Tanzania’s drive to transform its economy will remain a long-term national agenda aimed at ensuring that economic growth delivers tangible benefits to citizens, including more jobs and improved living standards, Minister of Finance Ambassador Khamis Mussa Omar has said.
Speaking in Dodoma during a meeting with a delegation from international credit rating agency Moody’s Investors Service, Ambassador Omar said the government’s focus goes beyond accelerating growth figures to making sure that expansion of the economy translates into real welfare gains for the population.
The meeting, held at Treasury Square, brought together senior government officials and a team of Moody’s experts led by Mr John Walsh.
The minister said Tanzania’s economy has continued to show resilience despite a difficult global environment marked by shocks such as the Covid-19 pandemic.
He noted that the economy recorded growth of 5.4 percent last year and is projected to expand further to about 6 percent in the 2025/26 financial year, reflecting sustained recovery and confidence in the country’s economic direction.
Ambassador Omar said investment demand remains high, particularly in strategic infrastructure sectors such as ports, airports, railways and roads, which play a critical role in supporting trade, attracting investment and driving inclusive development.
He added that the government is continuing to channel significant resources into major projects, including the Standard Gauge Railway and the Julius Nyerere Hydropower Project, alongside investments in key social and economic sectors.
According to the minister, these large-scale investments are expected to strengthen the economy, improve productivity and create opportunities for employment while supporting long-term development across the country.
He also pointed to price stability as a key achievement, saying inflation has remained consistently low for several years, staying below five percent and ranging between 2.9 and 3.4 percent, an indicator of sound macroeconomic management.
Mr Walsh said Moody’s decision to upgrade Tanzania’s sovereign credit rating to B1 with a stable outlook was based on the country’s strong economic and financial performance despite global challenges.
He said Tanzania has continued to post steady growth even amid the effects of the pandemic, global inflation and rising interest rates.
He explained that the upgrade reflects confidence in Tanzania’s macroeconomic policies and the government’s reform agenda being implemented under the International Monetary Fund programme, which is nearing completion.
Mr Walsh added that the government has made meaningful progress in addressing long-standing structural challenges, including low domestic revenue collection and weaknesses in policy implementation.
He said the current assessment focuses on evaluating achievements made over the past two years, identifying remaining challenges and assessing the direction of ongoing reforms.
The aim, he added, is to build a clear picture of Tanzania’s economic position and the measures being taken to ensure sustainable growth and long-term fiscal stability.
Recent assessments by Moody’s and Fitch Ratings have assigned Tanzania credit ratings of B1 and B+ respectively, both with stable outlooks, reinforcing the country’s standing as a credible and increasingly attractive destination for investors.