Tanzania on track for 7.2% growth thanks to improved public management

15 Sep 16

Improved public management has helped keep Tanzania on track to hit 7.2% growth in 2016, according to the governor of the country’s central bank.


The city of Dar es Salaam, Tanzania, at night

The city of Dar es Salaam, Tanzania, at night


Benno Ndulu said yesterday that impressive growth in a number of sectors was giving the nation’s GDP a boost, in particular, those related to construction, which have been boosted by government spending. An anti-corruption drive is also making a positive difference.

“We are confident that the ongoing economic activities in the country will boost the growth of the economy by 7.2% this year as we projected earlier,” he said.

“Growth will be boosted by the government’s ongoing efforts to tackle corruption, strengthen the management of public resources and construction of infrastructure as part of the country’s industrialisation plan.”

Since being elected last year, the country’s president John Magufuli has launched a crackdown on corruption and waste, as well as a drive to improve the country’s infrastructure, especially in regards to transport.

But in the first six months of the year, the country’s debt rose by $1bn, to $20.9m. The International Monetary Fund has previously warned the country to curb the public spending fuelling its infrastructure drive.

Ndulu also noted, however, that tax receipts in the past six months had risen compared with a year earlier, which he said indicated the government’s improved supervision of tax collection.

In July, the government introduced an 18% tax on services in the country’s growing tourism industry.

The tax, which was introduced with just a week’s notice, proved controversial among those working in the industry, tourists and some legislators, who argued it would reduce visitor numbers.

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