Tanzanians know it's no easy task to secure jobs and growth in a highly competitive, volatile and uncertain medium global economy. Despite the challenges and the naysayers, we are going to make it happen.
Reshared:
Economic Overview
The overall macroeconomic performance remains strong with a high rate of growth and a low rate of inflation. Real grows domestic product (GDP) growth is projected at 7% for 2015. From the supply side, the main drivers of growth recently has been several fast growing sectors, such as construction, transport and financial services. Inflation has gradually declined over the past 30 months due to tight monetary policy and falling international energy and food prices. While inflation has slightly increased recently largely driven by increase in domestic food prices and possible ragged effects of sharp depreciation of the local currency during the first half of 2015, the level remains relatively low at 5.6% in February 2016.
The external sector of the economy improved following a declining current account deficit that stood at 8.1% of GDP in 2015. Export growth driven by regional trade in manufacture goods and reduced imports bill from cheaper imported oil contributed to this decline.
Although revenue performance in 2015/16 has been better than in the past few years, shortfall has been experienced in the first quarter of the FY driven largely by weak implementation of the new 2015 VAT ACT. The new government is committed to 4.2% of GDP fiscal deficit target for 2015/16. The government faces additional expenditure needs, equivalent to 0.7% of GDP, coming from expenditures carried over from last FY, payment of government arrears to TANESCO, and additional fiscal space need for provision of free basic education and expansion of higher education students' loans program (new presidential initiatives).
Social Context
Approximately 28.2% of the population lived below the poverty line in 2012; a reduction from 34% in 2007. During the 2007/12 period, there were improvements in living conditions, access to basic education, health and nutrition and, labor force participation in non agriculture employment. Nevertheless, these benefits were not distributed equitably. Inequality has increased between urban and rural population and approximately 12 million Tanzanians are still living in poverty.
Development Challenges
Tanzania's main challenges include addressing infrastructure bottlenecks, improving the business environment, increasing agricultural productivity and value addition, improving service delivery to build a healthy and skilled workforce, and managing urbanizations. The country also has a youthful labor force growing by approximately 800,000 every year and needs to increase the private sector's role in employment creation for them.
The new administration has outlined among its priorities; increasing government revenues and reducing inefficiencies; investment in good health systems; raising education quality; increasing access to water and improving availability to electricity.
You can find this through
Tanzania Overview
My take; Given the international headwinds and fragility, this is an achievement of which we should all be proud. So like the Tanzanian people, we are upbeat and optimistic, even though some Tanzanians are feeling the transition more acutely in some parts of the country than others. We also know we have the opportunity to do more by accessing the largest and fastest growing economy in our own region, namely Kenya.
So why don't you know even a little bit about your own country? I believe that; Not all UKAWA members are null brained "malofa" but show me a null brained and I bet you are showing me a UKAWA member!! Lastly, you're invited to a welcoming beverage [emoji482] for Masunga Maziku. Happy holiday..
