Tanzania's economic prospects.
President John Magufuli’s ad hoc anti-corruption crackdown is directly impinging on economic growth, with effects reverberating through both the private and public sectors. However, Magufuli’s populist proclivities may be tempered by the need to maintain rapid economic growth to achieve the government’s industrialisation objectives. Recent overtures to improve the business environment could signal increasing government tolerance towards the private sector, but will be watched closely amid lingering concerns over erratic policy shifts.
The government may have to rethink its export restrictions on metals as rising oil prices increase import costs.
Falling food prices will continue to underpin low inflation despite successive fuel price hikes.
The fiscal year 2018/19 (April 2018-March 2019) budget points to continued over-optimistic revenue projections.
