Tanzania is on track to become one of Africa’s richest countries within five years, having doubled its wealth in 15 years. With an economy grounded in manufacturing, tourism, and agriculture, the nation has demonstrated rapid growth. While forecasting a £105 billion economy by 2028, it must navigate risks such as regional conflicts and economic volatility.
Tanzania is on a trajectory to become one of Africa’s three wealthiest nations within five years, having doubled its wealth over the past 15 years. The country’s economy, which thrives on manufacturing, tourism, agriculture, and financial services, saw significant improvements in wealth per capita, escalating from £194 in 2000 to £372 by 2015, alongside a reduction in extreme poverty.
The World Economic Forum attributed Tanzania’s rapid socioeconomic transformation to the efforts of former President John Pombe Magufuli and the current President Samia Suluhu Hassan. As Tenda Msinjili, head of banking and finance at Clyde & Co. in Tanzania, notes, “Tanzania has a reputation for peace and stability compared to [other] countries in East Africa,” which enhances its appeal to foreign investors. In 2023 alone, foreign direct investment hit £1 billion.
The nation is witnessing an influx of investors seeking to engage in sectors such as mining, energy, agriculture, tourism, and manufacturing. This growth has been bolstered by effective contract protection, dispute resolution, and the development of critical infrastructure while tapping into plentiful natural resources like gold and gas.
Furthermore, Tanzania’s GDP reached £69.3 billion in 2020, up from £64.2 billion in 2019, making it East Africa’s second-largest economy after Kenya. Projections from the finance minister and central bank governor anticipate a 6% economic growth by 2025. The International Monetary Fund forecasts that Tanzania’s economy may reach £105 billion by 2028, although risks such as regional conflicts and commodity price volatility may impact this momentum.
Tanzania’s principal export partners include India, the UAE, South Africa, Kenya, and Rwanda, while its main import sources are China, India, the UAE, the Democratic Republic of the Congo, and Saudi Arabia.
In summary, Tanzania is positioned for substantial economic growth, potentially becoming one of Africa’s wealthiest nations within the next five years. The country has made remarkable strides in wealth generation and poverty reduction, bolstered by political stability and significant foreign investment across diverse sectors. However, potential risks must be addressed to sustain this trajectory toward becoming a £105 billion economy by 2028.
Original Source: www.express.co.uk
