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Why Njombe and Coast are regions to watch
MONDAY OCTOBER 11 2021
Summary
- Njombe and Coast regions may not be the largest contributors to Tanzania’s gross domestic product, but their growth rates put them firmly on the path to becoming forces to be reckoned with in the country’s economy, according to a new report
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By Josephine Christopher
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Dar es Salaam. Njombe and Coast regions may not be the largest contributors to Tanzania’s gross domestic product (GDP). But, their growth rates put them on the right path to becoming forces to reckon with in Tanzania’s economy, a new study shows.
The two regions - along with Dodoma, Katavi and Mwanza - have seen their GDPs grow at a rate of over 40 percent during the past five years, thanks to the government’s focus on industrialisation and agricultural production among others.
With the main economic activities being agriculture, livestock development, forestation and small businesses, Njombe’s GDP rose by 63 percent in the period of five years from 2016 to 2020.
The regional GDP is now at Sh2.66 trillion, up from Sh1.62 trillion of 2016, according to latest figures from the National Bureau of Statistics (NBS).
Njombe was followed by the Coast Region whose economy grew by 52.9 percent to Sh2.98 trillion from Sh1.95 trillion.
The Coast Region has substantial potential for agriculture, mariculture and fisheries, tourism, small-scale mining, and manufacturing. It is also the second region with the most industry establishments behind Dar es Salaam. The Coast Region is increasingly becoming a preferred investment haven for local and domestic investors, with latest figures showing that it is now only second to Dar es Salaam in terms of attracting investments.
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Speaking to The Citizen, senior economist Prof Samuel Wangwe said the good performance from the main economic activities in these regions as well as their administrative advances for the past five years has pushed their regional economy.
“Njombe has done well in the agriculture sector which has significantly grown even nationwide; and in general the taxation and administrative systems in all these regions has also improved now compared to previous years,” he said.
The regional economy of Dodoma - which is currently the national capital - grew by 47.17 percent, followed by Katavi and Mwanza, which grew by 44.36 percent and 40.24 percent respectively.
Since the 5th-phase government initiated the move of administrative functions to Dodoma, the region has attracted many investment opportunities thus improving its GDP.
Prof Wangwe said that, for Katavi, its strategic location bordering Zambia and the Democratic Republic of Congo has given it a comparative advantage with respect to provision of trade and transport services to the neighboring landlocked countries.
Prof Haji Semboja of the State University of Zanzibar remarked that Njombe and Katavi’s growth can also be an impact of its establishments as new administrative regions.
“When they became regions, there was rapid developments made both in social and economic sectors such as in terms of settlements, business etc,” he said.
Prof Semboja also stated that the government through its policies and projects have pushed for more development programs to be implemented upcountry to reach large percent of the population who live there.
Moreover, according to the NBS five regions with a slow pace when it comes to GDP were, including percentage in brackets, Tabora (32.94 percent), Kagera (32.51 percent), Kigoma (31.83 percent), Rukwa (26.36 percent) and lastly was Iringa at 25.26 percent.
Commenting on this, Prof Semboja said both regions have the potential to grow at a higher pace but their GDP growth is slow as they still depend on agriculture only.
They have higher GDP, however it grows slowly as it has yet to utilize its available resources effectively, he says.
“Kagera has Lake Victoria, Kigoma has Lake Tanganyika with both regions having links with neighbouring countries, thus if they can expand their and find new economic opportunities, it may improve their GDP at a higher rate,” said Prof Semboja.