BMI View: Our outlook for Tanzania's economy is not particularly positive at present, with economicgrowth set to slow in 2017 on the back of sluggish lending and the mineral export ban. That said, severalroad and bridge projects that have already secured funding from the World Bank and African DevelopmentBank will enter construction by the end of 2017.
Key Updates And Forecasts
Tanzania's real GDP growth will slow in 2017 owing to an export ban and weaker private sector activity.While government-led investment will be a boon to growth, the ban on exports of unprocessed mineralconcentrates will squeeze earnings given the lack of processing facilities in the country. Growth issupported by an uptick in transport infrastructure spending, including the construction of a 300kmstandard gauge railway from the port of Dar es-Salam to Morogoro, Reuters reported.
China Harbour Engineering Company (CHEC) has been hired by Harbor Management AuthorityTanzania (TPA) to provide upgrade work at the port of Dar es Salaam, Port Technology reported in June2017. The USD154mn contract has been funded by the World Bank and the aim is to double tonnage atthe port by 2020.