Tanzania’s economy excellent, says WB

By KATARE MBASHIRU

THE World Bank (WB) has said that Tanzania’s economic growth is superb, thanks to the country’s good fiscal policy. WB Senior Director for Macroeconomics, Trade and Investment Global Practice, Dr Felipe Jaramillo said in Dar es Salaam on Monday evening that Tanzania was among African countries whose economies were progressing well.

According to him, in Africa, Tanzania remains among top performers in having a steady growth rate. He was speaking when making his presentation on the state of the global economy, key concerns and implications for Africa at the council chamber of the University of Dar es Salaam (UDSM).
The event was co-hosted by the Acting Vice Chancellor of UDSM, Professor Bonaventure Rutinwa and the WB Country Director for Tanzania, Malawi, Burundi and Somalia, Ms Bella Bird.
The presentation was later discussed by Prof Samuel Wangwe, Prof Andrew Temu and former Permanent Secretary for Finance and Planning, Dr Selvacius Likwelile. According to Dr Jaramillo, for Africa to improve its economy, it was important to improve investment climate, education infrastructure and strengthening governance, among others. “Countries with lower per capita have less dense roads and railroads, therefore, there is need to improve infrastructure,’’ he said.
He added that countries with natural resources need to use them better to improve the quality of infrastructure and aspire to raise the quality of education. Tanzania has sustained relatively high economic growth over the past decade, averaging 6–7 per cent a year, with its poverty rate declining. Globally, according to Dr Jaramillo, 2018 looks like a good year for Sub Saharan Africa (SSA), although he was quick to point out that it was difficult to predict if the trend will remain the same.
He added that Africa’s economic growth was robust until recently and that the fastest growing economies, including Tanzania, were doing very well. “Growth in SSA is projected at 3.2 per cent in 2018 and 3.5 per cent in 2019, slightly above the population growth and progress in non-resource intensive countries is projected to remain robust, spearheaded by Senegal and Cote d’Ivoire,’’ he insisted.
In his analysis of the presentation by the WB group, Prof Wangwe who was among the discussants said if Tanzania and other African countries want to increase economic growth, it is important that they improve productivity, infrastructure and education as well as invest in Research and Development. The Acting Vice Chancellor paid tribute to the Bretton Woods Institution for joining hands with UDSM in a bid to improve the country’s economy through emphasis on education.
As of January 2018, Tanzania’s economy grew by 1.62tri/- (726.8 million US dollars) in the first half of the current financial year. It registered a GDP of 25.5tri/- (11.5 billion US dollars) compared to 23.9tri/- (10.7 billion US dollars) in the corresponding period in 2016. Tanzania recorded the best growth rate in the East African Community.
Kenya, for example, recorded 4.9 per cent in the first half of 2017, a drop from 5.9 per cent attained in 2016, while Rwanda averaged 7.2 per cent from 2000 until 2017, down from 8.1 per cent in 2016. Uganda recorded a 4.9 per cent growth in 2017, up from 3.8 per cent in 2016.