By A Special Correspondent
Tanzania’s economy is witnessing a powerful dual surge: soaring gold export earnings and record-high tourism receipts. In its latest figures on the state of the national economy, the Bank of Tanzania (BoT) shows that the two sectors fetched nearly US$4 billion each in the year ending July 2025.
“Gold exports increased to US$3,977.6 million from US$3,148 million, supported by favourable global market prices and central bank purchases,” BoT notes in the August 2025 Monthly Economic Review (MER).
“The travel (tourism) receipts rose by 3.8 percent to US$3,871.9 million, consistent with the increase in the number of international tourists to 2,249,387 from 2,026,378 in the previous year,” it adds.
Together, these sectors are reshaping the national economic landscape, lifting key macroeconomic indicators, bolstering businesses, and reinforcing Tanzania’s long-term development efforts aimed at improving livelihoods across the country.
Economists and development planners argue that this upswing is not just a short-term success – it signals a structural shift with the potential to accelerate Tanzania’s transition toward a more stable, inclusive, and diversified economy.
Gold and tourism: The twin engines powering growth
In the 12 months ending May 2025, tourism generated US$3.92 billion, slightly outpacing gold exports at US$3.83 billion, the central bank data further shows.
Combined, these two sectors now contribute over US$7.75 billion in annual foreign exchange earnings – a significant boost to the country’s external position and national income.
The robust growth in both sectors has led to a 19.1 percnt rise in total goods and services exports, a key factor in narrowing the current account deficit from US$4.5 billion to US$2.9 billion over the same period.
“The external sector continued to improve during the year ending July 2025, manifested by narrowing current account deficit, to US$2,079.2 million from
US$2,713.5 million during the same period in 2024,” BoT notes in the August MER released on September 25.
“This development was primarily driven by the uptick in exports of goods and services relative to imports.” Whereas the import bill totalled US$17,645.4 million during the period, total exports increased by 14.4% to US$16,655 million.
In its latest review of Tanzania’s economy, the IMF says that the current account deficit narrowed to 2.5 percent of GDP in FY24/25 driven by strong exports of minerals, agricultural products, and tourism services, against declining oil imports.
National economic impacts
Tanzania’s surging gold exports and strong tourism recovery are playing a central role in strengthening the country’s macroeconomic foundations.
The twin booms have boosted foreign exchange inflows, helping to stabilize the Tanzanian shilling and support international reserves.
According to the IMF, gross reserves stood at US$6.2 billion in July 2025 – equivalent to about four months of prospective imports, a level considered adequate for cushioning external shocks.
With more dollars entering the economy from mineral exports and tourism receipts, the shilling has remained relatively stable, averaging TSh 2,490–2,510 per US dollar throughout 2025. This exchange rate stability has helped contain inflation, lower import costs, and preserve purchasing power for households and businesses.
Macroeconomic stability, in turn, has bolstered investor confidence – attracting both domestic and foreign capital into priority sectors such as manufacturing, agribusiness, energy, and logistics.
On the fiscal front, increased revenues from gold and tourism – through taxes, royalties, park fees, and service levies – are expanding the government’s budgetary capacity. This has created more fiscal space for investments aligned with Vision 2025 and the Third Five-Year Development Plan (FYDP III), particularly in infrastructure, healthcare, education, and human capital development.
The rise in domestic revenue is also reducing reliance on external borrowing, improving debt sustainability and granting greater autonomy in national development planning.
Beyond public finance, the economic momentum is catalyzing private sector growth. The revival of tourism is driving demand across multiple value chains – accommodation, transport, food services, tour operations, and creative industries – creating business opportunities for thousands of micro, small, and medium enterprises (MSMEs).
Meanwhile, the expansion of the gold sector is stimulating local procurement, with mining companies sourcing more goods and services – such as logistics, engineering, and catering – from Tanzanian suppliers.
These backward linkages are strengthening the connection between large-scale industry and domestic enterprise.
Foreign direct investment (FDI) in both mining and tourism is also on the rise, reflecting growing confidence in Tanzania’s political stability, regulatory environment, and growth potential.
Together, these trends are positioning the private sector as a key engine of economic transformation, job creation, and innovation, reinforcing the broader goal of inclusive and sustainable development.
A Defining moment
Tourism alone supports over two million jobs (direct and indirect), while the mining sector employs tens of thousands more.
The multiplier effect of these industries is felt in rural communities where local artisans, guides, and service providers benefit from increased tourist activity or mining-related commerce.
Higher employment and better incomes directly contribute to poverty reduction, particularly in regions around key tourism circuits (Arusha, Kilimanjaro, Zanzibar) and mining hubs (Geita, Shinyanga, Mara).
Historically reliant on a narrow export base, Tanzania is now showing progress in diversifying its sources of foreign exchange. With tourism now neck-and-neck with gold in export value, the economy is becoming more balanced – less vulnerable to commodity price shocks and more resilient in the face of global economic uncertainty.
Development strategists say the surge in gold exports and tourism receipts is far more than a short-term boom – it’s a strategic inflection point. With stronger foreign exchange inflows, macroeconomic stability, rising government revenue, and expanded business opportunities, Tanzania is well-positioned to fast-track its national development agenda.
For millions of Tanzanians, this momentum holds the promise of more jobs, better services, and rising living standards – the ultimate goal of any development strategy.
