Kenya currently stands as East Africa’s second largest economy in terms of overall GDP, second only to Ethiopia.
However, the economic number two spot of the subcontinent could change holders within the next decade owing to the rate at which East Africa’s 3rd largest economy, Tanzania is growing.
A report issued by the International Monetary Fund states that Tanzania’s economy is expected to grow at a higher rate than Kenya’s, in about ten years. Tanzania’s overall economy would surpass Kenya’s, according to the global lender.Tanzania’s economy, which is currently worth $85.4 billion (Sh200 trillion), is predicted to rise to a whopping $136 billion value by 2028.
The current Tanzanian administration has effectively encouraged and incentivizes domestic investment, over the last few years which has led to the formation of an economic ecosystem comparable to viable soil for plants for the establishment of private and public enterprises. Tanzania has partnered with numerous organizations across the globe in fields such as construction, tech, mining and agriculture.USA, China, and India are a but a few of the countries which have major business dealings in the East African country.
The Tanzanian government is also a lead advocate for intra-continental trade, standing as one of the countries that continue to leverage the African Development’s Bank continental trade framework.Between 2022 and 2023, Tanzania has partnered with a few East African countries, to remove unfavorable trade tariffs hindering the maximization of revenue for domestic businesses.