Fitch affirms Tanzania’s ‘B+’ rating with positive outlook

Fitch Ratings has affirmed Tanzania’s long-term foreign- and local-currency issuer default ratings at ‘B+’ and revised its outlook from stable to positive. The agency cited strengthening macroeconomic fundamentals, including improving foreign exchange reserves, moderate fiscal deficits, and sustained economic growth as key drivers for the positive outlook.

Fitch forecasts Tanzania’s real GDP growth at 5.8 percent in 2026, with an average of 6.1 percent during 2027-2028. This growth is expected to be supported by public investment, tourism, the mining sector, and the country’s role as a regional logistics hub. Foreign exchange reserves are projected to rise from approximately $6.3 billion at the end of 2025 to $7.9 billion by 2028.

While noting improvements in exchange-rate flexibility and central bank independence, Fitch cautioned that the credit rating remains constrained by weak governance and low government revenue compared to peers. The agency also noted that the macroeconomic framework must continue to demonstrate resilience to external shocks.