Read at :
Tanzania Daily News (Dar es Salaam)
Tanzania: Drought Spell Bad for Economy Growth
13 September 2010
Dar Es Salaam — The drought warning by the Tanzania Meteorological Agency (TMA) in most parts of the country shadows a heavy cloud of uncertainty over the economic outlook that was earlier predicted to grow by 7 per cent. The drought, which TMA forecasts to start as early as next month may backtrack the projections on the economy that is projected to grow at less than one per cent per annum in the next four years consecutively.
Low rainfall raises the prospect of a skyrocketing of the price of key consumer goods such as cereals and beans. Prices of manufactured goods such as edible cooking oil may also go up as the local producers who depend on raw materials locally would be forced to import to cover the deficit. Electricity generation could also be a headache to the local manufacturers as they would be forced to switch to generators.
And this would be hard to curb the inflation which has been on the rising for a couple of months now. A State of Economy report by the Ministry of Finance and Economic Affairs shows that the Gross Domestic Products (GDP) will grow at an average of 0.2 per cent per annum in the next four years, starting from the 2010/11 fiscal year to only 7.8 in 2013/14.