Tanzania Economic Update, May 2016 : The Road Less Traveled – Unleashing Public Private Partnerships in Tanzania
The Tanzanian economy has grown at an average annual rate of around 6-7 percent for more than a decade. The rate of inflation has declined since January 2016, although it trended upwards in thepreceding few months due to increases in domestic food...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/05/26379494/tanzania-economic-update-road-less-traveled-unleashing-public-private-partnerships-tanzania http://hdl.handle.net/10986/24373 |
| Summary: | The Tanzanian economy has grown at an
average annual rate of around 6-7 percent for more than a
decade. The rate of inflation has declined since January
2016, although it trended upwards in thepreceding few months
due to increases in domestic food prices and the lagged
impacts of the sharp depreciation of the Tanzanian Shilling
during the first half of 2015. However, the Shilling
stabilized in the second half of 2015, with the real
exchange rate now close to the equilibrium level. The
current account deficit has also improved, standing at
around 8.7 percent of GDP in 2014/15. The level of aid
inflows declined during 2014/15, although this was offset by
increases in FDI and external non-concessional borrowing,
maintaining the overall balance of payments in a stable
position. Tanzania's infrastructure and social services
deficits are already massive and projected to increase into
the future. Traditional financing instruments are clearly
insufficient to bridge the profound gap between existing
public resources and financing requirements. By leveraging
synergy between the public and private sectors, PPPs can
mobilize additional sources of finance to fund the
development of vitally needed infrastructure; to deliver on
budget and on time to a greater extent than in the case of
publicly financed projects; and to deliver higher quality
services than in the case of publicly managed projects.
Tanzania’s own policy documents identify PPP as a key
instrument to attract new investment and to deliver
infrastructure more efficiently. |
|---|