- Tanzania is projected to have a larger economy than Kenya within the next decade, based on a report by the International Monetary Fund (IMF).
- The Tanzanian government’s receptiveness to foreign and domestic investment, as well as its advocacy for intra-continental trade, are contributing factors to the country’s rapid economic growth.
- Tanzania has established partnerships with numerous countries and organizations across the globe in various industries, including tech, agriculture, mining, and construction, making it one of Africa’s best investment destinations.
As presently constructed, Kenya stands as East Africa’s second largest economy in terms of overall GDP, second only to Ethiopia. However, Kenya’s spot as the subcontinent’s second largest economy could change within the next decade owing to the rate at which East Africa’s 3rd largest economy, Tanzania is growing.
This prediction is based on a report issued by the International Monetary Fund. According to the global lender, Tanzania’s economy is expected to grow at a higher rate than Kenya’s, and in roughly ten years, Tanzania’s overall economy would surpass Kenya’s.
Tanzania’s economy, which is currently worth $85.4 billion (Sh200 trillion), is predicted by the International Monetary Fund (IMF) to reach a value of $136 billion by the year 2028. Kenya, which currently has the largest economy in East Africa with $118.1 billion, will grow to a $151 billion GDP by 2028.
However, Tanzania will exceed Kenya’s economic growth and will have a larger economy in the next ten years based on the IMF’s economic outlook and using the two nations’ respective GDP growth histories.
Tanzania’s rate of development can be attributed to the country’s receptiveness to foreign direct investment. The current Tanzanian administration also encourages and even incentivizes domestic investment, effectively creating an economic ecosystem that makes the establishment of private and public enterprises conducive.
Over the last few yearsTanzania has partnered with numerous organizations across the globe in fields such as tech, agriculture, mining, construction and more. USA, South Korea, China, and India are a few of the countries which have major business dealings in the East African country.
The Tanzanian government is also an advocate for intra-continental trade, standing as one of the countries that continue to leverage the African Development’s Bank continental trade framework. Between 2022 and 2023, Tanzania has partnered with a few East African countries, to remove unfavorable trade tariffs hindering the maximization of revenue for domestic businesses.
The country is also partnering with Kenya to develop its cross-border railway, and its electricity powered cross-border railway to Burundi.
In retrospect, President Samia Suluhu Hassan, has created a business-friendly environment for innovative ideas to thrive. Tanzania currently stands as one of the fastest growing economies on the continent, and one of Africa’s best investment destinations.
According to World Economics, Tanzania is currently the 11th largest economy in Africa based on GDP, it is the 3rd largest economy in East Africa, coming in behind Kenya and Ethiopia and it is the world’s 68th largest economy.
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