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A sleeping lion awakes
Long fabled for its safari parks and paradise beaches, Tanzania's economic potential is finally rising as it opens up its vast and resource-rich territory for investments.
For decades Tanzania has been the quieter brother to its powerful northern neighbour Kenya, however with seven percent annual GDP growth, significant deposits of natural gas and other resources, and the continued liberalisation of its economy to attract foreign investment, it is finally emerging as the next ‘one to watch' in Africa.
Today Tanzania is one of the world's 20 fastest-growing economies, and admired for its peace and stability following several years of consolidated multi-party democracy. While poverty remains a significant challenge – an estimated one-third of the population lives below the basic needs poverty level – President Kikwete, through his ‘Vision 2025' plan, aims to bring the nation up to middle income status in just over a decade.
To help him achieve this development goal, Tanzania is looking to capitalise on its natural resources. The country has reserves of over 53 trillion cubic feet (tcf) of natural gas, is Africa's fourth largest gold producer, has a growing population of 49 million people, a globally renowned tourism industry and huge tracts of arable land.
Its transport and infrastructure have been badly in need of modernisation but recent developments, particularly across airports and ports, are starting to unlock this East African nation's potential to become an investment, trade and technological gateway for the region.
Although some concerns remain among investors over bureaucracy, corruption and ease of doing business, many have flocked to Tanzania, with the UK leading the way with major investments in gas exploration, power generation, agriculture, education and renewables. The UK has also been a major supporter of President Kikwete's ‘Big Results Now' initiative to address issues faced by investors.
Indeed, Tanzania's natural wealth means the country now finds itself at a crucial point ahead of an influx of capital that looks set to put in motion a future socio-economic and industrial transformation. "Tanzania is at a crossroads, and the next ten years will be critical for the country's future," admits minister of foreign affairs Bernard Membe.
Ramping up the fight against poaching
Tanzania is home to nearly a quarter of all African elephants, making it a hotspot for tourists but, less fortunately, a target for poachers. The UK's Environmental Investigation Agency estimates that the nation's elephant population – counted at 80,000 in 2009 – could dwindle to just 55,000 by 2015 due to the illegal ivory trade.
Speaking at a recent two-day summit in Arusha, Tanzania's prime minister Mizengo Pinda called on regional and international communities for help in the fight against poaching. "Despite the commitment and efforts of the government there have been many challenges, including inadequate financial and human resources that limits implementation of important initiatives and enforcement of the law," he said.
Source:The Report
