(Ecofin Agency) - Bank of Tanzania (BoT) expects Tanzania’s economy to grow to 7.3% in 2019, a 0.1% rise compared to the growth recorded in 2018. According to the bank, this growth will be spurred by commissioning of large infrastructures, favorable meteorological conditions and the solid implementation of an industrialization strategy.

Inflation is expected to be around 5% in the middle-term due to the improvement in food supply (because of favourable weather conditions) and the reduction of energy prices.

The current account deficit should rise from 3.5% in 2018 to 4.3% in the year under review because of the rise in imports of materials required to build large infrastructures in the country. The Central Bank also indicates its will to continue the implementation of the banking sector’s stabilization measures.

For instance, banks whose rate of non-performing loans is high will remain under Bank of Tanzania’s surveillance. Financial institutions operating in the country will continue to use the reference desk’s report for their credit evaluation. BoT will also launch the development of Tanzania Instant Payment System (TIPS), a shared payment platform aimed at promoting the use of electronic payments.  

Aaron Akinocho