There was a time when Tanzania stood tall in Africa. Under Nyerere, we were the continent’s moral compass—principled, pan-African, and respected. We didn’t have the deepest pockets, but our voice mattered. That era is gone.
In a recent piece I wrote about the UN shifting agencies to Nairobi, I argued it wasn’t just a coup for Kenya—but evidence of Tanzania’s eroded competitiveness.
After reading it, a sharp-eyed reader called me and asked, “Are we even competing in anything anymore?” That question stuck with me. After years of writing on Tanzania’s development, the answer was painfully clear: we’re not.
We haven’t just stalled—we’re being overtaken. To show how far behind we’ve fallen, I compared Tanzania to four countries that are clearly moving forward: Kenya, our regional rival; Rwanda, fast and focused; Ghana, steady and democratic; and Vietnam, a global development phenomenon.
I looked at five key pillars of national strength—economic dynamism, human capital, logistical efficiency, social-economic foundations, and influence. What emerges is not a story of isolated challenges, but a comprehensive retreat from competitiveness.
1. Economic dynamism
Tanzania’s been playing it safe on the economic front—and it shows. While Vietnam built itself into a global manufacturing giant and Rwanda became a magnet for investors, we mostly stood by watching. From 2022 to 2024, our foreign investment barely reached 2 percent of GDP.
Vietnam doubled that, Rwanda tripled it. And when it comes to high-tech exports, we’re barely on the map—less than 1 percent—while Vietnam’s accounts for over 40 percent of its output. On ease of doing business, in 2020, we ranked 141st globally, trailing Kenya at 56 and Rwanda at 38.
Yes, we’ve got resources—gold prices are soaring—but that’s not a strategy. Our institutions aren’t pulling their weight, and we can’t count on raw materials to hide that forever.
2. Human capital and technological preparedness
We have consistently overlooked talent development. A child born in Tanzania today will achieve only 40 percent of their potential productivity, according to the World Bank’s Human Capital Index.
Kenya scores 55 percent; Vietnam, a respectable 69 percent. We spend a respectable 3.5 percent of GDP on education, but the returns are poor. Kenya and Rwanda focused on quality and relevance—we didn’t. The Global Innovation Index confirms this: Kenya ranks 90th worldwide;
Tanzania does not place among Africa’s top innovators. No wonder over 80 percent of corporate regional HQs are in Nairobi, reinforcing Kenya’s role as the diplomatic, financial, and innovation hub of the region.
3. Logistical and institutional efficiency
The rivalry between Dar es Salaam and Mombasa mirrors our broader competitive decline. Kenya ranks 58th globally in logistics performance;
Tanzania languishes at 125th. While Dar’s port has grown, Mombasa still moves more containers—and faster. Historical data shows border compliance in Tanzania takes much longer than in Kenya or Rwanda, adding cost and friction for businesses. This is not just an infrastructure gap—it is an institutional mindset. The world demands efficiency. We are not providing it.
4. Socioeconomic foundation
Stability has not brought prosperity to Tanzania. Yes, our GDP grows—but others grow faster. Kenya has surpassed us in GDP per capita. Vietnam, from a similar baseline in the early 1990s, has left us in the dust.
Only 46 percent of Tanzanian households have electricity—a fundamental constraint on economic productivity—versus 79 percent in Kenya and nearly 100 percent in Vietnam. Our growth has not delivered tangible progress for our people.
5. Global soft power and diplomatic footprint
Tanzania’s global influence is fading. Our passport is weak, offering visa-free access to 73 destinations—behind Kenya’s 75 and Ghana’s 85. While Nairobi hosts the global UN headquarters, Arusha settles for regional bodies.
Even in tourism, where nature gave us a huge advantage, Kenya still draws more visitors—thanks to sharper branding as a business-safari destination. We are being outmanoeuvred while clinging to nostalgia.
And you know, I haven’t even touched on hard power—the military. Oh, I wish I could go into that discussion here. As a general’s son, these are the conversations that I am accustomed to.
That’s why seeing Tanzanian troops sent back from DRC in ignominy hit me hard. Honestly, can you imagine something like that happening under Nyerere?
It’s not just about diplomacy or economics anymore: it’s about our credibility on the world stage. Our decline is not perceptual—it is measurable, quantifiable, and open for the world to see. We have chosen control over openness, caution over ambition, and stability over dynamism.
The outcome is an economy that doesn’t attract investment, an education system that doesn’t develop talent, institutions that don’t enable business, and a diplomacy that doesn’t project power.
The 21st century belongs to nations like Vietnam—transformed by vision; Rwanda—driven by efficiency; Kenya—built on connectivity and human capital; Ghana—strengthened by democracy. Meanwhile, Tanzania is sleepwalking into irrelevance.
The choice is ours. We can continue our comfortable decline, anchored in nostalgia. Or we can choose radical reform: embrace assertive diplomacy, invest in real human capital, and build institutions that empower rather than constrain.
Charles Makakala is a Technology and Management Consultant based in Dar es Salaam
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