News

AN ECONOMIST warned last week that the post-election violence in Kenya, might affect the Tanzanian economy.

In the two months since the violence started, it is estimated that some five per cent of the Kenyan Gross Domestic Product (GDP), amounting to $18 billion, has been affected.

Speaking during a TV show, Prof Humphrey Moshi, the former Zanzibar economic advisor, said damage to Tanzania’s economy will depend on the length of the conflict, because of trade ties between the two countries.

Kenya, the East Africa economic powerhouse, is one of the major trade partners of Tanzania.

Tanzania has a trade deficit of about $80 million with Kenya.

Published: 06 March 2008
Issue: 1310