The International Monetary Fund (IMF) said on Wednesday Tanzania could attain the middle income status by 2015 if the east African nation made growth more inclusive.

Tao Zhang, the IMF Deputy Managing Director, said the private sector should take center stage in driving the economy coupled with increased investments in energy to attract investors.

In his public address to academicians, investors, private sector and economists from the east African region, Tao also advised Tanzania to strengthen the judicial sector for fair resolution of disputes.

Giving more tips on how to attain the middle income status, Tao said the Tanzanian government should also make its decision-making process more transparent and predictable across a range of rules and regulations.

“The government should also ensure that businesses have a say in policy making,” he told his audience from Tanzania, Kenya, Uganda, Rwanda and Burundi.

Tao emphasized the need for Tanzania to continue pushing for sound economic management and commitment to economic reforms that unlocked its potential.

“First, it is essential to increase investment in an effective way to address key bottlenecks in the economy and create more jobs,” he told the meeting themed: Achieving Tanzania’s Goal of Middle Income Status.

He added: “Second, it is prudent to take concrete steps to strengthen the role of the private sector in the economy to help drive future growth.”

Tao said a strong private sector could foster economic diversification, expand trade and deepen Tanzania’s integration into global value chains.

On the East African Community (EAC) integration, Tao said deepening economic integration could encourage dynamism of over 150 million people across the region as it opened doors to expand trade and investment.

“Despite the progress the country and the EAC has made more needs to be done including non-tariff barriers, tax administration and harmonization, automation and trade procedures and labor mobility. If these can be addressed, the EAC can emerge as a true source of economic growth,” he said.

Tanzania opens over 300 large-scale industries under new administration

A Tanzanian senior cabinet minister said on Wednesday 390 large scale industries with a capital flow of 2.3 billion U.S. dollars have been established in the east African country since President John Magufuli assumed office in November 2015.

Charles Mwijage, the Minister for Industries, Trade and Investments, told the National Assembly in the capital Dodoma that the new industries have created 38,860 jobs to Tanzanians.

Mwijage told the august House that during President Magufuli’s 5^th phase administration, the Tanzania Investment Center registered 242 new investment projects between July 2016 and March 2017 worth 2 billion U.S. dollars.

Mwijage said a total of 1,843 small scale industries have been registered across the country in a period between July 2016 and March 2017.

He said the industrial sector grew by 7.8 percent in 2016 compared to 6.5 percent in 2015.

“The sector also contributed 5.1 percent to the GDP in 2016 compared to 5.2 percent in 2015,” said Mwijage.

On May 6, President Magufuli said his government was ready to work with the private sector because it was the engine of the economy.

President Magufuli made the assurance in a meeting with the members of the private sector under the Tanzania National Business Council (TNBC) at State House in the commercial capital Dar es Salaam.

Magufuli met members of the private sector against the backdrop of reports of weakening investor confidence due to concerns about the economy, policy unpredictability and tax crackdown targeting big companies.

Magufuli dispelled sentiments that his government was “anti-business,” saying he was pro-business, but his administration would not tolerate tax dodging, which was rampant in Tanzania in previous years.

Since he came to power, Magufuli said, one of his priorities was to make Tanzania an industrial economy that would qualify the country to middle income status by 2025.

Source: Coast Week

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