26 June 2014

Tanzania: Dar On Course to Realising Middle-Income 'Dream'

Dodoma — PROJECTIONS for Tanzania to reach a middle income status by 2025, with income per capita of 3,000 US dollars, are real and will be achieved when growth picks up further on the back of natural gas and coal resources.

The Minister for State in the President's Office (Social Relations and Coordination), Mr Stephen Wassira, said in Parliament that the natural gas reserves in Lindi and Mtwara regions and massive coal resources in southwestern part of the country would boost growth to levels that will make economic projections of the 2025 Development Vision achievable.

Tanzania is currently the fastest growing economy in the East African region after achieving a 7 per cent rate of growth last year.

The economy is projected to grow by 7.2 per cent this year and continue growing at an annual average of 7.7 in the medium term.

The country is expected to reach a middle income status by 2025 as envisioned in the Development Vision, which will be supported by the recent natural gas finds and coal resources.

Natural gas reserves, estimated to reach 50.5 trillion cubic feet by latest figures and estimated coal reserves of up to five billion tonnes, are expected to turn the country into a hydrocarbon exporter.

Mr Wassira said the current growth rate would raise the current per capita of 742 US dollars to 1,750 US dollars by 2025 but with the expected higher rate of growth due to gas and coal resources, the per capita would rise to 3,000 US dollars.

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