Tanzania’s economy to grow by 6.3pc in 2024

By Monica Muema

Tanzania’s real GDP growth is expected to reach 6.3% in 2024, this was revealed during the CEO Roundtable Meeting on East African Integration and Economic Outlook 2024 organized by the East African Business Council (EABC), in partnership with the Switzerland-Tanzania Chamber of Commerce, Tanzania Private Sector Association (TPSF), the Confederation of Tanzania Industries (CTI) and RSM Eastern Africa.

Tanzania’s economic growth is fueled by the rebound in tourism and continued investment in public infrastructure. Presenting the Economic Outlook 2024. The country’s inflation is projected to moderate to 4.0% in 2024, potentially influenced by global commodity prices and domestic demand.

On the other hand, the EAC Economies are projected to grow by 5.48% in 2024, increasing from 4.9% in 2023 (IMF 2023). EAC inflation is projected to reduce from 12.5% in 2023 to 7.9% in 2024, indicating a positive outlook for price stability.

East Africa accounted for the highest number of countries with GDP growth exceeding 5 percent in 2023, underscoring its continued strong performance and diversified economies.

However, having a low share of savings and tax to GDP leads to a budget deficit and borrowing.

The EABC-RSM Eastern Africa Outlook 2024 reveals that the agricultural sector boosted Tanzania’s GDP growth by 14.2%. Tanzania’s manufacturing sector contributed 7.3% to the country’s GDP growth. The financial and insurance sector grew by 14.7% in the third quarter of 2023.

He stated EAC Partner states should pay and settle intra-EAC trade in the local currency to mitigate the depreciation of shilling to dollar.

Ratification of the EAC Double Taxation Treaty, enhancing business ties with the newest member of the EAC – Somalia, reduction of electricity and internet costs, infrastructure development, strengthening of public-private dialogue, skills development, enhancing policy predictability to attract investments, harmonize laws, and reduce restrictions to services trade from EAC Common Market Scorecard, digitalizing business processes and taxation, strengthening regional agro-value chain and trade, commercializing agriculture, trading in unique, comparative, and competitive products, EAC arbitration mechanism.

Implementation of EAC commitments and a coherent strategy on public-private dialogue to improving trust between EAC Partner States to eliminate barriers. The strategy should include: Joint EAC power projects, Standard Gauge Railways to enhance competitiveness of the EAC bloc, East Africa Build East Africa campaign.