Tanzania is not resting on its laurels. The country is pushing ahead with a growth strategy built on three unlikely pillars: gold, tourists, and cash crops. It's working. GDP growth hit 5.4% in 2024, and the economy is diversifying faster than anyone expected.
Tanzania's 5.4% GDP growth in 2024 proves an unlikely formula works: gold, tourism, and agriculture driving faster-than-expected diversification.
Gold dominates the export scene. The metal made up 87.9% of Swiss imports from Tanzania in 2024, cementing its status as the country's top export. Mining overall is a primary growth engine, pulling in substantial foreign investment despite volatility in global prices. The sector faces risks—commodity price swings, over-reliance on raw mineral exports—but reforms targeting better regulation and value addition are underway.
Then there's tourism. It's a major foreign exchange earner, contributing heavily to the USD 16.1 billion in exports recorded in 2024. Zanzibar alone posted 7% growth last year, with projections above 6% for 2025. The sector is still underexploited compared to regional competitors, which is both frustrating and promising. Infrastructure improvements and aggressive marketing are helping Tanzania catch up. Stability matters. Better services matter. Tourists are showing up.
Agriculture anchors it all. About 65% of the population depends on farming for their livelihoods. The sector contributes 26% of GDP and over 30% of export earnings, driven by cashew nuts, coffee, and tobacco. Digital auction reforms have pushed agricultural exports to five-year highs. Climate change threatens this stability, but resilience measures are being rolled out.
Behind the scenes, infrastructure is getting serious attention. The Julius Nyerere Dam, Standard Gauge Railway, and a prospective LNG plant signal ambition. Between 2021 and 2025, Tanzania registered 2,020 new investment projects worth USD 23.67 billion, generating over 523,000 jobs. The government wants USD 15 billion in investment in 2025 alone.
Inflation sits at 3.1%, fiscal reforms are tightening revenue collection, and Vision 2050 targets upper-middle-income status. As these exports generate foreign currency inflows, understanding foreign exchange trading becomes increasingly important for businesses and investors operating in emerging African markets. Regional peers like the Republic of the Congo are also developing their currency trading frameworks to manage similar commodity-driven forex dynamics. Like other emerging market currencies, the Tanzanian Shilling faces trading characteristics shaped by commodity exports, capital flows, and regional economic dynamics. It's not flashy. But it's steady, diversified, and surprisingly resilient. Tanzania is building momentum, one export at a time.
