How Tanzania can steer clear of economic downside risks

Abstract

This newspaper article reports about Tanzania’s economy. According to reports, the economy is characterized by lower credit growth to the private sector, weak business environment and high levels of the non-performing loans (NPLs). The World Bank recently lowered the growth forecast to 6.6% against government projection of 7.1% in 2017 due to challenges economy is facing. Statistics indicate that lenders now prefer to invest in risk-free securities ignoring private sector securities. The private sector has cited concerns about overzealousness of private sectors, delay in VAT refunds and payments to contractors and other suppliers and proliferation of regulatory authorities, licenses, and taxes.