The economy of Tanzania continues to show growth, driven by increased investment flows and a stable inflation rate.

Emmanuel Tutuba, the Governor of the Bank of Tanzania (BoT), made this statement during the iftar gala hosted by the central bank for fasting Muslims in Dar es Salaam last Friday. This event was also held at the bank's five branches across the country.

Tutuba noted that the financial sector remains resilient and stable, with substantial investments. In 2024, the economy grew by 5.4 percent, outpacing the global growth rate of 3.2 percent. The inflation rate for the country stood at 3.1 percent, well below the global average of 4.7 percent.

"The growth of credit to the private sector has been impressive, reaching 16.8 percent, surpassing the target of 15 percent. Non-performing loans remained low at three percent, which is well within the internationally accepted threshold of five percent," said Tutuba.

The country’s current account deficit narrowed to 2.7 percent of GDP in 2024, down from 3.7 percent in 2023. Foreign exchange reserves reached $5.5 billion, enough to cover 4.7 months of imports. The national debt remained sustainable, standing at 41.1 percent of GDP, well below the SADC benchmark of 55 percent.

“These figures indicate that the economy is performing well,” Tutuba emphasized. “The growth of financial services has been supported by sound management of the sector. The rise of microfinance institutions has brought challenges, such as high interest rates and digital banking growth, but we have implemented measures to address these issues.”

Tutuba concluded by stating that the BoT would continue to execute monetary policy effectively to control inflation and ensure financial stability. Additionally, he highlighted the health benefits of fasting, such as weight loss, improved blood sugar levels, and enhanced memory capacity.