Moody's Ratings has maintained Tanzania's long-term issuer rating at B1 with a stable outlook, pointing to robust economic performance and increasingly diversified growth drivers across manufacturing, mining, and tourism.

The agency projects Tanzania's economy will expand by approximately 6% annually through 2026, supported by rising private-sector investment, enhanced policy implementation, and continued government spending on critical infrastructure. Manufacturing and mining are experiencing notable expansion due to increased investment in processing and value-addition activities, a trend Moody's expects will boost exports and create employment.

On the fiscal side, public debt has risen to just under 50% of GDP as a result of sustained infrastructure investment, a level Moody's characterized as moderate relative to regional counterparts. Non-grant government revenue is projected to surpass 17% of GDP this year, up from 13.7% in 2021, reflecting improved domestic resource mobilization.

The Bank of Tanzania has maintained inflation below 5% for nearly eight consecutive years, an achievement that provides the macroeconomic stability underpinning the rating. For investors and businesses, the affirmation at B1 with a stable outlook means Tanzania's credit profile remains intact and no downgrade pressure is anticipated in the near term.

Moody's did flag ongoing challenges: rapid population growth, employment pressures, persistently low household incomes, and climate-related vulnerabilities affecting agriculture all remain risk factors. These structural issues will need to be addressed alongside the infrastructure-led growth strategy if Tanzania is to secure a future upgrade.