Tanzania Emerges as a Regional Economic Leader in SADC

Dar es Salaam, Tanzania continues to stand out as a pillar of economic stability and growth within the Southern African Development Community (SADC), according to the latest regional economic report. The findings, presented at the 61st Meeting of the Committee of Central Bank Governors (CCBG) held recently in Gaborone, Botswana, highlight Tanzania's impressive macroeconomic performance amid a challenging regional environment.

Represented by Bank of Tanzania Governor Emmanuel Tutuba, the country demonstrated remarkable resilience, achieving a 5.5 percent economic growth rate in 2024. This growth rate is the second highest in the SADC bloc, significantly outpacing the regional average of 3.0 percent. Tanzania's strong performance contrasts with the mixed economic outcomes of other member states, including Botswana and South Africa, which faced negative or minimal growth.

The report attributes Tanzania's success to robust domestic economic activity, supported by increased exports, favourable weather conditions, and improved access to electricity. These factors have contributed to accelerated growth, reinforcing Tanzania's role as a key economic anchor in the region. The country's prudent fiscal management and low inflation rates, maintained despite global economic shocks, further underscore its stability.

In terms of inflation control, Tanzania is among only seven SADC countries that have kept inflation within the macroeconomic convergence target of 3 to 7 percent. While the regional average inflation rate eased to 9.0 percent, many member states continue to struggle with higher inflation levels. Tanzania's effective monetary policies have been instrumental in achieving this success.

Trade performance is another area where Tanzania shines. Unlike most SADC countries, which are net importers, Tanzania recorded a trade surplus of approximately 2.0 billion US dollars (about 4.94 trillion Tanzanian shillings). This surplus reflects the country's strong export sector and its positive contribution to regional trade integration.

The SADC Macroeconomic Convergence Index further confirms Tanzania's consistent economic stability and sound policy management over the years. The 61st CCBG meeting, chaired by South African Reserve Bank Governor Lesetja Kganyago, provided a platform for central bank governors to discuss strategies for boosting economic growth, enhancing banking supervision, ensuring financial sector stability, and advancing payment systems.

Overall, Tanzania's economic trajectory in 2024 positions it as a model of resilience and growth within the SADC region, showcasing the benefits of sound macroeconomic management and strategic development policies.