Tanzania GDP Growth To Remain Strong At 7 % In 2015

According to a recent report released by African Economic Outlook (AEO), the economy of Tanzania is expected to continue on its growth path with GDP of around 7% in 2015.

The real GDP growth of the country has been 6.9 %, 7.0 % and 7.2 % in 2012, 2013 and 2014 respectively.

The projected marginal decline in 2015 is largely on account of possible uncertainties due to elections.

The strong growth is largely driven by communications, transport, financial intermediation, construction, agriculture and manufacturing and also by the ongoing investments in infrastructure and the projected good weather conditions in the medium term.

The continued investments in the recently discovered natural gas reserves in Tanzania and the expansion in public investments (including the ongoing construction of USD 1.2 billion gas pipeline from Mtwara to Dar Es Salaam), as well as the related investments aimed at stabilising power generation in the country are also responsible for the growth.

Industry accounts for about 25% of GDP, and the most important industrial sub-sectors are manufacturing, whose share in GDP is around 10%, and construction, with a share of about 7.3 % in GDP.

In the five year development plan (2011/12–2015/16), public financing needs are estimated at USD 1.7 billion (about 5 % of GDP) annually to address infrastructure challenges.

The AEO is a product of collaborative work by three international partners: the African Development Bank, the OECD Development Centre and the United Nations Development Programme.