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Tanzania’s Economy Grew 5.5% in 2024, Government Advances Energy, Infrastructure, and Social Projects

Tanzania’s economy grew by 5.5% in 2024 to TZS 156.6 trillion, driven by electricity generation from the Julius Nyerere Hydropower Plant, infrastructure investments, and improved agricultural production. The government plans to continue large-scale energy, transport, and social development projects in 2025/26 to achieve the goals of Vision 2050, with a priority on industrial capacity, competitiveness, and inclusive growth.
June 16, 2025
2 minute read
Kitila Mkumbo Parliament Bunge

Tanzania’s real GDP grew by 5.5% in 2024, reaching TZS 156.6 trillion, up from TZS 148.5 trillion in 2023, as the Government announced continued focus on flagship development projects in 2025/26 to support national priorities under Vision 2050.

The update was delivered on 12 June 2025 by Prof. Kitila Mkumbo, Minister of State in the President’s Office for Planning and Investment, during the presentation of the 2024 Economic Report and the National Development Plan for the financial year 2025/26 before Parliament in Dodoma.

Prof. Mkumbo said the Government, in collaboration with the private sector, will continue to implement strategic and high-impact projects aligned with five national priorities: enhancing a competitive and inclusive economy, strengthening industrial production and service delivery, promoting investment and trade, advancing human development, and developing human capital.

He explained that economic growth in 2024 was driven by various factors, including the commissioning of power generation at the Julius Nyerere Hydropower Project, ongoing implementation of strategic infrastructure projects, sound fiscal policy management, increased agricultural output, and public investment in education, health, water, and social protection services.

The top five performing sectors contributing to growth in 2024 were arts and entertainment (17.1%), electricity generation and distribution (14.4%), information and communication (14.3%), financial and insurance services (9% and 13.8% respectively), and health (10.1%).

The newly presented National Development Plan for 2025/26 serves as a transition between the final stages of current plans and the upcoming implementation framework under the Tanzania Development Vision 2050.

The plan focuses on identifying and completing key ongoing programmes and projects to ensure an inclusive and sustainable foundation for future planning cycles.

Want to know more about the Economy in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers the Economy, plus regulations, key sectors, and investment opportunities—all in one place.

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