Improving productivity in agriculture, industries predominantly located in cities, construction, communication and retail trade have been singled out as the main drivers for this year's economic growth.
The current account deficit should remain equivalent to a value of 13 -15% of GDP, unless there are significant changes in global commodity prices and in the demand for Tanzanian products, according to the
The report argues for increasing productivity in agriculture and creating more good jobs off the farm. But it also highlights that such strategies are not enough to get everyone out of poverty.
Global experience shows that even when agriculture productivity increases, the poorest families tend to be left behind, it urged.
"This underscores the importance of highly targeted safety net programs to support the most vulnerable,"
The latest Economic Update highlights the success of conditional cash transfer programs around the world, including in a pilot program implemented by the
Parents who receive the small monthly transfers spend the money on extra food and on education and health of their children.
The country's latest
At least 4.2 million of these constitute the 'extreme poor' for whom life means constantly choosing between difficult options, such as keeping the eldest child in school or pulling her out of class permanently to help grow more food on the family farm.
"Without access to targeted safety nets, most extreme poor households in
As the Economic Update puts it, "the families of vulnerable Tanzanians are themselves often very poor and thus cannot always provide support."
The experience with TASAF has shown that people can do a lot with just a little extra money and that they tend to spend their money wisely.
"Some spend it on their children's immediate wellbeing, while others save to invest or to cushion themselves in the face of future hardships," he noted.
Safety nets in
"While investments in infrastructure, agriculture, education and health are essential for inclusive growth, well-targeted cash transfer programs can improve the living conditions of extremely poor households," adds Morisset.
The Tanzania Economic Update is a biannual publication which reports on the state of the country's economy.
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