Tanzania's wealth per capita has increased
The state of the Tanzanian economy, east Africa’s second largest, is a study in contradiction, say economists. Wealth per capita is $480.
The global average is $27,600 and in Mauritius, wealth per capita stands at $21,470, according to data from New World Wealth, a research firm.
The $480 figure is a 92% increase from 2000, when wealth per capita was at $250.
Some of the progress is due to the 6.3% economic growth he country has averaged over the past several years.
Rural Tanzanians are still struggling. And social mobility is still a challenge. From 2007 to 2012, less than a third of the country’s 50 million people were able to lift themselves to a higher welfare class.
However, the poor accumulated improvements to their standard of living, thanks to education, increased land ownership, and better infrastructure.
While it is accepted that Tanzania is one of the world’s poorest economies in terms of per capita income, it has achieved high overall growth rates based on gold production and tourism.
The IMF estimates that the country’s economy could grow 7% annually for the next few years, while pwcGlobal suggests it will become one of the fastest in the world. In addition to gold, the country is home to other minerals, including diamonds and coal.
That said, Tanzania faces massive infrastructural challenges across all sectors and it requires an estimated US$6 – US$8 billion to keep up with expected infrastructure needs through to 2020.
Transport and utilities infrastructure projects worth US$19 billion are in the pipeline.
The response by the country’s cement industry to the increase in infrastructure investment has been significant.
1. The Dangote Group’s 3 million tpa cement plant is complete. It is the largest cement plant in East and Central Africa.
2. Construction of Tanga Cement’s no. 2 clinker line is well in hand, increasing Tanga Cement’s total capacity to 3.5 million tpa.
3. Completion of Tanzania Portland Cement Company’s new 700 000 tpa cement mill, clinker silo and cement silo is scheduled for later this year. The company is a subsidiary of HeidelbergCement.
4. Mbeya Cement, a subsidiary of Lafarge Tanzania, is currently upgrading its production line to increase overall capacity to 700 000 tpa.