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Tanzania eyes tourism growth to boost economy in 2024

Tanzania's tourism sector could potentially generate up to Sh3.38 trillion in additional revenue in the next financial year from Sh2.38 trillion in the current financial year, a senior official said on Tuesday.

Tanzania's tourism industry is making a remarkable comeback nearly four years after its revenues plummeted due to the COVID-19 pandemic.

• The tourism sector could potentially generate up to Sh3.38 trillion in additional revenue in the next financial year, according to a senior official.
• Enhancing the business climate and expanding projects are some of the factors that could greatly boost revenue collection.

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The Principal Secretary in the Ministry of State, Office of the President, Finance and Planning, Dr Juma Maliki Akili, disclosed this at the ‘2024/2025 Economy and Budget annual forum’ for stakeholders from local government and non-governmental organisations (NGOs).

While addressing the gathering at the Sheikh Idriss Abdulwakil Multipurpose Hall, Dr Akili explained that the revenue collection until the end of the current financial year, which ends in June this year, is projected to hit Sh2.38 trillion.

He added that the figure could significantly increase as a result of factors such as enhanced dedication from stakeholders in tax compliance and encouragement of voluntary tax contributions, intensified efforts by the Zanzibar Revenue Authority (ZRA) and Tanzania Revenue Authority (TRA), along with robust collaboration between the authorities and principal institutions.

“We predict to have economic growth of 7.2 per cent next year, and our revenue collection may increase to Sh3.38 trillion, while the number of tourists will increase to 829,000 next year from 638,000, ending the financial year,” Dr Akili said, according to Daily News .

Dr Akili expressed confidence that the target would be achieved, stating that in 2019, economic growth slowed down due to COVID-19 and that good planning has helped Zanzibar recover.

According to him, increasing knowledge about tax among ZRA and TRA staff, improving the business/investment environment, increasing projects, and increasing production from the blue economy are added advantages to an admirable bright future for Zanzibar.

Last year, data from the Bank of Tanzania revealed that tourism has staged an impressive recovery, contributing $2.99 billion to foreign exchange earnings in July 2023, compared to $1.95 billion in July 2022.

The bank also noted that this resurgence in tourism and increased earnings from gold have played a pivotal role in boosting Tanzania's service earnings to over $5 billion for the first time in its history.

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As Tanzania’s tourism sector recovers from the harsh effects of the COVID-19 (coronavirus) pandemic on businesses and employment, the latest World Bank economic analysis says the country also has a unique opportunity to revamp the tourism industry to drive inclusive growth over the long term, and promote climate adaptation and mitigation.

The 16 th Tanzania Economic Update, Transforming Tourism: Toward a Sustainable, Resilient, and Inclusive Sector notes thatthe near-cessation of tourism activities globally due to the pandemic deeply affected Tanzania’s tourism sector. Economic activity in the sector contracted sharply in 2020, resulting in job losses and business shutdowns which has had negative knock-on effects for inter-related sectors. While partial recovery is underway, business revenues and derived taxes for government still remain below pre-pandemic levels.

“The latest news point to the fact that we are not out of the wood yet, as the third wave of COVID-19 with a more deadly variant seems to be spreading,” said Albert Zeufack, World Bank Africa Chief Economist . “The countries that have weathered the storm more successfully so far have moved quickly and decisively to protect their people, strengthen their health systems, safeguard human capital gains, increase intra-reginal trade, and embrace digitalization, therefore laying down the basis for much needed economic transformation.”

Amid the ongoing crisis, the report says Tanzania’s GDP growth decelerated to an estimated 2.0 percent in 2020. Surveys of businesses and households, conducted by the World Bank in collaboration with the National Bureau of Statistics between June 2020 and March 2021, revealed that business slowed across a wide range of sectors and sizes of firms, especially export-oriented sectors such as tourism and manufacturing, and job creation has deteriorated. Overall business performance and expectations indicators have partially rebounded but remain subdued, emphasizing the gravity of the shock and sluggish recovery. The slowdown in GDP growth and the deterioration of business sales and financial security is estimated to have increased the number of poor Tanzanians by 600,000 in 2020. Zanzibar’s economy was even more severely impacted with GDP growth slowing to an estimated 1.3 percent, driven by a collapse of the tourism industry.

“ This Economic Update spotlights the pandemic’s impact on the Tanzanian economy through the sharp decline in tourism in 2020 and sluggish recovery in 2021. It is a call to action to help the sector recover, ‘build forward better’ and support private sector development more broadly. This is a critical agenda to protect the welfare of poor and vulnerable households, attract new foreign and domestic investment, and support an employment-intensive recovery, ” said Bill Battaile, World Bank Lead Economist for Tanzania.

The economic update proposes priorities for sustainable recovery for Tanzania’s tourism sector, including creating an efficient, reliable and transparent business environment, improving tourism information management system, ensuring affordable financial support to struggling businesses across the value chain, strengthen adherence to health and safety protocols and data transparency, and supporting nature-based landscape and seascape management through development of co-investment and partnership arrangements.

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Mega Boost for Tourism Sector in Tanzania

H OSPITALITY industry in Tanzania has continued with its steady rise, attracting several foreign hotel investments, and latest in the line is global hotel chain -- Radisson Hotel Group.

Radisson Hotel Group announced the addition of seven new hotels, adding over 1,200 hotel rooms to its African portfolio and its debut in Tanzania.

Tanzania has been identified as a key market in the group's proactive expansion strategy, making its debut in the country with two hotel signings.

A total of 334-hotel rooms will be added in the country including a 138- room hotel, featuring 94 guestrooms and 44 three bedroom apartments in Central Business District of Dar es Salaam.

According to a statement issued by Radisson Hotel Group yesterday, the hotel will occupy the top 14 floors of a 33-floor tower in one of the tallest buildings in the area, and is within walking distance of the ferry terminal to Zanzibar Island.

The hotel will also offer diverse dining facilities, including a lobby café, business class lounge, all-day dining restaurant, specialty restaurant, outdoor pool, and pool restaurant.

Also read: Tanzania set to expand tourism attractions visibility

Additional amenities include retail stores, a ladies' salon, indoor parking, a gym, steam room and sauna, kids' playroom and eight meeting rooms.

Supporting a strong market entry, the group will also open a 196-room hotel in Mwanza City, which will debut the Radisson brand in Tanzania in 2025.

Mwanza, Tanzania's second-largest city, is renowned for corporate meetings and events and is the ideal starting point for tours to the Serengeti National Park.

"As the only branded hotel in Mwanza, it will feature a lobby café and bar, all-day dining restaurant, sports bar, outdoor pool bar, executive lounge and two specialty restaurants,Balaustine, a 'casual-fine dining' experience inspired by the Barbary coast and the Levant and Filini, offering a delectable dining experience of fresh, simple, and delicious Italian-style cuisine," read apart of the statement.

This addition enhances the group's diverse African portfolio, spanning across 30 countries, further establishing it as the hotel company with the largest market presence in Africa.

According to the Bank of Tanzania (BoT) Monthly Economic Review released in May this year, which covers key macroeconomic indicators, Tanzania tourism arrivals surpassed 1.9 million in year ending April this year, reaching historic heights.

Tanzania's travel receipts increased to 6,617.8 million US dollars in April this year from 5,267 million US dollars recorded in the year ending April 2023.

To cope with the everincreasing influx of foreign tourists in the country, President Samia Suluhu Hassan directed relevant authorities to step up massive investment promotion drive, especially in mega luxury hotels.

Opening a 5-star accommodation facility -- Kwanza Resort by SUNRISE in Kizimkazi in August last year, President Samia did not hide her delight for the newly established hotel, saying the country needs more such facilities to cope with the number of tourist arrivals.

"To address the increasing influx of tourists from abroad, ZIPA (Zanzibar Investment Promotion Authority) and TIC (Tanzania Investment Centre) must play a key role in attracting investors to set up more mega luxury hotels in the country," said Dr Samia.

President Samia said attracting such kind of investments was also crucial for the country to create more employment opportunities for youth.

She said that the 'Royal Tour' documentary has brought positive results of increasing the number of tourists and investors eyeing to invest in the country.

Third Five-Year Development Plan (FYDP III of 2020/2021 to 2025/2026) and the ruling party CCM Election Manifesto 2020- 2025 have set the target for the country to notch an income of 6 billion US dollars (about 14tri/-) from 5,000,000 tourists come 2025.

According to FYDP III, tourism accounts for more than 17 per cent of the GDP and 25 per cent of foreign earnings.

The sector possesses significant potential to contribute to the national economy and foreign receipts on account of the unique natural attractions present in the country relative to elsewhere on the continent.

The tourist attractions present in Tanzania include national parks and game reserves, plants, mountains, valleys, waterfalls and coastal areas.

To promote sector competitiveness and linkages, FYDP III is prioritising the development and implementation of a clear tourism legal and regulatory framework and strengthening publicprivate dialogue and collaboration.

Key interventions according to FYDP III include to promote new tourism products development, diversification for sustainable growth and promote southern tourist circuit as alternative to other circuits.

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• Investing in United Republic of Tanzania

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Investing in the United Republic of Tanzania

"With an increased focus on green investments, the United Republic of Tanzania has a great potential to seize on these opportunities and formulate a value proposition based on these comparative advantages"

Zurab Pololikashvili, UN Tourism Secretary-General

Introduction

In an effort of the continuous series of Tourism Doing Business reports , the UN Tourism is proud to have coordinated efforts with the Ministry of Natural Resources and Tourism (MNRT), the Tanzania Investment Centre (TIC) and the Zanzibar Investment Promotion Authority (ZIPA) to create this tool to promote investments in the United Republic of Tanzania. This publication builds a reference for investors by providing valuable information and guidance on the United Republic of Tanzania’s current investment climate as well as emerging investment opportunities in its tourism sector.

With a population of almost 60 million inhabitants, the United Republic of Tanzania has a relatively stable political environment, sound macroeconomic policies and a clear resilience to external shocks. After experiencing a strong growth in recent years, the country’s growth rate of GDP slowed down over the past two years due to the detrimental consequences of COVID-19. Nevertheless, the United Republic of Tanzania’s GDP grew at 4.90% in 2021 whilst the global economic recovery rebooted and experts forecast that economic growth will pick up again from 2022 with an estimation of 5% of GDP growth.

The United Republic of Tanzania demonstrates a very promising investment environment with a strong growth potential of its nature-based tourism sector. Indeed, growing on average at 6.5%, per year the United Republic of Tanzania of has demonstrated an impressive growth performance and stability over the past decade. Also, between 2015 and 2021, the country experienced a marginal increase of its GDP per capita of 24.15%, growing from USD 981 million to USD 1,218 million. Consequently, the United Republic of Tanzania positioned itself as one of the most preferred destinations for foreign direct investment (FDI) in Africa and among the 10 biggest recipients of FDI on the continent. FDI inflows in the United Republic of Tanzania rose by 35 % from USD 685 million in 2020 to USD 922 million in 2021, and new greenfield project announcements tripled in value. 

On the other hand, with its abundance of natural and cultural resources, the United Republic of Tanzania has gained international recognition for its nature-based tourism in Africa and the world. The Travel and Tourism Competitiveness Index by the World Economic Forum ranked the United Republic of Tanzania 1st in Africa and 12th worldwide regarding the quality of its nature-based tourism resources as well as 32nd in Africa vis-à-vis its cultural resources. As a result, the tourism value chain defines a key component of the United Republic of Tanzania’s economy today, contributing to an estimated 17% of the country’s GDP and building the country’s third-largest source of employment by directly employing over 850,000 workers. Tourism-related services are especially crucial in Zanzibar, accounting for 55.5% of total services output, and for more than half of Zanzibar’s GDP, generating the largest share of private-sector employment. This said, tourism has been among the largest foreign-exchange earners in the United Republic of Tanzania since 2012. According to data from UN Tourism, tourism accounted for over one-quarter of the country’s foreign-exchange earnings in 2019, representing around USD 2,605 million. In addition, the latest report by fDi Intelligence from the Financial Times and UN Tourism ranked the United Republic of Tanzania, with nine projects, among the top 10 countries in Africa and the Middle East with the greatest number of greenfield investments in the tourism sector.

Conclusions

• The United Republic of Tanzania has been attracting international investments and increasing its inflows in the last decade, which positioned the country among one of the top destinations for tourism investments in the African continent. However, the country should continue implementing its efforts to improve its business enabling environment. This might involve strengthening institutions, regulations, policies, and transparency frameworks that facilitate the attraction and promotion of investment inflows towards the tourism sector and its value chain. Consequently, this will improve the country’s investment climate and encourage the development of strategic partnerships between government, and the private sector.
• The United Republic of Tanzania is known for its rich biodiversity, wildlife attractions, and cultural resources. The country is home to several nature reserves and national parks and represents a unique tourist destination for thousands of tourists each year. Henceforth with an increased focus on green investments, the United Republic of Tanzania has a great potential to seize on these opportunities and formulate a value proposition based on these comparative advantages. In addition, when considering new emerging consumer behaviors focused on sustainable and rural tourism demand the United Republic of Tanzania may create strategic investment opportunities for conservation, climate finance, and green investments to further diversify, attract and mobilize international and private investments. Likewise, improving the country’s regulatory mechanisms and incentives concerning climate change mitigation and adaptation as well as conservation efforts will help foster green investments to ensure the environmental, social, and economic development of its destination and safeguard its natural and cultural resources.
• Finally, the United Republic of Tanzania might consider developing new incentives and investment mechanisms to strengthen and expand its tourism value chain and supply of tourism services. The COVID-19 pandemic has tremendously harmed the tourism sector, most severely affecting small and medium-sized enterprises (SMEs) within the tourism value chain. According to the World Bank, the United Republic of Tanzania experienced a 72 % drop in tourism revenue between 2019 and 2020. To guarantee a more resilient, innovative, and sustainable tourism sector particularly digitalization and innovation among SMEs are critical and SMEs must apply strategies to upskill and train their employees. Moreover, the United Republic of Tanzania may also promote programs and opportunities for innovations through the incorporation of travel and tourism startups to facilitate the diffusion of new technologies and increase inflows of new capital for diversification.
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Reporting by Kanishka Singh Editing by Chris Reese and Sandra Maler

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Kanishka Singh is a breaking news reporter for Reuters in Washington DC, who primarily covers US politics and national affairs in his current role. His past breaking news coverage has spanned across a range of topics like the Black Lives Matter movement; the US elections; the 2021 Capitol riots and their follow up probes; the Brexit deal; US-China trade tensions; the NATO withdrawal from Afghanistan; the COVID-19 pandemic; and a 2019 Supreme Court verdict on a religious dispute site in his native India.

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It’s been a record-setting year for global travel – here’s how we make tourism inclusive and sustainable

Inclusive and sustainable travel and tourism includes supporting micro-, small- and medium-sized businesses. Image:  Unsplash/Michael Barón

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.chakra .wef-1nk5u5d{margin-top:16px;margin-bottom:16px;line-height:1.388;color:#2846F8;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-1nk5u5d{font-size:1.125rem;}} Get involved .chakra .wef-9dduvl{margin-top:16px;margin-bottom:16px;line-height:1.388;font-size:1.25rem;}@media screen and (min-width:56.5rem){.chakra .wef-9dduvl{font-size:1.125rem;}} with our crowdsourced digital platform to deliver impact at scale

• The global travel sector is experiencing a robust recovery, with tourists increasingly spending more on travel.
• Despite the overall positive outlook, some destinations struggle with operational challenges, including workforce issues and resource management amid rising tourist numbers and environmental concerns.
• The travel and tourism sector’s potential for advancing socio-economic prosperity is particularly impactful through the support of micro-, small-, and medium-sized enterprises.

The global travel sector forecast is in and it's sunny skies ahead. Through March 2024, consumer spending on travel remains strong, and passenger traffic has soared. Empowered by a strong labour market worldwide, tourists will be on the roads, air and seas once again, with more of people’s budgets on travel.

The latest report from the Mastercard Economics Institute, Travel Trends 2024: Breaking Boundaries , reveals that 2024 has already witnessed multiple record-setting days as consumer spending on leisure travel remains strong. The data shows that post-pandemic travellers continue to seek unique experiences rooted in local cultures while increasingly prioritizing spending on memorable events across sports, music and festivals.

The Mastercard Economics Institute’s analysis reveals that travellers also seek opportunities to extend their stays, prioritizing leisure for longer. For the first 12 months between March 2019 and February 2020, a trip’s average length of stay was about four days. As of March 2024, the average length of a leisure trip has edged closer to five days, which translates into an economic boost for the destinations and communities hosting them.

Have you read?

These are the top 10 countries for travel and tourism, what is travel and tourism’s role in future global prosperity, travel & tourism development index 2024, tackling tourism’s challenges.

Yet, while the overall outlook for travellers looks bright, that’s not the case for all destinations. Some tourism hotspots and lesser-known locales are facing growing challenges around operating conditions. The World Economic Forum’s Travel & Tourism Development Index (TTDI) 2024 highlights the ongoing constraints facing the global travel and tourism sector – including the lack of investment in skilled and resilient workforces and issues around resource management – cultural and natural – as destinations grapple with higher tourist visitor numbers and rising environmental concerns.

The report offers travel and tourism decision-makers recommendations around how the sector can take a more active role in tackling social challenges across socio-economic prosperity, peace and cultural exchange. As the industry accounts for approximately one-tenth of global gross domestic product and employment , the public and private sectors must work together to ensure future tourism development is, first and foremost, inclusive and sustainable.

Supporting the backbone of travel and tourism

As the TTDI 2024 notes, one area where the sector’s potential in advancing socio-economic prosperity can be particularly impactful is in the economic empowerment of micro-, small- and medium-sized enterprises (MSMEs). According to the World Travel & Tourism Council, more than 80% of travel and tourism businesses fall under this category.

Policies and investments promoting the adoption of digital solutions and enhancing digital skills development while improving access to credit can provide a major boost to tourism-focused MSMEs.

In Costa Rica, the Instituto Costariccense de Turismo, a member of Mastercard’s Tourism Innovation Hub , is championing such an approach to ensure increased tourist traffic results in better opportunities for MSMEs. Last year, the institute launched Tico Treasures , a platform facilitating tourist connections with Costa Rica’s Crafts with Identity programme, a group of 17 artisan collectives across the country. The platform allows visitors to discover local Costa Rican products, learn about artisan communities and then purchase and ship the goods back to their home country – all through one experience.

The programme is an example of public-private collaboration, including backing from Correos de Costa Rica, Banco de Costa Rica and the Instituto Costariccense de Turismo. Its objectives are multifold: delivering more authentic experiences for tourists, expanding citizens’ access to the digital economy and contributing to MSME resilience.

Protecting future environments

There are also novel approaches to solving destinations’ sustainability challenges underway. A key role of the Travel Foundation , a global non-government organization, is to facilitate innovative public-private collaborations in tourism that accelerate and scale sustainable solutions. One notable example is in Scotland, where the national tourism organization VisitScotland is partnering with the Travel Corporation, a global tour operator, to help decarbonize the destination supply chain. Both organizations are pooling their insights, data and expertise to support local businesses, develop new ideas for reducing carbon footprints and identify barriers to a green transition.

The learnings from this and other projects led by the Travel Foundation will be shared to influence future policy, investment and product development decisions at national and global levels. By combining public sector resources and capabilities with private sector technological expertise, travel and tourism decision-makers can enact policies and programmes that balance tourism growth with environmental protection, providing a nuanced approach that works for unique destinations.

It’s an important time for the sector – to leverage travel and tourism’s robust recovery and advance socio-economic prosperity, fuelling a more inclusive future for our treasured destinations. By accelerating collaboration between governments, destination management organizations and technology companies, we can ensure destinations, the communities that power them and the environments they inhabit are at the heart of all future tourism development.

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The views expressed in this article are those of the author alone and not the World Economic Forum.

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Travel, Tourism & Hospitality

• Value added of travel and tourism to GDP in Tanzania 2019-2021

Contribution of travel and tourism to Gross Domestic Product (GDP) in Tanzania from 2019 to 2021 (in billion U.S. dollars)

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Statistics on " Travel and tourism in Tanzania "

• International tourist arrivals in Africa 2020, by country
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• Average tourist expenditure in Tanzania 2015-2020
• Contribution of travel and tourism to GDP in Tanzania 2019-2021
• Tourism receipts in Tanzania from 2020-2022
• International and domestic visitor spending in Tanzania 2019-2021
• Share of employment in travel and tourism in Tanzania 2019-2021
• Highest-rated safari parks in Africa 2021
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• Most visited national parks in Tanzania 2019
• Revenue generated by visits to national parks in Tanzania 2015-2019
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• Earnings from visitors at tourist attraction sites in Tanzania 2021, by zone
• Hotel occupancy rate in Africa 2021-2023
• Bed occupancy rate of hotels in Tanzania 2019-2020
• Number of tourists staying in hotels in Tanzania 2015-2020
• Bed nights occupied in hotels of Tanzania 2019-2020
• Share of international visitors in hotels occupancy in Tanzania 2020
• Monthly international arrivals in Zanzibar 2018-2021
• Hotel beds available in Zanzibar 2020-2021
• Bed occupancy rate in Zanzibar 2020-2021
• GDP of hotels and food services in Zanzibar 2016-2020
• Share of hotels and food services in Zanzibar's GDP 2016-2020

Other statistics that may interest you Travel and tourism in Tanzania

• Premium Statistic International tourist arrivals in Africa 2020, by country
• Premium Statistic Tourist arrivals in Tanzania 2015-2022
• Premium Statistic Monthly tourist arrivals in Tanzania 2019-2022
• Basic Statistic Main nationalities of tourists arriving in Tanzania 2021
• Premium Statistic Average tourist expenditure in Tanzania 2015-2020

Economic impact

• Basic Statistic Contribution of travel and tourism to GDP in Tanzania 2019-2021
• Basic Statistic Value added of travel and tourism to GDP in Tanzania 2019-2021
• Basic Statistic Tourism receipts in Tanzania from 2020-2022
• Basic Statistic International and domestic visitor spending in Tanzania 2019-2021
• Basic Statistic Share of employment in travel and tourism in Tanzania 2019-2021

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• Premium Statistic Highest-rated safari parks in Africa 2021
• Basic Statistic Highest mountains in Africa
• Basic Statistic World Heritage Sites in Africa 2024, by country
• Premium Statistic Most visited national parks in Tanzania 2019
• Premium Statistic Revenue generated by visits to national parks in Tanzania 2015-2019
• Basic Statistic Visitors at national parks in Tanzania 2020-2021, by geographical zone
• Basic Statistic Earnings from visitors at tourist attraction sites in Tanzania 2021, by zone

Accommodation

• Premium Statistic Hotel occupancy rate in Africa 2021-2023
• Premium Statistic Bed occupancy rate of hotels in Tanzania 2019-2020
• Premium Statistic Number of tourists staying in hotels in Tanzania 2015-2020
• Premium Statistic Bed nights occupied in hotels of Tanzania 2019-2020
• Premium Statistic Share of international visitors in hotels occupancy in Tanzania 2020

Special focus: Zanzibar

• Premium Statistic International visitors in Zanzibar 2015-2021
• Premium Statistic Monthly international arrivals in Zanzibar 2018-2021
• Premium Statistic Main countries of origin of international visitors in Zanzibar 2021
• Premium Statistic Hotel beds available in Zanzibar 2020-2021
• Premium Statistic Bed occupancy rate in Zanzibar 2020-2021
• Premium Statistic GDP of hotels and food services in Zanzibar 2016-2020
• Premium Statistic Share of hotels and food services in Zanzibar's GDP 2016-2020

Further related statistics

• Basic Statistic Global travel and tourism expenditure 2019-2022, by type
• Basic Statistic Forecast: economic contribution of travel and tourism to GDP worldwide 2020-2029
• Premium Statistic Average daily expenditure of Australian residents traveling to Italy 2010-2017
• Premium Statistic Average daily expenditure of German residents traveling to Italy 2010-2017
• Premium Statistic Average daily expenditure of Russian residents traveling to Italy 2010-2017
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• Premium Statistic Average daily expenditure of Chinese residents traveling to Italy 2010-2017
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Tanzania’s Ngualla Rare Earth Project Secures Agreement to Sell 100% of Concentrate Production

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Afdb’s tanzania economic outlook: gdp growth to reach 5.7% in 2024 and 6% in 2025 driven by agriculture manufacturing and tourism.

The African Development Bank (AfDB) has just released the 2024 edition of its flagship African Economic Outlook report , describing Africa’s growth potential as ‘remarkable’.

The theme of the 2024 African Economic Outlook is  Driving Africa’s Transformation: The Reform of the Global Financial Architecture.

The report is being published as African countries continue to contend with significant structural challenges and multiple severe shocks, including heightened food and energy prices driven by geopolitical tensions such as Russia’s invasion of Ukraine, climate issues affecting agriculture and energy production, and persistent political instability.

This challenging environment has led to a slowdown in Africa’s real GDP growth, which dropped to 3.1% in 2023 from 4.1% in 2022

However, in his foreword, Dr. Akinwumi Adesina, President of the AfDB Group, stressed that despite entrenched structural challenges and susceptibility to exogenous shocks, most African economies have shown remarkable resilience.

And the forecast for 2024–25 looks promising, as global economic conditions brighten, creating optimism for a rebound and sustained economic growth across Africa. Real GDP growth is projected to rise to 3.7% in 2024 and consolidate higher at 4.3% in 2025.

With these outturns, Africa will remain the second-fastest region in the world after developing Asia in 2024 and 2025, with 40 countries set to achieve higher growth rates relative to 2023 levels, and East Africa leading as the fastest-growing region (up to 3.4% points).

Growth Performance and Outlook in East Africa

According to the report, East Africa, the continent’s fastest-growing region, will see real GDP growth rising from an estimated 1.5% in 2023 to 4.9% in 2024 and 5.7% in 2025. The downward revision of 0.2% point for 2024 compared with the forecast in the January  2024 Africa’s Macroeconomic Performance and Outlook (MEO)  is due to larger-than-expected contractions in Sudan and South Sudan following the ongoing conflict in the former.

Recent Macroeconomic and Financial Developments in Tanzania

Tanzania’s real GDP grew 5.3% in 2023, up from 4.7% in 2022, driven by agriculture, construction, and manufacturing on the supply side and private investments on the demand side.

Tight monetary policy, together with moderation in food and energy prices, helped reduce inflation from 4.3% in 2022 to 3.8% in 2023. The Tanzanian shilling depreciated by 8% in 2023, reflecting shortages of foreign exchange.

The fiscal deficit declined slightly from 3.6% of GDP in 2021/22 to 3.5% in 2022/23, responding to expenditure controls, and was financed by external and domestic borrowing. Public debt increased from 43.6% of GDP in 2021/22 to 45.5% in 2022/23 due to an increase in loans. The current account deficit narrowed from 7.3% of GDP in 2022 to 3.8% in 2023, benefiting from higher tourism receipts, and was financed by external commercial debt and official flows.

Reserves declined from 4.7 months of import cover in 2022 to 4.5 months in 2023, explained by the authorities’ response to the foreign exchange shortage.

The banking sector, which accounts for 71% of financial assets, remained sound with the ratio of nonperforming loans to gross loans declining from 5.7% in 2022 to 4.3% in 2023, below the regulatory requirement of 5%.

Economic Outlook and Risks for Tanzania

The AfDB projects that Tanzania’s real GDP growth will reach 5.7% in 2024 and 6% in 2025 , driven by agriculture, manufacturing, and tourism and supported by public investments and reforms to improve the business environment.

Inflation is projected to decline to 3.3% in 2024 and 3.4% in 2025, helped by stability in food and energy prices.

The fiscal deficit, financed by domestic and external borrowing, is expected to decline to 2.5% of GDP in 2023/24 and stabilize at that level in 2024/25, supported by improvements in revenue performance. The current account deficit, financed by external borrowing, is projected at 4.0% of GDP in 2024 and 4.2% in 2025, supported by merchandise exports and tourism receipts.

The major downside risks to the outlook include spillovers from geopolitical tensions and regional conflicts, sluggish global growth, a narrow tax base, and climate shocks.

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A Tourist From New Mexico Is Killed by an Elephant in Zambia

The incident came months after another tourist was killed in Zambia when an elephant charged her group. One wildlife expert said the attacks were most likely “freak accidents.”

By Sara Ruberg and Emily Schmall

A tourist from New Mexico was killed in Zambia when an elephant charged her, according to the police commissioner who investigated the incident. She is the second tourist to be fatally attacked by an elephant in the southern African country this year.

The woman who was killed, Juliana G. Letourneau, 64, of Albuquerque, had just visited Victoria Falls, a 350-foot waterfall that straddles the border between Zambia and Zimbabwe, and was heading back to her hotel on Wednesday when the group that she was traveling with encountered a herd of elephants on the road.

She and others stepped out of their vehicle to observe the animals, said Auxensio Daka, the police commissioner for the southern province of Zambia, in a telephone interview on Saturday.

“They stopped to watch the elephants, and unfortunately one of them charged towards them as they were standing there watching,” Mr. Daka said.

Mr. Daka said that Ms. Letourneau was taken to a clinic in Mosi-oa-Tunya National Park near Livingstone, Zambia, where she was declared dead on arrival. Her injuries included deep wounds on the right shoulder blade and forehead, a fractured left ankle and a slightly depressed chest, according to a police statement.

No other injuries were reported from the encounter with the elephant.

Ms. Letourneau’s brother said on Saturday that he had no details about the incident, and declined to be interviewed. Other relatives could not be reached.

This past March, a 79-year-old American woman was on safari at Kafue National Park, in a central region of western Zambia, when an elephant charged the tour group’s vehicle, according to media reports .

However, human deaths are rare in encounters with elephants, according to experts.

“This is really a freak accident,” Nikhil Advani, a senior director at the World Wildlife Fund, a nonprofit that works on environmental protection and conservation efforts, said of the two incidents happening so close together. “It’s probably just some sort of coming together of unfortunate circumstances that led to this.”

The U.S. State Department said in a statement on Friday that millions of Americans travel to areas where there is wildlife every year, and that it is uncommon for elephants and other wild animals to attack visitors in Zambia.

Ms. Letourneau’s death was first reported by the Zambia National Broadcasting Corporation, a government-controlled news outlet, which said that human and wildlife encounters in Livingstone, the city where the incident occurred, were rising amid the country’s worst drought in four decades .

The climate conditions are worsening food insecurity in Zambia, which has one of the highest rates of malnutrition in sub-Saharan Africa, and pushing wildlife into human habitats in search of food and water, according to the report.

Tourism to wildlife protected areas, which cover about a third of Zambia, and to the numerous lakes and rivers and lush valleys contributes an important share of the national economy.

Joyce Poole, a co-founder and co-director of ElephantVoices, a nonprofit that researches elephant behavior, said that keeping distance from elephants is the best way for tourists to stay safe. She added that there can sometimes be a “culture of aggression” stemming from a region’s history with elephants, as in Gorongosa National Park in Mozambique, which experienced decades of war and poaching in the 20th century.

“Elephants responded in a certain way toward vehicles,” Dr. Poole said of her research findings from Gorongosa. “This behavior was then observed by younger elephants, imitated by younger elephants and sort of passed down through families.” There have been multiple poaching crises in Zambia, she noted.

Dr. Poole said that finding “a reputable company and drivers who are not just racing around to get the best shot” would be a good way for visitors to ensure safety.

Visitors to wilderness areas should also be wary and admire the animals from afar, experts say.

“As with all wildlife, like if you keep safe distance from them, they are not looking to disturb you or interact with you,” Dr. Advani said.

Sara Ruberg covers breaking news and is a member of the 2024-25 class of Times Fellows , a program for journalists early in their careers. More about Sara Ruberg

Emily Schmall covers breaking news and feature stories and is based in Chicago. More about Emily Schmall

South Sudan says its 6M antelope make up world’s largest land mammal migration, but poaching on rise

South Sudan’s most comprehensive aerial wildlife survey found about 6 million antelope — a figure that would make it the world’s largest land mammal migration

BADINGILO and BOMA NATIONAL PARKS, South Sudan — Seen from the air, they ripple across the landscape — a river of antelope racing across the vast grasslands of South Sudan in what conservationists say is the world’s largest land mammal migration.

The country’s first comprehensive aerial wildlife survey, released Tuesday, found about 6 million antelope. The survey over a two-week period last year in two national parks and nearby areas relied on spotters in airplanes, nearly 60,000 photos and tracking more than a hundred collared animals over about 46,000 square miles (120,000 square kilometers).

The estimate from the nonprofit African Parks, which conducted the work along with the government, far surpasses other large migratory herds such as the estimated 1.36 million wildebeests surveyed last year in the Serengeti straddling Tanzania and Kenya. But they warned that the animals face a rising threat from commercial poaching in a nation rife with weapons and without strong law enforcement.

“Saving the last great migration of wildlife on the planet is an incredibly important thing,” said Mike Fay, a conservation scientist who led the survey. “There’s so much evidence that the world’s ecosystems are collapsing, the world resources are being severely degraded and it’s causing gigantic disruption on the planet.”

The east African nation is still emerging from five years of fighting that erupted in 2013 and killed nearly 400,000 people. Elections scheduled for last year were postponed to this December, but few preparations are in place for those. Violence continues in some areas, with some 2 million people displaced and 9 million — 75% of the population — reliant on humanitarian aid, according to the United Nations.

The migration is already being touted as a point of national pride by a country trying to move beyond its conflict-riddled past . Billboards of the migration recently went up in the capital of Juba, and the government has aspirations that the animals may someday be a magnet for tourists.

South Sudan has six national parks and a dozen game reserves covering more than 13% of the terrain. The migration stretches from east of the Nile in Badingilo and Boma parks into neighboring Ethiopia — an area roughly the size of the U.S. state of Georgia. It includes four main antelope, the white-eared kob — of which there are some 5 million — the tiang, the Mongalla gazelle and bohor reedbuck.

The survey said some animals have increased since a more limited one in 2010. But it described a “catastrophic” decline of most non-migratory species in the last 40 years, such as the hippo, elephant and warthog. Associated Press journalists flying over the stunning migration of thousands of antelope last week saw few giraffes and no elephants, lions or cheetahs.

Trying to protect the animals over such a vast terrain is challenging.

In recent years, new roads have increased people’s access to markets, contributing to poaching. Years of flooding have meant crop failures that have left some people with little choice but to hunt for food. Some 30,000 animals were being killed each month between March and May this year, African Parks estimated.

The government hasn’t made a priority of protecting wildlife. Less than 1% of its budget is allocated to the wildlife ministry, which said it has few cars to move rangers around to protect animals. Those rangers say they haven’t been paid a salary since October and are outgunned by poachers.

South Sudan President H.E. Salva Kiir Mayardit said the country is committed to turning its wealth of wildlife into sustainable tourism. He called on the Ministry of Wildlife to prioritize training and equipping rangers to fight poaching.

Matthew Kauffman, an associate professor of zoology at the University of Wyoming who specializes in research into migration and ecosystems, said the work fits a growing global effort “to map these migrations.” One benefit is to be smarter when landscapes are developed to make way for these seasonal movements, he said.

Villagers near the parks told AP they mostly hunted to feed their families or to barter for goods.

A newly paved road between Juba and Bor — the epicenter of the illegal commercial bushmeat trade — has made it easier for trucks to carry large quantities of animals. Bor sits along the Nile, about 27 miles (45 kilometers) from Badingilo Park. In the dry season, animals coming closer to the town to drink are vulnerable to killing.

Officials at the wildlife ministry in Bor told AP the killing of animals had doubled in the last two years.

Even when those involved in the industry are caught, the consequences can be minor. A few years ago, when wildlife rangers came to arrest Lina Garang for selling animals, she said they let her go, instead telling her to conduct business more discreetly. Garang, 38, said her competition has only grown, with 15 new shops opening along her strip to buy and sell animals.

Part of the challenge is that there is no national land management plan, so roads and infrastructure are built without initial discussions about where best placed. The government’s also allocated an oil concession to a South African company in the middle of Badingilo that spans nearly 90% of the park.

African Parks is trying to square modernizing the country with preserving the wildlife. The organization has been criticized in the past for not engaging enough with communities and taking an overly militarized approach in some of the nearly two dozen areas it manages in Africa.

The group says its strategy in South Sudan is focused on community relations and aligning the benefits of wildlife and economic development. One plan is to create land conservancies that local communities would manage, with input from national authorities.

African Parks has set up small hubs in several remote villages and is spreading messages of sustainable practices, such as not killing female or baby animals.

Peter Alberto, undersecretary for the ministry of wildlife, conservation and tourism, said the government hopes the migration can become a point of pride, and reshape how the world thinks of South Sudan.

As for tourism, that may take a while. There aren’t hotels or roads to host people near the parks, and the only option is high-end trips for what one tour company official called a “high-risk” audience. There’s fighting between tribes and attacks by gunmen in the area, and pilots told AP they’ve been shot at while flying.

Will Jones, chief exploration officer for Journeys by Design, a UK-based tour company, charges roughly $150,000 per person for a weeklong tour in South Sudan. He said there isn’t strong demand.

Locals trying to protect the wildlife say it’s hard to shift people’s mentality.

In the remote village of Otallo on the border with Ethiopia, young men have started buying motorbikes. What had been an all-day trip on foot to cross the border to sell animals now takes just five hours, allowing them to double the number of animals they take and make multiple trips.

One of them, Charo Ochogi, said he’d rather be doing something else but there are few options, and he’s not worried about the animals disappearing.

“The kob isn’t going to finish. They’ll reproduce,” he said.

The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org .

Global Growth Is Stabilizing for the First Time in Three Years

But 80% of world population will experience slower growth than in pre-COVID decade

WASHINGTON, June 11, 2024 — The global economy is expected to stabilize for the first time in three years in 2024—but at a level that is weak by recent historical standards, according to the World Bank’s latest Global Economic Prospects report.

Global growth is projected to hold steady at 2.6% in 2024 before edging up to an average of 2.7% in 2025-26. That is well below the 3.1% average in the decade before COVID-19. The forecast implies that over the course of 2024-26 countries that collectively account for more than 80% of the world’s population and global GDP would still be growing more slowly than they did in the decade before COVID-19.

Overall, developing economies are projected to grow 4% on average over 2024-25, slightly slower than in 2023. Growth in low-income economies is expected to accelerate to 5% in 2024 from 3.8% in 2023. However, the forecasts for 2024 growth reflect downgrades in three out of every four low-income economies since January. In advanced economies, growth is set to remain steady at 1.5% in 2024 before rising to 1.7% in 2025.

“Four years after the upheavals caused by the pandemic, conflicts, inflation, and monetary tightening, it appears that global economic growth is steadying,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “ However, growth is at lower levels than before 2020. Prospects for the world’s poorest economies are even more worrisome. They face punishing levels of debt service, constricting trade possibilities, and costly climate events. Developing economies will have to find ways to encourage private investment, reduce public debt, and improve education, health, and basic infrastructure. The poorest among them—especially the 75 countries eligible for concessional assistance from the International Development Association—will not be able to do this without international support.”

This year, one in four developing economies is expected to remain poorer than it was on the eve of the pandemic in 2019. This proportion is twice as high for countries in fragile- and conflict-affected situations. Moreover, the income gap between developing economies and advanced economies is set to widen in nearly half of developing economies over 2020-24 —the highest share since the 1990s. Per capita income in these economies—an important indicator of living standards—is expected to grow by 3.0% on average through 2026, well below the average of 3.8% in the decade before COVID-19.

Global inflation is expected to moderate to 3.5% in 2024 and 2.9% in 2025, but the pace of decline is slower than was projected just six months ago. Many central banks, as a result, are expected to remain cautious in lowering policy interest rates. Global interest rates are likely to remain high by the standards of recent decades—averaging about 4% over 2025-26, roughly double the 2000-19 average.

“Although food and energy prices have moderated across the world, core inflation remains relatively high—and could stay that way,” said Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of the Prospects Group . “That could prompt central banks in major advanced economies to delay interest-rate cuts. An environment of ‘higher-for-longer’ rates would mean tighter global financial conditions and much weaker growth in developing economies.”

The latest Global Economic Prospects report also features two analytical chapters of topical importance. The first outlines how public investment can be used to accelerate private investment and promote economic growth. It finds that public investment growth in developing economies has halved since the global financial crisis, dropping to an annual average of 5% in the past decade. Yet public investment can be a powerful policy lever. For developing economies with ample fiscal space and efficient government spending practices, scaling up public investment by 1% of GDP can increase the level of output by up to 1.6% over the medium term.

The second analytical chapter explores why small states—those with a population of around 1.5 million or less—suffer chronic fiscal difficulties. Two-fifths of the 35 developing economies that are small states are at high risk of debt distress or already in it. That’s roughly twice the share for other developing economies. Comprehensive reforms are needed to address the fiscal challenges of small states. Revenues could be drawn from a more stable and secure tax base. Spending efficiency could be improved —especially in health, education, and infrastructure. Fiscal frameworks could be adopted to manage the higher frequency of natural disasters and other shocks. Targeted and coordinated global policies can also help put these countries on a more sustainable fiscal path.

Download the full report: https://bit.ly/GEP-June-2024-FullReport

Download growth data:   https://bit.ly/GEP-June-2024-Data

Download charts: https://bit.ly/GEP-June-2024-Charts

Regional Outlooks:

East Asia and Pacific:  Growth is expected to decelerate to 4.8% in 2024 and to 4.2% in 2025. For more, see  regional overview.

Europe and Central Asia:  Growth is expected to edge down to 3.0% in 2024 before moderating to 2.9% in 2025. For more, see  regional overview .

Latin America and the Caribbean:  Growth is expected to decline to 1.8% in 2024 before picking up to 2.7% in 2025. For more, see  regional overview .

Middle East and North Africa:  Growth is expected to pick up to 2.8% in 2024 and 4.2% in 2025. For more, see  regional overview.

South Asia:  Growth is expected to slow to 6.2% in 2024 and remain steady at 6.2% in 2025. For more, see regional overview.

Sub-Saharan Africa: Growth is expected to pick up to 3.5% in 2024 and to 3.9% in 2025. For more, see  regional overview.

Website:  www.worldbank.org/gep

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