Macroeconomic Policy Development in Tanzania

The document assesses Tanzania's macroeconomic response to the COVID-19 pandemic, highlighting the use of accommodative monetary and fiscal policies to avoid recession. It recommends strengthening healthcare, implementing macroprudential policies, and prioritizing climate-resilient economic development and social protection for vulnerable groups.

• 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 and financial institutions during the pandemic, including reducing the discount rate from 7% to 5%, lowering statutory minimum reserves from 7% to 6%, 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 fiscal and balance-of-payments status, specifically causing a sharp decline in traditional export receipts and tourism, and slowing GDP growth from approximately 7% in 2019 to projected rates of 5.4% to 6.6% for 2020 and 2021 depending on the estimating body.
• To ensure long-term recovery and stability, the document recommends that the government fast-track the environmental, climate-change, and disaster-preparedness components of the Third National Five-Year Development Plan (2020/21 to 2025/26) to create a climate-resilient economy.

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} }