Tanzanians have been advised to take advantage of the global economic challenges by diversifying and increasing the productivity of products that are highly needed in international markets.
Soaring food and energy costs have fuelled the highest rates of inflation since the 1980s in many countries and the biggest macroeconomic challenge in the modern era of central banking.
The International Monetary Fund has warned this year will be tougher than last, while 63 per cent of the chief economists surveyed by the World Economic Forum predict that 2023 will see a global recession.
The Tanzania Private Sector Foundation TPSF Board Director, Mr Octavian Mshiu said that it is time for the country to strengthen the production sectors to grab various opportunities in the international markets.
He said that the business environment in the world has changed, therefore as a country, it is time to look at the opportunities and discuss how the country can produce in large quantities and supply to both African and global markets.
“We should not consider economic challenges or conflicts as something that hurts us but it is time as a nation to discuss the changes in the economic environment in the world, the ongoing political situation in the world to see how we use it to emerge economically,” Mr Mshiu said.
He added we have to see how we can take this opportunity to cultivate more wheat so that we can cultivate more wheat, and fruits so we can supply to various countries.
“As TPSF, we use the ongoing economic situation in the world as an opportunity. We need to use that opportunity to see what our colleagues did and what as a nation we are supposed to do,” said Mr Mshiu.
He said for example during the war in Ukraine, Tanzania enabled to breach of the world market and sold coal for more than 330bn/- since the European countries changed the suppliers to the Tanzania market in 2022.
According to the Bank of Tanzania (BoT), Tanzania sold coal of about 30bn/- only to the global markets but in 2022 coal exports have increased by almost 10 times.
“Therefore, you can see how there is a supply gap of the coal so as a country we can produce it in abundance and supply it adequately,” Mr Mshiu said.
He said Tanzania is going to have a huge gas economy since the demand for gas in the world is great while the supply has changed due to what is going on in the world.
Moreover, Mr Mshiu urged the Diaspora to continue persuading investors to invest in the country since the blueprint foreseen improved the business environment, especially laws, regulations and charges which were contradictory and overlapping posing various challenges in doing business.
Tanzania is among the ten countries that made significant strides in improving the business through various programmes, in particular introducing a blueprint for regulatory reforms to improve the business environment geared to increase the flow of investments.
Dr Hilderbrand Shayo, an economist cum investment banker analyst stated that undeniably if trusted the private sector can lead Tanzania’s green growth through areas such as green building renewable energy, climate change-smart agriculture and energy efficiency improvements by tapping on opportunities provided by the financier in supporting investment and advisory services to such ventures.
Dr Shayo said that to turn challenges into economic opportunities Tanzania will in his view need to sensibly prioritize investments starting from no-regret actions that boost resilience benefits at an affordable cost.
Moreover, Tanzania will need to take imperative action to repair macroeconomic stability and debt sustainability and improve the business enabling the setting to mobilize funds from various sources including private and that could be achieved if such fund mobilization is channelled or raised by development finance institutions.
The recent growth projections by the international financier put East African countries’ prospects for this and next year better than the global average, but analysts say the region will not be spared from the coming recession.
East Africa’s economy is, however, predicted to grow by an average of 5.2 per cent this year, dropping from 6.4 per cent last year, but is expected to accelerate to 5.6 per cent next year, highlighting a better performance than the rest of the world.
According to the IMF’s World Economic Outlook report released last month, the global GDP growth rate will fall from six per cent last year to 3.2 per cent in 2022, further decelerating to 2.7 per cent in 2023 as a result of disruptions caused by the Eastern Europe conflict.