TANZANIA'S Gross Domestic Product (GDP) is projected to grow by 0.2 percentage points to 5.4 per cent in the 2024/2025 financial year.
The growth is anticipated to be driven by public and private investment, reforms to improve business conditions, favorable weather, and a rebound in tourism, among other factors.
The Minister for Planning and Investment, Prof Kitila Mkumbo, said the growth from 5.2 per cent last year was planned considering ten key areas mostly proposed by members of parliament during the last November session.
"The continued existence of peace, security, and stability within the country, in neighboring countries, and globally," Prof Mkumbo said on Monday when presenting the National Development Plan for 2024/25 in Dodoma.
Also, the strengthening of the world economy and price stability in financial and commodity markets is expected to support the projected growth further.
Other areas include improving food sufficiency in the country and withstanding the effects of climate change and natural and non-natural disasters such as drought, war, epidemics, and floods.
"We have to have discipline in the use of public funds and discipline in implementing the things we planned," the Planning Minister said.
The government will also continue to improve the business and investment environment, especially for businessmen and local investors. The government also aims to control the rate of inflation and ensure that it remains in a single-digit average of between 3.0 per cent and 7.0 per cent in the medium term.
Besides, the government eyes pushing the internal revenue to reach 15.7 per cent of GDP in 2024/25 compared to the expectation of 15.3 per cent in 2023/24 and tax revenue to reach 12.8 per cent of GDP from the expectation of 12.5 per cent in 2023/24. Last year, the financial sector grew faster than any other sector by 16 per cent, followed by mining and quarrying at 10.2 per cent.
Other sectors included electricity at 10 per cent, arts and entertainment at 10 per cent, accommodation and food at 8.9 per cent, and information and communication at 7.9 per cent.
In addition, last year, agriculture contributed significantly to GDP growth by 24.8 per cent, followed by construction at 13.6 per cent, mining and quarrying at 9.7 per cent, trade and maintenance at 8.4 per cent, transportation and storage of cargo at 7.2 per cent, and industry at 6.9 per cent.
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The goal of the National Development Plan is to continue stimulating the growth rate of the economy in an inclusive manner, reducing poverty, and bringing prosperity to all," Prof Mkumbo said, adding: The plan for the next fiscal year is also to generate mass employment while stimulating value-added exports.
To attain the 2024/25 target, the focus will be on increasing the productivity of production and value addition of crops in the sectors of agriculture, livestock keeping, fishing, forestry, and mining.
Equally, the concentration will be on stimulating and improving the quality of education and training at all levels; increasing and strengthening the use of technology, especially ICT, while increasing industrial production.
The implementation of the National Development Plan for 2024/25 will go hand in hand with the process of writing a new national development vision. The current vision comes to an end next year.
