DAR ES SALAAM (Reuters) – Frequent power blackouts caused Tanzania’s economic growth rate to slow to 6.5 percent in the fourth quarter of last year from 6.7 percent a year earlier, the government said on Monday.
The National Statistics Bureau (NBS) said electricity output fell 1.7 percent compared with 9.7 percent growth a year ago, with low water levels crimping hydroelectric production and maintenance work affecting gas-fuelled power generation.
The electricity crisis caused growth in the manufacturing sector to decline to 6.6 percent from 9.9 percent a year ago, NBS said.
Mining rebounded to grow at 1.2 percent from negative 9.1 percent a year ago, helped by an increase in gold production and higher prices of the precious metal at the world market.
Tanzania is Africa’s fourth-largest gold producer and its mining sector has attracted major investment over the past decade.
The financial sector grew by 13.3 percent in the fourth quarter of 2011 compared with a growth rate of 6.0 percent previously. Other sectors including transport and construction also registered growth.
The International Monetary Fund said in November Tanzania’s growth in 2011 may exceed the body’s 6 percent forecast earlier, due to the strong performance of its telecommunications, construction and financial services sectors.
IMF said in March it expects Tanzania’s economy to expand by 6.5 to 7 percent in 2012-13.