Tanzania’s economy remained resilient in 2022 despite global economic shocks – REPOA

Tanzania’s economy remained resilient despite global economic shocks in 2022 that caused supply chain disruptions including the on-going Ukraine –Russia war, the COVID-19 pandemic as well as the global climate change, according to Research on Poverty Alleviation (REPOA).

The Executive Director of REPOA Dr. Donald Mmari told The BusinessWiz that, “Tanzania has fared well in mitigating global economic shocks including scaling the fight against poverty by introducing concerted efforts by all sectors of national economy including agriculture, industries and commerce.

Dr. Mmari who is an economist, cited the inflation rates in the country remained one of the lowest among other East African Community (EAC) states adding that theb effects caused by COVID-19 have been minimal as compared to other EAC member countries which were adversely affected due to lock-downs measures.

Commenting on concession loans which Tanzania has borrowed from International financiers, Dr. Mmari said such loans have to a greater extent improved the circulation of money in the economy that has helped enhance businesses across the country.

“Tanzania has taken stringent measures to protect its economy and that is why Tanzania continues doing well to maintain its economy contrary to other countries within the region and Africa as a whole”, he affirmed.

He commended Government’s move through the Central Bank to reduce the interest rates on loans adding that the move will support private sector growth ultimately increasing job creation across the country.

“Government has been flexible in readjusting its policies to tackle inflation for instance by introducing agricultural subsidies that has helped agricultural farmers enhance their production capabilities,” he added.

The latest Central Bank Committee statement issued last month noted that the global economies continue to deteriorate that prompted the International Monetary Fund (IMF) to reduce down its growth estimates for 2022 and 2023.

The report also showed the inflation rates would continue to be high above expectations in many countries which was mainly attributed to drastic increase in commodity prices and weather changes an aspect that has forced the BOT to take appropriate steps of reducing the impeding situation in order to curb the situation.

“The committee was pleased by the conduct of Tanzania’s economy within the period under review. Tanzania’s economy during half of the first year continued to grow at normal and it would continue to by 4.7 per cent up to the end of this year,” part of the statement said.

The Minister for Finance and Economic Planning Dr. Mwigulu Nchemba was recently quoted as saying that, the National Debt has pegged to 90trn/-  with the government’s debt is being  73trn/- while rest is for the private sector.

The Finance Minister who is also a Member of Parliament for Iramba West constituency on CCM ticket was quoted also as saying on various political and national platforms that, “Tanzania is among countries doing well in all matters concerning with economy”.

He defended the country saying that no nation can prosper well and build its firm economy without borrowing money from development partners or international financial institutions.