This archive report was first published on 19 May 2020.
Published on May 19, 2020, Tanzania's economic growth is expected to slow down to 4% due to the COVID-19 pandemic, marking the country's slowest growth in three years.
The country's Minister of Finance, Philip Mpango, warned that the economy could decline further depending on the pandemic's impact on different sectors. The tourism sector, which is heavily reliant on international travel, has been severely affected by travel restrictions and closed borders.
Tourism Minister Hamisi Kigwangalla estimated that revenue from tourism could fall from $2.6 billion to $598 million, affecting 477,000 jobs. Other key sectors such as mining, agriculture, and manufacturing are also experiencing a downturn due to the global market fluctuations.
As a result, the country's manufacturing sector has seen a significant drop in sales revenue, exceeding 50%, leading to job losses. In response to the economic challenges, the central bank reduced its benchmark interest rate and the minimum reserve requirement to protect Tanzania's financial stability.
The central bank also reduced the discount rate from 7% to 5% and the minimum reserve requirement by 1% from 7%. President Magufuli appealed to lenders to consider debt relief to allow Tanzania to fund its healthcare sector.
