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- May 11, 2013
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Tanzania is looking to raise $46.9 billion to finance its second industrialisation plan, which will see it increase its development spending to $27.66 billion. This is part of its plans to become a middle-income nation by 2025.
Dar hopes to raise $45.89 billion from taxes, as the government seeks to reduce its reliance on donor funding, which has been declining over the years.
“In order to meet the financial requirements of this plan, traditional sources of financing need to be revamped. Securing additional resources is a priority for both the government and the private sector, particularly for implementing the identified core resource-intensive infrastructure, productive and social services,” Tanzania’s Treasury says of the its second five-year development and transformation plan.
Tanzania has singled out the revival of the national carrier Air Tanzania, completion and operationalisation of Mlonganzila and Dodoma Schools of Medicine and strengthening of its training and scholarship provision fund for scientists and engineers.
Already, President John Magufuli’s government has invested in Air Tanzania’s revival and boosted its fleet.
READ: Magufuli commissions new aircraft for tourist routes
The new growth plan is more liberal and seeks to open up key areas of the economy as the country shifts to boost its infrastructure projects by completing the $7.3 billion new Central Railway Line to standard gauge and the $2.89 billion Mtwara Liquefied Natural Gas Plant.
Other projects lined up are the construction of the $7.03 billion Mtwara-Liganga-Mchuchuma SGR Line; the construction of Liganga industrial park at a cost of $3.54 million; the construction of Mtwara Petrochemical Special Economic Zone at $4.82 million and the construction of Bagamoyo Special Economic Zone at $9.64 million.
READ: Magufuli's signature projects get more funding
There are also plans to expand Tanga port; develop the Mtwara Development Corridor and construct the Uganda oil pipeline.
The government is aiming to increase foreign direct investment (FDI) to $9 billion by 2021 from the current $2.14 billion by improving its ease of doing business. The country has been accused of failing to attract FDI in its high-growth areas of infrastructure and agriculture. China has become the latest source of FDI and this is expected to continue.
Tanzania is currently waiting for $4.2 billion inflow in foreign direct investment, which will be twice its current amount. The investment is expected in the mining sector.
“We got someone who is bringing investment that’s more than the annual combined investment that we have been getting. Given the current regime, we stand to achieve the target and triple the volume of investments coming into the country,” said the head of the Tanzania Investment Centre, Clifford Tandari.
The taxpayers will also have to fork out more to afford the funding of these grand projects with the country’s Treasury projecting the annual tax revenue collection rising from 13.8 per cent of GDP last year to 17.1 per cent in the 2020/21 financial year. In the current financial year, the government plans to collect $6.62 billion, and $11.38 billion over the next four years.
On Wednesday, the Tanzania Revenue Authority announced that its first half tax revenues for the current financial year were up by 12.7 per cent to $3.26 billion.
An inside look at Tanzania’s grand plan to attain middle-income status by 2025
Dar hopes to raise $45.89 billion from taxes, as the government seeks to reduce its reliance on donor funding, which has been declining over the years.
“In order to meet the financial requirements of this plan, traditional sources of financing need to be revamped. Securing additional resources is a priority for both the government and the private sector, particularly for implementing the identified core resource-intensive infrastructure, productive and social services,” Tanzania’s Treasury says of the its second five-year development and transformation plan.
Tanzania has singled out the revival of the national carrier Air Tanzania, completion and operationalisation of Mlonganzila and Dodoma Schools of Medicine and strengthening of its training and scholarship provision fund for scientists and engineers.
Already, President John Magufuli’s government has invested in Air Tanzania’s revival and boosted its fleet.
READ: Magufuli commissions new aircraft for tourist routes
The new growth plan is more liberal and seeks to open up key areas of the economy as the country shifts to boost its infrastructure projects by completing the $7.3 billion new Central Railway Line to standard gauge and the $2.89 billion Mtwara Liquefied Natural Gas Plant.
Other projects lined up are the construction of the $7.03 billion Mtwara-Liganga-Mchuchuma SGR Line; the construction of Liganga industrial park at a cost of $3.54 million; the construction of Mtwara Petrochemical Special Economic Zone at $4.82 million and the construction of Bagamoyo Special Economic Zone at $9.64 million.
READ: Magufuli's signature projects get more funding
There are also plans to expand Tanga port; develop the Mtwara Development Corridor and construct the Uganda oil pipeline.
The government is aiming to increase foreign direct investment (FDI) to $9 billion by 2021 from the current $2.14 billion by improving its ease of doing business. The country has been accused of failing to attract FDI in its high-growth areas of infrastructure and agriculture. China has become the latest source of FDI and this is expected to continue.
Tanzania is currently waiting for $4.2 billion inflow in foreign direct investment, which will be twice its current amount. The investment is expected in the mining sector.
“We got someone who is bringing investment that’s more than the annual combined investment that we have been getting. Given the current regime, we stand to achieve the target and triple the volume of investments coming into the country,” said the head of the Tanzania Investment Centre, Clifford Tandari.
The taxpayers will also have to fork out more to afford the funding of these grand projects with the country’s Treasury projecting the annual tax revenue collection rising from 13.8 per cent of GDP last year to 17.1 per cent in the 2020/21 financial year. In the current financial year, the government plans to collect $6.62 billion, and $11.38 billion over the next four years.
On Wednesday, the Tanzania Revenue Authority announced that its first half tax revenues for the current financial year were up by 12.7 per cent to $3.26 billion.
An inside look at Tanzania’s grand plan to attain middle-income status by 2025
