Unrestricted Used Imports Threaten Growth Potential

Although Tanzania has the second highest projected average annual GDP growth over the next five years among the East African countries under review, it also has one of the lowest levels of car ownership. This suggests that there is considerable potential to be tapped in the Tanzanian new vehicle market, which is reflected in our largely positive forecast for the next five years. We have pencilled in lower growth as the period continues, as the market is starting from a relatively low base, following restrictions on the allocation of foreign exchange for vehicle imports in the 1970s and 1980s which put artificial restrictions on the market's growth.

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