In light of the global and domestic economic environment, the MPC decided to maintain the less accommodative monetary policy stance. Monetary policy measures will be used to align liquidity with foreign exchange demand and support the Extended Credit Facility Program's targets for the quarter ending September 2023.

Hence, The Monetary Policy Committee (MPC) held its 227th Ordinary Meeting on August 31, 2023, and made the following key observations and decisions:

1. Monetary Policy Success: The MPC noted that the less accommodative monetary policy has effectively managed liquidity levels as intended.
2. Private Sector Growth: The private sector has experienced high credit growth, which is expected to boost economic growth in 2023.
3. Global Economic Situation: The global economy is gradually improving, with a revised growth projection for 2023 at 3 percent (up from 2.8 percent). Commodity prices are easing, and inflation is declining, leading to central banks in advanced economies reducing their monetary policy aggressiveness. This bodes well for economic activities in Tanzania.
4. Domestic Economic Performance: Mainland Tanzania saw a GDP growth rate of 5.6 percent in the first quarter of 2023, in line with the annual projection. Key drivers included agriculture, construction, and mining. Zanzibar's economy also grew at a healthy rate in 2022. Inflation has been declining and is within the convergence criteria for EAC and SADC. Money supply and private sector credit growth exceeded their targets due to increased loan demand.
5. Government Revenue and Expenditure: Government revenue performance was satisfactory in both Mainland Tanzania and Zanzibar. Expenditure was aligned with available resources.
6. External Sector Challenges: The current account deficit widened due to a faster increase in imports than exports, influenced by global shocks. However, measures are being taken to address this imbalance, and the current account position is expected to improve as the global economy stabilizes.
7. Foreign Exchange Reserves: Foreign exchange reserves remained at a sufficient level, covering about 4.8 months of projected imports.
8. Banking Sector Health: The banking sector is liquid and adequately capitalized, with a decreasing non-performing loans (NPLs) ratio. This is expected to encourage banks to lend more to the private sector, further supporting economic growth.
9. Foreign Exchange Shortage: There was a shortage of foreign exchange, particularly the US dollar, due to global shocks. However, measures were being adopted to increase supply and improve the situation.

The positive and negative impacts of Monetary Policy Committee’s decision to Tanzania Economy:

The Monetary Policy Committee's decisions aim to balance various economic factors to achieve stability and promote growth. The effects can be both positive and negative, and the ultimate outcome depends on the effectiveness of policy implementation, external economic conditions, and how well the economy adapts to the chosen policies. It's crucial for policymakers to carefully monitor these effects and adjust policies as needed to ensure long-term economic stability and growth in Tanzania.

Positive Effects:

1. Price Stability: Maintaining a less accommodative monetary policy can help control inflation and keep it within the target range. This stability benefits consumers and businesses by ensuring the purchasing power of the currency remains steady.
2. Private Sector Growth: A less accommodative policy stance encourages lending to the private sector. This can stimulate business investments, job creation, and overall economic growth.
3. Improved Banking Sector: Adequately capitalized banks with lower non-performing loans (NPLs) ratios are more likely to provide loans to businesses and individuals. This can boost economic activity and increase access to credit.
4. Foreign Exchange Stability: Measures to address foreign exchange shortages and maintain adequate reserves can stabilize the currency exchange rate and provide certainty for international trade.
5. Government Fiscal Discipline: A well-managed monetary policy can support government revenue and expenditure alignment, ensuring fiscal discipline.

Negative Effects:

1. Tightened Credit Conditions: A less accommodative policy can lead to higher interest rates and reduced credit availability. This may discourage borrowing for businesses and consumers, potentially slowing down economic activity.
2. Potential for Reduced Consumer Spending: Higher interest rates may lead to increased borrowing costs for consumers, reducing disposable income and impacting consumer spending.
3. Exchange Rate Risks: While stability is a goal, currency exchange rates can be affected by global economic conditions. A stronger local currency may negatively impact exports, which can affect trade balances.
4. Impact on Government Borrowing Costs: If the government relies on borrowing to finance its operations, higher interest rates could increase the cost of servicing government debt.
5. External Sector Challenges: A current account deficit, if not addressed effectively, can make the country vulnerable to external shocks and fluctuations in global markets.

“Rising Internet Costs and Capital Constraints”

This research highlights the complex environment in which online businesses in Tanzania operate and the need for effective strategies to navigate these obstacles.

In Tanzania, despite the current landscape where more than 85 percent of Micro, Small, and Medium Enterprises (MSMEs) take place online, facilitating easy access to customers in a short time, there's a notable challenge emerging due to the rising costs associated with internet usage. This escalating cost is proving to be burdensome for emerging businesses with limited capital, hindering their ability to generate sustainable profits. Meanwhile, the remaining 15 percent of businesses in Tanzania employ alternative models to acquire customers.

In Africa, a recent survey unveiled that 53 percent of African Micro, Small, and Medium Enterprises (MSMEs) boost their sales through online platforms. Among these, 53 percent utilize online advertising to bolster brand visibility, while 45 percent directly sell their products and services online. Additionally, the study discovered that 36 percent of these businesses resort to personal savings to cope with the escalating operational expenses.

The research, a collaborative effort by GeoPoll, Africa 118, and the African Talent Company, conducted a comprehensive analysis of MSMEs spanning various industries and countries across the African continent. Its primary objective was to explore how these enterprises are harnessing the potential of the digital landscape, shedding light on the evolving dynamics shaping their operations.

Regarding their assessment of the business environment, a substantial 55 percent of the surveyed businesses reported improvements in their country's business climate compared to the previous year.

The challenges of doing online business in Tanzania include:

1. Rising Internet Costs: One significant challenge is the increasing cost of internet usage, which can eat into profit margins for online businesses.
2. Capital Constraints: Many emerging businesses in Tanzania struggle with limited capital, making it difficult for them to sustainably grow and generate profits.
3. Competition: With more than 85 percent of businesses operating online, competition for customers can be intense, making it challenging for new entrants to establish themselves.
4. Alternative Business Models: The presence of 15 percent of businesses using alternative models to acquire customers can divert potential customers away from online platforms.
5. Operational Expenses: The need to allocate personal savings to cover rising operational costs is a burden for online businesses, affecting their financial stability.

Tanzania's Roadmap to Startup Success: Key Strategies for Business Growth

The Global Startup Ecosystem Index (GSEI) by StartupBlink identifies the top countries for startups in Africa in 2023. Tanzania's absence from this list underscores the need for the country to address various factors hindering its business startup environment and take steps to become a prominent player in Africa's startup ecosystem.

Despite the decrease in the cost of living to 3.3 percent and a robust economic growth rate of 5.6 percent, Tanzania does not currently rank among the top ten countries known for fostering a conducive environment for starting businesses. More than half of the businesses established in Tanzania fail within five years.

1. Why does Tanzania lag behind in creating a favorable business startup environment?
2. What measures should Tanzania implement to become one of the top countries in Africa for startup businesses?

Currently, the leading countries for business startups in Africa, according to the Global Startup Ecosystem Index (GSEI) by StartupBlink, are South Africa, Mauritius, Kenya, Nigeria, Egypt, Ghana, Cape Verde, Senegal, Namibia, and Tunisia.

The GSEI relies on a variety of data sources, including surveys, government reports, startup databases, and investment data, to assess startup ecosystems. These ecosystems are typically evaluated based on metrics such as the success of new companies, the presence of technology hubs, access to funding, and the overall business environment.

African nations are reshaping the narrative of economic development by leveraging their unique resources and strengths while addressing challenges to create opportunities for thriving businesses. Governments in Africa are taking proactive steps to support entrepreneurship, including infrastructure development, policy reforms, and initiatives to promote digital literacy, all of which contribute to a more favorable environment for startups to flourish. Moreover, international organizations and private investors recognize the potential of African businesses and provide support through mentorship programs and funding.

Maybe these factors contribute to Tanzania not having a favorable business startup environment:

1. High Business Failure Rate: More than 50 percent of businesses established in Tanzania fail within five years. This high failure rate indicates challenges in sustaining and growing businesses in the country.
2. Regulatory and Administrative Barriers: Cumbersome regulations, bureaucratic red tape, and administrative hurdles can make it difficult for entrepreneurs to start and run businesses efficiently. Simplifying and streamlining these processes can improve the startup environment.
3. Access to Funding: Limited access to financing and capital is a significant barrier for startups. Tanzania may need to develop better mechanisms for startups to secure funding, such as venture capital or angel investment networks.
4. Infrastructure Challenges: Inadequate infrastructure, including unreliable electricity and limited access to technology and communication networks, can hinder business operations and growth.
5. Educational and Skills Gap: The availability of a skilled workforce is crucial for business success. Addressing educational and skills gaps through training and development programs can enhance the country's startup ecosystem.
6. Market Competition: Intense competition within certain industries can make it challenging for new businesses to thrive. Encouraging diversification and identifying niche markets may help startups gain a competitive edge.
7. Political and Economic Stability: Political instability and fluctuations in the economic landscape can create uncertainty for businesses. A stable political environment and economic predictability are essential for attracting investment and fostering entrepreneurship.
8. Access to Technology and Innovation Hubs: The presence of technology hubs and innovation centers can significantly boost a startup ecosystem. Tanzania may benefit from establishing and supporting such hubs to encourage innovation and entrepreneurship.
9. Legal Framework: Ensuring a robust legal framework that protects intellectual property rights, enforces contracts, and resolves disputes efficiently is vital for business confidence and growth.
10. Access to International Markets: Expanding access to international markets can open up opportunities for startups to scale their operations. Trade agreements and export incentives can facilitate this process.

Driving Economic Growth

Tanzania's tourism industry is experiencing a resurgence, with revenues seeing a significant boost, soaring from $1.95 billion in July 2022 to $2.99 billion in July 2023. The number of tourists visiting the country surged by 37.2%, reaching a historic high of 1,658,043 visitors.

The primary sources of tourists visiting Tanzania for leisure and holidays continue to be Europe and the United States. This revival in Tanzania's tourism industry is indeed remarkable, marking a recovery nearly four years after its revenues plummeted due to the COVID-19 pandemic.

Recent data from the Bank of Tanzania reveals the impressive rebound of the tourism sector, contributing $2.99 billion to foreign exchange earnings in July 2023, compared to $1.95 billion in July 2022. According to the Bank of Tanzania, this signifies a 33% increase in service receipts, amounting to $5.49 billion in July 2023, up from $4.12 billion in July 2022.

The bank also noted that this resurgence in tourism, along with increased earnings from gold, has played a pivotal role in propelling Tanzania's service earnings to exceed $5 billion for the first time in its history. In 2019, Tanzania's tourism sector generated approximately $2.52 billion, but by December 2020, its earnings had significantly dropped to just $1 billion. Gold emerged as the primary foreign exchange earner for the country during this period, generating $2.958 billion in December 2020.

The recovery in the tourism sector is highlighted by a remarkable 37.2% increase in foreign arrivals, totaling 1,658,043 visitors for the year, reaching an all-time high. The previous record for tourism earnings in Tanzania was $2.5 billion, achieved in 2019 when the country welcomed 1,527,230 tourists. According to the National Bureau of Statistics (NBS), Europe and the United States continue to be the main sources of tourists visiting Tanzania for leisure and holidays.

The government of Tanzania can work to sustain and further boost its tourism industry, attracting more visitors and generating increased revenues while ensuring the long-term sustainability of this vital sector, Hence the government should consider implementing several strategies and initiatives:

1. Infrastructure Development: Invest in infrastructure development, including improving roads, airports, and public transportation systems. This will make it easier for tourists to access various parts of the country, including remote and less-visited areas.
2. Promotion and Marketing: Allocate resources to robustly promote Tanzania as a tourist destination both domestically and internationally. Marketing campaigns, participation in international travel fairs, and partnerships with travel agencies can help increase awareness and attract more tourists.
3. Sustainable Tourism Practices: Emphasize sustainable tourism practices to preserve the natural beauty and cultural heritage of Tanzania. Encourage eco-friendly accommodations, wildlife conservation efforts, and responsible tourism activities to attract conscientious travelers.
4. Diversification of Offerings: Diversify the tourism offerings beyond wildlife safaris. Develop cultural tourism, adventure tourism, beach destinations, and niche markets like birdwatching, hiking, and culinary experiences to cater to a wider range of travelers.
5. Streamlined Visa Processes: Simplify visa application and entry procedures to make it easier for tourists to visit Tanzania. This can include visa-on-arrival options, e-visas, or visa waivers for certain countries.
6. Safety and Security: Maintain a safe and secure environment for tourists by investing in law enforcement and safety measures. A secure destination is more likely to attract travelers.
7. Training and Skills Development: Invest in training and capacity-building programs for the tourism workforce. Well-trained and knowledgeable guides, hospitality staff, and service providers enhance the overall visitor experience.
8. Quality Accommodations: Encourage the development of high-quality accommodations that cater to various budget levels. This includes upscale resorts, mid-range hotels, and budget-friendly options.
9. Partnerships and Collaboration: Collaborate with international organizations, travel agencies, airlines, and neighboring countries to create packages and itineraries that encourage longer stays and regional tourism.
10. Regulatory Environment: Create a favorable regulatory environment for tourism investment, ensuring that regulations are clear, transparent, and conducive to business growth in the sector.
11. Community Involvement: Involve local communities in the tourism industry by promoting community-based tourism initiatives. This can help distribute the economic benefits of tourism more widely.
12. Research and Data: Continuously gather data and conduct market research to understand changing tourist preferences and emerging markets. Use this information to adapt strategies accordingly.
13. Crisis Management: Develop a comprehensive crisis management plan to address any future challenges such as pandemics, natural disasters, or security concerns, with a focus on minimizing disruptions to tourism.

A Beacon in East Africa's Investment Horizon

The economic landscape of East Africa is marked by Kenya's dominant position, which accounts for 69% of transactions and a staggering 74% of deal values. However, Uganda, Tanzania, Ethiopia, and Rwanda also wield significant influence in fostering the region's economic growth.

This research delves into East Africa's vibrant economic milieu, exploring the interplay of various factors that have catapulted specific nations to the forefront of the region's economic expansion.

Drawing on data from the East Africa Venture Capital Association (EAVCA) report, we analyze how private capital has played a pivotal role in propelling pioneering enterprises, reshaping industries, and forging new trajectories for East Africa's future.

Private Capital Distribution: According to the EAVCA report, Kenya traditionally maintains its supremacy in the realm of private capital, accounting for 69% of all transactions. In comparison, Uganda, Tanzania, and Ethiopia each constitute 6%, while Rwanda commands 5%. The remainder of deals involves transactions spanning multiple countries. Kenya's dominance is equally pronounced in deal values, representing a staggering 74% of the total disclosed deal value. Uganda and Ethiopia follow at 8% and 7%, respectively, while Rwanda garners 5%. The rest of the capital flows stem from multi-country transactions. In total, there have been 427 investments valued at approximately USD 7.3 billion, accompanied by 51 exits with a combined value of USD 1.3 billion.

1. Kenya: The Economic Powerhouse Kenya stands as the economic epicenter of the region, characterized by a diverse economy that exhibits lower susceptibility to commodity risks compared to its African counterparts. Boasting a substantial market, a robust commercial legal framework, and a skilled workforce, Kenya magnetizes private equity and DFI investments. Additionally, Nairobi serves as the regional headquarters for many firms operating within the East African region.
2. Uganda: Holding Steady Uganda solidifies its position as a pivotal player, contributing to 12% of investments. Its strategic location and burgeoning market render it an enticing destination for investors, particularly within the financial services and agriculture sectors.
3. Tanzania: Emerging Promise Tanzania's 6% share underscores its emergence as a promising private equity and venture capital market. Recent shifts in government policies enhance its appeal to investors, with investments in agriculture, natural resources, infrastructure, tourism, and the financial sector gaining momentum.
4. Ethiopia: A Rising Giant With its rapidly expanding economy and expansive market, Ethiopia garners increasing investor attention. Despite challenges posed by political instability and currency regulations, its potential remains notably high.
5. Rwanda: Niche in Venture Capital Although Rwanda boasts a smaller market, it excels in the realm of venture capital. The nation has emerged as a hub for innovative startups and smaller investments, setting itself apart in the East African landscape.

Other East African Countries: Enriching Diversity Collectively, other East African countries constitute a 2% share. While they may not command the same spotlight, they enrich the diversity and dynamism of the East African investment landscape.

Country Share of Investments (2013-2023):

1. Kenya: 69%
2. Uganda: 12%
3. Tanzania: 6%
4. Ethiopia: 6%
5. Rwanda: 5%
6. Other: 2%

Hence, achieving economic transformation is a long-term process that requires commitment, careful economic planning, and consistent implementation of these strategies, but also Tanzania can learn from Kenya's experiences and adapt approaches to its unique context while addressing specific challenges and opportunities.

Tanzania can consider the following strategies and actions:

1. Investment in Infrastructure: Tanzania can focus on improving its infrastructure, including transportation, energy, and telecommunications. This will enhance connectivity, reduce logistics costs, and attract more businesses and investors.
2. Economic Diversification: Encourage economic diversification by promoting various sectors such as agriculture, manufacturing, technology, and tourism. This will reduce dependency on a few sectors and create a more resilient economy.
3. Investment Promotion: Implement policies and incentives to attract foreign and domestic investment. Tanzania can create a more business-friendly environment, simplify regulations, and reduce bureaucracy to make it easier for businesses to operate.
4. Education and Workforce Development: Invest in education and workforce development to ensure a skilled and adaptable labor force. This includes improving access to quality education and vocational training programs.
5. Stable Political Environment: Maintain a stable political environment to instill investor confidence. Address political instability and policy uncertainties to create a conducive climate for investments.
6. Access to Finance: Improve access to finance for small and medium-sized enterprises (SMEs) and startups. Encourage the growth of venture capital and private equity to support innovative businesses.
7. Trade and Regional Integration: Strengthen regional trade and integration efforts within the East African Community (EAC) to expand market access for Tanzanian goods and services.
8. Tourism Promotion: Leverage Tanzania's natural beauty and tourist attractions by investing in tourism infrastructure and marketing. This sector has the potential for significant growth.
9. Investment in Research and Development: Encourage innovation and research by investing in R&D facilities and supporting technology-driven enterprises.
10. Policy Reforms: Continuously review and update policies to align with economic development goals. Ensure that regulations are transparent and consistent.
11. Public-Private Partnerships: Foster collaboration between the government and the private sector to facilitate large-scale infrastructure projects and promote economic growth.
12. Access to Capital Markets: Develop and deepen capital markets to provide businesses with alternative sources of financing beyond traditional banking.
13. Regional Collaboration: Collaborate with neighboring East African countries to develop regional value chains, expand trade, and promote shared economic development goals.

Inflation Rates:

• The inflation rate has dropped from 3.6% to 3.3% last month, and further analysis reveals a reduction to 3.1%.
• Inflation rate for all products has decreased by -0.1% in one month.
• Notable decreases were observed in food and nonalcoholic beverage inflation (-1.2% in one month, but up by 6.1% in a year), while alcoholic beverage and tobacco inflation increased by 2% in one month and by 3.8% in a year.
• Clothing and footwear prices increased by 0.1% in one month and by 3.4% overall.
• Household maintenance costs grew by 0.5% in one month and 2.7% in a year.
• Transport prices rose by 0.9% in a month and 0.4% over a year.

Money Supply:

• Money circulation surged by 68.2% in one month, increasing from 38.7% the previous month, but decreased from 64% last year.
• The rise in money supply is attributed to the Bank of Tanzania increasing circulation from -11.5% last month to 0.2% this year.
• Currency circulation increased by over 15.5% this month and narrow money supply (M1) expanded by 19.3%.

Import Rates:

• Over a year, import rates increased by 739%, but in one month, it plummeted by 70%.
• Several items had varying import rates in a year, such as machinery and mechanical appliances (increased by 38% in a year but decreased by 29% within the year).
• Import rates for some products like petrol, lubricants, wheat grain, and pharmaceutical products exhibited varying trends.

Export Rates:

• Export rates grew by 4% in one year and 13% within two years.
• Notable changes were seen in the export rates of manufactured goods, traditional goods, horticultural products, and cereals.

National Debts:

• The national debt has exceeded USD 42 billion, with domestic debt increasing by 2% in a month and 20% in a year.
• External debt increased by 1% in a month and 8% over a year.

Budget Analysis:

• The government's expenditures are surpassing the budget estimate, leading to a 36% increase in expenditures compared to estimated revenue.

• Interest costs have exceeded the budget projection by 151%, and income tax revenue has declined by 5%.

• This has contributed to a growing government deficit, exceeding 36%.

Challenges and Opportunities Confronting Small Businesses in Tanzania

In this research, we examine the challenges and opportunities that small businesses in Tanzania face, outlining potential solutions to foster their growth and sustainability. The analysis encompasses a range of sectors, from agriculture and finance to technology and marketing.

Challenges:

Small businesses in Tanzania confront several significant challenges. A substantial proportion, approximately 83 percent, believe that businesses fail to deliver anticipated financial returns. Equally concerning is the consensus among 83 percent that sales and marketing pose considerable hurdles. Moreover, over 83 percent express doubts about managerial capacity to strategically expand and adapt resources. These challenges collectively contribute to a less-than-five-year lifespan for more than 89 percent of new businesses, highlighting the urgency for intervention.

Additional obstacles include difficulties in accessing financing, embracing new technology, and navigating government regulations. Despite acknowledging government hindrances, more than 85 percent believe existing laws and procedures inadequately support small businesses.

Opportunities:

Amidst these challenges, opportunities are evident. Over 83 percent recognize the availability of investment prospects for enterprises within the region. Notably, more than 82 percent associate small business ownership with happiness and enhanced social status.

Solutions:

Addressing these challenges requires a holistic approach:

1. Financial Support: Government-backed loan programs and microfinance initiatives can provide crucial capital to fuel growth.
2. Skills Development: Training, workshops, and incubators can enhance business management skills and innovation.
3. Regulatory Reforms: Simplifying regulations and implementing supportive policies can reduce barriers to growth.
4. Technology Adoption: Establishing technology hubs, partnerships with research institutions, and providing access to innovative resources can drive technological advancement.
5. Market Access: Trade fairs, business networks, and marketing support can help small businesses expand their reach.
6. Financial Literacy: Financial education programs and advisory services empower small business owners to make informed decisions.
7. Government-Private Sector Collaboration: Public-private partnerships and consultative forums foster collaboration, resource allocation, and sustainable solutions.

Conclusion:

Tanzania's small businesses play a pivotal role in economic growth and job creation. Addressing their challenges and seizing opportunities requires concerted efforts from the government, private sector, and civil society. By implementing these solutions, Tanzania can pave the way for a thriving small business ecosystem, contributing to economic stability, innovation, and social well-being.

Enhancing Tanzania's Business Landscape

This executive summary encapsulates the findings and recommendations derived from a comprehensive study focused on refining Tanzania's business environment. The study, which involved 450 businesses across various scales, aimed to identify key challenges and propose actionable solutions to foster economic growth, facilitate trade, and empower entrepreneurs.

Key Insights:

1. Starting a Business: Respondents indicated a need to simplify and expedite business initiation procedures. While 75% found the environment unfavorable, over a quarter perceived it favorably, emphasizing the need for streamlined registration processes.
2. Government Contracting: Although 74% disagreed that contracting with the government is unfavorable, more than 9% recognized its benefits. Addressing transparency and negotiation bottlenecks can facilitate smoother engagement.
3. Workforce Engagement: 75% acknowledged the ease of recruiting from a surplus of informal workers, hinting at untapped potential. A significant percentage found hiring challenging, necessitating innovative approaches to connect available talent with opportunities.
4. Insolvency Resolution: The alarming 88% who considered insolvency resolution detrimental emphasize the urgent need for strategies to support struggling businesses, from debt management to fostering sustainable practices.
5. Cross-Border Trade: With a mix of sentiments, cross-border trade requires immediate attention. By enhancing infrastructure and streamlining procedures, trade can be made more efficient and conducive to growth.
6. Taxation and Financing: The majority perceived taxation as a hindrance, highlighting the necessity for a balanced system that takes into account genuine growth and regional dynamics. Similarly, credit access remains an issue, warranting tailored solutions to match business stages and economic realities.

• Tanzania's inflation rate has dropped from 4% to 3.6%, although this has not resulted in lower costs for essential goods.
• Although this has not yet resulted in lower prices for necessities and products. The pricing for essential items within one month has not decreased, while the cost for goods within one year has not yet decreased.
• In one month, money circulation increased from 10.4% to 13.4%, while net foreign assets fell from -20.8% to -25.9%.
• Although the Bank of Tanzania has not reduced or increased money circulation in a single month, the situation looks to have improved from -5.5% to -11.5 percent in a year.
• In one-month, net domestic assets surged from 21% to 36%, while import rates increased by more than 1612% in one month but reduced by more than 629 percent in one year.
• The rate of export of products and services climbed for the five year in a row, with gold and travel and transportation rates rising.
• In one month, the national debt reduced by Tsh.40,360 million, yet climbed by Tsh.10,136,340 million in one year.
• Government spending has continued to climb, resulting in a deficit of more than 49% of the year's planned budget.
• Import taxes have been cut by more than 8% compared to the budget estimate, while other tax projections have been cut by more than 6%.

In May, inflation rates lowered from 4.3% to 4%, owing mostly to lower prices for major commodities. Food and non-alcoholic beverages surged by more than 8% year on year, while alcohol and cigarette expenditures increased by 2.2% and 0.70%, respectively, in a month. Clothing and footwear prices increased by 0.25% and 3.3%, respectively, while housing, water, electricity, and other energy prices increased by 0.50% and 1%. Health expenditures increased by 0.04%, transportation costs by 0.33%, and communication costs by 0.16%. Education service costs increased by 0.34% in one month, but remained expensive for the majority of society.

Tanzania's money supply went down from 12.6% in April to 10.4%, with foreign currency deposits increasing by 23.3%. The narrow money supply has also climbed to 14.3%, as have net foreign assets. In one month, the Bank of Tanzania cut money in circulation from -11.8% to -11.5 percent.