Tanzania has maintained a stellar economic growth, posting an average of 6%- 7% and low single digit inflation rates between 2015 and 2019. On July 1st of 2020, Tanzania was ranked by the World Bank as Lower Middle Income (LMIC) status. However this growth is inequitably distributed and could face significant shock backs if some governance deficits are not addressed.

According to the World Bank, Tanzania’s gross national income (GNI) per capita increased from $1,020 in 2018 to $1,080 in 2019, exceeding the threshold for lower-middle income status. This places Tanzania as the second middle income status country in East Africa after its neighbour Kenya. The World Bank announcement demonstrated that the Country’s economic fundamentals have been well managed and with a projected growth of 6% to 8% in 2021-2025, Tanzania wants to sustain this status.

However, Tanzania government and World Bank reports show this growth has been inequitably distributed and some policy gaps to ensure the benefits fully trickle down exits.

Youth budge, unemployment and limited opportunities

Over the past decade the levels of population growth in Tanzania and the region has increased. In Tanzania the population growth rate increased from around 27 Mln in 2000 to 43 Mln in 2013 and it is estimated to double by 2030. The overall projections are that over 60% this population will be comprised of young people. Also significantly over 30-40% this population will be unemployed and living below the poverty- line. 

These projections therefore call for radical policy measures which will promote resource mobilisation, improved social service delivery, entrepreneurship and investment to create jobs to absorb this population. Currently investment as percentage of proportion of GDP remains at 12% which is low by African standards. As Tanzania stands at the brink of the Millennium it is imperative to encourage more robust private sector investment. Mobilising citizens and private to participate and influence government policy decisions and process is core to achieving these targets

Under this program we tackle

  • Policy frameworks and achievements
  • Economic Marginalization and equity (How economic policies are affecting specific segments of the population, youth, women etc)
  • Monitoring resource Allocation- Tax advocacy, Budget Analysis work
  • Expanding Opportunity-Business and Entrepreneurship
  • Trade and Investment- (International trade documents, regional trade flows etc)

Work in this area includes

  • Analytical policy briefs
  • Specialised public dialogues and convenings
  • Training & awareness raising
  • Advocacy

More about this can be read via our latest news, reports and publications sections.

  • Ndulu B, J and Mutalemwa K. Charles:  Tanzania at the turn of the Century; Background papers and statistics; Unleashing the private sector development for Tanzania’s development