|Overview : |
With a population of 56 million people, Tanzania is the second largest economy in the East African Community (EAC). The performance has largely been driven by the services and industry sectors. The COVID-19 pandemic is expected to weigh heavily on the economy with estimates now at a modest 2.0% growth in 2020 from an earlier estimate of 5.30%. The drop is largely driven by a decline in international trade and tourism. The situation is not unique to Tanzania as the global economy contracted in 2020. However, the medium-term outlook is positive as growth is projected to remain strong, driven by robust performance in services and manufacturing sectors, and supported by public investment. The longer-term growth prospects are expected to be boosted by recent natural gas discoveries through increased FDI, government revenues, power generation, and the impact on local economic development.
Through the Tanzania Development Vision 2025 (TDV 2025), which is being realized through frameworks of Five-Year Development Plans (FYDP I-III), the Tanzanian government is focused on nurturing an industrial economy, as well as creating economic transformation and human development with high-quality livelihoods. The goal is achieving middle-income status. In order to meet the development objectives specified in Tanzania’s Development Vision 2025, Tanzania requires significant investment from a broad range of sources including national, regional and international investors.
To achieve its TDV 2025, investment and finance will need to be utilized as a driving force for social and economic resilience. Currently there are barriers to securing this financing, including: a relatively weak investment environment characterised by challenges in property registration, taxation and registration of building permits; a limited pipeline of bankable SDG impact projects; capacity gaps in project preparation and investment promotion in the country; fragmentation in portfolio development approaches between regional governments, national government and the private sector; and limited investor engagement. Rallying private sector participation and strengthening private and public sector networks for achieving sustainable and inclusive economic growth has taken on new urgency. The Tanzania Development Vision has a financing gap of USD 22 billion in investment capital. ………………..Etc………….