ECONOMICS

by Dr Hildebrand Shayo

Tanzania’s standing in the context of evolving global geopolitics Recently, an article in an English-language newspaper circulated in Tanzania suggested that Tanzania has been sleepwalking into global irrelevance. The author stated, among other things, that the relocation of UN offices to Nairobi, Kenya, serves as a significant indicator of Tanzania’s declining prominence, given the previous experience from Arusha was a testimony that Tanzania was ready to accommodate such offices.

For Tanzanians, an explanation provided by Susan Ngongi Namondo, the UN Resident Representative in Tanzania, along with the reasons for choosing Nairobi, implied that the author should have reached a different conclusion about Tanzania’s position.

Between 2022 and 2024, Tanzania experienced a significant increase in foreign investment inflows, mainly due to improved policy stability, regulatory reforms, and strategic infrastructure development. Sectors such as mining, energy, agribusiness, and manufacturing, have attracted heightened attention from international investors, bolstered by governmental initiatives aimed at refining investment processes via entities such as the Tanzania Investment Centre (TIC). This positive trajectory has fostered job creation, facilitated technology transfer, and enhanced export diversification – essential components in fortifying Tanzania’s economic foundation.

Under the current leadership, these efforts have strengthened the nation’s economic resilience within the region. These investments align well with the nation’s primary goals outlined in Development Vision 2050 (DV2050), which aims to develop into an upper-middle­income and globally competitive economy by promoting sustainable industrialisation and inclusive growth.

Another area mentioned was human capital and how Tanzania has neglected education. Based on the assessment of the budget approved by the National Assembly from 2022 to 2024, Tanzania has made notable advancements in enhancing human capital by augmenting government investment in education, elevating productivity in both public and private sectors.

Prominent initiatives have encompassed the broadening of access to technical and vocational education, the elevation of teacher training standards, and the incorporation of information and communication technology within educational institutions. The initiatives in place are now yielding tangible results, as a growing workforce gains proficiency in relevant, job-ready skills.

Further, Tanzania made notable advancements in logistics efficiency between 2022 and 2024 by implementing strategic investments in its transport infrastructure. Recent advancements have positioned Tanzania as a key logistics hub in the region, enhancing its trade competitiveness and strengthening economic ties with neighbouring nations.

The procurement of a new fleet for Air Tanzania has significantly improved domestic and regional air connectivity. Implementation of the Standard Gauge Railway (SGR) has improved cargo transportation from Dar es Salaam Port to inland and landlocked nations, such as Rwanda, Uganda, and the DRC. At the same time, advances in port efficiency, such as digitized clearance systems and increased handling capacity, have reduced turnaround times and boosted throughput.

Those with insights and knowledge backed by data from government institutions such as BOT and NBS, and reviews conducted by the World Bank and IMF, can confirm how Tanzania is performing strongly on the regional and global stage, especially as Kiswahili continues to be a preferred UN language and enhances regional and international cooperation.

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