Surpassing Kenya

Tanzania is on track to surpass Kenya as East Africa's largest economy within the next decade, according to projections by the International Monetary Fund (IMF). This shift is attributed to Tanzania's impressive economic growth, fueled by its openness to foreign and domestic investments and its strategic partnerships in various sectors including technology, agriculture, mining, and construction. Tanzania's GDP, currently valued at $85.4 billion, is expected to grow to $136 billion by 2028, potentially outpacing Kenya's projected growth to $151 billion in the same period​​​​.

Driving Factors

Tanzania's rapid economic expansion is largely driven by its government's policies that encourage investment and trade. The nation has fostered relationships with countries and organizations worldwide, enhancing its position as a prime investment destination in Africa. Its commitment to intra-continental trade and efforts to eliminate trade tariffs with East African countries have significantly contributed to its economic momentum. Moreover, Tanzania's collaboration with Kenya on infrastructural projects like cross-border railways further cements its growing economic influence in the region​​.

Future Prospects

The anticipation of Tanzania overtaking Kenya underscores a broader trend of changing economic dynamics in East Africa. With its economy poised for substantial growth, Tanzania is embracing a more business-friendly environment under President Samia Suluhu Hassan's leadership. This environment is conducive to innovation and positions Tanzania not only as a fast-growing economy on the continent but also as one of Africa's top investment destinations. The country's strategic moves in fostering a conducive economic ecosystem are pivotal to its ascent as a regional economic powerhouse​​​​.

Also read our xtrafrica article: Africa dominates list of the world’s 20 fastest-growing economies in 2024