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AfricaMay 1 2006

Tanzania sets a small example

James Eedes reports from Dar es Salaam on the factors fuelling Tanzania’s recent vigorous growth.
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Tanzania often has to play second fiddle to other members of the East African Community. Kenya is the bigger economy (US$16.9bn versus Tanzania’s $12.1bn), has a more sophisticated private sector and is the better-known travel destination. Though smaller economically, Uganda has been praised for its reforms and received generous donor support.

But as both Kenya and Uganda teeter on the edge of uncertainty, Tanzania is politically stable, growing rapidly and winning praise from the International Monetary Fund (IMF) for its prudent government policies. Elections in December last year saw President Benjamin Mkapa bow out at the end of his constitutional two-term period in office, to be replaced by Jakaya Kikwete. In Africa, such a smooth transition is a democratic triumph.

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