Under this program, we tackle economic policy and equity, budget and tax justice, trade and investment, regional economic cooperation, addressing the policy, regulation, contextual political economy and governance gaps that contribute to economic underdevelopment, poverty, exclusion and misery. Tanzania and East Africa generally has maintained a stellar economic growth, posting an average of 6%- 7% and low single digit inflation rates. However this economic growth is still inequitably distributed , face significant shock backs if some governance deficits are not addressed. Regional economic cooperation and intra regional trade and investment faces barriers. Moreover recent tax policy reforms and measures to increase domestic revenue mobilisation have attracted wide resistance and violent tax protests across the East African region.

Driving Equitable and Sustainable Economic Growth

Over the last three years, Tanzania and East Africa generally has experienced a zigzag and unequitable economic growth. GDP is growing but poverty and economic hardships exist. This is exacerbated by bludgeoning national debts and constrained domestic resource mobilization. A budging population and youth bulge, with limited economic opportunities.

The EAC Countries have increased budgetary expenditures, increased taxes and suppressed inflationary pressures but recorded unevenly distributed economic prosperity. Unemployment, income and food poverty are still persistent. The World Bank reports poverty rates in East Africa are generally high, with significant variations by country and region. In 2022, approximately 39.8% of Kenya’s population lived below the national poverty line. The poverty rates in Tanzania and Uganda remain high and have remained stagnated or declined at very modest rates over the last five years.  Data indicates that while some countries have made progress, substantial challenges remain, with high debt servicing and vulnerability to external shocks affecting poverty reduction efforts.    There is a mismatch between economic policy and development outcomes. National budgets as economic policy tools have implementation gaps and limited public trust.

Our program works to close these gaps by strengthening national and regional economic and fiscal systems that promote equity and sustainability. We focus on:

• Economic and fiscal policy implementation

• Fiscal policy and tax justice

• Regional economic cooperation

• Trade and investment facilitation

Through research, policy analysis, advocacy, training, and public dialogue, we address issues such as macroeconomic policy gaps, budget and tax reform, digital economy expansion, regional trade integration, and opportunities in emerging sectors for jobs and wealth creation.

Our Activities

1. Short Analytical and Evidence Based Research
2. High Level Stakeholders and Academia interactive dialogues, webinars and colloquiums

3. Policy advocacy and training

Fiscal Policy and Tax Governance Program

Our work seeks to strengthen and promote just and fair fiscal policies.  Over the past years, the tax trends have been on an increasing trajectory in a manner that raises concerns for equity and fairness. While governments are pressed to meet new tax revenue generation targets to finance increasing priorities. There is concern that the imposed taxes are widening the income gap between the poor and rich. Moreover, the increasing taxation of vital social services is exacerbating social-economic injustice. Consequently, between 2023 and 2024 there were tax protests in Uganda, Kenya and Tanzania.

Government’s mandate to tax its citizens is a constitutional obligation.  However, with dwindling foreign aid, it appears the governments in East Africa have resorted to squeezing everywhere to raise some dime. Taxation may be good however, when the extremes are beyond reasonableness, countries are bound to break the back of the economies they aspire to build and citizens they swore to protect.

Under this program, we constantly ask how the governments can balance between taxation and economic justice.

We undertake and produce targeted analytical briefs and public dialogues on tax trends, DRM and assessments of fiscal policy reforms and contribute to suggestive recommendations on how EAC governments can increase their tax to GDP ratios and effective tax rates without imposing a burden and economic stress on citizens. Based on tax models, we further attempt to provide options that government can leverage to achieve a similar tax revenue outcome without excessive tax burdens.

Taxation and a strong tax system may contribute to improved governance through three maximum channels. Taxation establishes a fiscal social contract between citizens and the taxing state. Taxpayers have a legitimate cause to expect something in return for paying taxes and are more likely to hold their governments to account. Governments have a stronger incentive to promote economic growth when they are dependent on fair taxes.

Tanzania achieved lower-middle income status in 2019, reflecting steady economic growth. Yet this progress is unevenly shared—poverty remains high, unemployment is widespread, and fiscal gaps risk undermining sustainable development. Domestic revenue collection is still below target, national debt is rising, and citizens have limited voice in shaping economic and fiscal policy.

These challenges mirror those across East Africa and the Great Lakes region. Despite growth, inequality is widening, debt servicing consumes significant national budgets, and unemployment—especially among youth—remains critical. New fiscal reforms and tax measures have been resisted with widespread and violent tax protest. Regional economic integration is slow, with low trade volumes and persistent barriers limiting opportunities. Without stronger governance and policy reforms, recent milestones risk reversal.

Regional Economic Cooperation, Trade and Investment

The East African Community (EAC) is a large regional economic block comprising of 8 countries with a total population of about 320+ million people .  This offers a potential market for regional trade yet the progress of regional economic integration process is slow and intra-regional trade still below maximum potential. 

Although Intra-EAC trade expanded by 28% to USD 9.3bln in 2025, the level of trade and investment is still low to create equitable wealth, improved conditions and sustainable development. Non-Tariff Barriers to trade exist, obstructing smooth flow of goods and services across the region.  National policies and regulatory frameworks are largely inward looking and consequently, Regional Economic Cooperation as mechanisms for promoting economic opportunity have failed to deliver tangible benefits. Economic gaps and barriers exist, and citizens are discontented and disengaged.

Moreover, the Africa Continental Free Trade Area further offers opportunities for intra Africa trade, yet trade between the EAC and Africa remains low.  Although trade with Africa has increased by about 40% to about  USD39bln in 2025 (about 25.2% of total trade), globally,  China leads as EAC’s largest trading partner, followed by the UAE, South Africa, India, Japan and the United States. (The Citizen, April 10^th , 2026).

GEPC work under this program addresses;

• Elimination of Non-Tariff Barriers (NTBs)
• Deepening of regional economic integration

Our Activities

1. Evidence Based Research, advocacy and training
2. High Level Stakeholders and Academia interactive dialogues, webinars and colloquiums
3. Trade and Investment facilitation
4. Track and Monitor Regional Economic Integration
5. Technical Support to the EAC, EALA and East African Business Council on
6. Capacity building for Civil society to engage with the EAC and AfCFTA on  issues related to trade and regional economic cooperation

Digital Economy and Financial Inclusion program

The digital economy offers a new frontier for economic policy. Over the past years, East African countries have recorded digital economic expansion characterized with increased internet penetration, mobile phones, and online financial services.

Mobile internet penetration in East Africa stands at approximately 52%, with mobile data serving as the primary driver of connectivity. Kenya leads the region with a ~72% penetration rate and 58.5 million data subscriptions, while Tanzania follows at 55%. Digital financial services (DFS) penetration in East Africa is increasing, driven primarily by mobile money.

The expanded digitalization presents immense opportunities for development in Eastern and Southern Africa, including business, job creation, poverty reduction, and improved service delivery, but Countries across the region are facing similar challenges to digitalization including risks related to cybersecurity and data protection. There are gaps in governance and taxation of the digital economy. To realize the benefits of digitalization, countries need to strengthen digital infrastructure, promote regulatory harmonization, enhance digital skills, and address disparities in access to digital services. (World Bank, 2023)

Moreover, globally there is an increasing uptake in the use of block chain technology and crypto digital currencies.   Yet in East Africa, government uptake and regulation are moving at a snail’s pace. The pressure to digitalize our economies and adopt a new generation of monetary policies has economic policy and practical risks. How can governments navigate this delicate balance between digital economy penetration, financial inclusion and monetary policy?  We re-explore and unpack block chain and crypto currency penetration and the risk considerations shaping debate and monetary policy terrain in East Africa.

This program focuses on supporting governments to expand the digital economy, leverage of monetary policy and regulation to harness the dividends of the digital economy, block chain and cryptocurrencies as vehicles to advance financial inclusion in the region.

GEPC work under this program addresses;

• The Digital Economy and Crypto Currencies
• Taxation of Digital Economy

Our Activities

1. Evidence Based Research, advocacy and training
2. High Level Stakeholders and public interactive dialogues, webinars and colloquiums

Fundraising, Resource Mobilization and Partnerships:

 We are actively seeking for partners, donors and to support our work. We are actively looking for partners to support, sponsor or partner with us in delivering the projects under this program.

For more about this program contact us via:  Governance and Economic Policy Centre, Tel: +255 754 844410/ +254 717 872034, Email: info@gepc.or.tz or moses@gepc.or.tz Website: www.gepc.or.tz