ECONOMY: Tanzania economy still fastest in region- report

Ludewa MP Deo Filikunjombe (in front) walks towards Parliament’s debating chambers with various leaders from his constituency when they visited the National Assembly in Dodoma yesterday. PHOTO | EDWIN MJWAHUZI. 

By Patty Magubira,The Citizen Reporter

Posted  Friday, June 13  2014 at  08:22

In Summary

• Tanzania’s 7 per cent growth rate is the highest in East Africa
• Wasira, however, told Parliament that the achievement could not be reflected in the poverty reduction endeavour

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Dodoma. Tanzania maintained its place as one of 20 fastest growing economies in the world with its average growth rate of 6.9 per cent between 2005 and last calendar year, it has been reported.

Other African economies with a similar pace of growth rate are Ethiopia (10.8 per cent), Angola (10.8 per cent), Sierra Leon (8.2 per cent), Rwanda (8.2 per cent), Ghana (7.4 per cent), Mozambique (7.3 per cent), Uganda (6.7 per cent), Zambia (6.4 per cent) and the Democratic Republic of Congo (6.4 per cent).

The minister of State in the President’s Office (Relations and Coordination), Mr Stephen Wasira, however, told Parliament that the achievement could not be reflected in the poverty reduction endeavour.

The agriculture’s failure to attract adequate capital and loans from banks, according to Mr Wassira, was delaying the country’s green revolution ambition, he said as he delived the state of the economy statement ahead of last evening’s tabling of the main government budget.

He said the country’s Gross Domestic Product (GDP) grew by 7 per cent last year as opposed to 6.9 per cent the previous year. The GDP, according to him, grew from Sh44.77 trillion ($25.25 billion) in 2012 to Sh53.17 trillion ($33.26 billion) last year.

“An average income of each Tanzania, therefore, stood at Sh1.2 million ($742) last year as opposed to Sh1 million (652.1) the previous years,” Mr Wassira said.

The Tanzania’s 7 per cent grow rate is the highest in East Africa followed by that of Uganda 6 per cent, Kenya 5.6 per cent, Rwanda 5 per cent -- which has just nosedived from 8 per cent in 2012 -- and Burundi 4 per cent.

He attributed the growth to a number of factors including $11.37 billion worth of investments registered last year, up from those attracted the previous year which valued at only $8.73 billion.