Tanzania post high growth rates despite crunch

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MOST of the country’s economic sub-sectors defied global economic meltdown pressure last year to register higher growth rates, at least in the first quarter, according to a report by the National Bureau of Statistics (NBS).

Almost all economic sectors recorded some substantial growth rates, save for agriculture, financial intermediation, public administration, mining and quarrying, says the statistical bureau in its first ever quarterly Gross Domestic Product estimate report.


But stakeholders have faulted the report, which highlights growth in the tourism sector, in total contrast with the widely held perception that tourism sector was hard hit by the global financial crunch because most tourists cancelled their bookings, saying it lacks in substantial and obvious facts.

“Growth in (tourism) is attributable to slight increase in the number of international and resident visitors to hotels,” said Adella Ndesangia from NBS, as she gave highlights on the national economic performance during the period under review.

She noted that an overall bed occupancy index increased from 159 in 2008 to 166 last year. Other sectors that grew at higher rates are fishing, manufacturing, construction, electricity and education.

Increased demand for fish in foreign markets pushed up fishing activities, recording 7.9 per cent growth rate against the previous year’s negative growth of 19.4 per cent.

The agricultural sector, which accounts for over half of the country’s total GDP, grew at a paltry rate of 0.3 per cent during the January-March, 2009 period - compared to seven per cent during the corresponding period in the previous year.

The minimal growth in the nation’s economic backbone was attributed to prolonged droughts. The sector, however, registered a slight increase in production of major staple food crops -maize, paddy and sorghum/millet that grew at two, four and one percentage respectively.

The mining sector, according to the report released at a half-day dissemination seminar in Dar es Salaam yesterday was the most hit, growing at a negative rate of over 40 per cent during the period under review.

The collapse of Geita gold mine underground infrastructure and falling prices of diamond in the world market were blamed for the negative growth of the industry, ranked among the fastest growing economic sectors.

Debating the report during a half-day launching and dissemination seminar of the report, stakeholders said the 20-page document was not portraying the actual happenings on the ground. They said, for instance, exclusion of the livestock sector in the country’s GDP was unjustifiable.

“Tanzania is third in Africa in livestock population, yet there is nowhere the report indicates the contribution of livestock to the GDP,” charged one seminar participant.

But Mr Gabriel Simbila from NBS said the GDP estimates were about economic values created, not the number of animals: “There is no economic value created by keeping the animals…they should be sold to create value,” he said.
source: Daily news