Tanzania, Jan 17 – There are mixed reactions about the business world 2018, with East Africa country Tanzania in the midst of the uncertainties. The country had kicked off the year on the front foot with the country recording positive reports on various fields of play. Undoubtedly, it seems the year is brighter than the earlier year with such a positive start. However, it remains unclear on the impetus in the economy’s statistics for the rest of the year.
International Monetary Fund (IMF) has completed its review over the Tanzania’s economy, the last one on their schedule and highlighted the economy will face some tough times with emerging risks. How the government handles the challenges will determine the outcome at the end.
IMF stated that the GDP is likely to improve, no doubt about that with the measures set to make a positive impact on the economy. However, there are weak points that will slug the growth of the economy that needs to be address once the signs show up or prevent instead of cure.
Tax revenues have been slashed with mixed reactions to follow. The government may not be able to have raked much revenue but it surely will encourage investors and businesses in the long run. Industries will take advantage of the sliced taxes to set up or expand their parameters that may add slightly to the revenue fetched by the government. It is yet to be seen if businesses will improve following this decision.
Budget implementation will prove a major factor in terms of when they are implemented. Projects need to be funded and accounted for early enough and their readiness should be followed astutely with their kick off. Major sectors as agriculture need to be funded adequately for better production as it is the backbone of the country’s revenue.
Public finance should be managed with transparency and accountability for efficiency. There should be clear information on the spending to update the public on the intention of the government in the country’s economy. It is a gesture of trust to the public to be part of the government’s mission and objectives.
To be able to balance the macroeconomic stability and inclusive growth, policies must be made and adhered to with elasticity to be able to change with the dynamic business environment for a better cause.