IMF Praises Tanzania Economy

The IMF had praised Tanzania’s stable GDP growth rate, significant economic development, and good macroeconomic policies during its official presentation of the Regional Economic Outlook Report on Sub-Saharan Africa at the Research on Poverty Alleviation (REPOA) venue on April 28th 2014.

The recorded GDP 7% growth rate in Tanzania, improved Human Development Index standing (HDI), increased exports, improved trade balance, investments in Export Processing Zones (EPZs), and the macroeconomic and monetary policies were highly commended in the report and during the presentation.

Additionally, the IMF had been encouraged by the Big Results Now initiative (BRN), which aims to transform Tanzanian society into a Middle Income Economy by 2025 through focusing on six priority sectors – energy and natural gas, agriculture, water, education, transport, and mobilization of resources.

The report also focused on areas of improvement, and Tanzanian government was warned against the dangers of short-term loans and debt traps, and was advised to strengthen financial discipline, support small and medium enterprises, and empower smallholder farmers.

“The IMF regional report has pointed out areas that need policy focus from the government such as agriculture, employment creation and services where more investment in agriculture is needed for the government to improve revenue collection and also cut down on unnecessary expenses”, said IMF representative Mr Thomas Baunsgaard.

Professors, economists and other delegates at the REPOA had thanked IMF for its presentation and agreed that the report provides valuable information for further development.

The Regional Economic Outlook Report for Sub-Saharan Africa is a biannually issue of IMF view on recent economic developments, challenges, and prospects for the countries in the region.