DAR ES SALAAM, Aug. 22 (Xinhua) -- Fitch Ratings has revised Tanzania's long-term foreign- and local-currency issuer default ratings (IDR) outlook to positive from stable while affirming the country's rating at 'B+', the Tanzanian Ministry of Finance said in a statement on Saturday.
According to the statement, the international credit rating agency noted that the positive outlook reflects expectations of strengthening international reserves, moderate fiscal deficits, and continued economic growth, which together would support a gradual decline in government debt.
Fitch forecasts Tanzania's real gross domestic product (GDP) growth at 5.8 percent in 2026 and an average of 6.1 percent in 2027-2028, supported by public investment, tourism, the country's role as a regional logistics hub and growth in the mining sector.
The agency noted improvements in Tanzania's macroeconomic policy framework since 2023, including measures to strengthen central bank independence, exchange-rate flexibility and foreign-exchange management.
However, Fitch warned that Tanzania's credit rating remains constrained by weak governance, low government revenue compared with B-rated peers and a macroeconomic policy framework that, despite recent improvements, still needs to demonstrate greater resilience to external shocks. ■