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Tanzania continues to position itself as one of the fastest-growing economies in East Africa. With strong reforms, strategic investments, and rising regional trade, the country is setting the stage for sustainable growth. Below are five key drivers shaping the economy in 2025:

1. Infrastructure Development
   Mega projects such as the Standard Gauge Railway (SGR) and Julius Nyerere Hydropower Project (JNHPP) are modernizing transport and energy, boosting trade efficiency, and creating jobs.
2. Foreign Direct Investment (FDI)
   Tanzania attracted over US $3.5 billion in FDI in FY23/24, fueled by mining, oil & gas, and manufacturing. Policy reforms, including the elimination of 39 levies, continue to make the country more investor-friendly.
3. Agriculture Modernization
   Agriculture, employing more than 60% of Tanzanians, is being transformed through irrigation projects, value addition, and agro-processing zones, improving both exports and food security.
4. Tourism Recovery
   With over 1.8 million tourists in 2024, Tanzania’s natural attractions like Serengeti and Zanzibar remain a key foreign exchange earner, supported by new marketing campaigns and improved connectivity.
5. Digital Economy & Financial Inclusion
   Mobile money platforms and fintech growth are increasing financial access, while government digital initiatives are strengthening tax collection and service delivery.

Tanzania’s economy is expected to maintain 6%+ GDP growth in 2025, driven by these sectors and ongoing reforms. If sustained, this momentum could push the country closer to its goal of becoming a middle-income economy.

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