One of the few African nations whose economy are anticipated to perform well this year is Tanzania.
Over 5.5 percent growth is predicted for the continent’s top five economies in 2023–2024.
“They will reclaim their position among the world’s ten fastest-growing economies,” the African Development Bank (AfDB) said.
According to the AfDB report titled “Africa’s Macroeconomic Performance and Outlook,” Tanzania’s economy is expected to expand by 5.6 percent this year.
The nation will fall behind Rwanda, whose GDP is anticipated to expand by 7.9 percent, and Côte d’Ivoire, which is predicted to increase by 7.1 percent.
During the years 2023–2024, the economies of Ethiopia and Benin will increase by 6% and 6.4 %, respectively.
The World Bank’s predictions that Tanzania’s economy will grow by 5.3 percent in 2023 are supported by projections from the AfDB.
Mr. Lawrence Mafuru, deputy permanent secretary in the ministry of finance, stated that the economy was expanding at a recent meeting he had with the editors.
The government’s policies for 2023 will also dwell on stimulating growth while simultaneously mitigating external shocks being a small economy. “As the developed economies struggle with rising inflation rates, Tanzania will find it difficult to acquire its development financing at affordable interest rates,” he said.
Accelerating the construction of the $30 billion liquefied natural gas (LNG) plant is one of the steps that needs to be taken to give the economy its economic impetus.
Tanzania’s annual economic growth is expected to be significantly higher than the projected 3.6 percent average for sub-Saharan Africa.
“Growth across all five African regions was positive in 2022 and the outlook for 2023–24 is projected to be stable,” the report said.
Prior to the Covid-19 outbreak, Tanzania and the other four African nations had the best economies.
Several other African nations are also anticipated to see their economies expand by more than 5.5 percent over that time.
These comprise Togo (6.3%), Niger (9%), Senegal (9.4%), the Democratic Republic of the Congo (6.8%), The Gambia (6.4%), Mozambique (6.5%), and Senegal (9.4%). With Rwanda leading the region, growth in east Africa is anticipated to increase from 4.2 percent in 2022 to 5 percent in 2023 and 5.4 percent in 2024. Ethiopia and Uganda are also expected to experience robust growth in 2023 and 2024, reaching 5%.
This has been related to changes in the oil industry for Ethiopia and Uganda, respectively. Côte d’Ivoire and Senegal are expected to help the region’s growth increase from 3.6 percent in 2022 to 4.1 percent in 2023 and 4.3 percent in 2024. The expected growth rate for Central Africa is 4.7 percent in 2022, 4.3 percent in 2023, and then stabilises at 4.2 percent in 2024.
Despite Mozambique being a notable performer, the southern African region has the lowest growth rates because to South Africa’s economic problems. However, the area will continue to feel the effects of South Africa’s ongoing decline in the medium run.
Real output in the once-largest economy in Africa is anticipated to slow to 2.3 percent in 2023 before increasing to 2.8 percent in 2024.
Mozambique, whose economy would be boosted by investment in liquefied natural gas and related industries, will be the main driver of growth in the south.
Growth in northern Africa is anticipated to stabilise at 4.3 percent in 2023, helped by an anticipated robust rebound in Morocco and Libya.
In spite of the world’s rising gasoline and food prices, Africa will have the fastest economic growth this year.
