With growth forecast of 7.1 per cent in 2017, albeit slight down from earlier projections of 7.2 and enjoying the longest run of economic growth averaging seven per cent per year for over a decade, Tanzania has been grouped with other East African countries with a relatively shorter run of un interrupted growth which are expected to attract business investments from Gulf region investors ahead of a major investment meeting later this year.
The Ernst & Young’s ‘Attractive Programme Africa 2017’ report says Tanzania, along with Ethiopia, Kenya and Rwanda, are commodityimporting East African countries with strongest economies over the last two years which will present Gulf investors with new markets, ripe for investment opportunities ahead of Africa Legal Network’s (ALN) 4th Annual International Conference slated for October in Dubai, UAE.
The East African countries will be joining Côte d’Ivoire and Senegal as strong performing economies in the continent which will have compelling cases for business investment.
The invite-only event will bring together high-calibre and relevant business professionals and government representatives to discuss opportunities for foreign investment in Africa.
The ALN conference comes at a time when trade between the two regions is at an all-time high. The UAE is Africa’s leading trading partner within the GCC, with approximately 80 per cent of the UAE’s imports from Africa being primary products, such as food produce and beverages.
Total non-oil trade between the two regions is valued at about 24 billion US dollars: a 700 per cent increase over the last decade, according to the Dubai Chamber of Commerce.
Tanzania is experiencing robust growth of economy for more than a decade due to gold production and tourism. The economy is also strengthened by telecommunications, banking, energy, mining and agriculture.
Agriculture still accounts for more than one-quarter of GDP and provides 85 per cent of exports and employs 80 per cent of the country’s workforce. Analysts say there is a lot more to come on the gas boom following discovery of large deposits of gas in the southern parts of the country and heavy public investments in infrastructure development.
World Bank’s April 2017 Economic Update shows “Tanzania’s economic performance continues to rank among the highest in the region” and the IMF’s World Economic Outlook Database listing Tanzania amongst the top five African countries for economic growth.
Tanzania is projected to stay on a favourable growth path in the long run and establish itself as a viable alternative to Kenya as a gateway to the East African region.
