08:33 pm
27 October 2016

IMF says Tanzania’s economic growth remains solid, praises ‘strong drive’ against corruption

AN International Monetary Fund (IMF) mission concluded its visit to Tanzania on Wednesday, saying the country’s economic performance remains strong.

The IMF mission said preliminary estimates suggest Tanzania registered a 7% gross domestic product (GDP) growth in 2015.

During its visit the IMF mission held talks with the country’s finance minister, energy minister, governor of the Bank of Tanzania, as well as representatives of business and donor communities.


It said impressive economic performance was recorded in construction, communication, finance, and transportation sectors, adding the country’s economic growth was expected to remain close to 7% in 2016.

“(Tanzania’s) inflation remained in single digit throughout 2015, averaging 5.6%, despite the significant exchange rate depreciation in the first half of the year,” said the mission in a statement.

“Inflation is expected to decrease further in the coming months, remaining close to the authorities’ medium-term target of 5%,” it added.

The mission also welcomed a “strong drive against corruption” by the Tanzanian government.

“The drive against corruption would help address the perception that governance had deteriorated in Tanzania in recent years, as suggested by a number of surveys,” the mission said.

In his inaugural address to Parliament in November last year after taking office, President John Pombe Magufuli said one of his administration’s priorities would be fighting against corruption.

He has sacked several senior officials over corruption allegations.