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Tanzania’s Economy Outperforms West Amid Global Instability

Her call hints at an emerging shift in global economic power dynamics, where some Global South nations are beginning to gain relative economic resilience.
June 17, 2025

Tanzania’s President Samia Suluhu Hassan has declared that her country—and the broader East African region—is navigating global economic turmoil with greater stability than many Western powers.

Speaking at an event hosted by the Tanzania Revenue Authority (TRA), President Samia encouraged a shift away from aid dependency and urged stronger efforts in domestic revenue collection. “Even those who used to give us aid, look at them now,” she remarked. “The world is upside down. Europe and the United States are not doing as well as we are here.”

Samia emphasized that true national confidence stems not from reliance on donors or foreign loans, but from a self-sustaining economy built through local capacity. “True confidence as a nation comes from standing on our own financial feet,” she stated.

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Her message aligns with a broader debate among African leaders over aid dependency, especially as traditional donor countries face mounting challenges including the Russia–Ukraine conflict, rising public debt, and energy crises.

While many Western economies struggle with sluggish growth and inflation, Tanzania is projected to grow steadily. According to the World Bank, Tanzania’s GDP is expected to rise by around 5.1% in 2025, driven by public infrastructure investment, improvements in agriculture, and technological adoption in government systems.

The President also challenged African researchers to investigate why East Africa—particularly Tanzania—is managing better than more developed nations. Her call hints at an emerging shift in global economic power dynamics, where some Global South nations are beginning to gain relative economic resilience.

TRA has introduced a number of tax reforms and digital tax systems to improve revenue collection and reduce evasion. These efforts support the government’s agenda of building fiscal independence and ensuring sustainable development through internal resources.

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