Tanzania’s projected economic growth of 7.4 percent this year places the country among the world’s top 10 fastest growing economies.
The economic growth projection was given by the country’s Minister for Finance and Planning Mr. Philip Mpango who remained optimistic of a brighter economic future for the country.
The minister denounced opposition claims of an economic slowdown and told a press conference in the commercial capital Dar es Salaam that the “…projected 7-percent GDP growth in 2017 would keep Tanzania firmly in the list of the world’s 10 fastest-growing economies.”
He cited two major public infrastructure investments the standard gauge railway (SGR) line and the Uganda-Tanzania crude oil pipeline, which among other things, are expected to give the country a ‘medium-term economic growth of around 7.4 percent.’
However, even with the promising forecasts, the minister acknowledged that a greater part of the population is yet to enjoy the fruits of the growing economy.
He explained the disparity as a result of uneven growth in the various economic sectors, with agriculture, which employs the larger portion of the country, taking the short hand of the staff.
He said agriculture sector grew by only 2.1 percent in 2016 while sectors like construction enjoyed a massive13 percent growth. The information and communication sectors also grew by 13 percent while transport and storage grew by 11.8 percent).
These were followed closely by the mining and quarrying sector up by11.5 percent and the banking and insurance sectors enjoyed 10.7 percent growth.
“Unfortunately, these sectors employ only a small portion of the population hence damming the trickle down effect,” he admitted.