See reason why Tanzania is set to overtake Kenya as East Africa’s second largest economy
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Loading... - Gloria Dotto
- 18 Apr 2023
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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. Read More…
