DAR ES SALAAM
(Xinhua) -- With strong and consistent growth rates
of 6-7 percent, Tanzania has outperformed its east African
neighbours of Kenya and Uganda, the World Bank said on Tuesday.
“Tanzania’s growth rates continue to
outperform her East African neighbors,” said Bella Bird,
World Bank Country Director for Tanzania, Burundi, Malawi,
and Somalia, at the launch of the World Bank’s 9th
edition of the Tanzania Economic Update, a series that
provide regular review of the economy.
Speaking at the launch of the economic
update in Dar es Salaam, Bird said by contrast Tanzania remains
one of three economies in sub-Saharan Africa, together with
Rwanda and Ethiopia, that continue to exhibit resilience in this
challenging external environment.
Overall, she said, the Tanzanian
economy has shown resilience amid flagging growth in sub-Saharan
Africa in 2016, adding that Tanzania.
The bank said in its economic update
similarly the poverty level in Tanzania has significantly
declined from 60 percent to 47 percent based on 1.90 U.S. dollar
per day global poverty line.
“The broad story of Tanzania’s growth
and poverty reduction over the past decade is now well
known,” the bank said in the update.
“However, today 12 million Tanzanians
live on less than Tsh1,300 (0.58 U.S. dollars) per day, with
many others living just above the poverty line, so an
economic shock could have a significant impact on the number
of poor households,” said the World Bank.
The Bank’s Economic Update said a jump
in growth could bring a substantial number of the poor clustered
just below the poverty line out of poverty.
“Another key feature of Tanzania’s
economy is the estimated 800,000 young women and men who
enter the job market annually, with only limited
opportunities to find a productive job,” it said.
The update said higher levels of
growth are badly needed to create a greater number of productive
jobs and to significantly reduce poverty.
The bank said maintaining and
accelerating growth demands the right policies, adding that the
impressive growth path of Tanzania to date has been driven by
the decisions of the past.
“Future growth will be driven by the
decisions of today’s leaders,” it said, adding that the
government is clear that its focus is industrialization, but
for this to occur in a way that creates jobs and reduces
poverty, the economic update suggested three areas of
They are the need to continue with
prudent macroeconomic policy management, to manage the expansion
in public investment projects effectively to ensure maximum
impact on growth and reduction of poverty and to unlock the
growth potential of the private sector.
The economic update said the
improvements in revenue mobilization and tighter anti-corruption
controls will assist with the implementation of effective fiscal
“Measures to utilize natural gas for
power generation will reduce the import bill and improve the
external balance over the medium to long term future,” said