Tanzania’s Economy Revalued at TSh243.3T as Government Weighs New IMF Deal
Tanzania’s economy is now worth TSh243.3 trillion on paper, but the revision doesn’t mean businesses are suddenly earning more or households have become wealthier.
The new figure results from rebasing the country’s GDP, which has increased the economy’s size by about 2.6 per cent. The government is considering a new lending arrangement with the International Monetary Fund (IMF), raising questions about Tanzania’s borrowing capacity, investment plans, and economic priorities.
According to figures released by the Bank of Tanzania (BoT) in October, Mainland Tanzania and Zanzibar’s total economic output was TSh243.3 trillion (US$95.9bn) in 2025. Mainland Tanzania accounted for TSh234.1 trillion, and Zanzibar for TSh9.2 trillion.
The revised figures offer a more complete picture of economic activity across the United Republic. However, the benefits for ordinary Tanzanians will depend on how that economic capacity translates into jobs, incomes and public services.
A Bigger Economy, But What Has Changed?
GDP rebasing is essentially an update to how a country measures economic activity. Tanzania has shifted its reference year from 2015 to 2019, allowing national statisticians to reflect better changes in production, services, and the economy’s structure.
In Mainland Tanzania, the revision increased 2025 GDP from TSh230.1 trillion to TSh234.1 trillion (about a 1.8% increase). Zanzibar’s figure was revised much more significantly, from TSh7 trillion to TSh9.2 trillion (a 31.5% increase).
The exercise also brought the Mainland and Zanzibar figures into line, producing a single GDP figure for the United Republic. Re-basing does not represent additional economic output. It simply improves how we measure the economy as it already exists. For businesses and investors, the new figures provide a more up-to-date basis for assessing market size and performance.
What this Means for Borrowing
The revised GDP figure is, of course, particularly important when assessing Tanzania’s public finances. Government debt, the fiscal deficit and tax revenues are normally expressed as a percentage of GDP. If the size of the economy, as measured, is larger, then the ratios can fall even if the actual level of debt is unchanged.
This could improve the way certain economic indicators appear to lenders and investors, although it does not automatically increase the government’s ability to repay loans. The development comes as Tanzania evaluates a possible new IMF lending programme.
Finance Minister Khamis Mussa Omar has said the government is reviewing its options, with a decision expected by June 2027. A new arrangement could provide access to concessional financing and support economic reforms. However, such programmes also entail policy commitments and periodic assessments of economic performance. The government must therefore weigh the benefits of additional financing against the conditions and obligations of a new agreement.
Investment Ambitions Remain High
Tanzania is determining its financing alongside its major investment plans. A major LNG project worth around US$42bn is under consideration, with Equinor and Shell among the international energy companies involved. The Bank also plans to make significant investment in critical minerals and power generation, targeting 8,000 megawatts of installed capacity by 2030.
These projects could deliver industrial development, export earnings, and employment, but they will require significant capital and careful management of associated financial risks. The Bank of Tanzania held the Central Bank Rate at 6.25% in October while continuing to balance growth with inflation and financial stability.
Beyond the Revised Numbers
In Tanzania, the higher GDP figure strengthens the statistical picture of an economy seeking to attract investment and to finance major development projects. However, the government’s next decisions will matter more than the revision itself.
Whether Tanzania pursues another IMF programme, expands domestic borrowing, or attracts more private investment, the challenge remains to ensure financing delivers lasting economic benefits.
For a trader in Dar es Salaam or a farmer in Morogoro, the revised GDP figure will mean little unless economic growth improves business opportunities, purchasing power and access to essential services. Tanzania’s economy may now appear larger in official statistics. The harder task is making that growth felt more widely