The Governor of the Bank of Tanzania (BoT), Mr. Emmanuel M. Tutuba, has said that Tanzania’s economy continued to demonstrate resilience in 2025, recording a growth rate of 5.9 percent, with growth projected to reach 6.3 percent in 2026 despite ongoing challenges in the global economy.

Speaking at the 29th Meeting of the Monetary Affairs Committee (MAC) of the East African Community (EAC), held on July 24, 2026, in Kampala, Uganda, Mr. Tutuba said the performance demonstrates the resilience of Tanzania’s economy to global shocks, although there remains room to accelerate growth towards the pre-COVID-19 average and the EAC target of 7 percent.

He said inflation has remained within the national target range of 3 to 5 percent and within the EAC convergence criteria, despite increased pressure resulting from rising global oil prices following geopolitical tensions in the Middle East. As a result, inflation rose to 4.2 percent in May 2026 before easing slightly to 4.0 percent in June 2026.

Mr. Tutuba said that, to contain the impact of higher oil prices on the domestic economy, the Bank of Tanzania increased the Central Bank Rate (CBR) from 5.75 percent to 6.25 percent.

On the external sector, the Governor said the current account deficit narrowed to 2.2 percent of GDP in 2025, the lowest level in five years. However, he noted that recent global economic shocks resulted in a modest widening of the deficit to 2.4 percent of GDP in the year ending June 2026.

He said the Bank of Tanzania continues to implement strategies to promote exports and encourage the production of goods that can substitute imports. He added that foreign exchange reserves have continued to strengthen through the gold purchase programme, with reserves now exceeding USD 6 billion, excluding non-monetized gold. This level is equivalent to 4.5 months of import cover, meeting the EAC convergence criterion. Including non-monetized gold, Tanzania’s gross international reserves stand at approximately USD 8.7 billion.

On fiscal policy, Mr. Tutuba said the budget deficit is estimated to have narrowed to 3.1 percent of GDP in the 2025/26 financial year, supported by improved domestic revenue mobilisation and prudent expenditure management. Public debt also remains sustainable, standing at 39.6 percent of GDP in present value terms, below the EAC ceiling of 50 percent.

The Governor further said Tanzania’s financial sector remains sound, stable and resilient to economic shocks. He noted that the banking sector remains profitable, with adequate capital buffers to withstand short-term shocks, while the non-performing loan ratio has declined to 2.9 percent from a peak of 12.5 percent recorded in 2017.

He said the Bank of Tanzania will continue implementing reforms aimed at strengthening financial sector resilience, enhancing supervision of financial institutions and safeguarding financial system stability.

In his concluding remarks, Mr. Tutuba called on EAC Partner States to remain vigilant amid elevated global economic risks and to focus their deliberations on practical and implementable solutions towards accelerating the establishment of a fully-fledged East African Monetary Union.

He emphasized that the Bank of Tanzania will continue to work closely with regional institutions in advancing the EAC integration agenda and achieving the Community’s shared economic development objectives.