What Can We Learn From Africa’s Fastest Growing Economies?

The East African nation of Tanzania – which placed second with a projected growth rate of just under 7 percent for 2015 – has been able to make important economic and structural reforms and sustain its economic growth rates over the last decade. The country’s overall macroeconomic performance, according to the World Bank remains strong with a high rate of growth and a low rate of inflation.

Although Tanzania is a net exporter of gold, its main economic drivers from include the fast-growing sectors of construction, transport and financial services.

The Tanzanian government announced the discovery of an onshore natural gas deposit worth an estimated $6 billion earlier this year and their President, John Magufuli confirmed that French energy company Total has agreed to build a $4 billion oil pipeline connecting oil fields in Uganda to a Tanzanian port.

Other variables that drive Tanzania’s economy include political stability, export growth driven by regional trade in manufactured goods, support from the World Bank Group, strengthening of its human capital and improvement in infrastructure and delivery of services.

Lessons:

The country that enjoys relative political stability, is endowed with natural resources that are well harnessed, builds a growing service industry and attracts high private investment, will prosper economically.