+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Country Risk Service Tanzania

  • ID: 2131075
  • Country Profile
  • April 2021
  • Region: Tanzania
  • 28 Pages
  • The Economist Intelligence Unit
Sovereign risk stays B-rated, but with a 1-point improvement in the score, as we now estimate stronger GDP growth for 2020 than in our previous assessment. The gross public debt stock (at 34% of GDP) is prudent, but rising debt-servicing, at 15.5% of exports, presents a risk factor that weighs on creditworthiness, despite partial debt-service relief from bilateral creditors in 2020.

The currency risk rating has improved to BB, from B, as stronger macroeconomic fundamentals indirectly support the shilling. Volatility has been low in recent months, but the shilling is under pressure from falling exports and investment inflows and a high rate of real appreciation in the trade-weighted exchange rate.

The banking sector risk rating remains at B, with a 2-point improvement in the underlying score, given an improving credit performance and a declining level of non-performing loans (9.3% at end-December). Adequate financial regulation and supervision support the rating, as does the sector's fundamental soundness, with capital-adequacy and liquidity ratios well above prudential minimums.
Note: Product cover images may vary from those shown
Country Risk Service Tanzania

Risk assessment
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk

Definitions
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Overall country risk

Sovereign risk
Current assessment
Positive factors
Negative factors
Rating outlook

Currency risk
Current assessment
Positive factors
Negative factors
Rating outlook
Foreign-exchange regime

Banking sector risk
Current assessment
Positive factors
Negative factors
Rating outlook

Generic risks
Political risk assessment
Economic structure risk assessment

Country risk
Overall country risk

Central scenario for 2021-25: Political stability

Central scenario for 2021-25: Election watch

Central scenario for 2021-25: International relations

Central scenario for 2021-25: Policy trends

Central scenario for 2021-25: Fiscal policy

Central scenario for 2021-25: Monetary policy

Central scenario for 2021-25: Economic growth

Central scenario for 2021-25: Inflation

Central scenario for 2021-25: Exchange rates

Central scenario for 2021-25: External sector

Central scenario for 2021-25: External financing requirement

Central scenario for 2021-25: External debt

Key risk indicators

Ratings summary

Quarterly indicators

International assumptions summary

Economic structure

Public finances

Exchange rates, interest rates and prices

Financial sector

Current account

International liquidity

Foreign payment and liquidity indicators

External trade

External financing requirement

External debt stock

External debt service
Note: Product cover images may vary from those shown
Adroll
adroll