Economic Developments in Tanzania
The economy continued to register strong growth momentum in 2015, with real GDP growing by 7.0 percent, same as the growth registered in 2014. The strong growth was supported by stability in power supply, moderation in oil price and high growth of credit to the private sector.
The highest growth rates in 2015 were registered in construction (16.8percent), information and communication (12.1 percent), finance and insurance (11.8 percent). The strong performance in construction was attributed to increased real estate development for residential and non-residential purposes and building of road network.
Meanwhile, growth in information and communication facilitated by increased use of mobile Services particularly the increase in utilization of airtime and expansion of broadcasting and internet services as well as increased use of mobile financial services in the country. The growth in banking and insurance industry was attributed to increased levels of financial intermediation.
Construction has been the major contributor to growth for the past two years contributing 23.9 percent and 18.8 percent in 2015 and 2014, respectively. Meanwhile, other activities which contributed strongly to output growth in 2015 include wholesale and retail trade (11.5 percent), taxes on products (10.4 percent) and agriculture (7.8 percent). The economy is expected to maintain strong growth momentum in 2016 and beyond, supported by government initiative to promote further infrastructure investments and industrialization under the Second Five Year Development Plan.
Headline inflation remained subdued at single digits throughout 2015/16. In the first half of 2015/16, annual headline inflation increased to 6.8 percent in December 2015 from 6.1 percent in June 2015 on account of increased prices of major foodstuffs. The trend was reversed in January 2016 with inflation decelerating to 5.1 percent in April 2016, mostly explained by tight monetary policy, exchange rate stability and improvement in food supply. Core inflation during July 2015 to April 2016 averaged 2.4 percent, supported by sustained tight monetary policy coupled with general moderation of import prices. Inflation is expected to remain around the medium term target of 5 percent, consistent with monetary policy stance. Achievement of this target will be helped by subdued global oil prices, improvement in domestic power and food supply and continued stability in the value of the Shilling. Government budgetary operations indicate a turnaround in revenue performance beginning November 2015, thus offsetting the sluggish performance registered in the first four months of 2015/16. During July 2015 to March 2016, domestic revenue including Local Government Authorities (LGAs) own revenue was TZS 10,346.5 billion, translating into an average collection of TZS 1,149.6 billion per month for the first nine months of 2015/16. This was 28 percent higher than the revenue collected in the similar period of 2014/15. In that year, revenue had grown by only 10 percent relative to 2013/14. The impressive performance in revenue is an outcome of the measures taken by the government to strengthen tax administration. During July 2015 to March 2016, government expenditure was TZS 12,081.6 billion, of which recurrent expenditure was TZS 9,295.3 billion and development expenditure was TZS 2,786.3 billion. During the period, overall fiscal deficit before grants was TZS 1,735.1 billion. During July 2015 to April 2016, the current account deficit narrowed by 53.4 percent to a deficit of USD 1,542.1 million, compared with a deficit of USD 3,307.5 million recorded in the corresponding period in 2014/15.
Full report here >> https://goo.gl/FZS6e7<<
This East African nation of Tanzania has an estimated population of 47.4 million as of 2014. With the support of the International Monetary Fund (IMF), the World Bank Group (WBG), and other development partners, Tanzania has been able to make important economic and structural reforms and sustain its economic growth rates over the last decade. Nevertheless, poverty is still widespread, and given Tanzania’s position as a net exporter of gold and a net importer of oil, the economy is not immune to external shocks.
Political stability has provided a solid foundation for Tanzania’s growth, and with its economic prospects, has raised Tanzania’s profile in the region and the world. On October 25, 2015, Tanzania held its 5th general elections since it transitioned to a multiparty democracy in 1992. Dr. John Pombe Magufuli, the ruling Chama Cha Mapinduzi (CCM)’s candidate emerged winner with 58.46% of the vote, while Mr. Edward Lowassa, a former CCM stalwart, behind whom a formidable opposition coalition united, got 39.97%.
The overall macroeconomic performance remains strong with a high rate of growth and a low rate of inflation. Real gross domestic product (GDP) growth is projected at 7% for 2015. From the supply side, the main drivers of growth recently has been several fast growing sectors, such as construction, transport and financial services. Inflation has gradually declined over the past 30 months due to tight monetary policy and falling international energy and food prices. While inflation has slightly increased recently largely driven by increase in domestic food prices and possible lagged effects of sharp depreciation of the local currency during the first half of 2015, the level remains relatively low at 5.6% in February 2016.
The external sector of the economy improved following a declining current account deficit that stood at 8.1% of GDP in 2015. Export growth driven by regional trade in manufactured goods and reduced imports bill from cheaper imported oil contributed to this decline.
Although revenue performance in 2015/16 has been better than in the past few years, shortfall has been experienced in the first quarter of the FY driven largely by weak implementation of the new 2015 VAT Act. The new government is committed to 4.2% of GDP fiscal deficit target for 2015/16. The government faces additional expenditure needs, equivalent to 0.7% of GDP, coming from expenditures carried over from last FY, payment of government arrears to TANESCO, and additional fiscal space needed for provision of free basic education and expansion of higher education students’ loans program (new presidential initiatives).
Approximately 28.2% of the population lived below the poverty line in 2012; a reduction from 34% in 2007. During the 2007/2012 period, there were improvements in living conditions, access to basic education, health and nutrition and, labor force participation in non-agriculture employment. Nevertheless, these benefits were not distributed equitably. Inequality has increased between urban and rural population and approximately 12 million Tanzanians are still living in poverty.
Tanzania’s main challenges include addressing infrastructure bottlenecks, improving the business environment, increasing agricultural productivity and value addition, improving service delivery to build a healthy and skilled workforce, and managing urbanization. The country also has a youthful labor force growing by approximately 800,000 every year and needs to increase the private sector’s role in employment creation for them.
The new administration has outlined among its priorities: increasing government revenues and reducing inefficiencies; investment in good health systems; raising education quality; increasing access to water and improving availability of electricity.
Last Updated: Apr 07, 2016
Hii ndio hitimisho ya hotuba ya bajeti ya Waziri Mkuu Mheshimiwa Majaliwa.Kassim Majaliwa kwenye speech yake bungeni:-
(i) Tunayo changamoto kubwa ya kutumia rasilimali fedha kidogo tuliyonayo kukidhi mahitaji makubwa ya kutoa huduma bora kwa wananchi. Mathalani, upo upotevu wa mapato kwa kushindwa kudhibiti na kusimamia mapato na matumizi ya fedha za umma. Serikali ya Awamu ya Tano itasimamia na kuimarisha mifumo ya ukusanyaji mapato na kuhakikisha kwamba fedha za umma zinatumika kulingana na sheria na kanuni za matumizi ya fedha za Serikali;
(ii) Tumedhamiria kufanya mapinduzi ya viwanda ili kujenga uchumi imara kwa faida ya wananchi. Hata hivyo, tunalo jukumu kwa kila mmoja wetu kuunga mkono dhamira ya kweli ya Serikali ili kufikia lengo hili. Tuungane na Mheshimiwa Rais kuondoa kasoro zilizopo kwa kupunguza urasimu katika kuwawezesha wawekezaji wa ndani na nje; kuimarisha huduma na miundombinu ya kiuchumi kama vile umeme, barabara, reli, maji na rasilimali watu yenye ujuzi kuhakikisha viwanda vilivyobinafsishwa na ambavyo havifanyi kazi vianze kufanya kazi. Ni muhimu kuhimiza na kuhamasisha ujenzi wa viwanda vyenye kutumia malighafi iliyopo nchini kwa faida na maendeleo ya wananchi wetu. Watanzania na wawekezaji kutoka nje mnakaribishwa kuwekeza;
(iii) Tunahitaji kuboresha Sekta za Kilimo, Mifugo, Uvuvi na bidhaa za masoko kama njia ya kujenga muunganisho wa sekta hizi na viwanda ili kuongeza thamani kwa lengo la kuondoa umaskini kwa wananchi wetu ambao wengi wao ni wakulima, wafugaji na wavuvi. Tutumie akili, maarifa na nguvu zetu kuhakikisha kwamba wananchi wanapata nyenzo na pembejeo za kuwaongezea uwezo wa uzalishaji wenye tija kwa mazao ya kilimo, mifugo, uvuvi na misitu. Tumedhamiria kuupitia mfumo wa masoko ya mazao yetu ili wakulima wauze kwa faida mazao yao;
(iv) Tunalo jukumu kubwa la kuboresha huduma za jamii, ikiwemo elimu, afya, upatikanaji wa maji safi na salama na miundombinu ya umeme hasa vijijini. Tumeanza utaratibu wa kutoa elimu bila malipo kwa wanafunzi, kuanzia darasa la awali hadi kidato cha nne;
(v) Bado tunalo tatizo kubwa la biashara na matumizi ya Dawa za Kulevya. Tuunge mkono juhudi za Serikali katika vita hii kubwa ya kupambana na tatizo la Dawa za Kulevya ambazo zinaleta athari kubwa kwa wananchi hususan vijana;
(vi) Umuhimu wa kurejesha maadili katika utumishi wa umma ni suala la kipaumbele. Ni vyema kila mtumishi wa umma kuzingatia sera, sheria na kanuni kuhusu Maadili ya Viongozi na Watumishi wa Umma. Aidha, ni vyema viongozi na watumishi wa umma kila mmoja kwa nafasi yake, awajibike kwa cheo na dhamana aliyopewa katika kuwatumikia wananchi. Dhana ya “Kutumbua Majipu” iwe kichocheo cha kuwabaini na kuwarekebisha wale wote wenye dhamira ya kukiuka maadili kwenye nyadhifa zao na katika kuwatumikia wananchi;
(vii) Tunayo changamoto ya ukuaji wa uchumi ambao hauendi sambamba na kasi ya upatikanaji wa ajira. Aidha, zipo dalili kwamba vijana wetu wamekuwa wakitumia muda mwingi kufanya shughuli ambazo hazichangii sana katika ukuaji wa uchumi wa Taifa letu. Tuendelee kuwahimiza vijana na kujenga utamaduni kwa kila mwananchi kufanya kazi kwa bidii ili kujenga uchumi kwa maendeleo yetu. Tuunge mkono falsafa ya “Hapa Kazi Tu” na kwamba Asiyefanya kazi na Asile; na
(viii) Mwisho, niwaombe Watanzania wote kuendelea kuishi kwa amani na utulivu. Tunayo Nchi nzuri na Watanzania wote ni watu wenye upendo. Tudumishe amani, umoja na mshikamano kwa kuwaunga mkono viongozi wetu ili tuongeze kasi ya kuleta maendeleo katika Nchi yetu kwa maana Umoja ni Nguvu. Sekta Binafsi, ambayo ndiyo Injini ya Ukuzaji Uchumi wa Taifa letu, isiwe na tashwishwi hata kidogo. Serikali ya Awamu ya Tano itaendelea kuienzi na kuisaidia Sekta Binafsi katika kuchangia maendeleo ya Taifa letu.
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