A United Nations report on the 30 biggest African economies has ranked Tanzania as the third fastest growing economy on the continent, with a projected growth rate of 5.6% in 2023.
The report predicts that Cote d’Ivoire, the world’s largest cocoa producer, will register a growth rate of 6.5% for the same period, while Rwanda is expected to achieve a 7.8% growth rate due to successful technology-driven transformation and foreign direct investment.
Although Uganda and DR Congo, East African Community partner states, are expected to register a modest growth rate, Africa’s economic growth is expected to fall from 4.1% registered last year to 3.8% in 2023.
The report cites several factors, including falling exports and investor reluctance, for this decline. Moreover, North and Southern Africa, which have the largest economies on the continent, will see a fall in growth rate attributed to a major rise in global inflation, higher borrowing costs, and the impact of climate change. In contrast, the report indicates that DR Congo will register one of the fastest growth rates on the continent in 2023, due to increased mining activities.
Tanzania’s ranking as the third fastest-growing economy in Africa is expected to attract more attention from investors, especially after the World Bank recently ranked it the 10th richest country in Africa based on overall gross domestic product.
However, Tanzania is not among the 10 top economies on the continent based on purchasing power parity.