Tanzania’s real GDP growth is expected to reach 6.3% in 2024, this was revealed during the CEO Roundtable Meeting on East African Integration and Economic Outlook 2024 organized by the East African Business Council (EABC), in partnership with the Switzerland-Tanzania Chamber of Commerce, Tanzania Private Sector Association (TPSF), the Confederation of Tanzania Industries (CTI) and RSM Eastern Africa.
“The implementation of the EAC industrialization strategy, transport inter-connectivity and trade facilitation are crucial to boosting intra-EAC and Africa trade,” said Amb. John Robert Ulanga, Director of the Department of International Trade Coordination and Economic Diplomacy at the Ministry of Foreign Affairs and East African Cooperation of Tanzania.
Tanzania’s economic growth is fuelled by the rebound in tourism and continued investment in public infrastructure. Presenting the Economic Outlook 2024, Mr. John Bosco Kalisa the EABC Executive Director said that “Inflation in Tanzania is projected to moderate to 4.0% in 2024, potentially influenced by global commodity prices and domestic demand.”
Mr. Kalisa said that East Africa accounted for the highest number of countries with GDP growth exceeding 5 percent in 2023, underscoring its continued strong performance and diversified economies. However, having a low share of savings and tax to GDP leads to a budget deficit and borrowing.
The EABC-RSM Eastern Africa Outlook 2024 revealed that the agricultural sector boosted Tanzania’s GDP growth by 14.2%. Tanzania’s manufacturing sector contributed 7.3% to the country’s GDP growth. The financial and insurance sector grew by 14.7% in the third quarter of 2023. “Tanzania should upgrade the agricultural economy to value-based processing. There is a global shortage of the supply of dollars leading to depreciation of shillings. EAC Partner states should pay and settle intra-EAC trade in the local currency to mitigate the depreciation of shilling to dollar,” said the EABC CEO.
Mr. Paul Makanza, EABC Board Member indicated that EAC Economies will grow at 5.48% in 2024, increasing from 4.9% in 2023 (IMF 2023). EAC inflation is projected to reduce from 12.5% in 2023 to 7.9% in 2024, indicating a positive outlook for price stability.
On her part, Ms. Amne Suedi, Chairperson of Switzerland-Tanzania Chamber of Commerce, said, “We should leverage our competitiveness as an EAC bloc in the global value chains.” She emphasized the need for harmonization of policies and infrastructure development for the prosperity of East Africans through trade.
The EABC-RSM Eastern Africa Outlook 2024 reveals that the agricultural sector boosted Tanzania’s GDP growth by 14.2%. Tanzania’s manufacturing sector contributed 7.3% to the country’s GDP growth. The financial and insurance sector grew by 14.7% in the third quarter of 2023. Mr. Kalisa stated Tanzania should upgrade the agricultural economy to value-based processing. He stated there is a global shortage of the supply of dollars leading to depreciation of shillings. He stated EAC Partner states should pay and settle intra-EAC trade in the local currency to mitigate the depreciation of shilling to dollar.