Macroeconomic Policy Development in Tanzania

This policy brief examines the macroeconomic policy development in Tanzania, specifically focusing on the responses to the COVID-19 pandemic. It details the Bank of Tanzania's (BoT) monetary and fiscal interventions to avert recession, the economic impacts of the pandemic on GDP and tourism, and provides recommendations for social protection, debt management, and climate-resilient economic growth.

• Tanzania avoided a recession in 2020 through a combination of a 'business-as-usual' approach that eschewed economic lockdowns and the implementation of expansionary macroeconomic policy measures.
• The Bank of Tanzania (BoT) implemented several liquidity-easing and monetary measures to support businesses during the pandemic, including reducing the statutory minimum reserves from 7% to 6%, lowering the discount rate from 7% to 5%, and reducing interest on Treasury bills from 10% to 5% and Treasury bonds from 40% to 20%.
• The COVID-19 pandemic negatively impacted Tanzania's economy by reducing traditional export receipts and tourism, leading to a deceleration of GDP growth from approximately 7% in 2019 to projected rates of 5.5% and 5.4% for 2020 and 2021, respectively.
• To protect vulnerable populations, the document recommends the government fast-track the disbursement of $882 million for the Productive Social Safety Net Programme (PSSN), managed by the Tanzania Social Action Fund (TASAF).
• The brief recommends that the Bank of Tanzania complement monetary measures with macroprudential policies to manage credit, liquidity, and non-performing loans to ensure financial system stability.

APA

South African Institute of International Affairs (2022). Macroeconomic Policy Development in Tanzania. https://saiia.org.za/research/macroeconomic-policy-development-in-tanzania-2/

Chicago

South African Institute of International Affairs. Macroeconomic Policy Development in Tanzania. 2022. https://saiia.org.za/research/macroeconomic-policy-development-in-tanzania-2/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Macroeconomic Policy Development in Tanzania |date=7 March 2022 |url=https://saiia.org.za/research/macroeconomic-policy-development-in-tanzania-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2022macroeconomic, author = {{South African Institute of International Affairs}}, title = {{Macroeconomic Policy Development in Tanzania}}, institution = {South African Institute of International Affairs}, year = {2022}, month = mar, url = {https://saiia.org.za/research/macroeconomic-policy-development-in-tanzania-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }