Why Tanzania Surpassed Kenya
Tanzania’s record-breaking performance is not a matter of luck but the result of a deliberate “taxpayer-friendly” strategy spearheaded by President Samia Suluhu Hassan’s administration.
1. Improved Compliance & Trust
The Tanzania Revenue Authority (TRA) reported exceeding its monthly targets for 12 consecutive months. This was driven by a shift from coercive collection methods to a more collaborative approach with traders and business associations (notably the Kariakoo traders).
2. Digitalization and the EFD Surge
The widespread adoption of Electronic Fiscal Devices (EFDs) and the integration of modern tax systems have minimized leakages. Tanzania has successfully formalized parts of its informal sector, bringing “Wamachinga” (informal traders) into the tax net voluntarily.
3. Resilient Economic Growth
While global growth slowed, Tanzania’s GDP grew by approximately 5.6% in 2024. Key sectors like mining (gold exports), agriculture, and large-scale infrastructure projects—such as the Standard Gauge Railway (SGR) and the Julius Nyerere Hydropower Plant—stimulated domestic economic activity.
