Bank of Tanzania

The Bank of Tanzania (BOT) estimates that GDP in Mainland Tanzania grew by 5.5% in 2024 and by 5.9% in 2025.^[1]

The Bank of Tanzania (BOT) is the central bank of the United Republic of Tanzania and the principal authority responsible for monetary policy, financial sector supervision, and macroeconomic stability.

Its mandate has expanded in recent years to include the management of climate-related financial risks, sustainability disclosures, and the integrity of the interbank foreign exchange market, alongside its core role of tracking and projecting national economic performance.

BOT Macroeconomic Performance and Outlook

Tanzania's economic performance over the past four decades has been positive and resilient, with real annual GDP growth averaging 3.2% during the 1980-1999 period, increasing to an average of 6.5% during the 2000-2019 period, and moderating to 4.9% in the 2020-2023 period.^[1]

The Bank of Tanzania (BOT) estimates that GDP in Mainland Tanzania grew by 5.5% in 2024 and by 5.9% in 2025.^[1]

BOT projects this high growth momentum to continue, driven by investment in infrastructure such as railways, roads, airports, and sports facilities.

This includes projects for the upcoming Africa Cup of Nations (AFCON), which Tanzania will co-host in 2027, as well as investments in agriculture and mining.

BOT Growth Projections vs International Forecasts

The Bank of Tanzania's outlook is broadly aligned with projections from major multilateral institutions, reinforcing confidence in Tanzania's medium-term trajectory.

The World Bank forecasts GDP growth to accelerate to 5.9% in 2026 and 6.1% in 2027,^[2] spurred by abundant opportunities in the extractives sector, improvements to the business environment, and the increasing use of public-private partnerships to drive investments.

The African Development Bank (AfDB) expects Tanzania to attain an average growth rate of 6% or higher in 2025-26,^[3] supported by continued public investments to deepen domestic value chains in agriculture and energy infrastructure.

The IMF projects growth of 6.5% over the medium term,^[4] contingent on decisive reform implementation to preserve macro-financial stability, promote sustainable and inclusive growth, advance structural reforms, and address risks from climate change.

Financial Sector Supervision and Credit Reference Bureaus

The Bank of Tanzania has reinforced its supervisory framework through a combination of a supportive business environment, targeted monetary policy interventions, and effective regulatory and supervisory measures.

The BOT recognizes the critical role of Credit Reference Bureaus in promoting prudent lending, enhancing financial stability, and supporting broader access to finance.

In 2024/25, the use of credit reference reports increased, mainly supported by greater awareness among financial institutions and higher loan demand from the private sector.

The Bank continues to promote the effective sharing of credit information and enforce the prudent use of credit reference reports in loan appraisals.

BOT Regulatory and Legal Framework

In strengthening the legal and regulatory framework, amendments were made to the Banking and Financial Institutions Act, Cap 342, to accommodate non-interest banking (Islamic banking) and to provide for the management of abandoned properties.

Amendments were also made to the Bank of Tanzania Act, Cap 197, to prohibit the use of foreign currencies in domestic transactions.

The Bank issued the Guidelines on Climate-Related Financial Risks Management and Disclosures, 2025, and the Guidelines on Reporting of Sustainability-Related Risks and Opportunities for Banks and Financial Institutions, 2025.

These guidelines direct banks and financial institutions in managing climate-related financial risks and reporting sustainability information.

The Bank further issued a Code of Conduct for the Interbank Foreign Exchange Market in 2024 to ensure the efficiency and integrity of market participants.

Recent Initiatives and Reforms

In January 2024, BOT shifted its monetary policy framework to a price-based regime anchored on the Central Bank Rate (CBR), replacing the previous quantity-based approach and strengthening the transmission of policy signals through interbank and lending rates.

BOT has advanced supervision reforms by issuing the 2025 Guidelines on Climate-Related Financial Risks and on Sustainability-Related Risks and Opportunities, embedding climate and ESG considerations into the prudential oversight of banks and financial institutions.

The Bank has opened the financial system to non-interest (Islamic) banking, establishing a regulatory framework for Sharia-compliant products and broadening the range of institutions it supervises.

BOT has expanded the use of credit reference reports through 2024/25, reinforcing the credit information infrastructure and supporting fintech integration into credit scoring and digital lending oversight.

To deepen market integrity, BOT introduced the Code of Conduct for the Interbank Foreign Exchange Market and enforced the prohibition on foreign currency use in domestic transactions, reinforcing the primacy of the Tanzanian shilling.

The Bank continues to explore central bank digital currency (CBDC) options while projecting sustained economic growth above 5.5%, guiding its supervisory priorities across project finance, trade finance, and SME lending.

Last Update: May 2026

References

1. https://www.afdb.org/sites/default/files/documents/project-related-procurement/tanzania_cdn_2025.pdf (Guide reference #20)
2. https://thedocs.worldbank.org/en/doc/bae48ff2fefc5a869546775b3f010735-0500062021/related/mpo-tza.pdf (Guide reference #21)
3. https://www.afdb.org/en/documents/african-economic-outlook-2025 (Guide reference #22)
4. https://www.imf.org/en/News/Articles/2025/06/27/pr25225-tanzania-imf-concl-2025-aiv-consultation-comp-5th-rev-ecf-arr-2nd-rev-rsf-arrangement (Guide reference #23)