The Tanzania Times
Eastern Africa News Network

Tanzania’s Gross Domestic Product projected to grow by over 6 percent in 2024

Tanzania’s real Gross Domestic Product growth is expected to grow by over 6.3 percent in the course of the year 2024 as the country’s travel and hospitality industries surge forward.

That was revealed during the Chief Executive Officers’ Roundtable Meeting on East African Integration and Economic Outlook 2024 organized by the East African Business Council (EABC).

It was discussed during the meeting that Tanzania’s economic growth is fuelled by the rebound in tourism and continued investment in public infrastructure.

Presenting the Economic Outlook 2024, Mr. John Bosco Kalisa, the EABC Executive Director, stated that, the inflation in Tanzania is projected to moderate to 4.0 percent in 2024.

The EABC-RSM Eastern Africa Outlook 2024 reveals that the agricultural sector boosted Tanzania’s GDP growth by 14.2 percent. Tanzania’s manufacturing sector contributed 7.3 percent to the country’s GDP growth.

The financial and insurance sector grew by 14.7 percent in the third quarter of 2023 with the EABC stating that Tanzania should upgrade the agricultural economy to value-based processing.

“This is potentially influenced by global commodity prices and domestic demand,” Kalisa said.

The roundtable event was organized in partnership with the Switzerland-Tanzania Chamber of Commerce, Tanzania Private Sector Association (TPSF), the Confederation of Tanzania Industries (CTI) and RSM Eastern Africa.

Ambassador John Robert Ulanga, the Director of the Department of International Trade Coordination and Economic Diplomacy at the Tanzanian Ministry of Foreign Affairs and East African Cooperation graced the meeting.

He was representing the Permanent Secretary Ambassador Stephen Mbundi, and emphasized that the implementation of the EAC industrialization strategy, transport inter-connectivity and trade facilitation are crucial to boosting intra-EAC and Africa trade.

On his part, Paul Makanza, the EABC Board Member, stated that EAC Economies will grow at 5.48 percent in 2024, increasing from 4.9 percent recorded by the International Monetary Fund in 2023.

According to the IMF 2023, EAC inflation is projected to reduce from 12.5 percent in 2023 to 7.9 percent in 2024, indicating a positive outlook for price stability.

Ms. Amne Suedi, the Chairperson of Switzerland-Tanzania Chamber of Commerce, said, “We should leverage our competitiveness as an EAC bloc in the global value chains.”

She emphasized the need for harmonization of policies and infrastructure development for the prosperity of East Africans through trade.

East Africa accounted for the highest number of countries with GDP growth exceeding 5 percent in 2023, with continued strong performance and diversified economies. However, having a low share of savings and tax to GDP leads to a budget deficit and borrowing.

Regarding the global shortage of the supply of dollars leading to depreciation of shillings, the EAC Partner states were advised to pay and settle intra-EAC trade in the local currency to mitigate the depreciation of shilling to dollar.

The panel session shared invaluable insights into the economic trajectory of the region, continent, and beyond. Mr. Godfrey Mondi, TPSF Program Specialist, said (TPSF) called for the need to improve port efficiency for competitiveness and the use of the Pan African Payment Settlement System to boost intra-African trade.

In her contribution, Mrs. Jenipher Bashugwa, Managing Director, Alaska Tanzania Group, called for the commercialization of agriculture, reduction of regulatory costs of compliance for SMEs, and the simplification of trade procedures.

 Ms. Amne Suedi, Chairperson STCC, emphasized the need for the elimination of non-tariff barriers, access to finance, and venture capital to scale businesses in the EAC bloc. The panel session was moderated by Zephaniah Shaidi, EABC Membership Manager.

 In her contribution to the panel discussion, EABC GoodWill Ambassador Mercy Sila emphasized the importance of support to formalize the informal sector and upgrading agribusiness.

The RoundTable attracted 50 top business leaders in Tanzania, including Mr. Raphael Maganga, CEO TPSF.

The business leaders discussed the ratification of the EAC Double Taxation Treaty and enhancing business ties with Somalia, the newest member of the community.

They spoke about reduction of electricity and internet costs, infrastructure development, strengthening of public-private dialogue, skills development, and enhancing policy predictability to attract investments, as well as to harmonize laws, and reduce restrictions to services trade from EAC Common Market Scorecard.

They found the need of digitizing business processes and taxation, strengthening regional agro-value chain and trade, commercializing agriculture, trading in unique, comparative, and competitive products and EAC arbitration mechanism.

Implementation of EAC commitments and a coherent strategy on public-private dialogue to improve trust between EAC Partner States to eliminate barriers. The strategy should include: Joint EAC power projects, Standard Gauge Railways to enhance competitiveness of the EAC bloc, East Africa Build East Africa campaign.

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