The 2019 Economic Report on Africa by the United Nations Economic Commission for Africa ranks East Africa as the fastest growing sub-region on the continent, with the trend being attributed to strong investment in infrastructure.

“East Africa remains the fastest growing sub-region in Africa,…driven by strong public spending on infrastructure and rising domestic demand,” the report reads.

It shows that the sub-region’s economy grew by 6.1 per cent in 2017 and 6.2 per cent in 2018.

It is projected to reach 6.4 per cent in 2019 and 6.5 per cent in 2020, to be fuelled in part by private investments in industrialising the region as governments work to attract investors to beef up economic growth aspirations.

“Growth is likely to be boosted by increased private investment; growth in industry and services especially in Ethiopia, Kenya, Rwanda and Tanzania; higher public investments in infrastructure; stronger private consumption; oil and gas explorations; more inflows of foreign direct investment; and larger diaspora remittances,” the report reads. The economies of Central, North, Southern and West Africa grew by 2.3 per cent, 3.7 per cent, 1.2 per cent and 3.2 per cent respectively in 2018.

Tanzania, which remains one of the fastest growing economies in Africa, is currently undertaking several mega infrastructure projects as it beefs up its vital economic infrastructure to support the country’s industrialisation drive.

Some of the key projects, currently at different levels of implementation, include the electric standard gauge railway (SGR), the 2,100MW Stiegler’s Gorge hydroelectric project, rehabilitation of berths at the Dar es Salaam and Tanga ports, reopening of the Tanga-Arusha railway line as well as construction of Terminal 3 at the Julius Nyerere International Airport. During the 2018/19 budget, Tanzania’s parliament approved a total of Sh4.27 trillion for the works, transport and communications sectors, with the lion’s share of the money going towards development projects.

Out of the money, Sh1.87 trillion was for the works sector while the transport sector received Sh2.39 trillion, leaving the communications docket with Sh18.857 billion.

But speaking during the workers’ council for the transport sector in Dodoma at the weekend, the Permanent Secretary in the Minister for Works, Transport and Communications, Dr Leonard Chamuriho, said the budget for the sector (transport) will rise to Sh3.62 trillion during the coming financial year.

“We have the standard gauge railway line whereby want to complete the 300km stretch of the Dar es Salaam-Morogoro section of the SGR,” he said.

The Tanzania Railways Corporation (TRC) executive director, Mr Masanja Kadogosa, said in Dar es Salaam last week that construction of the SGR project from Dar es Salaam to Morogoro has been done 45.8 per cent while that from Morogoro-Makutupora (in Dodoma) was done by seven per cent.

According to the 2019 Economic Report on Africa, Africa West Africa’s growth is projected at 3.4 per cent and 3.8 per cent in 2019 and 2020 respectively.

In Central Africa, it is projected at 2.7 per cent in 2019 and 3.8 per cent in 2020.

In the same order, the report projects that growth in North Africa will be 3.4 and 3.5 per cent in 2019 and 2020 respectively while Southern Africa will grow at 2.1 in 2019. It is, however, projected that most African economies face downside risks to growth from the tightening of monetary policy and new protectionist policies in advanced.

There are also weather-related shocks, especially in agriculture-dependent economies; threats of terrorism and conflict; political instability; and high chance of debt distress in some countries.

Source: The Citizen