Dar es Salaam. The Bank of Tanzania (BoT) has decided to maintain its key lending rate, the Central Bank Rate (CBR), at 6 percent in a bid to protect the country’s economy amid global trade uncertainties and geopolitical tensions.
The move aims to shield the economy from the adverse effects of rising trade tariffs and fluctuations in the global market.
According to BoT, the exchange rate pressure experienced in the first quarter of 2025 was seasonal, and is expected to ease as foreign currency inflows increase in the coming months.
The decision was made following a Monetary Policy Committee (MPC) meeting on April 3, 2025, where the committee reviewed the nation’s recent economic performance and assessed prospects for the second quarter of the year.
The MPC concluded that maintaining the CBR at 6 percent would help stabilise the economy.
Speaking on behalf of BoT Governor Emmanuel Tutuba, Deputy Governor Dr. Yamungu Kayandabila emphasised that while the economic outlook is positive, there remain global uncertainties that could affect inflation and economic growth.
“Therefore, the Bank will continue to ensure that the 7-day interbank lending rate stays within the range of 4 to 8 percent,” he said, adding that further improvements to the interbank market would be made to maintain better control over interest rates. BoT will also monitor inflation closely and adjust monetary policy as necessary.
Dr. Kayandabila noted that early 2025 has seen strong growth in both advanced and emerging economies. Global inflation has eased due to reduced economic shocks and tighter monetary policies. This has led many central banks to begin cutting their policy rates.
However, he cautioned that new trade tariffs could present challenges to future inflation.
“On the domestic front, Tanzania’s economy has remained resilient, with strong performance since January 2025. According to recent market and CEO surveys, we are on a positive trajectory,” he said. “A March 2025 Moody’s report also affirmed Tanzania’s credit rating at B1 with a stable outlook.”
Dr. Kayandabila also highlighted Tanzania’s strong economic growth in 2024, with Mainland Tanzania recording a 5.5 percent growth rate, up from 5.1 percent in 2023. This growth was driven by key sectors, including agriculture, finance, mining, and construction, with tourism also contributing significantly.
In Zanzibar, the economy outperformed expectations, growing by 7.2 percent in late 2024, compared to just 2.2 percent during the same period the previous year. This growth was fueled by tourism and trade, and it is projected to reach 6.5 percent in the second quarter of 2025.
Inflation remained under control, thanks to adequate food supply, tight spending measures, and lower global energy prices. In Mainland Tanzania, inflation averaged 3.1 percent in 2024 and 3.2 percent in the first quarter of 2025, well below the 5 percent target. In Zanzibar, inflation dropped to 5.1 percent in 2024 and 4.8 percent in February 2025, with expectations to stay around 3.2 percent in the second quarter.
The money supply grew strongly in 2024, driven by increased lending to the private sector, particularly to small and medium-sized enterprises (SMEs), agriculture, trade, and manufacturing.
Dr Kayandabila highlighted that Tanzania’s banking sector remains stable, profitable, and well-capitalised, with a low rate of non-performing loans at 3.6 percent—below the recommended ceiling of 5 percent.
Tax revenues for both Mainland Tanzania and Zanzibar met targets for the third quarter of the 2024/25 financial year, reflecting improved tax collection and compliance. Governments continue to manage their spending prudently, keeping public debt at sustainable levels.
Tanzania’s trade position showed improvement in the year ending March 2025. The current account deficit decreased to 2.6 percent of GDP from 3.7 percent the previous year, primarily due to higher exports, particularly in tourism, gold, cashew nuts, and tobacco.
Zanzibar’s trade surplus rose to $563.5 million, up from $407.4 million, largely driven by increased tourism income.
Foreign reserves remained strong at over $5.6 billion, covering 4.5 months of imports. This level is expected to hold steady through the second quarter of 2025.
Responding to concerns about the impact of global tariffs and changes in gold exports, BoT’s Director of Policy and Research, Dr. Suleiman Misango, reassured that Tanzania’s economy does not rely solely on gold exports. He pointed to other key sectors such as cashew nuts, tourism, and agriculture as significant contributors to the nation’s economy.
Tanzania Bankers Association Chairman, Theobald Sabi, expressed confidence in the country’s economic performance, citing the strong GDP growth, improved trade balance, and effective management of public finances as evidence of a resilient economy.
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Inside Tanzania’s Life-Saving Birthcare Model
Tanzania is winning the battle against maternal and newborn deaths, as the latest numbers reveal a significant decline.
“Tanzania is committed to reducing maternal and newborn mortality and ensuring safe deliveries as part of the national development plan. The Safer Births Bundle of Care is one of the key strategies supporting this effort,” said Dr. Benjamin Kamala, the Senior Research Scientist at Haydom Lutheran Hospital and Principal Investigator for the program, leading its implementation across five regions in Tanzania.
A groundbreaking study published in the New England Journal of Medicine shows that the innovative health program in Tanzania – centered on regular, on-the-job training for healthcare workers – reduced maternal deaths by 75% and early newborn deaths by 40%. The three-year study, conducted across 30 high-burden healthcare facilities in Tanzania, tracked approximately 300,000 mother-baby pairs under the Safer Births Bundle of Care (SBBC) programme. The programme focuses on improving care for mothers and babies during the day of birth, the critical time when a woman goes into labor and delivers her baby.
Maternal health is a key focus of the United Nations Sustainable Development Goals (SDGs), specifically Target 3.1, which aims to reduce the global maternal mortality ratio to fewer than 70 deaths per 100,000 live births by 2030.
Tanzania’s program combines continuous, simulation-based training for frontline healthcare workers alongside innovative clinical tools to improve labour monitoring (fetal heart rate monitoring) and newborn resuscitation.It also uses data to drive ongoing improvements, ensuring that healthcare workers have the skills, confidence, and competence to manage birth-related complications for both mothers and newborns.
“We work closely with healthcare workers, equipping them with the necessary tools to improve the quality of care, ensuring they can effectively manage both mothers and babies during and after childbirth,” Dr. Kamala said, which helps them build on over a decade of innovative research and collaboration to improve care during childbirth.
“To give you a sense of the scale of the burden of maternal and newborn mortality in Tanzania when the Safer Births Bundles of Care program was in early development in 2015/16, there were around 556 maternal deaths per 100,000 live births and 25 neonatal deaths per 1,000 live births,” he said.
The published study demonstrates the “transformative impact” of the Safer Births Bundle of Care program conducted across 30 hospitals in five high-burden regions of Tanzania, where there were about 300,000 mother-baby pairs.
Maternal deaths at the start of the program were recorded at 240 per 100,000 live births, with postpartum hemorrhage and hypertensive disorders being the leading causes of death, he said. Over the 24-month study period, this number dropped to approximately 60 per 100,000 live births, representing a 75% reduction. The number of newborn deaths – which are primarily due to breathing difficulties and complications related to prematurity – declined by 40% – from 7 deaths per 1,000 live births to 4 deaths per 1,000 live births.
“These results are remarkable,” Dr. Kamala said.
According to Dr. Kamala, the 75% reduction in maternal deaths was not expected, and a key lesson was the important role of the in-situ team simulations – including for postpartum bleeding – with reflective debriefings that trained facilitators led.
“This seems to be a major part of the success of the program,” he said. “We are delighted by these results and hope that other countries adopt and scale the Safer Births Bundle of Care program… Beyond the numbers, the Safer Births Bundle of Care program has fostered a dramatic culture shift in our healthcare system,” he said. “Healthcare workers are now more confident and better equipped to handle birth-related complications for both mothers and babies.”
Maternal death drop
Dr. Kamala attributed the 60-70% reduction in newborn deaths in Geita and Manyara to several factors.
“Firstly, Manyara was the first site for implementation, giving the region more time to adapt and experience the impact of the program. Most importantly, both regions had a high burden of stillbirths and neonatal deaths, making them ideal targets for focused intervention. As a result, newborn deaths decreased by 60-70%, showcasing a clear positive impact on newborn survival,” he said.
Dr. Kamala said another possible explanation is the differences in the culture of practices, where some health facilities reported inaccurate data due to the fear of blame and shame. However, with the project’s implementation, reporting became more accurate after mplementation. Some regions, such as Tabora, reported an increase in the number of referrals to the study hospitals from other care centers after the program was implemented. These were more likely to be late admissions, which increase the likelihood of poor health outcomes, he said.
After the implementation of the program, there was a 40% decrease in newborn deaths within the first 24 hours after birth, according to the study.
Dr. Kamala said Tanzania’s remarkable progress in reducing maternal mortality by 80% is driven by strategic investments and innovative programs focused on improving maternal and child survival rates.
“Over 2,000 new healthcare facilities have been developed, free health services are being provided to expectant mothers and children under the age of five, and emergency obstetric care – including better transport to hospitals in rural areas are helping to ensure timely, life-saving interventions.
“Most importantly, the Ministry of Health works in collaboration with healthcare workers, hospitals, and development partners to strengthen the skills of frontline healthcare workers, which has been a key factor in driving this progress.
“Political leadership, alongside strategic partnerships and financing, has been crucial in driving progress in maternal and newborn health,” he said.
The program was made possible by the support of the Global Financing Facility for Women, Children, and Adolescents, Norad, UNICEF, and Laerdal Global Health, as well as the Ministry of Health and Haydom Lutheran Hospital. Their partnership and investment enabled the scaling of the Safer Births Bundle of Care to 30 hospitals and supported the research. “The government has now scaled the program to over 150 sites, and there are plans for further expansion to three regions this year and then nationally,” he said.
Dr. Kamala outlined key policy recommendations for other governments can adopt to prioritize maternal health.
“Firstly, it focuses on cost-effective and relatively simple interventions that are essential to preventing maternal and newborn deaths. For example, stronger primary healthcare that is delivered in the community and a well-trained healthcare workforce are also critical. Additionally, working in close collaboration with national, regional, and local health authorities is key.”
He said Tanzania’s approach, where the Safer Births Bundle of Care program was successfully scaled and sustained by aligning the initiative with national guidelines for obstetrical and newborn care. In addition, the creation of mentorship programs and regular supervision has helped to sustain the results.
Looking ahead
Tanzania now plans to expand to three new regions in 2025, followed by a nationwide rollout.
The success of the program has attracted interest from other countries, with Botswana, Ethiopia, Lesotho, and Namibia expressing interest in adapting the program to their healthcare system. In Nigeria, the program has already been launched in two states, Gombe and Borno, marking a significant step in its scaling.
Source: allafrica.com
