By Alfred Zacharia
Tanzania has set an economic growth target of 6% for 2025, slightly higher than the 5.5% it expects to achieve this year, as the country approaches the final year of its current national development strategy.
The new target was announced by Planning and Investment Minister Prof Kitila Mkumbo while presenting the State of the National Economy to parliament on Thursday.
The 2025/26 National Development Plan marks the last phase of Tanzania’s Third Five-Year Development Plan (FYDP III), part of the broader Tanzania Development Vision 2025.
The long-term plan, launched in 1999, aims to guide the East African country to middle-income status and improve living standards.
Prof Mkumbo said the government would focus on consolidating gains made since the plan began in 2021 while preparing for a transition to a new long-term strategy known as Vision 2050.
Alongside its growth target, the government aims to keep inflation between 3% and 5%, while increasing domestic revenue to 16.4% of GDP in the next fiscal year, up from an estimated 15.8% this year.
Tax revenue is projected to rise slightly from 12.8% to 13.1% of GDP.
Tanzania also plans to cut its budget deficit from 3.4% to 3% of GDP and maintain foreign currency reserves to cover at least four months of imports, helping the country manage any potential external shocks.
Much of Tanzania’s growth strategy rests on expanding key sectors such as agriculture, energy, infrastructure, and digital services.
The government has prioritised major infrastructure projects including the Standard Gauge Railway (SGR), the East African Crude Oil Pipeline (EACOP), and the Kigongo–Busisi Bridge in Mwanza.
The rehabilitation of the national airline, Air Tanzania, and continued improvements to the national road network also feature prominently.
In agriculture, the government plans to boost productivity by improving access to farming inputs, expanding irrigation systems, and completing the construction of a fishing port.
Investment is also being directed at increasing electricity generation and expanding both the transmission and distribution networks. Reforms in education, healthcare, water supply and sanitation remain central to social development efforts.
To support these ambitions, Tanzania says it will continue reforms aimed at improving its business environment and attracting both domestic and foreign investors.
“We are laying the groundwork for Vision 2050,” said Prof Mkumbo, outlining the government’s longer-term commitment to economic transformation and sustainable growth.