Private sector pushes for single-digit interest rates to drive Tanzania $1 trillion vision
Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, speaks on Wednesday, April 15, 2026, in Dodoma during a high-level meeting between government officials and private sector leaders aimed at strengthening collaboration under the national Vision 2050 agenda. The private sector has called for bank lending rates to be lowered to single digits, arguing that affordable credit is critical to unlocking the country’s ambition of becoming a $1 trillion economy by 2050. PHOTO | KATARE MBASHIRU
Dodoma. Tanzania’s private sector has called on the government to urgently lower bank lending rates to single digits, arguing that affordable credit is critical to unlocking the country’s ambition of becoming a $1 trillion economy by 2050.
The appeal was made on Wednesday, April 15, 2026, in Dodoma during a high-level meeting between government officials and private sector leaders aimed at strengthening collaboration under the national Vision 2050 agenda.
The meeting signalled a renewed commitment from both the public and private sectors to act as joint drivers of investment and business solutions, an approach seen as central to turning Tanzania’s long-term economic ambitions into reality.
For years, businesses have advocated for single-digit lending rates to reduce borrowing costs and stimulate investment.
The proposal aligns with ongoing government efforts, including initiatives by the Bank of Tanzania (BoT), to improve access to finance and support growth.
A section of participants attend a high-level meeting between government officials and private sector leaders aimed at strengthening collaboration under the national Vision 2050 agenda, during which the private sector called for bank lending rates to be lowered to single digits to unlock the country’s ambition of becoming a $1 trillion economy by 2050. PHOTO | KATARE MBASHIRU
Speaking at the meeting, Tanzania Private Sector Foundation (TPSF) acting chairperson, Ms Ngwisa Mpembe, urged the government to take decisive measures to bring down interest rates, saying lower borrowing costs would enable more investors to access credit from local financial institutions and expand economic activity.
The proposal received support from the meeting’s chair, Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, who reaffirmed the government’s commitment to working closely with the private sector as a key engine of growth.
Prof Mkumbo announced plans for a follow-up meeting involving the banking sector to explore practical steps towards achieving single-digit interest rates, stressing the need for structured, results-oriented engagement to remove policy, legal, and administrative bottlenecks.
“We need a well-structured and result-oriented engagement that can remove managerial, policy, and legal barriers and strengthen accountability to take us where we want to go,” he said.
Adding to the discussion, Deputy Secretary of the Tanzania Business Community, Mr Ismail Masoud, called for firm government action to enable the private sector to contribute up to 70 percent of the national economy.
He said financial institutions must remove barriers to credit access, noting that the sector has strong potential to drive economic growth.
Tanzania Bankers Association Chairperson, Ms Tuse Joune, underscored the importance of a strong and stable banking system in achieving Vision 2050, saying expanded access to financial services will be key to empowering citizens and supporting sustainable growth.
