Tanzania makes major strides in FYDP III rollout

DODOMA: TANZANIA has registered significant milestones in the implementation of the Third National Five-Year Development Plan (2020/21– 2025/26), with key achievements including the building of a resilient economy and the strengthening of economic diplomacy.

According to the National Planning Commission, the country has also recorded notable progress in promoting key economic sectors and enhancing human capital.

National Planning Commission Executive Secretary Dr Fred Msemwa, said yesterday that the implementation of FYDP III currently in its fourth year has laid a strong foundation for the execution of the forthcoming National Development Vision 2050.

Dr Msemwa was speaking in Dodoma during a budget analysis dialogue held for Members of Parliament.

He said that building a competitive and resilient economy is critical to realising the National Development Vision, noting that the success of other development initiatives depends largely on the strength and stability of the economy.

“As a result of achievements made in building a resilient economy characterised by manageable inflation, sustainable national debt and adequate foreign exchange reserves we have also recorded progress in various sectors,” he said.

Dr Msemwa noted that throughout the implementation of the plan, both fiscal and monetary policies were strategically aligned to maintain inflation within the target range of 3 to 5 per cent.

“Tanzania has managed to maintain inflation levels within the set targets despite global and regional inflationary pressures,” he said, adding that the inflation rate dropped from 3.3 per cent in 2023 to 3.1 per cent this year, remaining within acceptable range.

He also said that the country registered an economic growth rate of 5.5 per cent in 2024, up from 5.1 per cent in 2023 surpassing trends observed across the region and globally.

“These economic gains have created room for more investment in development focused projects and programmes that promote human capital development,” he said.

Mr Msemwa said the government has succeeded in promoting key sectors, thus building a diversified economy that does not rely on a single sector.

“Our economy is built across various sectors, including agriculture, mining, communications and tourism among others thus disruption in one sector cannot significantly affect the overall economy,” he said.

Dr Msemwa said the tourism sector had witnessed remarkable growth, with visitor numbers increasing from 1.8 million to 5.5 million.

He attributed the development to deliberate efforts by the government to promote Tanzania as a preferred destination globally.

On economic diplomacy, he said that Tanzania has made significant strides, unlocking new opportunities in trade, investment and employment.

“This is a critical foundation that places Tanzania in a strong position to implement the Vision 2050, which carries even greater ambitions for inclusive and sustainable economic growth,” he said.

On human capital development, Dr Msemwa said economic growth had opened up more opportunities for young people and Tanzanians at large.

He warned that the opportunities would not bear fruit unless citizens are equipped with the right skills and confidence to seize them.

“To address this, the government has implemented various interventions to build human capital capacity,” he said.