Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania's Real GDP Growth 6.3% (2010–2019) to 5.9% (2025–2027) – A Steady Growth Path in East Africa
May 2, 2025  
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 […]

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)

CountryAvg. Real GDP Growth (2010–2019)
Ethiopia9.4%
Rwanda7.8%
Côte d’Ivoire7.5%
Tanzania6.3%
Ghana6.2%
Kenya5.9%
Senegal5.7%
Sierra Leone5.2%
Uganda5.4%
Benin4.8%

Top Projected Performers: Real GDP Growth (2025–2027 average)

Country2025f2026f2027fAvg. (2025–2027)
Rwanda8.3%8.5%8.7%8.5%
Ethiopia8.2%8.3%8.4%8.3%
Benin7.2%7.1%7.0%7.1%
Côte d’Ivoire5.8%6.1%6.4%6.1%
Uganda6.2%6.2%6.2%6.2%
Tanzania5.7%5.9%6.1%5.9%
Zambia6.2%6.8%6.4%6.5%
Senegal8.8%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

CountryAvg. Growth 2025–2027
Rwanda8.5%
Ethiopia8.3%
Senegal9.1%
Benin7.1%
Zambia6.5%
Côte d’Ivoire6.1%
Tanzania5.9%
  • 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.

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