Tanzania is among a few countries in Africa with robust growth of economy as the continent is expecting growth to fall to its lowest level in two decades due to a slump in commodity prices and continuing weakness in global growth, a World Bank report says.
With economy on track to expand by 7.2 percent in 2016, up from 7 percent in 2015, the East African country joins Ethiopia, Rwanda, and Ivory Coast as few bright spots in Africa of countries that have continued to record growth rates of above 6 percent, according to “Africa’s Pulse”, the Bank’s twice-yearly analysis of economic trends.
The report, which was unveiled in Ivory Coast’s commercial capital Abidjan, said Tanzania registered strong growth, underpinned by expansion in construction and services sectors. However, it singled out Ivory Coast and Senegal as top performers in the continent.
The report said economic growth in sub-Saharan Africa is likely to slip to 1.6 percent this year, its lowest level in two decades, due to continuing woes in the continent’s largest economies South Africa and Nigeria.
Africa has been one of the world’s fastest growing regions over the past decade, but a commodities slump has hit its oil and mineral exporters hard, bringing growth down to 3 percent in 2015.
“Our analysis shows that the more resilient growth performers tend to have stronger macroeconomic policy frameworks, better business regulatory environment, more diverse structure of exports, and more effective institutions,” said Albert Zeufack, World Bank Chief Economist for Africa.
According to the report, there were some bright spots, mostly among oil importers, where economic activity remained robust.
“Côte d’Ivoire saw broadbased growth, supported by a favourable policy environment, rising investment, and increased consumer spending,” “Ethiopia and Rwanda continued to post solid growth, supported by public infrastructure investment, private consumption, and a growing services sector.
Elsewhere, growth remained buoyant in Kenya, amid improving economic stability.” Meanwhile the National Bureau of Statistics said yesterday that economy grew 7.9 per cent in the second quarter of 2016, compared to 5.8 percent during the same time last year.
“The growth of GDP in the second quarter was driven by mining, manufacturing and energy sectors,” Albina Chuwa, the Director General of the bureau, told a news conference.
“The increased production of natural gas has significantly boosted electricity generation in the country.” Tanzania’s growth in the first quarter was 5.5 percent.