Arusha. Tanzania is one of a few African countries whose economy are expected to perform well this year. Over 5.5 percent growth is predicted for the continent's top five economies in 2023–2024.
The African Development Bank (AfDB) predicted that they would once again rank among the 10 economies with the fastest growth rates in the world. According to the AfDB report titled "Africa's Macroeconomic Performance and Outlook," Tanzania's economy is expected to expand by 5.6 percent this year.
The economy of the nation will follow Rwanda, which is anticipated to expand by 7.9%, and Côte d'Ivoire, which is anticipated to increase by 7.1 percent.
The economies of Benin and Ethiopia will expand by 6.4 percent and 6 percent, respectively, between 2023 and 2024.
Tanzania's GDP is expected to grow by 5.3 percent in 2023, according to estimations from the AfDB and the World Bank.
Mr. Lawrence Mafuru, deputy permanent secretary in the ministry of finance, stated that the economy was expanding at a recent meeting he had with the editors.
The government's policies for 2023 will also focus on promoting growth while also reducing the effects of external shocks because the country has a tiny economy. Tanzania will struggle to get its development financing at reasonable interest rates, he predicted, as the developed nations battle rising inflation rates.
Accelerating the construction of the USD 30 billion liquefied natural gas (LNG) plant is one of the steps that need to be taken to give the economy its economic impetus. Tanzania's annual economic growth is expected to be significantly higher than the projected 3.6 percent average for sub-Saharan Africa.
The research stated that "growth was favourable across all five African areas in 2022 and the outlook for 2023–24 is predicted to remain stable."
Prior to the Covid-19 outbreak, Tanzania and the other four countries in Africa had the best economies.
Several other African nations are anticipated to have economic growth of more than 5.5 percent within the same time frame.
These comprise Togo (6.3%), Niger (9%), Senegal (9.4%), the Democratic Republic of the Congo (6.8%), The Gambia (6.4%), Mozambique (6.5%), and Senegal (9.4%). With Rwanda leading the region, growth in east Africa is anticipated to increase from 4.2 percent in 2022 to 5 percent in 2023 and 5.4 percent in 2024. Ethiopia and Uganda are also expected to experience robust growth in 2023 and 2024, reaching 5%.
This is linked to changes in the oil industry for Ethiopia and Uganda, respectively, and ongoing infrastructure investment for Ethiopia. According to projections, Côte d'Ivoire and Senegal will help the region's growth increase from 3.6 percent in 2022 to 4.1 percent in 2023 and 4.3 percent in 2024. According to projections, the growth rate in Central Africa will slightly decrease from 4.7 percent in 2022 to 4.3 percent in 2023 before stabilising at 4.2 percent in 2024.
Despite Mozambique being a notable performer, the southern African region has the lowest growth rates because of South Africa's economic problems. However, the area will continue to feel the effects of South Africa's ongoing decline in the medium run. Real output in the once-largest economy in Africa is anticipated to slow to 2.3 percent in 2023 before increasing to 2.8 percent in 2024.
Mozambique, whose economy would be boosted by investment in liquefied natural gas and related industries, will be the main driver of growth in the south.
Growth in northern Africa is anticipated to stabilise at 4.3 percent in 2023, helped by an anticipated robust rebound in Morocco and Libya. In spite of the world's rising gasoline and food prices, Africa will have the fastest economic growth this year.
Posted on : 03 Oct,2023