Dar es Salaam. Tanzania’s economy is projected to grow by about 6.2 percent in 2026, placing the country among the top three performers in the East African Community (EAC), according to the World Bank.
In its latest Global Economic Prospects 2026 report, the World Bank forecasts that only Rwanda will grow faster in the bloc, at around 7.2 percent, driven by sustained investment in services, construction and information and communications technology (ICT).
Uganda is projected to expand by about 6.4 percent as activity in the oil sector gathers momentum.
Kenya, traditionally the region’s growth anchor, is expected to lag at 4.9 percent, weighed down by fiscal tightening and heavy debt-servicing obligations.
Burundi is also forecast to grow at 4.9 percent, signalling a gradual recovery but still well below the pace required to narrow income gaps with its neighbours.
The World Bank’s outlook broadly aligns with assessments by the Bank of Tanzania (BoT), which point to sustained domestic economic momentum.
According to the central bank, economic growth reached 5.9 percent in 2025, supported by agriculture, mining and construction. Zanzibar’s economy expanded by 6.8 percent, buoyed by construction, tourism and manufacturing.
For the first quarter of 2026, BoT projects mainland Tanzania’s economy to grow by 6 percent, while Zanzibar’s economy is expected to expand by 7.2 percent.
Speaking to The Citizen, Tanzania National Business Council (TNBC) executive secretary Godwill Wanga said the country’s steady growth reflects stronger institutions, improving social services and a responsive economy.
“Our institutions are becoming more robust, enabling social services and welfare systems to respond more effectively to citizens’ needs,” he said.
Dr Wanga added that global geopolitical shocks have had limited impact on the domestic economy.
Exports continue to improve, he noted, while private investment—both foreign and through public-private partnerships—remains strong.
“These fundamentals, combined with rising national income and stable monthly economic indicators, position Tanzania well to sustain growth in 2026,” he said.
However, the regional rankings are expected to shift again in 2027, when Uganda is projected to overtake both Rwanda and Tanzania to become the EAC’s fastest-growing economy following the start of commercial oil production.
Uganda’s growth is forecast to jump to 9.8 percent in 2027, decisively placing it ahead of its regional peers.
At the global level, the World Bank projects that growth in Sub-Saharan Africa will firm to 4.3 percent in 2026 and 4.7 percent in 2027, supported by stronger investment and exports.
World Bank chief economist Indermit Gill cautioned that the global economy is becoming less capable of generating strong growth while remaining vulnerable to policy uncertainty.
“Economic dynamism and resilience cannot diverge for long without fracturing public finance and credit markets,” he said.
He urged governments to liberalise private investment and trade, rein in public consumption and invest in technology and education to avoid stagnation and joblessness.
Meanwhile, the World Bank’s director of the Prospects Group, Ayhan Kose, said well-designed fiscal rules can help stabilise debt and rebuild policy buffers, but warned that credibility, enforcement and political commitment ultimately determine whether such measures deliver lasting stability and growth.