The International Monetary Fund (IMF) has confirmed on Tanzanian
economy condition to remain stable with economic growth estimated at about Six
percent.
economy condition to remain stable with economic growth estimated at about Six
percent.
In 28th February 2020, the bank of Tanzania (BOT) told the citizens through media
on the growth and stability of the Tanzanian economy.
on the growth and stability of the Tanzanian economy.
In its statement on 2020 Article IV Mission to Tanzania , IMF stated that the growth of Tanzanian
economy has supported by prudent monetary and fiscal policies, which led to the
inflation at under five percent, an adequate level of foreign reserves, and
manageable public debt.
economy has supported by prudent monetary and fiscal policies, which led to the
inflation at under five percent, an adequate level of foreign reserves, and
manageable public debt.
IMF has reported that the discussions centered on measures to
mobilize domestic revenue, resolve government arrears on VAT refunds and
expenditures, increase spending in education and health while improving the
efficiency of such spending as well as that of public investment projects,
remove barriers and regulations affecting the business climate, and build
skills in the labor force.
mobilize domestic revenue, resolve government arrears on VAT refunds and
expenditures, increase spending in education and health while improving the
efficiency of such spending as well as that of public investment projects,
remove barriers and regulations affecting the business climate, and build
skills in the labor force.
Further
the report has told that IMF’s team, led by Enrique Gelbard has visited in
Tanzania from February 20 to March 4, 2020 whereby they discovered the appearance
of economic activities to be increased.
the report has told that IMF’s team, led by Enrique Gelbard has visited in
Tanzania from February 20 to March 4, 2020 whereby they discovered the appearance
of economic activities to be increased.
According
to Gelbard “The pace of economic activity appears to have increased in recent
months prompted by higher public investment, a rebound in exports, and an
increase in credit to the private sector.
to Gelbard “The pace of economic activity appears to have increased in recent
months prompted by higher public investment, a rebound in exports, and an
increase in credit to the private sector.
As a result, real GDP growth is estimated to
be close to 6 percent, with activity buoyant in the construction and mining
sectors”
be close to 6 percent, with activity buoyant in the construction and mining
sectors”
Gelbard said other economic indicators point to a benign economic environment, with
annual inflation at 3.7 percent, a stable exchange rate, foreign exchange
reserves equivalent to near 5 months of imports, and public debt at below 40
percent of GDP”
annual inflation at 3.7 percent, a stable exchange rate, foreign exchange
reserves equivalent to near 5 months of imports, and public debt at below 40
percent of GDP”
Also, he added that the tax reforms are needed to improve the business climate
and increase government revenues.
and increase government revenues.
“The
mission team commended the authorities for their intention to improve
governance in tax administration and emphasized the urgency to adhere to
efficient means of tax collection and control, notably through the use of
risk-based audits. This will ensure better compliance and timely payment of tax
refunds and improve companies’ cash flows” Gelbard said through the IMF’s
report.
mission team commended the authorities for their intention to improve
governance in tax administration and emphasized the urgency to adhere to
efficient means of tax collection and control, notably through the use of
risk-based audits. This will ensure better compliance and timely payment of tax
refunds and improve companies’ cash flows” Gelbard said through the IMF’s
report.
On
the other hand the report suggested that “regarding government spending, the
implementation of planned measures to clear the backlog of expenditure arrears,
account for them on a timely basis, and prevent the accumulation of new ones
will be essential to improve businesses’ cash flows, ensure that bank loans are
paid back on time, and sustain economic activity.
the other hand the report suggested that “regarding government spending, the
implementation of planned measures to clear the backlog of expenditure arrears,
account for them on a timely basis, and prevent the accumulation of new ones
will be essential to improve businesses’ cash flows, ensure that bank loans are
paid back on time, and sustain economic activity.
According
to the report, spending on health and education will need to be scaled up in
coming years while ensuring quality of education and medical services and
addressing key infrastructure gaps.
to the report, spending on health and education will need to be scaled up in
coming years while ensuring quality of education and medical services and
addressing key infrastructure gaps.
