Tanzanian Minister for Industry and Trade Abdallah Kigoda with then EU Commissioner for Development Andris Piebalgs at the signing of the first national indicative programs under the 11th European Development Fund for 2014-2020. Photo by: European Commission
Despite posting 6 percent annual average economic growth, Tanzania remains one of the poorest countries in the world, with an estimated 12 million people living below the poverty line. Low human development ranking — 159th out of 187 — and off track Millennium Development Goals are major concerns as well.
Development is hampered further by an unfavorable investment climate, weak economic governance, poor economic infrastructure, low productivity and a limited skills base. To address these issues, the Tanzanian government launched the Big Results Now initiative in 2013, which was adopted from the Malaysian model of development and focuses on six priority areas: energy and natural gas, agriculture, water, education, transport and resource mobilization. The government also formulated two five year-development plans that aim to nurture an industrial economy and competitiveness-led export growth.