On Wednesday 1st July 2020, the World Bank Declared Tanzania a middle-income country, this was quite an achievement that called for a celebration in Tanzania.
“Today, the World Bank has declared Tanzania Middle Income Country. In this regard, I congratulate all my compatriots on this historic achievement. We had envisaged achieving this status by 2025 but, with strong determination, this has been possible in 2020. GOD BLESS TANZANIA.” Tanzania President Dr. John Magufuli wrote on his twitter.
According to the World Bank, Tanzania has made economic reforms, including making consistent plans and taking hard decisions aimed at improving its economic development therefore it has been recognized as a lower-middle-income country.
Tanzania last year recorded economic growth of seven percent, making the country one of the fastest-growing economies in Africa. According to stats, Tanzania has a total population of 56.23 Million with 1,050.68 GDP per capital US$.
“Discipline in financial expenditure and the prevailing peace and tranquility also helped the country to earn the middle-income status from the World Bank,” Hassan Abbasi, the chief government spokesperson told a news conference in the capital Dodoma.
According to sources, Tanzania had planned to gain the middle-income status in 2025, but World Bank on 1ST July declared Tanzania a middle-income country.
Tanzania is the second-largest economy in East Africa and becomes the second East African Community member state to achieve the middle-income status after Kenya.
What It Takes to Become A Middle-Class Country.
According to the World Bank, middle-income countries (MICs) are defined as economies with a Gross National Income (GNI) per capita between $1,026 and $12,475. MICs are one of the income categories that the World Bank uses to classify economies for operational and analytical purposes.
Middle-income countries are those with $1,026 to $12,475 in per capita GNI.
According to the World Bank, Lower-middle-income economies have per capita GNIs between $1,026 and $3,955, while upper-middle economies have per capita GNIs between $3,956 and $12,475.
By Nsunjo Erica