With GDP growth of 6.0% in 2025 and foreign direct investment surging +28.3% in a single year, Tanzania is emerging as the continent's economic surprise. Dar es-Salaam is eating into Nairobi's market share — and the IMF is confirming it.
A trajectory that commands respect
Tanzania posted growth of 6.0% in 2025, up from 5.5% in 2024, according to the African Development Bank (AfDB). Projections for 2026 point to 5.4%, before a rebound to 6.1% in 2027. Over the past decade, Tanzania's average GDP growth has been 5.5% — one of the most consistent performances on the African continent.
Even more revealing: the IMF now projects that Tanzania could overtake Kenya in economic size in less than a decade. A major geopolitical and commercial shift for East Africa.
FDI soars: $1.72 billion in 2024
Foreign direct investment flows confirm this attractiveness. In 2024, FDI reached $1.72 billion, a rise of +28.3% compared to the $1.34 billion recorded in 2023. The total FDI stock is now approaching $20 billion, placing Tanzania among the top 15 African destinations for foreign capital.
The financial system is also strengthening: inflation held at 3.3% in 2025, international reserves cover 4.9 months of imports, and the non-performing loan ratio fell to 3.1% (down from 4.4% in 2024).
Port of Dar es-Salaam overtakes Mombasa
One of the clearest signals of this shift is logistical. The Port of Dar es-Salaam now surpasses Kenya's Port of Mombasa in regional trade volumes — a historic first. This reversal, combined with the launch of the new Standard Gauge Railway and the Bagamoyo port project, positions Tanzania as East Africa's future gateway.
The country also benefits from strategic mineral resources: fourth-largest gold producer in Africa, with identified reserves of nickel, graphite, niobium and rare earth elements — all critical materials in high demand across battery and electronics supply chains worldwide.
Digital governance: an underrated structural advantage
On the technology front, Tanzania is ranked 2nd in Africa in the World Bank's GovTech Maturity Index. Its interoperable mobile payment services (TIPS, TanQR) were deployed a decade before most of its neighbours — an established fintech ecosystem now attracting international investor attention.
Why this matters
Tanzania is no longer merely the region's quiet neighbour — it is becoming a leading player. For Indian Ocean businesses looking to enter East Africa, Dar es-Salaam deserves to be at the centre of the map, not its periphery. Trade corridors linking Mauritius, Réunion and Tanzania remain under-exploited. That is precisely where the opportunity lies.
Sources: African Development Bank (AfDB), IMF, TanzaniaInvest, World Bank GovTech Index 2026.