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