Tanzania’s economic situation

According to World Bank statistics, Tanzania is the third largest recipient of official aid in Africa with $2.831 billion after Ethiopia and the DR Congo (2013). Its gross domestic product amounted to $33.23 billion, with a per capita income of $630. 28.2% of the population live below the poverty line. 33% of government spending is financed from abroad. The World Bank has tried, with little success, to improve the effectiveness and transparency of aid project implementation through training programs.
After a donor conference expressed serious concerns about the misappropriation and waste of aid funds, the Finance Minister ordered stricter procedures. Project funds are now only released in quarterly installments following the submission of accounts and reports. Unsuccessful projects will be canceled. Purchases will be made by a separate government agency at the manufacturer, no longer via agents. Particular attention is to be paid to the cost and consumption of vehicles.
A spokesman for the Institute for Rural Development Planning said that many rural development projects fail because public service employees are unable to provide adequate support due to their incompetence.
Tanzania’s balance of payments deficit increased by $1 billion compared to the previous year. Imports rose by 15% to $14 billion, exports by 4.4% to $8.8 billion, with tourism revenues increasing by 10.7%. Business Times 15.08.14; Guardian 20.21..07.; 10.08.14 (Source tansania-information.com)