Tanzania’s economy grows by 6 per cent

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The International Monetary Fund (IMF) says Tanzania’s economy has grown with an estimated annual growth of six per cent in 2020 which is an improvement over the four per cent growth the Fund had projected for the country last year.

The IMF said that Tanzania had made monetary and fiscal policies in recent times. The development partner completed its 2020 Article IV Mission to the country on Wednesday, 4 March last week and the mission will create jobs.

The economic activity has increased in recent months, fueled by higher public investments, exportation and an increase in credit to the private sector, according to IMF report. The mission team has been in the country since February 20 this year and held discussions with the relevant Tanzanian authorities.

Mr Gelbard called for tax reforms to improve the businesses and increase government revenues. The report says that there’s an improvement in tax administration and compliance in line with established protocols and regulations.

He suggested that the costs of borrowing should be lowered and access to credit be improved and the pool of acceptable collateral be broadened. “It’s important to improve the credit information framework, and tackle judicial bottlenecks for the recovery of unpaid loans, ” he urged.

IMF suggests for wider publication of the action plan containing a timetable and a description of responsibilities, the rationalisation of agencies, licences and permits as well as the removal of non-tariff barriers (NTBs) to trade.

“The economic prospects in any development-oriented state depend in enhancing the attractiveness for investing in Tanzania, ” the report states.

Based on the findings of IMF Mission, the staff will prepare a report that is subject to management approval, before presenting it to the IMF’s Executive Board for discussion and final decision.

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