US Report Flags Tanzania Fiscal Transparency Gaps Despite Some Progress
Tanzania · FINANCE
Key Facts
—US assessment: Tanzania does not meet minimum fiscal transparency requirements in the 2026 US Fiscal Transparency Report, which reviews 2025.
—Progress record: Tanzania is one of 14 governments the 2026 report credits with significant progress, out of the 67 that fell short of the minimum requirements.
—Global context: In 2026, 139 governments and one entity were assessed. Seventy-three met the minimum requirements and 67 did not; of those 67, 14 made significant progress and 53 did not.
—Independent score: The Open Budget Survey 2023 gave Tanzania a transparency score of 41 out of 100, below Kenya’s 55 and Uganda’s 59.
—Debt risk: The International Monetary Fund and World Bank kept Tanzania at moderate risk of external and overall debt distress in their joint assessment of July 2025.
—Regional contrast: Kenya meets the minimum transparency standard in the 2026 report, while Tanzania fails.
Tanzania fiscal transparency has improved in some areas but still falls short of Washington’s minimum standards, according to the 2026 US Fiscal Transparency Report. The assessment places Tanzania behind regional rival Kenya and signals continued governance risk for investors.
What the US Fiscal Transparency Report measures
The Fiscal Transparency Report is an annual assessment published by the US State Department’s Bureau of Economic and Business Affairs. It evaluates 139 governments plus the Palestinian Authority on whether they meet minimum requirements of fiscal transparency.
The benchmark focuses on public disclosure of national budget documentation, including income and expenditures by ministry. It also examines public criteria and procedures for awarding contracts and licences for natural resource extraction.
Governments that fail the minimum standard are assessed on whether they made significant progress during the review period. Failure does not automatically cut off US aid, but it influences foreign assistance decisions, investor risk assessments, and diplomatic leverage.
Tanzania’s mixed record on fiscal transparency
The 2026 report, released on 11 August 2026 and reviewing 2025, again places Tanzania among governments that do not meet minimum fiscal transparency requirements. It also names Tanzania as one of only 14 governments worldwide credited with significant progress towards meeting them. That cohort shrank from 26 in the previous edition, which makes the recognition more notable rather than less.
The report also strengthened its criteria this year, adding a requirement that governments publicly disclose the terms and conditions of sovereign loans, including liabilities and any collateralised assets.
The 2026 report’s specifics are narrower than the headline suggests. Tanzania’s debt obligations are disclosed online and its supreme audit institution meets international standards of independence, publishing within a reasonable period. The gaps are that it does not publish a full executive budget proposal before parliament approves it, that military and intelligence budgets are not subject to parliamentary or civilian oversight, and that public procurement contracts are not published.
Public budget documents did not provide a substantially complete picture of planned expenditures and revenue streams. Information on state-owned enterprise allocations, earnings, and natural resource revenues was limited, and the intelligence budget was off-budget.
Independent metrics confirm the transparency gap
The Open Budget Survey 2023 by the International Budget Partnership gives Tanzania a transparency score of 41 out of 100. This is below the global average of 45 and well below the threshold of 61 at which public information is considered sufficient for informed budget debate.
Tanzania ranks 75th of 125 countries in that survey. Regional peers score higher, with Uganda at 59, Kenya at 55, and Rwanda at 50.
Tanzania’s public participation score is just 13 out of 100, indicating very limited opportunities for citizen engagement in budget processes. Legislative and supreme audit institutions provide only limited oversight during the budget cycle.
Money and power: the investor lens
The International Monetary Fund and the World Bank kept Tanzania at moderate risk of external and overall debt distress in their joint assessment of July 2025, with some space to absorb shocks. The country has also undertaken anti-money laundering and counter-terrorist financing reforms, completing its Financial Action Task Force action plan.
Tanzania was removed from the FATF’s “increased monitoring” list — the grey list — on 13 June 2025, having completed its action plan after being listed in October 2022. For investors, this means macro-level risk is manageable but governance and transparency remain weak.
Recurring failure to meet the US minimum standard means higher due-diligence costs for international investors, particularly in energy, infrastructure, and mining. It can also constrain access to US development finance and governance-related assistance.
The transparency gap feeds directly into the wider contest for influence covered in Africa: The New Scramble. Western-aligned investors and development finance institutions treat transparent budgets and procurement as prerequisites, while Chinese financing models may be more tolerant of opaque fiscal regimes.
Regional rivalry: Kenya passes, Tanzania fails
Regional media highlight that in the 2026 Fiscal Transparency Report, Kenya meets the minimum transparency standard while Tanzania fails. Open Budget Survey scores mirror this divide, with Kenya at 55 and Tanzania at 41.
Kenya’s stronger transparency profile enhances its status as an East African hub for finance, logistics, and technology. Tanzania’s weaker scores may push some investors and regional initiatives to favour Nairobi over Dar es Salaam, especially where project finance and blended public-private capital are involved.
Tanzania’s large market, natural resources, and strategic coastline ensure it remains a target for foreign capital. But that capital often comes on terms conditioned by perceived governance risk.
What to watch next
If Tanzania consolidates reforms and moves into the “meets minimum requirements” category in future reports, it could unlock cheaper finance, stronger investor confidence, and more diplomatic clout. That would matter in debates on reforming the global financial architecture, where African governments seek greater access to concessional finance.
If it does not, the country risks a semi-permanent governance discount in capital markets. It may also continue relying on opaque bilateral deals that could increase future debt and governance risks.
The next Fiscal Transparency Report, expected in 2027 and reviewing 2026, will show whether Tanzania can convert the progress recognised for 2025 into full compliance.
Frequently Asked Questions
Does Tanzania meet US fiscal transparency standards?
No. The 2026 US Fiscal Transparency Report places Tanzania among governments that do not meet minimum fiscal transparency requirements, while crediting it as one of 14 that made significant progress.
How does Tanzania compare with Kenya on budget transparency?
Kenya meets the minimum transparency standard in the 2026 US report, while Tanzania fails. The Open Budget Survey 2023 gives Kenya a score of 55 and Tanzania 41 out of 100.
What are Tanzania’s main fiscal transparency weaknesses?
Tanzania does not publish its full executive budget proposal, provides limited information on state-owned enterprise debt and earnings, and keeps the intelligence budget off-budget.
Connected Coverage
Tanzania’s transparency gap sits within the broader contest for African capital and influence explored in Africa: The New Scramble.
Sources
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