Dar es Salaam. Global credit rating agency Fitch Ratings has retained Tanzania’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B+’ with a Stable Outlook, signalling sustained international confidence in the country’s economic fundamentals and ongoing policy reforms.
In its latest assessment issued on June 20, Fitch has attributed the rating to solid GDP growth, contained inflation, prudent fiscal policy, and improved engagement with international financial institutions.
The agency noted that these developments reflect a favourable economic trajectory and support the country’s ability to attract foreign investment.
Fitch projects Tanzania’s economy to grow by 5.9 percent in 2025, buoyed by robust performance in agriculture, mining, and tourism, alongside major infrastructure investments such as the Standard Gauge Railway (SGR) and the Julius Nyerere Hydropower Project.
Tanzania was commended for maintaining inflation within the Bank of Tanzania’s target range of 3 to 5 percent, and for strengthening public financial management.
Notably, domestic payment arrears—comprising pending supplier obligations and VAT refunds—fell from 1.2 percent of GDP in 2022 to 0.4 percent as of March 2025.
The agency expressed optimism that the current policy direction, under the leadership of President Samia Suluhu Hassan, would remain steady—an outlook likely to reinforce development partnerships and investor confidence.
Tanzania’s foreign exchange reserves were reported at $5.7 billion in March 2025, enough to cover 4.2 months of imports.
The agency observed that this level of reserves reflects enhanced external resilience.
Fitch concluded that further gains in foreign reserves, continued policy discipline, and sustained private sector investment could strengthen Tanzania’s credit profile and eventually support an upgrade in its rating.
The development marks a vote of confidence from international markets at a time when Tanzania is pressing ahead with broad-based reforms aimed at accelerating economic transformation.
