Tanzania Poised for Economic Leap as GDP Surpasses $90 Billion

Tanzania’s economy is experiencing a remarkable growth trajectory, with the Gross Domestic Product (GDP) reaching $90.14 billion in 2025—a significant increase from $66.07 billion in 2020 and nearly double the $47.41 billion reported in 2015. This positions Tanzania on track to become one of only 12 African nations with a GDP exceeding $100 billion.

The country’s real GDP expanded by 6% in 2025, building on the previous year’s growth of 5.5%. The International Monetary Fund (IMF) projects continued expansion between 6.3% and 6.5% through 2028, driven primarily by record gold exports, a revitalized tourism sector, and the completion of landmark infrastructure projects.

Gold exports surged 37.4% to $4.7 billion—a new high—thanks to favorable global prices and increased production at major mines. This represented 45.7% of Tanzania’s total export value, pushing the mining sector’s contribution to GDP above 10% for the first time.

Tourism also rebounded strongly, with international arrivals reaching a record 2.3 million by October (up 11.4% from the previous year) and revenues hitting $4.3 billion—rivaling gold exports. This marks a significant recovery from the COVID-19 pandemic’s impact in 2020 when tourism plummeted.

Tanzania’s power sector underwent a transformation with the connection of the 2,115 MW Julius Nyerere Hydropower Project to the national grid in April. The project more than doubled installed generation capacity and is expected to support industrialization by providing affordable electricity.

The country is also investing heavily in transport infrastructure, including the ongoing construction of a new Standard Gauge Railway that will replace the colonial-era system and connect Tanzania’s interior with neighboring landlocked countries like Burundi, Rwanda, and the Democratic Republic of Congo. Early segments have already demonstrated significant time savings for both passengers and freight.

Tanzania’s strategic investments in infrastructure are aimed at attracting private investors—a key element of President Samia Suluhu Hassan’s economic vision. The country has seen a surge in foreign direct investment (FDI), with projects increasing from 250 in 2018 to over 970 in 2024, and total FDI stock rising from $3.8 billion to nearly $12 billion.

With its expanding economy and strategic investments, Tanzania is emerging as a regional trade hub and an attractive destination for investors seeking growth opportunities in Africa.