Economic efforts include resumption of the negotiations for the Bagamoyo Special Economic Zone (SEZ). PHOTO | FILE
Dar es Salaam. The Tanzanian economy received a boost in 2021 after experiencing pull factors that are expected to encourage the ongoing recovery of economic activities.
Economic efforts include ratification of the African Continental Free Trade Area (AfCFTA), resumption of the negotiations for the Bagamoyo Special Economic Zone (SEZ), and finalising the key agreement on the $3.5 billion East African Crude Oil Pipeline project with Uganda.
Others are the economic diplomacy missions done by President Samia Suluhu Hassan through discussions with different heads of state, advertising the country’s investment potential on the ongoing Expo 2020 Dubai, and showing intent to implement industrial parks in different regions across the country.
Tanzania has also revived its relations with international development partners like the International Monetary Fund (IMF) and World Bank (WB), all facilitating resumption of grants and concessional loans to start flowing in again.
Speaking to The Citizen, economists say Tanzania has made good efforts in exploiting its potential to be the hub of regional economic efforts in the eastern part of Africa.
From creating direct and indirect employment opportunities, to tech and knowledge transfer, Tanzania has a potential to be a logistics hub for connecting central and eastern Africa, says University of Dar es Salaam (UDSM)’s economist Abel Kinyondo.
“Assuming that all these agreements and projects are all fully implemented, they would benefit the country big time through multiplier effect and give us leverage as a regional corridor,” Dr Kinyondo said.
Most importantly, he said, is to ensure these projects are sequencing strategically so that they can complement each other and bear maximum economic benefits.
“For example, in the Bagamoyo project, we expect to have the biggest port there, thus we can make sure it connects with a well-established SGR to allow smooth transit of heavy cargo via reliable, faster and cheaper means,” said Dr Kinyondo.
Zanzibar University’s Prof Haji Semboja says in this year, the administration of President Hassan has shown impressive efforts in changing the systems of people, institution and policy to create a good growth environment.
He said, this shows the concept of good governance--one of key catalysts for economic transformation.
“We are doing fine. Even with the impact of the Covid-19 the country’s economy was able to survive and became less affected compared to our neighbours,” said Prof Semboja.
Economist and business expert Donath Olomi said Tanzania has also succeeded in returning the good relationship with the foreign investors and creating a conducive business environment which would bear positive results in the long term.
However, he said, there is still a gap in allowing for inclusive participation of the public when it comes to decisions that affect them directly.
“For the administration to improve the quality of the decisions made and secure the maximum outcome, inclusivity should be encouraged,” he said.
Dr Olomi said transparency should also be encouraged in the planning and implementation of the strategic projects so that the public can be made aware of issues such as how they are being financed.
Moreover, other ongoing strategic projects that have received emphasis in 2021 include the liquefied natural gas (LNG) project, Standard Gauge Railway (SGR), Julius Nyerere Hydropower Project - just to mention a few.
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