Power crisis reduces economic growth: Tanzanian central banker

The chief of the Tanzanian central bank has admitted for the first time this year that the continuous power crisis throughout the country will reduce national economic growth in the end.

Local English newspaper The Citizen on Wednesday quoted Bank of Tanzania Governor Daudi Balali as saying that the ongoing power crisis would severely reduce national economic growth.

The bank governor made the remark while addressing a closed- door parliamentary committee.

Balali admitted that the country's projected economic growth had declined to 5.9 percent from 7 percent as expected from the beginning of the year.

The power crisis not only affects the country's manufacturing sector, but also forces the central government to spend almost three times than normal to import oil to feed back-up generators.

Tanzania's oil import bills have increased from 400 million U. S. dollars to 1.1 billion dollars whereas the country's exports have fallen significantly, according to bank figures.

Briefing the press after the special parliamentary session, Abdallah Kigoda, chairman of the parliamentary finance and economy committee, said that the projected economic growth rate for this fiscal year would not be achieved.

Tanzania relies mainly on electricity generated from its seven hydropower dams. But lack of rainwater in the past rainy season has forced the country's sole electricity supplier to resort to strict power rationing schemes.

While in emergency search of gas-fired turbines abroad, the Tanzania Electric Supply Company Limited has been resorting to on- and-off power shedding countrywide.

The current power rationing in Dar es Salaam alone lasts all week long from 7:00 in the morning till 6:00 in the evening.

Source: Xinhua