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Tanzania is one of the best performing and most stable economies in Africa, this is according to the African Development Bank (AfDB).

The AfDB recently released the 2017 country results brief on Tanzania, analysing the country’s economic outlook over the past four years.

The 2014 growth rate of 7% was maintained in 2015, with an improvement to an estimated rate of 7.2% in 2016, with the same rate projected for 2017, driven mainly by strong performance in industry, construction, services, and information and communication sectors.

The Bank underlined that external development assistance was one of the main sources of finance for development projects. Read more…

The fall in the international price of oil has had a positive impact, reducing the pump price of gasoline and industrial oil. This has also reduced the price of electricity, thereby boosting industrial production.

Growth is projected to stabilise at around 7% in the medium term as the performance of the major sectors are expected to remain stable and reinforced by increasing government investment in infrastructure.

GDP per capita has increased in the past 10 years to $842, the country is still facing the challenge of translating this growth into economic transformation and faster poverty reduction that will improve the livelihoods of the majority.

Power supply supports economic growth

The availability of gas for electricity generation from the Mtwara pipeline, completed in 2015, is expected to continue supplying more regular and cheaper power to industries.

The roadmap aims to increase the country’s installed power capacity from current levels to at least 10,000MW by 2025 while also expanding the transmission and distribution systems.

The brief reviews the Bank’s performance in Tanzania against the goals it set itself, including how it intends to help the country achieve inclusive and sustainable development, with the overarching objective of raising the country to middle-income status by 2025.

“Tanzania is an excellent example of how the Bank can have an impact on development through its High 5s,” said AfDB Director General for East Africa Gabriel Negatu.

“Thanks to our investments, the country is well on track to becoming a middle-income country by 2025,” Negatu said.

 

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