By Business Insider Reporter
The Tanzanian shilling emerged as one of Africa’s standout currency success stories in 2025, delivering one of the strongest performances on the continent.
According to money market analysts, its strength reinforced Tanzania’s growing reputation for macroeconomic stability, disciplined monetary policy management, and an improving external sector.
“Across Africa, 2025 was a year defined by stronger currencies, buoyed largely by surging commodity prices, improved investor sentiment, and a softer US dollar,” noted global media platform SEMAFOR in an analysis published on December 31, 2025.
“South Africa’s rand recorded its strongest rally in more than a decade, while mineral-rich economies such as Ghana, Zambia, and the Democratic Republic of Congo benefited from record highs in gold, copper, and silver,” it added.
Beyond commodity tailwinds, Tanzania’s story stood out for another key reason: it combined currency strength with stability, credibility, and resilience.
Data from the Bank of Tanzania’s Monthly Economic Reviews (MERs) and independent assessments show that the shilling appreciated significantly through 2025, supported by strong foreign exchange inflows from gold exports, a robust tourism rebound, and buoyant agricultural earnings.
“The shilling appreciated against the US dollar, trading at an average of TSh 2,460.54 per US dollar in October 2025, compared with TSh 2,471.69 in the previous month, and remained firm against other major currencies,” notes the central bank in its latest MER.
“On an annual basis, the shilling appreciated by 9.5 percent, marking a notable turnaround from the 8.9 percent depreciation recorded in October 2024,” it adds.
The Tanzania Investment and Consultant Group Ltd (TICGL) similarly observed that the shilling appreciated by about nine percent year-on-year, trading around TSh 2,460–2,470 per US dollar by year-end — a remarkable recovery from earlier pressures.
TICGL analysts attribute this resilience to strong export inflows and prudent monetary management, noting that the firmer currency helped anchor inflation and reinforce economic confidence.
This performance coincided with a sustained buildup in foreign reserves and inflation remaining comfortably within the Bank of Tanzania’s 3–5 percent target range.
The November 2025 MER reports that reserves reached US$ 6,171.1 million at the end of October 2025, sufficient to cover 4.7 months of projected imports – exceeding both national and EAC benchmarks.
Throughout the year, BoT maintained a largely market-driven exchange rate framework, intervening only to smooth abnormal volatility. This strengthened policy credibility while aligning the currency with underlying fundamentals.
The stability achieved by the shilling helped cushion households and businesses by easing imported inflation and improving affordability of essential goods.
Meanwhile, the broader African currency upturn supported Tanzania’s momentum as commodity windfalls improved fiscal space and growth prospects across several economies.
However, Tanzania distinguished itself through structural discipline and effective policy oversight – achieving gains without destabilizing inflation, liquidity, or investor confidence.
Looking ahead to 2026, the shilling enters the year with cautious optimism.
Continued export strength, healthy reserves, and a predictable monetary policy framework provide a strong foundation. However, external risks remain, including shifts in global interest rates, commodity price volatility, and changes in dollar strength, underscoring the need for sustained discipline and ongoing economic diversification.
Still, the lesson from 2025 is clear: the Tanzanian shilling firmly positioned itself among Africa’s best-performing currencies – not just because of favourable global trends, but because of resilience built on sound policy and real economic momentum.
The latest MER further notes that the Interbank Foreign Exchange Market remained stable in October, supported by adequate foreign exchange earnings from gold, cash crops, and tourism.
Export receipts rose to US$ 17,048.7 million in the year ending October 2025, up from US$ 15,133.5 million a year earlier.
Gold exports surged 38.9 percent to US$ 4,596.5 million, while traditional exports increased to US$ 1,438.2 million, driven largely by tobacco and cashew nuts. Travel receipts reached US$ 4,298.2 million, with tourist arrivals rising 11.4 percent to 2,324,387.
