Karibu , Tanzania !
Over the years , there has been a lot of talk by some of the economic experts that Tanzania ’ s economy is rising at an admirable rate . Tanzania , with its large and growing population , strategic location , natural resources and internal political stability , presents an exceptionally attractive investment opportunity .
By ENGINEER RAYMOND MBILINYI
Tanzania is a rapidly growing frontier market , ranking among the 20th fastest growing economies in the world . The country has exhibited an average GDP growth rate of around 7 percent for the past 10 years and , according to figures released by the IMF and World Bank , it is predicted to continue this rapid economic growth for at least the next decade . The World Economic Forum has ranked Tanzania to be among the top ten fastest growing economies in 2018 . This highlights the potential for the economy to maintain its upward growth trajectory in the long run .
Over the last two decades , the country has transformed itself from a centrally planned economy to a market-oriented system through successful implementation of free marketoriented reforms . These reforms have resulted in a positive growth trend and impressive macroeconomic indicators with inflation rates falling from 24.7 percent in 1995 to 5 percent in 2017 . Foreign Direct Investment ( FDI ) has substantially increased , with an inflow of 2 billion USD per year in 2015 , one of the highest in Sub-Saharan Africa . Growth in FDI is driven by new investments in manufacturing , tourism , telecommunication , banking , oil and gas and cross-border transport services , mining and real estate .
According to the Central Bank of Tanzania , the overall balance of payments improved significantly to a surplus of USD 1,574.7 million in the year ending January 2018 compared with USD 397.4 million in the year ending January 2017 . A surplus of USD 1,914.4 million was realised in the services account in the year ending January 2018 , 33.8 percent higher than the surplus recorded in the same sector in the corresponding period in 2017 . The improvement stemmed from an increase in services receipts and a decline in services payments . Services receipts rose by 10.2 percent to USD 3,974.7 million from the amount realised in the preceding year , largely contributed by the good performance of travel and transport receipts . The improvement in the balance of payments have been driven by a larger influx of tourists into
22 • TANZANIA