Tanzania has maintained a stellar economic growth, posting an average of 6%- 7% and low single digit inflation rates between 2015 and 2019. However this growth is still 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 placed 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 growth rate. However, Tanzania government and World Bank reports show this growth is inequitably distributed and some policy gaps to ensure the benefits fully trickle down exits. Despite registering progress, inherent macroeconomic and fiscal policy deficits exist. Urban and Rural Poverty is still high. The citizens weak awareness and capacity to effectively participate in the economic governance and fiscal policy processes hinder equitable growth. Despite the good intentions and efforts in recent years to improve tax administration by curbing tax evasion and avoidance, the governments domestic revenue collection targets are still low. The national debt has been increasing to unsustainable levels in recent years. There is struggle between balancing the government revenue maximisation objectives and the private sector growth as engines of the economy. Intra and inter regional trade volumes are still low and trade barriers exist, blocking opportunities for economic growth. Unemployment amongst youth and young graduates is high. The economic milestones could slip back if some governance deficits are not plugged. Tanzania’s economic challenge is mirrored across many African Countries, whose development aspirations are held back by significant governance deficits
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.