World Economy

Tanzania Braces for 7.4% Growth

Tanzania Braces for 7.4% GrowthTanzania Braces for 7.4% Growth

Tanzania is expected to record an impressive economic growth of 7.4% by the end of this year, according to a report compiled by the African Capacity Building Foundation dubbed ‘African Capacity Report 2014’.

The ACBF organization is the outcome of a partnership between African governments and the international donor community aimed at building sustainable human and institutional capacity for sustainable growth and poverty reduction in Africa, AllAfrica reported.

According to the report issued by the organization in Dar es Salaam, the country’s economic growth has remained robust with an expectation growth of 7.5% by 2017 from 7.3% growth in 2013.

Prof. Emmanuel Nnadozie, executive secretary of the African Capacity Building Foundation when presenting the report said that the ACR 2014 shows that public investments, especially in infrastructure, are expected to be crucial in supporting growth over the medium term.

He told journalists that Tanzania is ranked ‘medium’ with respect to the extent to which the government provides infrastructure support for mining investment and infrastructure financing.

He said that Tanzania has been ranked among the best performers on the Africa Capacity index 2014 with a composite index of 64.4 while the best ranked country, Morocco has scored 73.1.

“Looking closely at the different clusters, Tanzania has posted improvements in capacity across the board, with a policy environment score of 87.5 in 2014,” he said.

Nnadozie said capacity has grown from 50.0 in 2011 to 60.2 in 2013 and 78.7 in 2014, and capacity to generate development results has also picked up, from 32.7 in 2011 to 42.0 2013 and 74 in 2014.

According to the ACR 2014 report, still efforts need to be made with respect to the capacity development outcome where the country scored 40.8 in 2014.

It says Tanzania has shown satisfactory results in terms of policy environment, implementation processes and development results with score above 70.