Tanzania’s economy expect to rank high in 2023

Tanzania is among a select group of African nations poised to experience a strong economy this year, according to the African Development Bank (AfDB). In a report entitled “Africa’s Macroeconomic Performance and Outlook,” the AfDB forecasts that five African countries will see growth surpass 5.5 percent during 2023/2024. The economies of Rwanda and Côte d’Ivoire are projected to grow at 7.9 percent and 7.1 percent, respectively, followed by Benin and Ethiopia at 6.4 percent and 6 percent. Tanzania is forecasted to grow by 5.6 percent.

The projections from the AfDB align with World Bank forecasts that Tanzania’s economy will expand by 5.3 percent in 2023. During a recent meeting with editors, the Deputy Permanent Secretary of the Ministry of Finance, Mr. Lawrence Mafuru, stated that the economy is showing signs of expansion. The government intends to stimulate growth while also mitigating external shocks, which is particularly important for a small economy like Tanzania’s.

To support economic growth, the government is fast-tracking the development of a $30 billion Liquefied Natural Gas (LNG) plant. The country’s economic growth will surpass the average growth forecast for sub-Saharan Africa, which stands at 3.6 percent. According to the AfDB report, growth across all five African regions is projected to remain stable in 2023/2024.

Other African countries also expected to see growth of over 5.5 percent include Niger (9 percent), Senegal (9.4 percent), DR Congo (6.8 percent), The Gambia (6.4 percent), Mozambique (6.5 percent) and Togo (6.3 percent). In East Africa, the region is expected to grow from 4.2 percent in 2022 to 5 percent in 2023 and 5.4 percent in 2024, led by Rwanda.

The Southern African region, which includes South Africa, is expected to experience the lowest growth rates, despite the standout performance of Mozambique. The country’s economy is expected to be driven by investment in liquefied natural gas and related industries. In Northern Africa, growth is projected to stabilize at 4.3 percent in 2023, due to expected recoveries in Libya and Morocco. Despite rising fuel and food prices globally, Africa is expected to be the fastest-growing part of the world economy this year.