The World Bank has confirmed Tanzania’s graduation from a low-income country to a middle-income nation.
The announcement comes after the marked advance of economic reform efforts in the East African country and tremendous improvements to development.
In its latest published reviewed classifications of world economies, the World Bank categorised Tanzania among middle-income countries.
All middle-income nations are expected to have a per capita gross national income of between $1,006 and $3,955.
The country had planned to gain middle-income status by the middle of this decade; the achievement of the target ahead of schedule will give the country added impetus.
East Africa’s second-fastest growing
Tanzania’s economy is one of the fastest-growing in the world, a factor that helped it attain middle-income status.
The BBC reports that the country grew by 6.8 per cent in 2019 and 7% the previous year.
President John Magufuli is said to have transformed Tanzania’s economy on assuming office by implementing prudent reforms.
Tanzania is now only the second East African Community member state (Kenya was first) to be classed in the middle-income bracket. Analysts say its decision to invest in human development extensively has helped raise its economic outlook.
Peace and discipline
Addressing a news conference in the Tanzanian capital, Dodoma, the chief government spokesperson, Hassan Abbasi, said the prevailing peace in Tanzania has contributed to it earning middle-income status.
The government’s financial discipline as well as the implementation of flagship projects have also been critical, he said.
“Discipline in financial expenditure and the prevailing peace and tranquillity also helped the country to earn the middle-income status from the World Bank,” Abbasi said.
President Magufuli took to Twitter to express his joy over Tanzania’s recognition by the World Bank.
“We had envisaged achieving this status by 2025 but with strong determination this has been possible in 2020,” he tweeted on Wednesday.
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