On 31st December 2021, the President of Tanzania H.E. Samia Suluhu Hassan addressed the nation with a televised message (also aired on Youtube) in which she highlighted the achievement of 2021 and her administration’s focus for 2022.
Tanzania in 2021
Mama Samia reminded that in 2021 the nation went through difficult times with the loss of the late President Dr. John Pombe Magufuli and the impact of the Covid-19 pandemic on the economy, which put a temporary halt on tourist arrivals and on some economic activities.
The nation was also hit by heavy rain that exceeded historic averages, causing damages to the transport infrastructure and delaying the implementation of some projects.
Towards the end of 2021, Tanzania witnessed an inflation rate of 4.1%, within the national objectives of 3-5 %.
The rising inflation was caused by rising global oil prices and the Covid-19 pandemic where many industries stopped production thus leading to shortages and a significant increase in product demand.
The inflation was further fueled by the implementation of the Government’s Economic Recovery Plan and Response to the pandemic, aimed at the construction of health infrastructure, education, clean and safe water that led to the rising prices of building materials such as cement.
To attract foreign investments, Mama Samia reminded that her administration made various adjustments to policies, laws, and taxes.
As a result, Tanzania attracted a total of USD 4.144 billion in FDI 2021 with 237 projects, versus USS 1.013 billion with 186 projects in 2020.
The capacity of the Tanzania Agricultural Development Bank (TADB) was increased by providing additional capital of TZS 208 billion to reach more farmers.
In addition, some obstacles to exporting agricultural produce to foreign markets were removed, namely Kenya, South Sudan, China, India, Ukraine, the European Union, the SADC region, and Saudi Arabia.
Despite these achievements in the agricultural sector, there is still a deficit in the use of fertilizers. This is why, the Government expects to establish in early 2022 ITRACOM Fertilizers, a large fertilizer factory in Dodoma, which will produce 500,000 tons per year equivalent to 70% of the country’s need.
In addition, the Dangote Cement has also shown interest in setting up a urea fertilizer factory in Mtwara.
The tourism industry was also heavily influenced by the Covid-19 pandemic and various measures were introduced to ensure that the industry returns to normal contribute to the national economy.
In 2021, Tanzania managed to welcome 1.4 million tourists compared to 620,867 in 2020, and the expectation is to witness further growth in 2022 and beyond.
In 2021, the government continued with the implementation of its major strategic projects, including the Nyerere power generation in Rufiji; the expansion of the Dar es Salaam port; the construction of the Kigongo-Busisi bridge in Mwanza, and the Tanzanite bridge Dar es Salaam; the expansion of several roads several connecting various regions and districts; the expansion of Air Tanzania’s fleet; and the continued construction of the SGR railway, the White House in Dodoma, which is 90% complete, and the Mtumba City Complex on the outskirt of Dodoma.
2022 and Beyond
Mama Samia reiterated that in 2022 the main goal of her administration is to promote the growth of the economy and the well-being of Tanzanians, as laid down in the National Development Plan 2021/2026.
In this regard, she urged Tanzanians to get vaccinated against Covid-19 and reminded them that vaccines are available and free of charge.
She concluded her speech by wishing all Tanzanians good luck, prosperity, and success in 2022.