TANZANIA appears to receive a clean economic health bill from African Development Bank (AfDB) whose recent report suggest the East African Community second largest economy may maintain supremacy as regional top investment destination thanks to its favourable business and investment destination.
The report indicates that Tanzania, one of three major drivers of EAC economic growth, has all it takes to become regional best investment destination in 2019.
It cites low inflation rates, which fell to three per cent to become the region’s lowest, microeconomic stability, prudent fiscal policy and the crackdown against corruption as the main attractions for foreign direct investments.
Managing to lower inflation rate to three per cent, maintaining microeconomic stability against all odds and managing to have a prudent fiscal policy, are not mean achievements for the country which is spending heavily to finance mega energy and transport infrastructure projects.
The government is striving to contain recurrent expenditure and inefficient spending, including reducing the public-sector payroll and non-priority spending while increasing development spending, particularly for infrastructure, to support medium-term growth.
The government also increased efforts to improve tax revenue administration by driving out corruption and tackling tax evasion in a bid to increase the fiscal space.
These successes are helping further to brighten growth prospects for the country which is striving to transform its agricultural led economy to an industrial economy and speed up economic growth and development for the benefit of its people.
The achievements are helping to increase FDIs flows to medium and highskilled manufacturing sectors which contribute to the creation of trade opportunities and decent and value-adding jobs; enhance the skill base of host economies; facilitate the transfer of technology, knowledge and know-how; boost competitiveness of domestic firms and enabling their access to markets.
It is against this backdrop that Tanzania has managed to boost its exports and lower import to improve its trade balance in SADC and EAC regions.
A Bank of Tanzania annual report for 2017/18 financial year shows Tanzania continued to be a net exporter in SADC region with a trade surplus of 445.5 million US dollars in 2017 up from 397.2 million in 2016.
There are high prospects that Tanzania will in the future become the main source of products that have high demand in SADC region which include cement, cigarettes, ceramics, soaps, fruit juices and wheat flour.
We are highly optimistic of our future growth prospects and would like to reiterate that the on-going reforms in mining, tourism, energy and even aviation sectors will make Tanzania a better place to invest and do business which is important in boosting domestic economy through more trade and business opportunities.