Tanzania's economy sustained a strong performance in 2024, supported by both public and private sector investment, the East African nation's central bank said on Friday. Yamungu Kayandabila, deputy governor of the Bank of Tanzania (BoT) responsible for economic and financial policies, said that in mainland Tanzania, the economy was estimated to grow at 5.5 percent in 2024, compared with the projection of 5.4 percent and 5.1 percent in 2023. He announced the economic performance when presenting an assessment and outlook of the economy made on Thursday by the central bank's Monetary Policy Committee. Kayandabila, speaking on behalf of BoT Governor Emmanuel Tutuba, told a news conference in the port city of Dar es Salaam that growth was driven by agriculture, financial and insurance, mining and quarrying, and construction sectors. Tourism, a crosscutting activity, also contributed significantly to the growth outturn, he said, adding that for the first quarter of 2025, growth was estimated to reach 5.5 percent. Kayandabila said the Zanzibar economy grew by 7.2 percent in the fourth quarter of 2024, up from 2.2 percent in the final quarter of 2023. This growth was primarily driven by accommodation and food services, largely influenced by tourism activity as well as wholesale and retail trade activities. This strong growth is expected to continue in the second quarter of 2025, reaching 6.1 percent in mainland Tanzania and 6.5 percent in Zanzibar, driven by the same economic activities, he said.
