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How Tanzania can further support its private sector

Thursday December 03 2020
TZ pix

By Jasmine Mushi

It is well known that Tanzania has seen a period of steady economic growth in the past decade. This has helped the country become one of the fastest-growing economies in the East African region as well as the African continent.

According to the Legatum Institute – a UK-based think tank – this growth has been made possible through investment efforts from the country’s public and private sectors.

 As such, Tanzania has become a major exporter of minerals and precious metals such as gold. As well as this, the country is home to a vibrant tourism sector thanks to the country’s well-known conservation areas and national parks.

Going forward, investment and engagement from the country’s private sector are likely to continue to form an important component of the country’s economic growth through tax revenue, job creation and tech innovation.

For example, according to the United States Agency for International Development, the private sector already employs 70 per cent of the country’s youth population.

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Tanzania’s prosperous private sector is a reason for optimism for the country’s future growth. Despite this, there remain ways we can further support this sector in years to come.

According to an assessment by the IMF, one way in which the country can achieve this is through improvements to the country’s tax system.

 The report also notes that making it easier for skilled workers to obtain work visas can be a useful way of attracting foreign talent in the future.

Elsewhere, a report compiled by the World Bank highlights the way in which ICT can play a key part in strengthening the country’s private sector. Be encouraging investments in ICT, small to medium-sized businesses can connect with new customers.

 Meanwhile, tourism companies could benefit from increased online advertising or being able to process credit card transactions. Examples such as these show the important role ICT can play in making businesses more competitive.

As we approach the end of another year, it is certainly comforting that the country’s private sector has gone from strength to strength. Let’s continue to work with these businesses to help lay the foundations for further future prosperity.