DAR ES SALAAM — Tanzania’s economy is on a solid growth trajectory over the medium term, but translating that momentum into greater prosperity and poverty reduction remains a challenge, according to the latest World Bank Group Tanzania Economic Update.
The report said expanding access to more productive, better-paying and more secure jobs would be critical to improving living standards and achieving meaningful reductions in poverty.
It projects Tanzania’s economy to grow by 6.1 per cent in 2026 and an average of 6.5 per cent over the medium term, driven by increased private sector activity.
Inflation remains within the Bank of Tanzania’s target range, while public debt remains sustainable and strong private sector credit growth points to expanding economic activity.
The report said the outlook would depend on sustaining growth-friendly fiscal consolidation and continuing reforms to improve the business environment.
The special theme of this edition, Making Jobs Work, found that Tanzania does not face a shortage of jobs, but rather a shortage of higher-quality employment opportunities.
Although the country’s employment rate is among the highest globally, most workers remain concentrated in low-productivity activities, particularly agriculture and informal employment, where limited human capital leaves them highly vulnerable to economic and climate-related shocks.
World Bank Division Director for Tanzania Firas Raad said Tanzania’s continued economic growth amid global uncertainty and climate risks needed to be translated into better jobs through deliberate policy choices and sustained investment in education, skills and health.
“This will help ensure that growth is more inclusive and sustainable,” he said.
Meanwhile, International Finance Corporation Division Director for Tanzania Mary-Jean Moyo said the country’s jobs challenge was ultimately linked to the growth of firms.
“By helping productive firms invest, expand and create more quality jobs, we can make economic growth more inclusive and deliver better opportunities for Tanzanians,” she said.
—World Bank Group
