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DevNews Desk| East Africa. Urge- DevWire
Tanzania's economy grows, but World Bank says better jobs remain the critical challenge
Tanzania's economy is projected to grow by 6.1% in 2026, but the World Bank says stronger economic growth alone will not be enough to deliver better living standards unless the country creates more productive and better-paid jobs.
The findings are contained in the World Bank's Tanzania Economic Update 2026: Making Jobs Work, published on 2 October.
Tanzania's GDP expanded by 5.9% in 2025, while medium-term growth is projected at 6.5%. Inflation remains within the Bank of Tanzania's 3–5% target range, while government revenue has exceeded targets in the 2026 fiscal year.
However, the report identifies a major employment challenge. Nearly 69% of working-age Tanzanians are employed, but many are working in low-productivity agriculture or informal activities and do not earn adequate incomes.
The report says women face additional barriers, including occupational segregation, care responsibilities and limited access to training.
On the business side, only 12% of registered firms are young, compared with 38% in Rwanda, suggesting weaker entrepreneurial dynamism. Access to long-term finance, business registration procedures, land rights and systems for resolving business failure remain constraints.
The World Bank recommends improving digital business registration, access to finance and land administration while strengthening skills development. It also calls for recognition and certification of skills already acquired by informal workers.
The report frames employment quality, rather than simply employment numbers, as a central development challenge for Tanzania.
Verified source: World Bank – Tanzania Economic Update 2026
DevNews Desk| East Africa. Urge- DevWire
Dar es salaam, Tanzania - 2 October 2026
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