Tanzania Witnessed First Significant Decline In Poverty In 20 Years, World Bank Says

According to a recent World Bank Report titled “Tanzania Mainland Poverty Assessment” poverty in Tanzania has declined by approximately 1 % each year between 2007 and 2012, which is the country’s first significant poverty reduction in 20 years.

Basic needs poverty, which refers to the minimum resources needed for physical wellbeing, declined from 34.4 % in 2006, to 28.2 % by 2012 and extreme poverty also decreased from 11.7 % to 9.7 % during the same period.

The absolute number of poor people however declined by 10 % from 13.2 million to 11.9 million from 2007 to 2011/12, due to population growth.

Poverty declined more rapidly in Dar Es Salaam than in the rest of the country.

The capital city has experienced the highest poverty reduction at a rate above 70% between 2007 and 2012, while rural areas registered a reduction of only 15 %.

Rural households in the 30 % of poorest groups experienced an increase of their consumption by around 20 % between 2007 and 2011/12.

The report indicates that the reason behind Tanzania poverty reduction is sustained rapid economic growth and concerted efforts around national strategies to alleviate poverty.

According to Philippe Dongier, Country Director World Bank, the reduction in poverty is important news that should be applauded; however the country needs to accelerate the trend further so as to address the important challenges that still remain.

Tanzania is currently implementing its national vision 2025 to move from a least developing to a middle income country.

In an exclusive interview with TanzaniaInvest.com in 2014 Hon. Jakaya Kikwete, President of Tanzania said that with the huge resources that will come up from natural gas, the country should be able to achieve this goal.