Economic growth hard to feel - BoT

from IPP Media

By Lydia Shekighenda

The Bank of Tanzania (BoT) has projected that it will be between three and four decades before ordinary wananchi ``feel`` the country`s economic growth.

This is according to BoT Governor Benno Ndulu in a presentation at a forum for researchers and decision-makers in Dar es Salaam yesterday.

Prof Ndulu`s presentation centred on the challenges of growth Tanzania was contending with and was made at an annual research workshop organised by Research on Poverty Alleviation (Repoa).

The BoT chief argued that it was impossible for the results of economic growth to be felt within a short period, adding: ``Last year Tanzania`s economy was projected to have grown by 7.3 per cent.

If we had managed to grow consecutively for a period of 30 to 40 years, then the outcome would have been felt right down to the grassroots level.``

He recommended that greater attention be directed at areas with great potential of leading to positive results in the economy if given the right support.

``We should not focus only on how the economy is growing but also on areas able to provide greater opportunities to our people. This approach could be termed as pro-poor growth,`` he said.

The professor explained that Tanzania`s economy has improved much over the years in terms of structure, sources of growth and exports ``but one of the major challenges ahead is making sure that the country sustains these changes``.

``We should not focus only on how to improve agriculture by providing loans and subsidies on agricultural inputs but we should also come up with strategies with the capacity to bring about positive changes to our economy,`` he pointed out.

The central bank governor also underscored the need for local investors to contribute more substantially to the creation and strengthening of a vibrant private sector.

Opening the workshop, Industry, Trade and Marketing deputy minister Cyril Chami said it was possible to attain and sustain the country`s domestic and global development targets if they were based on a sound domestic economy.

Achievements based mainly on external resources were bound to face problems of sustainability, he asserted, noting that salvation lay in having the country focus on ``the refinement of its growth strategy - which must be brought into sharp focus within the development agenda``.

Repoa executive director Joseph Semboja said the forum has grown into the largest and longest running annual event hosted by his institution.

This year`s participants included researchers, central and local government officials, private sector players, and representatives of civil society organisations, and the donor community.