Tanzania is projected to become one of Africa’s richest countries within five years, having doubled its wealth over 15 years. Its economy is diversified and growing rapidly due to political stability and foreign investment, particularly in sectors such as tourism and manufacturing. Expected GDP growth continues, but potential risks could hinder progress.
Tanzania is on track to become one of Africa’s wealthiest countries within the next five years, having doubled its wealth over the past 15 years. The nation’s economy is now diversified, focusing on sectors such as manufacturing, tourism, agriculture, and financial services. According to the World Economic Forum, Tanzania’s wealth per capita increased from £194 in 2000 to £372 in 2015, marking a significant improvement in living standards as more individuals have been able to meet basic consumption needs.
The prominent socioeconomic transformation in Tanzania has occurred, particularly over the last decade, due to the initiatives led by former President John Pombe Magufuli and his successor, President Samia Suluhu Hassan. Tenda Msinjili, a banking and finance expert at Clyde & Co, noted that Tanzania’s reputation for peace and stability makes it an attractive destination for foreign investment. In 2023, the country received £1 billion in foreign direct investment, reinforcing its appeal to global investors.
Global Finance indicates that the nation is attracting investors across various industries, including mining, energy, agriculture, tourism, manufacturing, and transportation. The government has taken steps to ensure a conducive business environment by protecting contracts, resolving conflicts, and enhancing infrastructure while capitalizing on its rich natural resources such as gold, diamonds, and gas.
In 2020, Tanzania’s GDP grew by 4.8%, reaching £69.3 billion and establishing itself as the second-largest economy in East Africa, following Kenya. Tanzania’s finance minister projects a 6% economic growth by 2025, with the International Monetary Fund estimating the economy could expand to £105 billion by 2028. However, risks such as regional conflicts, fluctuations in commodity prices, global economic downturns, and climate change-related natural disasters could affect this growth trajectory.
The country’s main export partners include India, the UAE, South Africa, Kenya, and Rwanda, while its main import partners consist of China, India, the UAE, the Democratic Republic of Congo, and Saudi Arabia.
In summary, Tanzania is poised to emerge as one of Africa’s three wealthiest nations within a five-year timeframe, driven by its diverse economy, sociopolitical stability, and favorable investment climate. The impressive growth trajectory, marked by a doubling of wealth over the past 15 years and significant foreign investment, underscores its potential. However, the anticipated growth faces challenges from regional conflicts and climate change, necessitating vigilant management of its economic policies and resources.
Original Source: www.express.co.uk
