Tanzania will Boost Development with Increased Spending

In view of Tanzania’s increasingly demanding economy and the fast-paced growth taking place in the country, Tanzania government plan to raise spending by 17% in 2013-2014 financial year to 17.7 trillion TZS (11 billion USD).

With a focus on infrastructure developments and target to lift growth to 7%, the country also plans to have a gas utilisation master plan in place in 2013/14.

East Africa’s second biggest economy is rapidly becoming the regional energy hub ensuing enormous offshore natural gas discoveries.

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The economy grew 6.9% in 2012 from 6.4% in 2011 due to developments in the transport, communications and manufacturing outputs.

According to Tanzania Finance Minister William Mgimwa, the government aimed at reducing to single-digits with regard to inflation, this will better suit and enhance the positive growth in the country.

“Priority in the government’s 2013/2014 budget will be in … increasing availability of electricity, developing transport infrastructure…and strengthening information and communication technology” he said.

The top performing sectors that led growth in 2012 were financial services which rose to 13.2%, construction 7.8% and communications with a rise of 20.6%.

Tanzania’s Infrastructure budget has been improving significantly in the last few years, yet with recent agreements with China and business interest from Germany and the UK, Tanzania is set to experience greater levels of growth that will introduce new infrastructure needs for the country.

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