`Economic downturn blessing to Tanzania`
Thématique :
tanzanie
IPP Media - 2009-03-15, By Robert Ochieng
Addressing a press conference in Dar es Salaam this week, Khan said the country stands to benefit immensely from adequate investment in agriculture, its traditional economic mainstay, owing to expected increase in demand for food and food products in countries currently grappling with the economic recession.
``As soon as all this is over, western countries as well as China and other Asian economic giants will be greatly in need of agricultural products to feed their large populations, and this is where Tanzania aptly comes in, given that it is endowed with enormous agricultural potential,`` the bank`s chief economist for Africa said.
``Like majority of other African countries, Tanzania has been unable to fully tap in its own economic resources to goad the much needed growth,`` Khan said adding that as a result it has been highly dependent on financial aid from donor countries and other agencies to drive its economy.
With the global economic recession significantly impacting the country`s big lenders, Tanzania`s economy is likely to suffer a blow as the donors cut back on big spending, she pointed out, expressing optimism about long term investment in the agricultural sector, which employs 80 per cent of the country`s population.
According to Khan, improved fiscal policy, commodities boom and average inflation dropping to a single digit are among factors that initially fueled investors` interest in Africa, but have since changed with the world economic crunch.
The West, which had marginalised Africa, developed a sudden change of heart when they saw favorable economic conditions, with debt relief adding to the attractiveness of African economies, she explained.
``China-African trade has also grown 20 fold over a decade, widening local investor base, and lower rates stimulating private sector growth have all worked to ignite the West sudden interest,`` Khan elaborated.
Despite the good news, she said, Africa needs huge financial requirements to develop its infrastructure to facilitate trade in agricultural products.
Addressing a press conference in Dar es Salaam this week, Khan said the country stands to benefit immensely from adequate investment in agriculture, its traditional economic mainstay, owing to expected increase in demand for food and food products in countries currently grappling with the economic recession.
``As soon as all this is over, western countries as well as China and other Asian economic giants will be greatly in need of agricultural products to feed their large populations, and this is where Tanzania aptly comes in, given that it is endowed with enormous agricultural potential,`` the bank`s chief economist for Africa said.
``Like majority of other African countries, Tanzania has been unable to fully tap in its own economic resources to goad the much needed growth,`` Khan said adding that as a result it has been highly dependent on financial aid from donor countries and other agencies to drive its economy.
With the global economic recession significantly impacting the country`s big lenders, Tanzania`s economy is likely to suffer a blow as the donors cut back on big spending, she pointed out, expressing optimism about long term investment in the agricultural sector, which employs 80 per cent of the country`s population.
According to Khan, improved fiscal policy, commodities boom and average inflation dropping to a single digit are among factors that initially fueled investors` interest in Africa, but have since changed with the world economic crunch.
The West, which had marginalised Africa, developed a sudden change of heart when they saw favorable economic conditions, with debt relief adding to the attractiveness of African economies, she explained.
``China-African trade has also grown 20 fold over a decade, widening local investor base, and lower rates stimulating private sector growth have all worked to ignite the West sudden interest,`` Khan elaborated.
Despite the good news, she said, Africa needs huge financial requirements to develop its infrastructure to facilitate trade in agricultural products.
