Tanzania has achieved lower middle income status ahead of schedule. The East African country had planned to reach this level in 2025, however, far reaching reforms by new President John Magufuli has enabled to the country to achieve this status 5 year ahead of schedule.

The status was Confirmed by the world Bank on 1 July.

Key Points

  1. Gross National Income is now $1080 per Capita ( Up from $622)
  2. In 5 years Magufuli doubled the GDP to $60 Billion
  3. Tanzania is a transit hub, surrounded by 8 landlocked countries
  4. The status boosts its creditworthiness
  5. The status will bring about more investment

How Tanzania achieved this status

  • Tanzania has massive tourist attractions like the Kilimajaro
  • Tanzania is building the $3 Billion Julius Nyerere Hydro-electric dam
  • They are also building the $3 Billion Standard Gauge Railway
  • Expanding the Dar es-Salaam, Tanga and Mwara Ports
  • Building a new LGP worth $30 Billion at Likong’o-Mchinga
  • They are partnering with Uganda on a $3 Billion Oil Pipeline

Reforms

  • President Magufuli has introduced a new law that says small scale miners don’t need to pay tax.
  • Magufuli withdrew licenses from non-performing investors to more than 5000 small scale miners
  • Magufuli built a wall around Mireni, the Tanzanite mining city. Where a small Tanzanite miner Sininiu Laizer became a multi billionaire.

Benefits

  • Tanzania is now among the top 5 gold producers in Africa.
  • Tanzania has attracted $1 Billion in FDI.
  • Manufacturing has grown and Tanzania is now producing Cement, textiles, tools and machinery.

Improvement areas

  • Agriculture is still not at the desired levels

Please watch the above video for more details.

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