This archive report was first published on 17 December 2019.
According to a new World Bank report, Tanzania has made significant progress in reducing poverty over the past decade. However, despite this progress, nearly half the population still lives on less than $1.90 per day.
Published on December 17, 2019, the report highlights the country's sustained economic growth and poverty reduction. However, the report also notes that the poverty-reducing impact of economic growth has been slowing down.
The World Bank confirmed that the government's 'basic needs poverty rate' had declined from 34.4 per cent in 2007 to 28.2 per cent in 2012, and to a further 26.4 per cent in 2018. This decline is a welcome development, but it is essential to accelerate the trend, as the number of the poor is still high, and the majority of Tanzanians are vulnerable to falling back into poverty at the slightest shock.
World Bank Country Director for Tanzania, Zimbabwe, Zambia, and Malawi, Bella Bird, emphasized the need for investments in human capital, particularly among the poor and vulnerable. She noted that increasing access to productive employment opportunities is key to sustaining the momentum picked up during the past decade.
The report also highlights the importance of structural transformation in the economy, with emerging signs of a shift towards industry and services. This transformation is reflected in the increasing share of industry and services in total employment, as well as the diversification of agriculture towards non-farm wage and self-employment.
