Joseph Isangura
Tanzania is experiencing a steady improvement in living standards as average income per person has more than doubled over the last two decades, reflecting the impact of long-term economic planning and sustained growth.
Speaking in Parliament in Dodoma on Monday, February 2, 2026, the Minister of State in the President’s Office for Planning and Investment, Professor Kitila Mkumbo, said the country’s per capita income rose from 453 US dollars in 2000 to 1,277 US dollars in 2024 — a significant shift that highlights growing economic stability and opportunity.
The minister explained that the income gains were driven by consistent macroeconomic performance under the Long-Term Perspective Plan (LTPP) 2025, which focused on strengthening key sectors such as infrastructure, agriculture, industry, and public services.
For more than two decades, Tanzania has maintained strong economic momentum. According to government figures, the economy expanded at an average rate of 6.2 percent annually between 2002 and 2024, making it one of the more resilient performers in the region. At the same time, inflation remained largely within a controlled range of three to five percent, helping families retain their purchasing power and manage daily living costs.
Economists say the combination of growth and price stability created a favorable environment for investment and job creation, allowing businesses to expand while households benefited from rising earnings.
Prof Mkumbo noted that the economic progress has also translated into tangible social gains, particularly in poverty reduction. Official data shows that poverty levels fell from 36 percent in 2000 to 26 percent in 2022, reflecting improved access to income opportunities, education, healthcare, and basic services.
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“These improvements are being felt in people’s everyday lives — from better housing to improved nutrition and increased school attendance,” he told lawmakers.
A major milestone linked to these gains was Tanzania’s transition to lower middle-income country status in 2020, after surpassing the income threshold set by global financial institutions. The achievement marked a turning point in the country’s development journey and boosted its attractiveness to regional and international investors.
Development analysts say the new status opened doors for larger infrastructure projects, industrial investment, and expanded access to financing, all of which are crucial for sustaining long-term growth.
Beyond income growth, the government credits long-term planning with improving public financial management, expanding transport networks, increasing electricity coverage, and supporting entrepreneurship. These reforms have helped strengthen productivity across both urban and rural communities.
However, experts caution that continued progress will depend on maintaining economic discipline, investing in skills development, and ensuring that growth remains inclusive. Population pressures, climate risks, and global economic fluctuations remain challenges that require careful policy planning.
Still, observers agree that Tanzania’s experience demonstrates how consistent development strategies can gradually lift living standards when supported by stable governance and long-term vision.
As the country prepares to implement the next phase of its national development agenda, leaders have emphasized the need to protect economic gains, expand employment opportunities for young people, and strengthen social safety nets.
For millions of Tanzanians, rising incomes have already begun to reshape daily life — offering better access to education, healthcare, and financial security. If current trends continue, economists believe the country could make even greater strides in reducing poverty and building a more prosperous future in the years ahead.
