Tanzania’s growth & inflation outlook for 2025

Tanzania's economy is on the brink of robust growth and stable inflation as projections indicate a 6 per cent expansion in 2025, up from the estimated 5.4 per cent growth in 2024. The Tanzanian market has been showing exponential performance in recent months, driven by the rise in treasury bond yields and an increase in market capitalization. These positive projections underscore Tanzania’s steady economic expansion and position it as a promising investment destination in the years to come. In a recent interview with CNBC Africa, Ramadhan Kagwandi, the Chief Executive Officer at Exodus Advisory, shed light on the country's economic outlook and discussed key developments in the financial and energy sectors. One of the key themes highlighted in the interview is the growth trajectory of the Tanzanian market, with a specific focus on the Dar es Salaam Stock Exchange (DSC). Kagwandi emphasized the importance of improving price discovery mechanisms and enhancing market efficiency to attract both domestic and international investors. The DSC witnessed significant growth in 2024, with a 22.3% increase in market capitalization. This growth was attributed to investor confidence, technological advancements, and increased foreign participation. Looking ahead, potential listings in sectors such as telecommunications, mining, and financial services are expected, driven by regulatory requirements and market dynamics. Another significant topic of discussion was the Africa Energy Summit held in Tanzania, which brought together over 1,500 attendees, including 25 heads of state, to address sustainable and affordable energy sources. Tanzania played a pivotal role in the summit, showcasing its commitment to energy transition and renewable energy projects. The event not only positioned Tanzania as a key player in the continent's energy sector but also paved the way for bilateral agreements and infrastructure deals that would enable the country to export energy to neighboring nations. The summit also had immediate economic impacts, with an increase in tourism interest and a boost to the hospitality sector. Overall, the positive growth projections for Tanzania's economy in 2025, coupled with advancements in the financial and energy sectors, paint a promising picture for the country's economic outlook. With a focus on market expansion, regulatory compliance, and sustainable energy initiatives, Tanzania is poised to attract foreign investment, drive economic growth, and solidify its position as a leading player in the region's financial and energy landscape.