Tanzania charts path toward a resilient and competitive economy with Vision 2050

The strategy acknowledges that, while Tanzania has made notable macroeconomic progress, including an average growth rate of 6.2 percent over the past two decades, this growth has not translated into widespread poverty reduction or inclusive development.

The government has identified several constraints undermining economic inclusivity and productivity.

These include low industrial output, limited market access, heavy reliance on raw material exports and the persistence of a large informal sector dominated by women, youth and persons with disabilities.

Stable and predictable economy

Vision 2050 emphasises the need for a stable and predictable macroeconomic environment to attract investment and sustain long-term growth.

While inflation and exchange rates have remained relatively stable, the policy warns that frequent shifts in government directives and institutional structures can disrupt investor confidence and hinder development plan implementation.

Key targets under this pillar include improved fiscal discipline, greater transparency in taxation and better alignment between public revenues and expenditures.

“A stable economic environment that balances domestic production and demand, a healthy balance of payments, government revenues and expenditures, and adequate savings and investment levels. Predictable, transparent economic policies supported by a strong legal framework, sound fiscal policies and tax systems that attract sustainable investment,” reads the Vision 2050 document.

The government also aims to raise the country’s tax-to-GDP ratio, currently 11.9 percent, well below the sub-Saharan Africa average of 15.1 percent.

New sources of development financing

Recognising that traditional revenue streams are insufficient, Vision 2050 outlines plans to diversify financing through innovative channels.

These include scaling up public-private partnerships (PPPs), expanding capital markets and creating more opportunities for private equity and venture capital.

Although Tanzania has made progress in digital finance and tax reforms, the government admits that understanding of PPPs remains limited and many sectors still face barriers to accessing capital.

“Capital and financial markets are still underdeveloped, and many sectors, such as agriculture, SMEs, energy and tourism, struggle to access financing due to overreliance on government securities,” reads another part.

Improving the business environment

Vision 2050 also calls for a major overhaul of the regulatory landscape to make it easier to do business in Tanzania.

Despite efforts such as the 2018 Blueprint for Regulatory Reforms, businesses continue to face high costs, bureaucratic delays and overlapping mandates among regulatory agencies.

To address these issues, the government plans to streamline business registration, eliminate non-productive fees and introduce policies that support startups and innovation.

The goal is to place Tanzania among the top three African destinations for doing business and investment.

“Reforms must simplify procedures, remove legal barriers, eliminate non-productive fees and align institutional mandates to create a competitive and efficient business environment,” the document says.

Private sector competitiveness

The Vision highlights the importance of a strong and diversified private sector to spur innovation and create jobs.

Reforms will focus on improving infrastructure, aligning education with market needs and enhancing digital inclusion, particularly for small and medium enterprises (SMEs).

“Historically, state-owned enterprises have struggled due to inefficiency and weak management. From the mid-1980s to the early 1990s, Tanzania underwent major privatisation reforms. However, these efforts failed to create competitive public enterprises, many of which remain reliant on government subsidies,” the document recalls.

Meanwhile, public enterprises in strategic sectors such as energy, manufacturing and infrastructure are expected to become more transparent, efficient and commercially viable.

Strengthening integration

Tanzania intends to leverage its strategic location and diplomatic heritage to become a regional leader in trade, peace and investment.

The country will deepen engagement in blocs such as the East African Community (EAC), Southern African Development Community (SADC) and African Union (AU) to ensure regional integration aligns with national economic goals.

“Tanzania’s strategic location and abundant natural resources, including minerals, biodiversity, freshwater and forests, position it as a key player in Africa’s integration with emerging markets in Asia and Latin America,” reads another part of the Vision 2050.

The Vision also outlines plans to tap into the Tanzanian diaspora to attract remittances, capital and technical expertise, while promoting Swahili as both a diplomatic and economic language on the global stage.

Tanzania’s Vision 2050 lays out an ambitious roadmap to build a more inclusive, stable and competitive economy, one that leverages innovation, diversifies revenue and empowers all citizens to benefit from sustainable development.