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While predicting a six to seven per cent growth, the World Bank cautioned the Tanzanian government against complacency, noting that it represented the lowest rate achieved since early 2000, with many Tanzanians remaining impoverished.
World Bank acting country director for Tanzania, Uganda, and Burundi, Mercy Tembon, said, “Economic growth has failed to eradicate poverty, with one third of households still living below the poverty line.
“If Tanzania wants to reduce income gap between itself and middle income countries, it will have to grow faster and better”, she added.
Dr Tembon asserted that Tanzania would require a combination of fiscal prudence, cost effective reforms in the education sector, and smart policies aimed at transforming firms to achieve accelerated and shared growth.
On his part, World Bank lead economist for Tanzania Jacques Morisset said, “The challenge is to create new impulse for growth through better education, outcomes and skills.”
The World Bank has in recent months been partly funding the construction of six mini-power stations in rural Tanzania.
The stations that are due to be constructed in Mbeya, Iringa, Ruvuma Kigoma and Arusha will be mini-grids isolated from the national grid.
They are expected to have a combined capacity of 7.5 MW and will cost an estimated $25 million.
Mwangi Mumero
Tanzania predicts economic boost after power systems improvement
Officials predict an increase in Tanzanian economy for this year. (Image source: Sanja Gjenero)
