuchumi, ikiwa ni pamoja na gharama kubwa za kulipa deni, shinikizo la mfumuko wa bei, na athari kwenye ukuaji wa uchumi na uwekezaji. Kusimamia mambo haya ni muhimu kwa kudumisha utulivu wa kiuchumi na kukuza maendeleo endelevu.

Kuongezeka kwa Deni la Taifa

• Kiwango cha Sasa cha Deni: Deni la taifa la Tanzania lilikuwa TZS 103,487,716.68 milioni mwishoni mwa Mei 2024, na ongezeko likisababishwa zaidi na kuongezeka kwa deni la nje, ambalo linachangia asilimia 72.4 ya jumla ya deni.
• Deni la Nje: Deni la nje liliongezeka kwa asilimia 1 mwezi hadi mwezi kufikia TZS 75,065,920 milioni mwishoni mwa Mei 2024.

Kushuka kwa Thamani ya Shilingi ya Tanzania

• Kuporomoka kwa Shilingi: Shilingi ya Tanzania ilishuka kwa asilimia 11.6 dhidi ya dola ya Marekani kwa mwaka, na kiwango cha wastani cha ubadilishaji wa TZS 2,599.05 kwa dola moja ya Marekani mnamo Mei 2024 ikilinganishwa na TZS 2,584.69 kwa dola moja ya Marekani mwezi uliopita.

Uhusiano wa Kiuchumi

1. Deni na Thamani ya Sarafu:
   • Kuongezeka kwa Deni: Kuongezeka kwa deni la taifa, hasa deni la nje, kunaongeza mahitaji ya sarafu za kigeni kwani nchi inahitaji kulipa deni lake kwa sarafu za kigeni. Hii inaweza kusababisha kushuka kwa thamani ya sarafu ya ndani ikiwa mahitaji ya sarafu za kigeni yatapita usambazaji.
   • Imani ya Wawekezaji: Kuongezeka kwa viwango vya deni kunaweza kuathiri vibaya imani ya wawekezaji, na kusababisha kupungua kwa uwekezaji wa kigeni na mtiririko wa mitaji, jambo ambalo linaweza kudhoofisha zaidi sarafu ya ndani.
2. Gharama za Kulipa Deni:
   • Gharama za Juu: Kadiri shilingi inavyoporomoka, gharama ya kulipa deni la nje kwa sarafu ya kigeni inaongezeka. Hii inaweza kusababisha nakisi kubwa ya bajeti kwani sarafu ya ndani inahitajika zaidi kukidhi mahitaji ya deni, jambo linaloweza kusababisha kukopa zaidi na mzunguko mbaya wa deni na kushuka kwa thamani.
   • Shinikizo la Bajeti: Kuongezeka kwa gharama za kulipa deni kunaweza kulibana bajeti ya serikali, na kupeleka fedha kwenye miradi muhimu ya maendeleo na huduma za kijamii.

Athari za Kiuchumi

1. Mfumuko wa Bei:
   • Mfumuko wa Bei ya Kuagiza: Kuporomoka kwa thamani ya shilingi kunafanya bidhaa na huduma zinazoagizwa kuwa ghali zaidi, na kusababisha kupanda kwa bei kwa bidhaa na huduma zilizoagizwa. Hii inaweza kuchangia mfumuko wa bei kwa ujumla katika uchumi, na kupunguza nguvu ya kununua na kuongeza gharama za maisha kwa Watanzania.
   • Mfumuko wa Bei ya Gharama: Kuongezeka kwa gharama za uagizaji kunaweza kusababisha mfumuko wa bei ya gharama, ambapo biashara zinapandisha bei kwa walaji kutokana na ongezeko la gharama za vifaa vya uagizaji.
2. Ukuaji wa Uchumi:
   • Athari kwa Uwekezaji: Thamani dhaifu ya sarafu na viwango vya juu vya deni vinaweza kuzuia uwekezaji wa ndani na wa nje kutokana na ongezeko la kutokuwa na uhakika na gharama kubwa za kufanya biashara.
   • Ushindani wa Mauzo ya Nje: Kwa upande mzuri, shilingi dhaifu inaweza kufanya bidhaa za Tanzania kuwa nafuu na kushindana kimataifa, jambo linaloweza kuongeza mapato ya mauzo ya nje na kusaidia kupunguza baadhi ya athari hasi.
3. Mizania ya Malipo:
   • Nakisi Inayopanuka: Kushuka kwa thamani kunaweza kuongeza nakisi ya akaunti ya sasa ikiwa ongezeko la gharama za uagizaji litapita faida za ushindani wa mauzo ya nje.
   • Kupungua kwa Akiba: Ili kuimarisha sarafu, benki kuu inaweza kutumia akiba za fedha za kigeni, jambo ambalo linaweza kupunguza akiba hizo na kudhoofisha zaidi utulivu wa kiuchumi.

Takwimu kutoka Hati Hii

• Hisa za Deni: TZS 103,487,716.68 milioni (Mei 2024)
• Deni la Nje: TZS 75,065,920 milioni (Mei 2024)
• Kiwango cha Kubadilisha Shilingi: TZS 2,599.05 kwa dola moja ya Marekani (Mei 2024)
• Kuporomoka: Asilimia 11.6 kila mwaka

Athari za Kushuka kwa Thamani ya Shilingi kwenye Uchumi wa Tanzania

Kupungua kwa thamani ya shilingi ya Tanzania dhidi ya dola ya Marekani kunaweza kuwa na athari kadhaa kwenye uchumi.

Kushuka kwa Thamani kwa Mwezi

Viwango vya Kubadilisha Fedha:

• Aprili 2024: TZS 2,584.69 kwa dola moja ya Marekani
• Mei 2024: TZS 2,599.05 kwa dola moja ya Marekani

Hii inaonyesha kwamba shilingi ilipungua kwa takriban 0.56% kwa mwezi mmoja.

Kushuka kwa Thamani kwa Mwaka

Kiwango cha Kubadilisha Fedha Mwaka Mmoja Uliopita:

• Mei 2023: Takriban TZS 2,328.24 kwa dola moja ya Marekani (imehesabiwa awali)

Hii inaonyesha shilingi ilipungua kwa 11.6% kwa mwaka mmoja.

Athari za Kiuchumi

1. Mfumuko wa Bei:
   • Gharama za Uagizaji: Kadri shilingi inavyopungua thamani, gharama za bidhaa zinazoagizwa nje huongezeka. Kwa mfano, ikiwa bidhaa inagharimu USD 100:
     • Mei 2023: TZS 232,824
     • Mei 2024: TZS 259,905
   • Kuongezeka kwa gharama hizi za uagizaji kunaweza kusababisha bei za juu kwa watumiaji, na kuchangia mfumuko wa bei.
2. Ushindani wa Bidhaa za Nje:
   • Shilingi dhaifu inaweza kufanya bidhaa za Tanzania kuwa nafuu na kushindana zaidi katika masoko ya kimataifa. Kwa mfano, ikiwa bidhaa imeuzwa kwa TZS 1,000,000:
     • Mei 2023: USD 429.57
     • Mei 2024: USD 384.73
   • Kushuka kwa bei hii kwa dola za Marekani kunaweza kuongeza mahitaji ya bidhaa za Tanzania nje ya nchi, na kuongeza mapato ya nje.
3. Deni la Nje:
   • Huduma ya Deni: Ikiwa Tanzania ina deni lililowekwa kwa fedha za kigeni, kulihudumia deni hili kunakuwa ghali zaidi. Kwa mfano, ikiwa nchi ina deni la USD bilioni 1:
     • Mei 2023: TZS 2.328 trilioni
     • Mei 2024: TZS 2.599 trilioni
   • Kuongezeka kwa mzigo huu kunaweza kuathiri bajeti ya serikali na afya ya kifedha.
4. Utalii:
   • Mvuto: Shilingi dhaifu inaweza kufanya Tanzania kuwa kivutio zaidi kwa watalii, kwani fedha zao za kigeni zitakuwa na uwezo mkubwa wa ununuzi. Kwa mfano, USD 1,000:
     • Mei 2023: TZS 2,328,240
     • Mei 2024: TZS 2,599,050
   • Hii inaweza kuongeza mapato ya utalii, na kunufaisha uchumi.
5. Uwekezaji:
   • Uwekezaji wa Kigeni: Kupungua kwa thamani kunaweza kuathiri uwekezaji wa kigeni. Kwa upande mmoja, mali za ndani zinapokuwa nafuu zinaweza kuwavutia wawekezaji wa kigeni wanaotafuta fursa za bei nafuu. Kwa upande mwingine, wasiwasi kuhusu kushuka zaidi kwa thamani unaweza kuzuia uwekezaji kutokana na hasara zinazoweza kutokea kwenye thamani ya fedha.

Hivyo, kupungua kwa thamani ya shilingi ya Tanzania, kama inavyoonyeshwa na kushuka kwa 0.56% kwa mwezi na 11.6% kwa mwaka, kuna athari nyingi za kiuchumi:

• Kuongezeka kwa gharama za uagizaji kunakosababisha mfumuko wa bei.
• Kuimarisha ushindani wa bidhaa za nje kutokana na bei za chini kwa fedha za kigeni.
• Kuongezeka kwa mzigo wa deni la nje.
• Kuongezeka kwa mvuto wa Tanzania kama eneo la utalii.
• Athari mchanganyiko kwenye uwekezaji wa kigeni, kulingana na mitazamo ya wawekezaji kuhusu utulivu wa fedha.

Mambo haya kwa pamoja yanaathiri maendeleo ya uchumi wa Tanzania, na kuathiri maamuzi ya sera na mikakati ya kiuchumi.

The depreciation of the Tanzania shilling against the US dollar can have several implications for the economy.

Monthly Depreciation

Exchange Rates:

• April 2024: TZS 2,584.69 per US dollar
• May 2024: TZS 2,599.05 per US dollar

This indicates the shilling depreciated by approximately 0.56% in one month.

Annual Depreciation

Exchange Rate One Year Ago:

• May 2023: Approximately TZS 2,328.24 per US dollar (calculated previously)

This shows the shilling depreciated by 11.6% over one year.

Economic Implications

1. Inflation:
   • Import Costs: As the shilling depreciates, the cost of imported goods increases. For example, if a product costs USD 100:
     • May 2023: TZS 232,824
     • May 2024: TZS 259,905
   • This increase in import costs can lead to higher prices for consumers, contributing to inflation.
2. Export Competitiveness:
   • A weaker shilling can make Tanzania exports cheaper and more competitive in international markets. For instance, if a product is priced at TZS 1,000,000:
     • May 2023: USD 429.57
     • May 2024: USD 384.73
   • This price reduction in USD terms can boost demand for Tanzania products abroad, potentially increasing export revenue.
3. Foreign Debt:
   • Debt Servicing: If Tanzania has foreign-denominated debt, servicing this debt becomes more expensive. For example, if the country has USD 1 billion in debt:
     • May 2023: TZS 2.328 trillion
     • May 2024: TZS 2.599 trillion
   • This increased burden can strain the government’s budget and fiscal health.
4. Tourism:
   • Attractiveness: A weaker shilling can make Tanzania a more attractive destination for tourists, as their foreign currency will have greater purchasing power. For instance, USD 1,000:
     • May 2023: TZS 2,328,240
     • May 2024: TZS 2,599,050
   • This can lead to increased tourism revenue, benefiting the economy.
5. Investment:
   • Foreign Investment: Depreciation can impact foreign investment. On one hand, cheaper local assets may attract foreign investors looking for bargains. On the other hand, uncertainty about further depreciation might deter investment due to potential losses in currency value.

Hence, the depreciation of the Tanzania shilling, evidenced by the 0.56% monthly and 11.6% annual decline, has multifaceted economic implications:

• Higher import costs leading to inflation.
• Improved export competitiveness due to lower prices in foreign currency terms.
• Increased burden of foreign-denominated debt.
• Enhanced attractiveness of Tanzania as a tourist destination.
• Mixed effects on foreign investment, depending on investor perceptions of currency stability.

These factors collectively impact Tanzania's economic development, influencing policy decisions and economic strategies.

The increase in Tanzania's national debt, particularly external debt, has a significant relationship with the depreciation of the Tanzania shilling. This relationship has various economic implications, including higher debt servicing costs, potential inflationary pressures, and impacts on economic growth and investment. Managing these factors is crucial for maintaining economic stability and fostering sustainable development.

National Debt Increase

• Current Debt Level: The national debt of Tanzania was USD 43,119.8 million at the end of May 2024, with an increase driven mainly by a rise in external debt, which accounts for 72.4 percent of the total debt.
• External Debt: External debt stock increased by 1 percent month-on-month to USD 31,212.4 million at the end of May 2024.

Depreciation of the Tanzania Shilling

• Shilling Depreciation: The Tanzania shilling depreciated by 11.6 percent against the US dollar over the year, with an average exchange rate of TZS 2,599.05 per US dollar in May 2024 compared to TZS 2,584.69 per US dollar in the preceding month.

Economic Relationship

1. Debt and Currency Value:
   • Increased Debt: Higher national debt, especially external debt, increases the demand for foreign currency as the country needs to service its debt in foreign currencies. This can lead to depreciation of the local currency if the demand for foreign currency exceeds supply.
   • Investor Confidence: Rising debt levels can negatively affect investor confidence, leading to reduced foreign investment and capital outflows, which can further weaken the local currency.
2. Debt Servicing Costs:
   • Higher Costs: As the shilling depreciates, the cost of servicing external debt in foreign currency terms increases. This can lead to higher fiscal deficits as more local currency is needed to meet debt obligations, potentially leading to more borrowing and a vicious cycle of debt and depreciation.
   • Fiscal Pressure: Increased debt servicing costs can strain the government’s budget, diverting funds from essential development projects and social services.

Economic Implications

1. Inflation:
   • Imported Inflation: Depreciation of the shilling makes imports more expensive, leading to higher prices for imported goods and services. This can contribute to overall inflation in the economy, eroding purchasing power and increasing the cost of living for Tanzanian.
   • Cost-Push Inflation: Higher import costs can lead to cost-push inflation, where businesses pass on the higher costs of imported inputs to consumers.
2. Economic Growth:
   • Investment Impact: A weaker currency and higher debt levels can discourage foreign and domestic investment due to increased uncertainty and higher costs of doing business.
   • Export Competitiveness: On the positive side, a weaker shilling can make Tanzania exports cheaper and more competitive internationally, potentially boosting export revenues and helping to offset some of the negative impacts.
3. Balance of Payments:
   • Widening Deficit: Depreciation can exacerbate the current account deficit if the increase in the cost of imports outweighs the gains from increased export competitiveness.
   • Reserves Depletion: To stabilize the currency, the central bank may use foreign exchange reserves, which can deplete the reserves and further undermine economic stability.

Figures 

• Debt Stock: USD 43,119.8 million (May 2024)
• External Debt: USD 31,212.4 million (May 2024)
• Shilling Exchange Rate: TZS 2,599.05 per USD (May 2024)
• Depreciation: 11.6 percent annually