In February 2024, Tanzania's external debt stood at TZS 82,678,629 million, reflecting a decrease of 3% from the previous month's figure of TZS 85,477,630 million. However, compared to the same period last year, there was a notable increase of 12%. This suggests a continuing trend of growing external debt, albeit with a slight monthly decline.

On the other hand, Tanzania's domestic debt increased to TZS 31,241,500 million in February 2024, marking a 2% rise from January 2023's figure of TZS 30,505,400 million. Compared to the same period last year, domestic debt has seen a significant increase of 15%, indicating a considerable expansion in the country's internal borrowing.

When considering the total debts, including both external and domestic, Tanzania's total debt amounted to TZS 113,920,129 million in February 2024. This reflects a decrease of 2% from the previous month's total debt of TZS 115,983,030 million. However, compared to the same period last year, there is a noticeable increase of 13% in total debts.

While there has been a slight decrease in total debt from the previous month, the overall trend is one of increasing indebtedness for Tanzania. The rise in both external and domestic debts indicates that the government is relying on borrowing to finance its development projects and meet its financial obligations. This could raise concerns about the country's debt sustainability and its ability to service these debts in the long term, especially considering the significant year-on-year increase in debt levels.

Tanzania's debts indicate impacts regarding its economic growth:

Reliance on External Financing:

The increasing external debt suggests that Tanzania is relying on borrowing from foreign sources to fund its development projects and meet its financial needs. This could indicate that the country lacks sufficient domestic resources or access to capital markets at favorable rates to finance its economic activities. While external borrowing can provide short-term solutions for financing development, it also exposes the country to risks such as exchange rate fluctuations and higher interest payments, which could affect its economic stability.

Investment in Domestic Development:

The rising domestic debt implies that Tanzania is also focusing on financing its economic growth through internal borrowing. This could indicate that the government is investing in infrastructure, social programs, or other development initiatives to stimulate economic activity within the country. However, an increasing domestic debt burden could potentially crowd out private investment and lead to higher interest rates, which may hinder long-term economic growth.

Debt Sustainability Concerns:

The significant year-on-year increase in total debts raises concerns about Tanzania's debt sustainability. While borrowing can be a useful tool for financing development, excessive debt accumulation without corresponding economic growth can lead to debt distress and financial instability. It's essential for Tanzania to ensure that its borrowing is productive and that debt levels remain manageable relative to its economic output and revenue generation capacity.

Impact on Economic Growth:

While borrowing can provide short-term stimulus to economic growth by financing infrastructure projects and other development initiatives, sustained economic growth requires more than just debt accumulation. Tanzania needs to ensure that its borrowing is being used effectively to invest in projects that will generate long-term economic benefits, such as improving productivity, enhancing human capital, and promoting sustainable development.

Tanzania's debt data reflects a mixed picture for economic growth. While borrowing can support investment and development, there are also risks associated with rising debt levels, both domestically and externally. It's crucial for Tanzania to manage its debts prudently, invest in projects that promote sustainable economic growth, and work towards improving its revenue generation capacity to ensure long-term economic stability and prosperity.

Interbank Cash Market

The interbank cash market (IBCM) continued to facilitate the trading of Shilling liquidity among banks. In February 2024, the total value of transactions in the IBCM decreased to TZS 1,604.9 billion from TZS 2,187.8 billion traded in the previous month (see Chart 2.4.2). Seven-day transactions dominated the market, accounting for 67.1 percent of the total market turnover. The overall IBCM interest rate decreased to 7.20 percent from 7.27 percent in the preceding month.

Interbank Foreign Exchange Market

The Interbank Foreign Exchange Market (IFEM) witnessed sustained high demand for foreign currencies, particularly the US dollar. This demand is attributed to reduced seasonal inflows from tourism and export crops, coinciding with tightening monetary policies in advanced economies. In response, the Bank intervened by selling USD 35.8 million in the IFEM during the month (see Chart 2.4.3). Reflecting prevailing foreign exchange liquidity conditions, the Shilling traded at an average rate of TZS 2,547.74 per US dollar, compared to TZS 2,520.68 per US dollar in the preceding month. Year-on-year analysis indicates that the Shilling experienced a depreciation of 8.9 percent compared to 0.5 percent in the same period in 2023.

Tanzania's economic development:

Interbank Cash Market (IBCM):

• Decrease in total value of transactions indicates a possible slowdown in economic activity.
• Dominance of 7-day transactions suggests short-term liquidity management among banks.
• Decrease in the overall IBCM interest rate may signal efforts to stimulate borrowing and investment.

Interbank Foreign Exchange Market (IFEM):

• High demand for foreign currencies, especially the US dollar, indicates significant external trade activity.
• Reduced seasonal inflows from tourism and export crops highlight potential vulnerabilities in certain sectors.
• Interventions by the central bank to stabilize the exchange rate reflect efforts to maintain macroeconomic stability.
• Year-on-year depreciation of the Shilling suggests challenges in maintaining currency value, possibly due to factors such as inflation or external pressures.

In February 2024, the Tanzania government's budget performance was evaluated based on actual operations compared to the budget estimates for the fiscal year. The government expenditure and revenue figures provide insight into the financial management of the country during this period.

Government Expenditure:

1. Wages and Salaries: Actual expenditure on wages and salaries in 2024 was TZS 870.2 billion, which was lower than the budget estimate of TZS 947.9 billion, indicating an 8% decrease.
2. Interest Costs: The government spent TZS 264.6 billion on interest costs, which was less than both the budget estimate of TZS 290.4 billion and the actual expenditure in 2023. This represents a 9% decrease from the estimated amount.
3. Development Expenditure: Actual development expenditure in 2024 amounted to TZS 914.6 billion, compared to the budget estimate of TZS 1,087.2 billion. This indicates a 16% decrease from the estimated amount.
4. Other Recurrent Expenditure: Other recurrent expenditure exceeded the budget estimate by reaching TZS 1,154.4 billion, significantly higher than both the actual expenditure in 2023 and the budget estimate for 2024. This represents a 37% increase from the estimated amount and 4% over the actual operations.

Government Revenues:

1. Taxes on Imports: The government collected TZS 711.2 billion from taxes on imports, which was slightly lower than the budget estimate of TZS 742 billion, resulting in a 4% decrease.
2. Income Tax: Income tax revenues exceeded the budget estimate by reaching TZS 558.3 billion, compared to the estimated amount of TZS 546 billion, showing a 2% increase.
3. Tax on Local Goods and Services: Actual revenue from tax on local goods and services was TZS 433 billion, lower than the budget estimate of TZS 494.7 billion, indicating a 12% decrease.
4. Other Tax: Revenue from other taxes was TZS 115.4 billion, slightly below the budget estimate of TZS 126.2 billion, resulting in a 9% decrease.
5. Non-Tax Revenues: Non-tax revenues amounted to TZS 305.9 billion, falling short of the budget estimate by 18% and indicating a significant decrease from the actual operations in 2023.

Deficit: The deficit for the fiscal year was TZS 45% higher than the estimated amount, indicating a significant gap between government spending and revenue generation. This deficit is a concern as it suggests potential financial strain on the government's budgetary management.

Tanzania government's budget performance and its influence on economic growth:

1. Decrease in Development Expenditure: The 16% decrease in actual development expenditure compared to the budget estimate suggests a potential slowdown in investment in infrastructure, education, and other sectors crucial for long-term economic growth. Limited investment in development projects may hinder Tanzania's ability to improve productivity and competitiveness, thus impacting economic growth prospects.
2. Exceeding Other Recurrent Expenditure: The significant increase (37%) in other recurrent expenditure, which includes items like administrative costs and maintenance, indicates potential inefficiencies in spending. While some increase may be justified for essential services, an excessively high growth rate in recurrent expenditure could divert funds away from more productive investments, possibly hindering economic growth.
3. Revenue Shortfalls: The shortfall in tax revenues, particularly from non-tax sources (-41%), suggests challenges in revenue collection. Lower-than-expected revenues could constrain the government's ability to finance development projects and provide essential services, thereby limiting economic growth opportunities.
4. Deficit Increase: The fact that the deficit is 45% higher than estimated indicates that the government is spending more than it is earning, which can have negative implications for economic stability. A large deficit could lead to increased borrowing or reliance on monetary financing, potentially leading to inflationary pressures and reduced investor confidence, both of which can hamper economic growth.

The budget performance suggests potential challenges in fiscal management that could impact Tanzania's economic growth. To foster sustainable growth, the government may need to address issues such as inefficient spending, revenue collection, and deficit management while prioritizing investment in key sectors that drive long-term economic development.

From 2014 to 2024, Tanzania witnessed a significant growth in the number of registered NGOs, reaching a total of 10,538 entities. These organizations played a vital role in the country's development landscape, offering a diverse range of services to address various societal needs. The cumulative number of services provided by these NGOs amounted to a staggering 16,600,125, showcasing the breadth and depth of their impact across different sectors and communities. Despite the substantial number of services offered, the employment generated by these NGOs stood at 4,661, highlighting their efficiency in leveraging resources to create meaningful opportunities for individuals within the workforce.

In terms of project funding allocation, the data underscores the prioritization of key sectors crucial for Tanzania's socio-economic progress. Education emerged as a top priority, with a substantial investment totaling TZS 225,903,250,015.00 billion, reflecting the nation's commitment to improving literacy rates and educational infrastructure. Health received the highest project funding, amounting to an impressive TZS 1,814,732,170,335.00 billion, indicative of efforts to enhance healthcare accessibility and quality across the country.

While there has been significant investment in projects across various sectors in Tanzania, the employment generated directly by these projects, as indicated by the number of employments (4,661), might not be proportionally high compared to the scale of project funds allocated. This indicates a potential gap between the magnitude of financial investment and its direct impact on job creation within the economy. While projects in sectors such as education, health, and economic empowerment receive substantial funding, the employment generated appears relatively modest. This could imply a need for further examination of the types of projects funded and their capacity to create sustainable employment opportunities, ensuring that investments effectively translate into broader economic benefits, including job creation and livelihood improvement for Tanzania citizens.

Investments in water and energy sectors amounted to TZS 31,814,006,296.00 billion and TZS 4,162,001,734.00 billion, respectively, emphasizing the importance of ensuring reliable access to essential utilities for all Tanzania citizens. Economic empowerment initiatives received substantial support, with project funds totaling TZS 3,888,363,427,553.00 billion, underscoring efforts to foster sustainable economic growth and poverty alleviation.

Furthermore, attention was given to critical areas such as governance, gender equality, social protection, environmental conservation, agriculture, and human rights, as reflected in the allocated project funds. These investments aimed to address systemic challenges, promote inclusive development, and uphold fundamental rights and values within Tanzania society. Overall, the data highlights the multifaceted approach adopted by Tanzania in leveraging NGO partnerships and strategic project funding to advance its developmental goals and improve the well-being of its citizens.

Tanzania's development landscape over the past decade, particularly in terms of the role played by NGOs and the allocation of project funds across various sectors.

NGO Growth and Service Offerings:

The significant increase in the number of registered NGOs from 2014 to 2024 shows a growing presence of civil society organizations actively engaged in addressing social, economic, and environmental challenges. The diverse range of services offered by these NGOs, totaling over 16 million, highlights their multifaceted contributions to societal development.

Employment Impact:

Despite the large number of services provided, the employment generated by NGOs remained relatively modest. This shows that while NGOs play a crucial role in service delivery and community development, their direct contribution to employment generation might be limited compared to other sectors.

Sectoral Priorities in Project Funding:

The allocation of project funds across different sectors reflects the government's priorities and development agenda. Education, health, water, and economic empowerment received substantial investments, indicating a focus on improving human capital, healthcare infrastructure, and economic opportunities.

Inclusive Development:

Investments in sectors such as governance, gender equality, social protection, and human rights underscore Tanzania's commitment to fostering inclusive development and safeguarding the rights and well-being of all citizens.

Environmental Conservation:

The significant allocation of funds towards environmental conservation initiatives highlights Tanzania's recognition of the importance of preserving natural resources and addressing environmental challenges such as climate change and biodiversity loss.

The report is structured into several sections, each focusing on different aspects of Tanzania's business landscape. We begin with an overview of Tanzania's economy, highlighting key economic indicators and sectors driving growth. Subsequent sections delve into the legal and regulatory environment, market opportunities, challenges and risks, business culture and etiquette, and case studies of successful business ventures. By providing a comprehensive overview of Tanzania's business environment, this report aims to serve as a valuable resource for businesses, investors, policymakers, and stakeholders seeking to engage in Tanzania's dynamic economy.

In March 2021, Tanzania's external debt stood at TZS 61,805,876 million (61 trillion), representing a decrease of 5% from February 2021, but a notable increase of 9% from March 2020. This suggests a fluctuating pattern in external borrowing, possibly influenced by economic conditions and government policies during this period. On the other hand, domestic debt in March 2021 amounted to TZS 16,116,500 million (16 trillion), marking a 2% increase from February 2021 and a 9% rise from March 2020. The total debt, combining external and domestic debts, reached TZS 77,922,376 million (77 trillion), showing a 4% decrease from February 2021 but a 9% increase from March 2020.

Moving to January 2024, Tanzania's external debt had decreased to TZS 85,355,369 million (85 trillion), representing a 4% decline from November 2023 but a significant 15% increase compared to January 2021. This indicates a continued reliance on external borrowing to support various developmental projects or budgetary needs. Similarly, domestic debt decreased slightly to TZS 30,505,400 million (30 trillion), reflecting a 1% decrease from November 2023, but a 15% increase from January 2021. The total debts in January 2024 amounted to TZS 115,860,769 million (115 trillion), showing a 3% decrease from November 2023, but a substantial 15% rise from January 2021.

Hence, the trend in Tanzania's debt development from 2021 to 2024 demonstrates a consistent increase in both external and domestic debts over the three-year period, with occasional fluctuations in monthly changes. The significant year-on-year increase of 15% in both external and domestic debts suggests a growing reliance on borrowing to fund developmental initiatives, infrastructure projects, or address fiscal deficits. This trend underscores the importance of monitoring debt levels closely to ensure sustainability and mitigate potential risks associated with high debt burdens, such as debt servicing challenges and macroeconomic instability.

Tanzania's debt trends alongside economic growth requires a comprehensive understanding of various factors influencing both aspects:

Debt Growth Trends:

• From March 2021 to January 2024, Tanzania's total debts increased from TZS 77,922,376 million (77 trillion) to TZS 115,860,769 million (115 trillion), marking a substantial 49% rise over the three-year period.
• External debt grew from TZS 61,805,876 million (61 trillion) to TZS 85,355,369 million (85 trillion), representing a 38% increase.
• Domestic debt also showed significant growth, increasing from TZS 16,116,500 million (16 trillion) to TZS 30,505,400 million (30 trillion), marking an 89% rise.

 Economic Growth Context:

• The substantial increase in debt typically indicates a government's investment in infrastructure, social programs, and other projects aimed at stimulating economic growth.
• However, sustained high levels of debt could also pose risks to economic stability if not managed effectively. This includes concerns about debt servicing, fiscal deficits, and potential crowding out of private investment.

 Implications for Economic Growth:

• The consistent growth in both external and domestic debts suggests that Tanzania has been actively borrowing to finance various developmental projects and address budgetary needs.
• This borrowing may have contributed to economic growth through increased investment in infrastructure, which can enhance productivity, attract foreign investment, and create employment opportunities.
• However, the sustainability of this growth model depends on the efficiency of investments, the capacity to service debts, and the ability to generate sufficient returns on investment to repay debts in the long run.
• The 15% year-on-year increase in debts indicates a rapid accumulation of debt, which could raise concerns about debt sustainability and the potential burden it places on future generations.

Risks and Challenges:

• High levels of debt pose risks to macroeconomic stability, as they can lead to increased debt servicing costs, currency depreciation, inflationary pressures, and reduced investor confidence.
• Moreover, if borrowed funds are not invested efficiently or if projects fail to generate expected returns, the debt burden could become unsustainable, leading to debt crises or the need for austerity measures.

While the growth in Tanzania's debts may have supported economic expansion by financing crucial development projects, it also poses significant risks to long-term economic stability. It's essential for Tanzania policymakers to carefully manage debt levels, prioritize investments that generate sustainable economic returns, and implement effective debt management strategies to ensure that debt remains manageable and supportive of long-term economic growth.

The interbank cash market (IBCM) continued to facilitate the trading of shilling liquidity among banks. In January 2024, the total value of transactions amounted to TZS 2,187.8 billion, a decrease from the TZS 2,488.6 billion traded in the previous month. Transactions spanning seven days comprised the majority share, constituting 50.6 percent of the total market turnover. Overall, IBCM interest rates experienced a slight increase, rising to 7.27 percent from the previous month's 6.81 percent.

The Interbank Foreign Exchange Market (IFEM) saw a recovery in January 2024, driven by seasonal receipts from tourism and agricultural produce. Consequently, commercial banks were the sole participants in the market, though at a reduced level, with total sales amounting to USD 3.8 million, down from USD 17 million in the previous month. Reflecting the foreign exchange liquidity situation, the shilling traded at an average rate of TZS 2,520.68 per US dollar, compared to TZS 2,516 per US dollar in the preceding month. This represented an annual depreciation of 8.6 percent from TZS 2,320.64 per US dollar in January 2023.

Tanzania's economic performance and growth trajectory during the specified period:

Interbank Cash Market (IBCM):

• The decrease in the total value of transactions in the interbank cash market from the preceding month may indicate a potential slowdown in economic activity or liquidity conditions.
• The slight increase in IBCM interest rates suggests tightening liquidity conditions or changes in monetary policy by the central bank to manage inflation or stabilize the currency.

 Interbank Foreign Exchange Market (IFEM):

• The recovery in the Interbank Foreign Exchange Market, driven by seasonal receipts from tourism and agricultural produce, signifies resilience in key sectors contributing to foreign exchange earnings.
• The reduction in total sales compared to the previous month may indicate fluctuations in demand for foreign currency, which could be influenced by factors such as international trade dynamics or domestic economic conditions.
• The depreciation of the Tanzanian shilling against the US dollar suggests potential challenges in maintaining currency stability and may have implications for inflation and import costs.

Hence, these indicators suggest a mixed economic performance for Tanzania during the specified period. While certain sectors, such as tourism and agriculture, showed signs of recovery and resilience, challenges in liquidity conditions and currency stability may require attention to sustain economic growth and stability.

The government has proposed a total budget of 49,345.7 billion shillings for the fiscal year 2024/25, marking an 11.2 percent increase compared to the previous year's budget of 44,388.1 billion shillings.

Today, at the Pius Msekwa Hall in Dodoma, Minister of Finance Dr. Mwigulu Nchemba (Mb) presented these recommendations to the Committee of the Whole Parliament.

Within this budget, revenues are projected to be sourced as follows: an estimated 29,858.4 billion shillings to be collected by the Tanzania Revenue Authority, 3,408.1 billion shillings in non-tax revenue from independent Ministries, Institutions, and Departments, and 1,344.1 billion shillings in income for Local Government Authorities.

Reflecting on Tanzania's economic growth, the proposed budget increase for the fiscal year 2024/25 suggests a continued trajectory of economic expansion. The significant 11.2 percent rise from the previous year's budget indicates confidence in the country's economic prospects and a commitment to further development initiatives.

However, several challenges could pose hurdles to the successful implementation of this budget. One of the main challenges is ensuring effective revenue collection, particularly in light of the economic disruptions caused by the global pandemic. With a substantial portion of revenue expected to be generated through taxation and non-tax revenue, the government will need to address issues such as tax evasion, informal economic activities, and administrative inefficiencies within revenue collection agencies.

Enhancing fiscal discipline and ensuring prudent expenditure management will be crucial. Tanzania, like many other countries, faces the challenge of balancing various development priorities with limited resources. Allocating funds efficiently to critical sectors such as healthcare, education, infrastructure, and social welfare programs will be essential for sustainable growth and poverty reduction.

Maintaining macroeconomic stability amidst external and internal uncertainties is paramount. Global economic trends, fluctuations in commodity prices, and domestic factors such as inflation and exchange rate volatility could impact the budget's effectiveness. Sound monetary and fiscal policies, coupled with prudent debt management practices, will be vital to mitigate these risks and safeguard macroeconomic stability.

Lastly, addressing structural bottlenecks and promoting private sector-led growth are imperative for unlocking Tanzania's full economic potential. Enhancing the business environment, reducing red tape, and fostering innovation and entrepreneurship will be critical in driving long-term economic growth, job creation, and poverty alleviation.

Hence, while the proposed budget reflects Tanzania's commitment to economic growth and development, addressing challenges such as revenue mobilization, expenditure management, macroeconomic stability, and structural reforms will be key to realizing its objectives and fostering inclusive and sustainable growth.

Implications for Economic Development and Fiscal Sustainability

Tanzania's debt development, detailing changes in both external and domestic debts over time:

External Debt:

Tanzania's external debt, which comprises loans and financial obligations owed to foreign creditors, stood at 85,355,369 million TZS in January 2024. This figure represents a 4% decrease from November 2023, despite reflecting a 15% increase compared to January of the previous year. The reduction from the previous month suggests potential debt repayment or restructuring activities aimed at managing external debt levels and associated financial obligations.

Domestic Debt:

Tanzania's domestic debt, consisting of borrowings from domestic sources such as banks, financial institutions, and individuals, amounted to 30,505,400 million TZS in January 2024. While this figure reflects a marginal 1% decrease from November 2023, it also reflects a 15% increase compared to January of the previous year. The stability in domestic debt levels indicates ongoing borrowing activities within the domestic market to finance government expenditures and development projects.

Total Debts:

The total debts incurred by Tanzania, comprising both external and domestic debt obligations, amounted to 115,860,769 million TZS in January 2024. This represents a 3% decrease from November 2023, despite reflecting a 15% increase compared to January of the previous year. The decrease from the previous month suggests efforts to manage overall debt levels, possibly through debt repayment or restructuring measures, while the year-on-year increase underscores the continued accumulation of debt over time to support various economic and development initiatives.

Tanzania's national debts provides important insights into the country's economic growth and fiscal health:

• Impact on Economic Growth: While debt can be a crucial source of financing for development projects and infrastructure, excessive debt levels can pose risks to economic growth. The significant increase in both external and domestic debts over time suggests that Tanzania has been relying on borrowing to fund various development initiatives. However, the data also indicates efforts to manage debt levels, as reflected in the recent decrease in total debts. Prudent debt management is essential to ensure that debt financing contributes positively to economic growth without leading to debt distress or fiscal instability.
• Debt Servicing Burden: High debt levels can exert pressure on government finances through debt servicing obligations, which require allocating significant portions of the budget to interest payments and principal repayments. This can crowd out spending on essential public services and infrastructure, potentially hindering long-term economic growth. Therefore, it's crucial for Tanzania to strike a balance between debt accumulation and debt servicing capacity to ensure sustainable fiscal management.
• Investor Confidence: The sustainability of Tanzania's debt levels is closely watched by international investors and credit rating agencies. Excessive debt burdens or signs of fiscal distress can erode investor confidence, leading to higher borrowing costs and reduced access to international capital markets. Maintaining transparent and prudent debt management practices is essential for preserving investor confidence and accessing financing on favorable terms to support economic growth.
• Investment in Productive Sectors: While debt accumulation can support investment in productive sectors such as infrastructure, education, and healthcare, it's important to ensure that borrowed funds are used efficiently and effectively. Investments should be targeted towards projects that have high economic returns and contribute to long-term sustainable development. Effective project selection, implementation, and monitoring are essential to maximize the impact of debt-financed investments on economic growth.

Tanzania Inflation rates

The uptick in food inflation, rising to 1.8 percent in February 2024 from 1.5 percent in January 2024, reflects the growing cost pressures within Tanzania's food and non-alcoholic beverages sector. This increase contributed to the overall stability of the annual inflation rate, maintaining at 3.0 percent, signaling a steady pace of price changes across the broader economy. These trends underscore the importance of monitoring food prices and their impact on the overall inflationary landscape, informing policymakers and stakeholders about potential economic implications and necessary adjustments in response to evolving market dynamics.

Tanzania money supply

In January 2024, Tanzania's money supply dynamics reflected a mixed picture of both domestic and external influences. While net foreign assets surged by 274% year-on-year, indicating a notable influx of foreign investment, net domestic assets experienced a sharp decline of 291%, suggesting constraints on domestic credit expansion. The Bank of Tanzania's active monetary policy interventions, reflected in its increased assets, aimed to manage liquidity and stabilize the financial system amidst these shifts. Despite fluctuations in foreign currency deposits, currency stability remained relatively intact, supporting confidence in the local currency. However, the decrease in broad money supply (M2) alongside an increase in narrow money supply (M1) hinted at changing liquidity preferences among economic agents, underscoring the importance of monitoring monetary conditions for sustaining economic growth and stability in Tanzania.

Tanzania export and Import

In December 2023, Tanzania experienced significant growth in both export and import values. While exports of goods and services surged by 23%, reflecting enhanced international competitiveness and market access, imports also saw a remarkable 40% increase, indicating heightened domestic demand and economic activity. However, this growth resulted in a widening trade deficit, with import expenditures exceeding export earnings by a substantial margin. Managing this trade imbalance becomes crucial for Tanzania's economic stability and long-term growth.

 Tanzania current account

Tanzania's current account, as depicted in the provided data for December 2023, offers a glimpse into the country's economic performance and external trade dynamics. The reduction in the trade deficit suggests potential improvements in the balance of trade for tangible goods, indicating a degree of competitiveness in international markets. Additionally, the growth in service exports signifies diversification and expansion in the services sector, contributing positively to the overall current account balance. However, challenges persist in generating income from foreign investments, as indicated by the deficit reduction in the primary income account. Overall, while Tanzania's current account remains in deficit, the trends suggest ongoing efforts to strengthen trade competitiveness and broaden income sources, reflecting the country's aspirations for sustainable economic growth and development.

Tanzania government budget

The performance of government revenues and expenditure budget plays a crucial role in shaping Tanzania's economy. Government revenues, generated primarily through taxes and non-tax sources, provide the financial foundation for funding public services, infrastructure projects, and social welfare programs. The efficiency and effectiveness of revenue collection mechanisms directly impact the government's ability to finance its operations and stimulate economic growth. On the expenditure side, the allocation of government funds reflects policy priorities and socio-economic objectives, such as investment in infrastructure, education, healthcare, and poverty alleviation. Prudent management of government expenditure ensures optimal utilization of resources and supports sustainable development initiatives. Together, government revenues and expenditure budget management are instrumental in maintaining fiscal stability, fostering economic prosperity, and addressing socio-economic challenges in Tanzania.

Tanzania National debts development

Tanzania's national debts, encompassing both external and domestic obligations, are pivotal in financing development projects and infrastructure initiatives aimed at driving economic growth and improving living standards. While debt can be a valuable source of funding, careful management is essential to mitigate risks and ensure sustainable fiscal health. The recent decrease in total debts indicates efforts to manage debt levels, reflecting a commitment to fiscal prudence. However, maintaining a delicate balance between debt accumulation and debt servicing capacity is crucial to avoid excessive debt burdens that could hinder long-term economic prosperity. Transparent debt management practices, alongside strategic investment in priority sectors, are vital for harnessing the potential of debt financing to support Tanzania's socio-economic development aspirations while safeguarding fiscal stability for future generations.