Report from UK-based Exotix Partners in collaboration with the Kenya-based Equity Investment Bank have it that Tanzania has a bright economic outlook – adding up to IMF economic forecast for Tanzania. The report highlights that the current anti-corruption and anti-tax evasion drive by the President, HE John Magufuli, might look disruptive in the short term but will do the country a greater favour in the long term. The report said “this reformist agenda has proved painful but should these policy actions be sustained they could act as a long-term positive catalyst for the efficiency of Tanzania’s public sector institutions.”
The report said the anti-tax evasion, however, has had positive results, adding: “Developments around tax evasion have been welcomed for their ability to increase tax collections and according to the International Monetary Fund (IMF) this should culminate in an increase in government revenues as a percentage of Gross Domestic Product from 15.1 per cent in 2015 to 16.9 per cent in 2021.”
The IMF is forecasting real GDP growth will average 6.7 per cent between 2016 and 2021 after growing at an average of 7 per cent in the last two decades. IMF expected Tanzania’s GDP to increase from an estimated 46.7 billion U.S. dollars in 2016 to 70.7 billion U.S. dollars by 2021. Within this forecast period, the report mentioned that inflation is expected to remain stable at 5.0 per cent.