Revealed: Tanzania’s rising economic powers

Dar es Salaam. As Dar es Salaam has continually maintained its status as Tanzania’s largest and most important economic centre, attention is increasingly turning to regions that have recorded impressive growth in recent years.

Njombe, Simiyu, Dodoma, Coast and Kagera recorded the fastest economic growth regionally from 2018 to 2022, according to data from the Bank of Tanzania’s 2023 Consolidated Zonal Economic Performance Report.

Despite having lower GDP figures than Dar es Salaam and other major urban centres, these regions recorded notable growth over the five-year period.

Njombe’s GDP increased by 48 per cent, from Sh2.08 trillion to Sh3.09 trillion, while Simiyu’s jumped by 44.72 per cent, from Sh2.12 trillion to Sh3.07 trillion. of shillings.

Dodoma’s GDP grew from Sh3.71 trillion to Sh5.3 trillion, representing an expansion of 42.86 percent, and Coast recorded a growth of 42.53 percent, from Sh2.4 trillion. shillings to 3.42 billion shillings.

Kagera also witnessed significant growth, with its GDP expanding by 39 per cent to reach Sh4.35 trillion from Sh3.22 trillion.

In contrast, Dar es Salaam’s GDP grew by 34 percent from Sh21.63 trillion to Sh29.02 trillion during the same period. Dar es Salaam recorded the slowest growth with the exception of Shinyanga, whose GDP expanded by 33.84 percent from Sh4.45 trillion to Sh5.96 trillion.

Dr Daudi Ndaki of Mzumbe University said regions such as Njombe, Simiyu, Dodoma, Coast and Kagera are prioritizing investment in infrastructure, education and healthcare, explaining their impressive 2018 economic growth rates. to 2022.

However, he added that it was not entirely surprising that Dar es Salaam recorded one of the slowest growth rates.

“The norm is that the larger the economy, the slower the growth. That is why you will see that Tanzania’s economy, for example, is growing much faster than the GDP of many developed countries,” said Dr Ndaki.

Godsaviour Christopher, assistant professor at the University of Dar es Salaam Business School, said the economies of the five regions are growing rapidly due to increased investment and untapped growth potential.

“These regions still have many investment opportunities, while large cities like Dar es Salaam have already consumed a large amount of available resources and are approaching their maximum capacity,” he said.

Regions like Njombe are at the forefront of commercialized agriculture, livestock development, forestry and small business development.

According to official statistics, in Njombe there is just over 184,000 arable land available for investment for the cultivation of corn, tomatoes, Irish potatoes, beans, pineapples, avocados, tea production, flowers and timber.

The 2022 national economic survey by the Ministry of Finance noted that Njombe was among the regions with the highest number of irrigation systems.

As for Simiyu, agriculture and livestock are the economic pillar of the region. Another key economic activity is fishing in Lake Victoria in Busega District and Lake Kitangiri in Meatu District.

A vision has also been developed to make the Dodoma region economically competitive, socially inclusive, environmentally sustainable, vibrant, safe and convenient.

Part of the Dodoma city master plan includes the Nala industrial centre, where the city council has designated land about 20 kilometers from the city center to be developed to house industries of all categories and logistics, warehousing and facilities. hostelry.

Another major project is the planned industrial center in Mpunguzi, in the south of the city, which is being developed to house manufacturing, processing and packaging facilities for grape products due to the area’s proximity to vineyards.

In recent years, the coastal region has become a key destination for strategic projects such as the Julius Nyerere Hydropower Project (JNHPP), which is being implemented in Rufiji district.

The region is also home to more than 1,500 industries located in various industrial centers, according to regional authorities.

The Kagera region is known for its agriculture, beautiful lush landscapes and wildlife. Trade is an important occupation in the region. Other key economic activities include mining, agroforestry, beekeeping, tourism, fishing and small-scale industries.