Investing in Better Jobs, Faster Growth: New World Bank Group Report Helps Chart a Path to Poverty Reduction in Tanzania

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Tanzania’s economy is on a solid growth trajectory over the medium-term but translating that momentum into greater economic prosperity remains a challenge. According to the latest World Bank Group Tanzania Economic Update, it will be critical to expand access to more productive, better paying, and more secure jobs in order to enable meaningful reductions in poverty and improvements in the living standards.

The report projects economic growth of 6.1% in 2026 and an average of 6.5% over the medium term, driven by increased private sector activity. Inflation remains within the Bank of Tanzania's target range, public debt remains sustainable, and strong private sector credit growth points to expanding economic activity. The outlook depends on sustaining growth-friendly fiscal consolidation and the continued implementation of reforms that improve the business environment.

The special theme of this edition,Making Jobs Work, finds that Tanzania does not face a shortage of jobs; rather, it faces a challenge in creating higher-quality jobs. While the country's employment rate is among the highest globally, most workers remain concentrated in low-productivity activities, particularly in agriculture and informal employment with limited human capital and high vulnerability to shocks.

"Tanzania’s economy continues to grow despite global uncertainty and climate risks. To turn that growth into better jobs, the country needs to make deliberate policy choices and keep investing in education, skills, and health. This will help ensure that growth is more inclusive and sustainable."
Firas Raad
World Bank Division Director for Tanzania

The report highlights two priorities for Tanzania: building a stronger workforce through better skills development, social protection, and labor market systems; and expanding the number of productive firms capable of generating quality jobs.

"Tanzania's jobs challenge is ultimately a firm growth challenge. By helping productive firms invest, expand, and create more quality jobs, we can make economic growth more inclusive and deliver better opportunities for Tanzanians."
Mary-Jean Moyo
​International Finance Corporation Division Director for Tanzania

The report acknowledges that Vision 2050 for Tanzania sets an ambitious target for private-sector-led investment where it becomes the dominant source of investment financing. This goal can be achieved through creating a robust and predictable business environment to attract private investments.

Distributed by APO Group on behalf of The World Bank Group.

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