Dodoma. Tanzania’s local currency depreciated by 9 percent in 2024 to an average of Sh2,610.5 per US dollar, compared to an average of Sh2,395.7 in 2023, Parliament heard on Thursday, June 12.
Tabling the State of the Economy speech, the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, attributed the decline in the shilling’s value to tight monetary policies adopted by advanced economies—particularly the United States—in efforts to tame inflation.
Despite the depreciation, Prof Mkumbo said the country’s foreign exchange reserves remained satisfactory, reaching $5.547 billion in 2024 compared to $5,440.1 million during the corresponding period in 2023.
The reserves, he said, were sufficient to cover 4.4 months of imports, which is above the national target of maintaining reserves adequate for at least four months of import requirements.
National debt
Meanwhile, the national debt stock rose by 14.9 percent year-on-year, reaching Sh107.7 trillion by March 2025, up from Sh91.7 trillion in the same period last year.
Of the total, domestic debt accounted for Sh34.76 trillion, while external debt stood at Sh70.94 trillion.
Prof Mkumbo said the increase in debt was due to the government’s continued borrowing from various sources to finance development projects.
These include infrastructure works in roads, railways, airports, electricity, and water.
On employment, he said the Sixth-Phase Government had sustained efforts to create job opportunities through the implementation of 12 development strategies aimed at stimulating employment growth.
Using a new employment definition that recognises the filling of vacancies, creation of new positions due to institutional expansion or task redistribution, and self-employment in both formal and informal sectors, a total of 8,084,204 jobs were created between November 2020 and February 2025.
Out of the total, 1,047,179 jobs—equivalent to 13 percent—were created in the formal sector, while 7,037,024 jobs—equivalent to 87 percent—were created in the informal sector.
