WORLD BANK: UNCERTAINTY OVER GOVERNMENT POLICIES AND A SLOWDOWN IN THE PRIVATE SECTOR CUT TANZANIA’S GDP GROWTH

World Bank has warned that uncertainty over government policies and a slowdown in the private sector cut Tanzania’s gross domestic product growth to an estimated 6.9 percent in 2016 from 7.2 percent the previous year.

“The government should pay more attention to, and be more explicit about, the potential unintended consequences of government policies on the private sector.”

“Policy adjustments, if they occur frequently, could cause uncertainty for the private sector, and this uncertainty could dampen private sector investment decisions,” the World Bank said in its latest economic update for Tanzania.

Growth is still supported by substantial government investment in infrastructure, including a standard gauge railway, new roads and expanding the ports.

The World Bank said government cost-cutting measures, including restricting travel for officials, could hurt the private sector.

 “The negative business sentiment indicators point to the need for the government to promptly engage in public-private dialogue on investment climate,” the bank said.