DAR ES SALAAM, (Xinhua) --
The Bank of Tanzania (BoT) said Wednesday that
the country’s economy is strong enough to sustain a 7.2 percent
growth on the back of stable electricity production and a
growing construction industry.
BoT governor Benno
Ndulu said sectors such as agriculture, trade, transport,
finance and telecommunications are also growing at an impressive
Tanzania targets a
7.2-percent annual economic growth for 2016. Its economy slowed
down to 5.5 percent in the first quarter of 2016 compared with
5.7 percent in the same period last year.
Addressing a news
conference in the commercial capital Dar es Salaam, Ndulu denied
recent reports that Tanzania’s economy, the second largest in
east Africa, is shrinking due to various policies adopted by the
new administration of President John Magufuli.
have tremendously increased in the first quarter of 2016 with
the financial sector improved on 13.5 percent, telecommunication
on 13.4 percent and public administration on 10.2 percent,” said
“When looking at
economic growth indicators, the economy will continue to be
stable throughout the year, because electricity production from
January to June has increased on 14.5 percent to 3,454.2 kWh
compared to 3,016.7 kWh recorded the same period in 2015,” he
Ndulu said the
improvement on electricity productions came after the
government’s efforts to start using gas for electricity
He said the
country’s import of raw materials for manufacturing industries
has increased by 19.4 percent in first half of the year which
recorded at 520 million U.S. dollars compared to the same period
industrial products from January to June 2016 also continued to
grow at a balanced speed, he said.
According to him,
the sales of the export products reached to 728.5 million U.S.
dollars in the first half of the year, which increased from
almost 628 million U.S. dollars in the same period in 2015.
He added that tax
collection also improved in H1, an indication of good economic
growth of the country”.
Ndulu said the
Tanzanian shilling remained relatively stable in the first half
of 2016, following implementation of various monetary policies
in managing the liquidity situation in the economy.