MsemajiUkweli
JF-Expert Member
- Jul 5, 2012
- 13,172
- 23,975
The Tanzania economy’s traditional fundamentals in 2016 ends have been overwhelmed by tough decisions. These decisions, on one hand are making majority of Tanzanians exultant, given austerity measures that are being affected by President John Magufuli.
On the other hand, these strictness measures are not only making few unhappy but placing their endeavours journey to be like going through thriving fared garden full of bougainvillea thorns. There are no doubt both, nationally, regionally and internationally, the 5th phase government steered by Dr Magufuli, who also sit as the ruling party—CCM chairman— is determined to deliver whatever it takes making use of available resources to benefit Tanzania.
To those who had thought otherwise or who might have underestimated the new thinking to frog lift Tanzania to the expected middle-income country; it is high time to go back to the drawing table to determine their destiny.
As year 2016 end, an overall austerity measures implemented to date, strong decisions completed, leadership and key loci in the government circles reshuffled, alignment of ruling party top carder and perhaps and more expected to in 2017, all signs one thing that Tanzania is shifting perhaps an opportunity for all to do certain things differently as all work for a common goal to make Tanzania a better place.
Many has been said on how resources are being apportioned, nonetheless supportive to the 2016/17 budget, real Gross Domestic Product stretched to 7.2 per cent in this outgoing year 2016 as compared to 7.0 per cent reached in 2015 and by look of measures being instituted looking at bank of Tanzania records reinforced by Tanzania bureau of statistics, GDP is projected to climax 7.9 per cent in 2017.
Key drivers to mention are raising private consumption and strong growth in the telecommunications, construction sector, port facility efficiency improvement, and service sectors delivery enhancement.
To mention just a few, impact from service sector alone contributed almost 50 per cent of GDP and stimulated by private sector activity in telecommunications and financial services, and further expansion is expected following listing of some of telecommunication companies notably Vodacom to the stock market, all initiatives indicating a strong base in Tanzania to spread wealth among Tanzanians is expected for 2017 and beyond.
Poor access to finance especially for start-ups SMEs, corruption behaviour when accessing certain services, and inadequate infrastructure that were assumed as the largest barriers to doing business in Tanzania few years ago, under the leadership of Dr Magufuli and his team strategically positioned to work with the speed ‘hapa Kazi tu’ these restrictions will soon be a gone history.
Ongoing country security tightening aimed at making Tanzania a good place to live for local and foreigners while performing their activities, enhancement infrastructure upgrade that include new three Bombardier carrier aircraft and a Boeing 787-8 Dreamliner would help the country to grab many opportunities available in the region especially related to tourism industry.
Whereas developments are expected to upsurge fiscal it is important not to overlook dynamic brought by regional and international macroeconomic cyclical whose impact shouldn’t be overlooked. Things like rate of interest increase in the US from 0.5 per cent to 0.75 per cent, Brexit aftermath, new settled oil producing among oil producing nations to cut production etc will have insignificant impact en-route to 2017.
Nonetheless, continued improvement in health sector, education, and drive to strengthening infrastructure for power generation, gas distribution, and road network will drive demand for credit as well as to inspire positive linkages to employment creation opportunities for Tanzanians.
Source: THE EXCHANGE.
On the other hand, these strictness measures are not only making few unhappy but placing their endeavours journey to be like going through thriving fared garden full of bougainvillea thorns. There are no doubt both, nationally, regionally and internationally, the 5th phase government steered by Dr Magufuli, who also sit as the ruling party—CCM chairman— is determined to deliver whatever it takes making use of available resources to benefit Tanzania.
To those who had thought otherwise or who might have underestimated the new thinking to frog lift Tanzania to the expected middle-income country; it is high time to go back to the drawing table to determine their destiny.
As year 2016 end, an overall austerity measures implemented to date, strong decisions completed, leadership and key loci in the government circles reshuffled, alignment of ruling party top carder and perhaps and more expected to in 2017, all signs one thing that Tanzania is shifting perhaps an opportunity for all to do certain things differently as all work for a common goal to make Tanzania a better place.
Many has been said on how resources are being apportioned, nonetheless supportive to the 2016/17 budget, real Gross Domestic Product stretched to 7.2 per cent in this outgoing year 2016 as compared to 7.0 per cent reached in 2015 and by look of measures being instituted looking at bank of Tanzania records reinforced by Tanzania bureau of statistics, GDP is projected to climax 7.9 per cent in 2017.
Key drivers to mention are raising private consumption and strong growth in the telecommunications, construction sector, port facility efficiency improvement, and service sectors delivery enhancement.
To mention just a few, impact from service sector alone contributed almost 50 per cent of GDP and stimulated by private sector activity in telecommunications and financial services, and further expansion is expected following listing of some of telecommunication companies notably Vodacom to the stock market, all initiatives indicating a strong base in Tanzania to spread wealth among Tanzanians is expected for 2017 and beyond.
Poor access to finance especially for start-ups SMEs, corruption behaviour when accessing certain services, and inadequate infrastructure that were assumed as the largest barriers to doing business in Tanzania few years ago, under the leadership of Dr Magufuli and his team strategically positioned to work with the speed ‘hapa Kazi tu’ these restrictions will soon be a gone history.
Ongoing country security tightening aimed at making Tanzania a good place to live for local and foreigners while performing their activities, enhancement infrastructure upgrade that include new three Bombardier carrier aircraft and a Boeing 787-8 Dreamliner would help the country to grab many opportunities available in the region especially related to tourism industry.
Whereas developments are expected to upsurge fiscal it is important not to overlook dynamic brought by regional and international macroeconomic cyclical whose impact shouldn’t be overlooked. Things like rate of interest increase in the US from 0.5 per cent to 0.75 per cent, Brexit aftermath, new settled oil producing among oil producing nations to cut production etc will have insignificant impact en-route to 2017.
Nonetheless, continued improvement in health sector, education, and drive to strengthening infrastructure for power generation, gas distribution, and road network will drive demand for credit as well as to inspire positive linkages to employment creation opportunities for Tanzanians.
Source: THE EXCHANGE.
