Quote from Susa Africa on December 7, 2022, 8:24 am

Friday's Independence Day celebrations in Tanzania have been canceled by President Samia Suluhu Hassan, who has instead ordered that the funds be used to construct dormitories for children with special needs.

Tanzania’s budget for the financial year 2022/23 is TZS 41.48 trillion Shillings ($18 billion). The $445,000 that was allocated for the 61st Independence Day celebration will instead be used to construct eight dormitories in primary schools around the nation.

George Simbachawene, Tanzania's minister of state, said on Monday that the money had been disbursed. He stated that the East African country will celebrate Independence Day by having public dialogues on development.

Celebrations of Independence Day are typically distinguished by pomp and state banquets.

In a report, UNICEF indicated that, nearly one third of Tanzanian children live in income poverty while as many as 74 per cent experience multidimensional poverty, suffering deprivation in three or more areas such as health, nutrition, water, sanitation, housing, education, child protection and access to information.

The former vice president and a member of the ruling party, Chama Cha Mapinduzi, was sworn in as president following the death of her predecessor, John Magufuli, in March 2021. She is expected to remain in power until 2025, and is likely to be voted back into office that year. Policy under Ms Samia will continue to be geared towards improving the business environment to unlock investments and drive growth. Economic growth in 2023-27 will remain brisk and broad-based, with services and industry being core drivers. A cross-border oil project with Uganda will progress after delays.

Trading Economics global macro models and analysts expectations noted that GDP in Tanzania is expected to reach 62.00 USD Billion by the end of 2022. In the long-term, the Tanzania GDP is projected to trend around 62.00 USD Billion in 2023, it econometric models added.

Tanzania has cancelled the festivities before, though not this time. Then-President John Magufuli canceled celebrations in 2015 and used the money instead to build a road in the commercial center of Dar es Salaam. He repeated this in 2020 and instructed that the budget be utilized to purchase medical facilities.

The East African country's population grew from 44.9 million in 2012 to more than 60 million, according to the census carried out earlier this year, with Hassan saying the numbers reflected an annual increase of 3.2 percent. With a larger population, more efficiency is needed to match "with the current challenges and current numbers" the president said.

Despite the spillover effects of the war in Ukraine and lingering impact of Covid-19, Tanzania’s economy grew by an impressive 5.4 percent in the first quarter of 2022. This puts the country on track to achieving its 2022 growth target of 4.7 percent. Initially, the government had set itself a target of boosting economic output by 5.5 percent.

However, with the Ukraine war, which saw prices of fuel, cooking oil, wheat and fertiliser, among other essential items, rise due to disruptions of supply chains after the US and its allies imposed sanctions on Russia, Tanzania reviewed its GDP growth targets.

In September, Tanzania's economy has grown by 5.4 per cent compared to the projection of 4.7 per cent, for the first quarter of the year 2022. The increase was seen in Zanzibar where its economy hiked by 5.1 per cent below a target of 5.4 per cent. More so, by the end of August this year, the country's foreign reserve reached 5,092 million US dollars, amount that is enough to cater for importation of goods and services for about 4.6 months.

Total trade in goods and services (exports plus imports) between the UK and Tanzania was £227 million in the four quarters to the end of Q2 2022, an increase of 5.6% or £12 million from the four quarters to the end of Q2 2021. Tanzania was the UK’s joint 121st largest trading partner in the four quarters to the end of Q2 2022 accounting for less than 0.1% of total UK trade. In 2020, the outward stock of foreign direct investment (FDI) from the UK in Tanzania was £155 million. In 2020, the inward stock of foreign direct investment (FDI) in the UK from Tanzania was £4 million.

In a bid to shape the country’s economy for the current and next financial years, Minister Nchemba said the government would keep the momentum going when it comes to creating an enabling business and investment environment.