Tanzania: State Effort in Rebuilding Economy – Reflections On Samia’s One Year in Office

Tanzania: State Effort in Rebuilding Economy - Reflections On Samia's One Year in Office

THE last two years have provided a near-perfect test-case for economic resilience for most economies.

The Covid-19 pandemic was a least expected occurrence but perhaps; the most disruptive since World War II. Like many nations around the world, the immediate challenge for most African countries was how to manage the spread of the virus to save lives, and ensure their economies continue to function.

For many corporations, especially the banking industry, the priority was to safeguard employees and customers and ensure continuity of essential services.

Tanzania emerged from the crisis more resilient, as evidenced by the rebounded economic growth and stable macros.

The latter can be attributed to a supportive business environment, facilitated by the sixth phase of the national government, under President Samia Suluhu Hassan.

If anything, the last 12 months have been but defining in terms of economic recovery and building new engines of growth.

President Samia has outdone herself in ensuring stability and, more so, in restoring confidence in the investor community in the potential and prospects of Tanzania.

Facilitating the growth of the banking sector

The banking sector has witnessed impressive growth, thanks to an array of government initiatives to promote investments in the country.

The President’s multilateral engagements with foreign governments and individual investors; have born fruits in increased inflow of FDI, which has improved liquidity in the economy. Undoubtedly, the banking sector has been one of the biggest beneficiaries of the sustained government efforts, starting with the mitigating measures instituted to safeguard the industry from the adverse impact of the COVID-19 pandemic.

The capitalization of the Tanzania Agricultural Development Bank (TADB), alongside other strategic interventions to ensure sufficient capital to fund key sectors of the economy point to a deliberate effort to strengthen the country’s financial institutions.The multilateral engagements have also yielded improved liquidity, which improved from 4.3 per cent in 2020 to 9.3 per cent at the end of 2021. Credit to the private sector also grew substantially from 3.1 per cent in 2020 to 10 per cent in December 2021, signaling sustained recovery, especially in the wake of disruptions witnessed in 2020.Laudable effort in reviving tourismThe tourism industry was among the worst-hit sectors during the pandemic. The travel restrictions curtailed the movement of foreign tourists from our traditional source markets in Europe, the US the UK.With the recent efforts of the government’s mitigation measures, the sixth regime has done fairly well in resuscitating the sector, especially by addressing health concerns and […]

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