Gov’t: Lack of inclusive economy sends high poverty rate in rural areas

Dar es Salaam. Lack of inclusive economy puts poverty rate in rural areas well above the government’s plans; it has been announced on Thursday.

Tabling the 2016/17 state of the economy address in parliament, Finance and Planning Minister Philip Mpango said the current poverty rate stood at 33.3 per cent.

The government’s plan is to reduce it to 19.3 per cent and 15 per cent in 2020 and 2025 respectively.

“Lack of inclusion, as many people in rural areas do not receive enough representation in the economy acts as an obstacle in cutting poverty rate,” noted Dr Mpango adding, “this is because people in rural areas do not feel that much pinch of economic growth in the country, which has over many years been growing at rate of seven per cent.”

He said the trend was attributed to their concentration on the sectors like agriculture, fishing and livestock keeping, which were not delivering economic impact to them.

“In our fresh bid to build economy which is inclusive, we are committed towards improving economic activities in rural areas, a move with which will help us to reduce poverty rate,” Dr Mpango said.