Tanzania posts good growth in EAC
DAR ES SALAAM, TANZANIA-Rwanda's economy has come first in the region with a considerable recorded growth of 7.7%t as in the first quarter of this year.
Tanzania came second with an economic growth of 7.1%t while other African states of Kenya and Uganda recorded a growth of less than 3% in the same quarter.
The BOT governor Prof. Benno Ndulu said in Dar es Salaam that Tanzania economic growth record of 7.1% as compared to 5.1% that was recorded last year gives the country an assurance of the projected growth of 6.9 %.
Unveiling the enhanced Government Securities System that will aim at ensuring treasury bills and bonds auctions conform to international best practice and keep pace with technological advancements, the governor said that the country also experienced decline in inflation that he said currently stands at 19.7% as compared to 19.8% July inflation record.
He said the decline in inflation has mainly attributed to a sharp drop of food prices on the local market.
"There has been a considerable drop of food prices by August this year as compared to the prices that were recorded in the month of January through to June where prices of food stuffs and other commodities remained high for several months" the governor said.
Ndulu said it was important for the public to note that Tanzania has not yet recorded the decrease of inflation as per our expectations and it is neither true to say that the country hasn't done anything to insure that inflation is contained to a single digit.
The BOT governor insisted that in the same quarter of September last year the country had recorded the highest inflation of between Tsh.1,828 ($1.15) to Tsh.1,840 ($1.16) against $1 but since January this year there has been a considerable gains of shillings trading at a constant rate of between Tsh.1,570 ($0.99) and Tsh.1575 (0.99) against $1.
"We usually make follow-ups of the trend of the depreciating and gaining of shillings and this means that Tanzania economy is improving" the BOT governor said.
The governor noted that economic improvement that has been realized in the country through the stabilization of the shillings should not be underestimated because many countries in Africa and some big countries in Europe as well were yet to come out of the 2007 economic crunch.
He cautioned experts and politicians not to make comparisons of the past and present with regards to the country's economy as though the periods were the same saying the public needs to take note of the situations of economic crunch that the country faced before making any critics and remarks about the country's economic status.
Commenting on domestic revenue collections the BOT governor Prof Ndulu said that for the first time in the country's history the collections for 2011/2012 financial year had surpassed the target by about 3 to 4%.
He said that while the government domestic revenue stood at Tsh7.2trn ($4.5bn) the normal expenditure stood at Tsh6.9trn ($4.3bn) saying this trend has not been experienced for the past 4years.
"We do face a lot of challenges due to dependency on foreign aid and or financing that do not come at the right time and sometimes the money is never channeled to the required development projects intended and added that foreign aid last year was anticipated at Tsh2.5trn ($1.5bn) but only Tsh1.7trn ($1.0bn)" the governor said.
He said the public need to know that all the grants for the year 2011/2012 financial year constituted to only 21% of the total national budget while grants and loans from the World Bank (WB) and African Development Bank (AFDB) stood at 32% of the total budget.
Tanzania came second with an economic growth of 7.1%t while other African states of Kenya and Uganda recorded a growth of less than 3% in the same quarter.
The BOT governor Prof. Benno Ndulu said in Dar es Salaam that Tanzania economic growth record of 7.1% as compared to 5.1% that was recorded last year gives the country an assurance of the projected growth of 6.9 %.
Unveiling the enhanced Government Securities System that will aim at ensuring treasury bills and bonds auctions conform to international best practice and keep pace with technological advancements, the governor said that the country also experienced decline in inflation that he said currently stands at 19.7% as compared to 19.8% July inflation record.
He said the decline in inflation has mainly attributed to a sharp drop of food prices on the local market.
"There has been a considerable drop of food prices by August this year as compared to the prices that were recorded in the month of January through to June where prices of food stuffs and other commodities remained high for several months" the governor said.
Ndulu said it was important for the public to note that Tanzania has not yet recorded the decrease of inflation as per our expectations and it is neither true to say that the country hasn't done anything to insure that inflation is contained to a single digit.
The BOT governor insisted that in the same quarter of September last year the country had recorded the highest inflation of between Tsh.1,828 ($1.15) to Tsh.1,840 ($1.16) against $1 but since January this year there has been a considerable gains of shillings trading at a constant rate of between Tsh.1,570 ($0.99) and Tsh.1575 (0.99) against $1.
"We usually make follow-ups of the trend of the depreciating and gaining of shillings and this means that Tanzania economy is improving" the BOT governor said.
The governor noted that economic improvement that has been realized in the country through the stabilization of the shillings should not be underestimated because many countries in Africa and some big countries in Europe as well were yet to come out of the 2007 economic crunch.
He cautioned experts and politicians not to make comparisons of the past and present with regards to the country's economy as though the periods were the same saying the public needs to take note of the situations of economic crunch that the country faced before making any critics and remarks about the country's economic status.
Commenting on domestic revenue collections the BOT governor Prof Ndulu said that for the first time in the country's history the collections for 2011/2012 financial year had surpassed the target by about 3 to 4%.
He said that while the government domestic revenue stood at Tsh7.2trn ($4.5bn) the normal expenditure stood at Tsh6.9trn ($4.3bn) saying this trend has not been experienced for the past 4years.
"We do face a lot of challenges due to dependency on foreign aid and or financing that do not come at the right time and sometimes the money is never channeled to the required development projects intended and added that foreign aid last year was anticipated at Tsh2.5trn ($1.5bn) but only Tsh1.7trn ($1.0bn)" the governor said.
He said the public need to know that all the grants for the year 2011/2012 financial year constituted to only 21% of the total national budget while grants and loans from the World Bank (WB) and African Development Bank (AFDB) stood at 32% of the total budget.
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