Some of Tanzania’s basic commodities recently dipped in price, signaling a period of economic relief for the East African nation.
For most of 2022, Tanzania was one of the few countries in sub-Saharan Africa, which operated within its means. Although high, the country’s inflation rate remained consistent with its target of 5.4% in 2022/23.
Ending the year, the country’s inflation swung further in the right direction, dipping from 4.9% in November to 4.8% in December, which of course denotes a slower pace in the consumer price increase.
The Citizen, a Tanzanian news publication, also noted that Tanzania’s inflation rate was also in line with “the East African Community (EAC) and Southern African Development Community (SADC) convergence criteria of a maximum of 8 percent and a range of 3-7 percent, respectively.”
According to the country’s National Bureau of Statistics (NBS), this relief is set to continue throughout the first quarter of the new year.
Prices of commodities such as food and non-alcoholic beverages in the first quarter of 2023 would drop in price.
During a session to discuss the state of the Tanzanian economy, Dr Albina Chuwa the NBS’s general statistician noted that the bureau has projected that food and non-alcoholic beverages will drop to 8.4% in the first three months of 2023 from 9.7% recorded in December 2022.
“Our projections are positive and are on the back of the expected harvest of grain crops across the country, as well as subsidies provided in fertilizer and different relief policies by the government,” she said.
During the fiscal year, Tanzania constituted numerous initiatives to bolster trade ín its economy. Coupled with amplifying its tourism sector, the country took bold steps in strengthening its trade ties with its African, European, Asian and American trade partners.
The country’s current administration, under President Samia Suluhu Hassan, focused heavily on business initiatives to enhance its economy amidst an economically challenging year for the world.