Between 2010 and 2019, Tanzania recorded an impressive average real GDP growth rate of 6.3%, positioning it among Africa’s top five fastest-growing economies—surpassing regional peers such as Kenya (5.9%), Uganda (5.4%), and Ghana (6.2%), and trailing only behind Ethiopia (9.4%), Rwanda (7.8%), and Côte d’Ivoire (7.5%). Looking ahead, Tanzania is projected to maintain a strong growth trajectory with an average GDP growth rate of 5.9% from 2025 to 2027, slightly below its historical performance but ahead of several large economies, including Nigeria (3.8%) and South Africa (1.8%). While not leading the continent, Tanzania remains a key growth driver in East Africa, alongside Rwanda (8.5%), Uganda (6.2%), and Zambia (6.5%), reflecting continued resilience and investment momentum in sectors like construction, services, and agriculture.
Tanzania’s Position
2010–2019 average growth: 6.3%, among the top 5 in Africa.
2025–2027 average projection: 5.9%, maintaining a strong position, but slightly below past performance.
Trajectory: Increasing growth trend:
2023: 5.1%
2024e: 5.5%
2025f: 5.7%
2026f: 5.9%
2027f: 6.1%
Regional Context
Tanzania is one of the key drivers of growth in the East African Community alongside Kenya, Uganda, and Rwanda.
East Africa is projected to remain the fastest-growing subregion, with average growth above 6.8% in 2026–27
Top Performers: Real GDP Growth (2010–2019)
Country
Avg. Real GDP Growth (2010–2019)
Ethiopia
9.4%
Rwanda
7.8%
Côte d’Ivoire
7.5%
Tanzania
6.3%
Ghana
6.2%
Kenya
5.9%
Senegal
5.7%
Sierra Leone
5.2%
Uganda
5.4%
Benin
4.8%
Top Projected Performers: Real GDP Growth (2025–2027 average)
Country
2025f
2026f
2027f
Avg. (2025–2027)
Rwanda
8.3%
8.5%
8.7%
8.5%
Ethiopia
8.2%
8.3%
8.4%
8.3%
Benin
7.2%
7.1%
7.0%
7.1%
Côte d’Ivoire
5.8%
6.1%
6.4%
6.1%
Uganda
6.2%
6.2%
6.2%
6.2%
Tanzania
5.7%
5.9%
6.1%
5.9%
Zambia
6.2%
6.8%
6.4%
6.5%
Senegal
8.8%
9.2%
9.4%
9.1%
The real GDP growth data from 2010 to 2027 for Tanzania, as detailed in the Africa’s Pulse (Spring 2025), reveals the following key insights when comparing Tanzania to other African countries
1. Strong Historical Performance (2010–2019)
Tanzania averaged 6.3% GDP growth, ranking it among the top 5 fastest-growing economies in Africa during that period.
It outperformed Kenya (5.9%), Ghana (6.2%), Senegal (5.7%), and Uganda (5.4%), showing robust and consistent economic expansion driven by public investment, services, and agriculture.
Only Ethiopia (9.4%), Rwanda (7.8%), and Côte d’Ivoire (7.5%) performed better during this decade.
Interpretation: Tanzania was one of the most stable and rapidly growing economies in Sub-Saharan Africa during the 2010s.
2. Projected Growth (2025–2027): Slightly Below the Top Tier
Country
Avg. Growth 2025–2027
Rwanda
8.5%
Ethiopia
8.3%
Senegal
9.1%
Benin
7.1%
Zambia
6.5%
Côte d’Ivoire
6.1%
Tanzania
5.9%
While still strong, Tanzania’s projected growth places it just below the top-tier performers.
Tanzania remains ahead of larger economies like Kenya, Nigeria, and South Africa, which are forecast to grow more slowly due to structural and fiscal challenges.
Interpretation: Tanzania will maintain steady, healthy growth but may not lead the continent as before unless it enhances reforms or investment levels like Rwanda or Ethiopia.
3. East African Regional Context
Tanzania, Rwanda, Uganda, and Kenya are driving East Africa’s performance.
Among these, Rwanda leads, followed by Uganda, then Tanzania, and finally Kenya.
Tanzania is expected to grow at or above 5.9%, while Kenya is forecast to grow below 5.5%, giving Tanzania a relative advantage.
Interpretation: Tanzania is a regional growth leader, though it is slightly behind Rwanda and Uganda in projected growth pace.
Overall Message for Tanzania
Historically strong and steady economic performer.
Consistently among the fastest-growing economies in Africa from 2010–2027.
Faces competition from smaller but faster-growing economies (e.g., Rwanda, Senegal, Ethiopia).
To remain competitive, Tanzania may need to boost productivity, investment, and governance reforms.
Between 2020 and 2024, Tanzania experienced a remarkable surge in investment activities, signaling growing confidence in the country's economic prospects. The number of projects registered by the Tanzania Investment Centre (TIC) increased from 207 in 2020 to 901 in 2024 — a 335% growth over five years. At the same time, total capital investment rose sharply from $1.1 billion to $9.3 billion, marking a 745% increase. Job creation linked to these projects also soared by 1,121%, with employment opportunities growing from 17,385 in 2020 to 212,293 in 2024. This rapid expansion reflects both domestic and foreign investor confidence, with domestic projects growing by 402%, foreign projects by 399%, and joint ventures by 184%. Key sectors like manufacturing, agriculture, commercial real estate, transportation, and telecommunications attracted the largest share of capital and created substantial jobs, demonstrating Tanzania’s ongoing transformation into a vibrant investment hub.
Key Figures:
Total Projects: Increased from 207 (2020) to 901 (2024) — +335% growth.
Domestic Projects: Increased from 64 (2020) to 321 (2024) — +402% growth.
Foreign Projects: Increased from 81 (2020) to 404 (2024) — +399% growth.
Joint Venture Projects: Increased from 62 (2020) to 176 (2024) — +184% growth.
Capital Investment: Rose from $1.1 billion (2020) to $9.3 billion (2024) — +745% growth.
Jobs Created: Rose from 17,385 (2020) to 212,293 (2024) — +1,121% growth.
Top Investment Sectors by Capital (2024): Manufacturing ($2.19 billion), Agriculture ($1.89 billion), Commercial Buildings ($788.86 million).
Top Sources of FDI (2024): China ($1.05 billion), Vietnam ($783.4 million), Mauritius ($773.96 million).
Top Region by Investment (2024): Dar es Salaam with $4.44 billion across 356 projects and 107,962 jobs.
Project Registration Trends (2020-2024)
Year
Total Projects
Domestic Projects
Foreign Projects
Joint Venture Projects
Jobs Created
Capital Investment (US$ Billion)
2020
207
64
81
62
17,385
1.1
2021
256
75
114
67
40,889
3.8
2022
293
99
112
82
53,025
4.5
2023
526
182
214
130
137,010
5.7
2024
901
321
404
176
212,293
9.3
Project Ownership in 2024
Foreign ownership: 44.8% (compared to 40.7% in 2023)
Joint ventures: 19.6% (compared to 24.7% in 2023)
Domestic ownership: 35.6% (compared to 34.6% in 2023)
Sectoral Analysis of Projects (January-December 2024)
Expansion Projects (January-December 2024)
Total expansion projects: 51 projects across various sectors.
Sectors by Project Count
Total projects: 901 The document doesn't provide the exact number for each sector, but visually it appears manufacturing has the highest number of projects, followed by commercial buildings and services.
Jobs Created by Sector (January-December 2024)
Total jobs: 212,293 Top sectors for job creation:
Commercial Building: approximately 125,760 jobs
Manufacturing: approximately 45,883 jobs
Economic Infrastructure: approximately 18,780 jobs
Transportation: approximately 7,475 jobs
Tourism: approximately 6,949 jobs
Capital Investment by Sector (January-December 2024)
Total investment: $9.3 billion Top sectors receiving investment:
Manufacturing: approximately $2.19 billion
Agriculture: approximately $1.89 billion
Commercial Building: approximately $788.86 million
Transportation: approximately $706.39 million
Telecommunication: approximately $651.92 million
Foreign Direct Investment (FDI)
Top 5 Sources of FDI in 2024
China: $1,053.46 million
Vietnam: $783.4 million
Mauritius: $773.96 million
UAE: $702.52 million
United Kingdom: $394.30 million
Top 5 Sources of FDI in 2023
China: $2,111.41 million
India: $190.53 million
Singapore: $143.29 million
Hong Kong: $135 million
Germany: $131.25 million
Permits, Licenses and Approvals (2024 vs 2023)
The document shows a significant increase in permits, licenses, and approvals issued in 2024 compared to 2023, though the exact numbers aren't clearly visible in the document. The figure shows increases across multiple institutions including Immigration (residence permits), Labor Office (work permits), TRA (approved lists of exemptions), NIDA (legal identity card/NIN), TIC (certificate of incentives), and Ministry of Lands (derivative rights).
Top 10 Regional Distribution (by Capital Investment)
Dar es Salaam: 356 projects, 107,962 jobs, $4,440.97 million capital
Pwani: 166 projects, 49,784 jobs, $1,243.87 million capital
Ruvuma: 11 projects, 5,735 jobs, $597.64 million capital
Mwanza: 37 projects, 4,395 jobs, $581.11 million capital
Morogoro: 22 projects, 11,556 jobs, $446.17 million capital
Shinyanga: 16 projects, 1,121 jobs, $415.21 million capital
Arusha: 64 projects, 6,657 jobs, $213.06 million capital
Dodoma: 47 projects, 6,540 jobs, $182.36 million capital
Kigoma: 8 projects, 774 jobs, $155.62 million capital
Tanga: 23 projects, 1,315 jobs, $137.66 million capital
This analysis shows Tanzania's continued growth in investment across various sectors and regions, with significant increases in both domestic and foreign investments over the five-year period.
Trend Analysis of TIC Investment Projects (2020–2024):
1. Massive Growth in Investment Activity
Project registrations rose 335% (from 207 to 901 projects).
Strong surges in 2023 (+79%) and 2024 (+71%) especially indicate a sharp acceleration in interest.
This suggests that Tanzania became a significantly more attractive investment destination over this period — possibly due to government reforms, better investment climate, infrastructure development, or global shifts.
2. Balanced Growth Between Domestic and Foreign Investments
Domestic projects grew 402%, while foreign projects grew 399%.
This shows that local investors are increasingly active, not just foreign investors — a positive signal of internal economic confidence and private sector development.
3. Joint Ventures Growing, But More Slowly
Joint ventures increased 184%, slower compared to domestic and foreign projects.
This may suggest a need to further encourage partnerships between Tanzanian and foreign investors.
4. Exceptional Job Creation
Jobs created rose from 17,385 in 2020 to 212,293 in 2024 — a 1,121% increase.
Shows investment projects are not just rising numerically, but also becoming larger and more labor-intensive, especially in sectors like commercial building and manufacturing.
5. Sharp Increase in Capital Investment
Capital investment jumped from $1.1 billion to $9.3 billion (+745%).
This signals larger-scale projects, and higher-value industries being targeted (not just quantity of projects but also quality/size).
6. Sectoral Insights
Manufacturing is the top sector by project count and by capital investment ($2.19 billion).
Commercial building dominates in job creation (125,760 jobs) but not necessarily in capital.
Agriculture attracted the second-highest investment ($1.89 billion), reflecting efforts to modernize and commercialize the sector.
Transportation and Telecommunications are emerging sectors — critical for logistics and digital economy growth.
7. Changes in Project Ownership Structure
Foreign ownership increased slightly from 40.7% (2023) to 44.8% (2024).
Domestic ownership also rose slightly, while joint ventures declined, suggesting investors may increasingly prefer to go solo rather than partner.
8. Foreign Direct Investment (FDI) Dynamics
China remains the leading source of FDI in 2023 and 2024, though its FDI declined from $2.1 billion (2023) to $1.05 billion (2024).
New strong entries in 2024 include Vietnam, Mauritius, and UAE — indicating diversification of Tanzania’s FDI sources.
Shows shifting global investment patterns towards Tanzania.
9. Administrative Improvements
A significant increase in permits, licenses, and approvals in 2024 suggests:
Greater activity and support from regulatory agencies.
Possibly better ease of doing business.
Tanzania’s institutions are responding to investment growth with better service delivery.
10. Regional Distribution
Dar es Salaam and Pwani regions dominate in project number, job creation, and capital — but other regions like Ruvuma and Mwanza also attract significant investments.
This suggests some beginning of investment decentralization, though still heavily urban/concentrated.
In Summary:
Tanzania’s investment climate significantly improved from 2020–2024, characterized by:
Higher number, size, and diversity of projects.
Increased domestic investor participation.
Massive job creation.
Sectoral diversification.
Geographic spreading (still early but visible).
Policy reforms, institutional strengthening, infrastructure improvements, and targeted promotion efforts likely played key roles.
Tanzania Investment Centre - Key Figures 2020-2024
