The World Bank officially ranks Tanzania among the middle-income countries in the lower group (low-middle-income economies). The ratings comply with new income level classifications the World Bank released on July 1, 2020. Concerning the East African Community, Uganda, Rwanda, Burundi, and South Sudan are still trailing behind Tanzania and Kenya.
Lower middle-income economies range from $1.036 to $4.045 per capita in Gross National Income (the GNI). The World Bank ranks the world’s economies in four income categories: low, middle, upper- and high-income nations. The levels are revised on July 1 every year and are based on GNI per capita in present US dollars.
The stats reveal that by July 1, 2020, Tanzania had risen from Low Income (GNI per capita 1,020 in 2019) to Lower Middle Income (GNI per capita 1080). This year’s lists of the Lower Middle-Income countries include Romania, Nepal, Mauritius, Nauru, Indonesia, Benin, and Tanzania.
Why the World Bank Officially Ranks Tanzania Among Middle-income Countries?
The ratings are as follows; Low Income (GNI per capita less than $1,026), Lower Middle Income ($1,036 – $4,045), Upper Middle Income ($4,046 – $12,535) and High Income per capita for those with GNI greater than $12,535 per capita.
In classifying these countries, the world Bank considers factors such as economic growth, inflation, currency exchange, national accounts, methods, data revisions, and growing populations affecting GNI per capita. The GNI figures used in the classification this year, don’t reflect the effect of COVID-19 on the different economies.
However, the economies of Sudan and Algeria dropped into the low-income group. Uganda, along with Ethiopia, Rwanda, Togo, Niger, Guinea, Gambia, Mozambique, Malawi, Mali, Madagascar, Eritrea, DRC, Chad, Guinea-Bissau, Central African Republic, Sierra Leone, South Sudan, and Somalia have persistently remained in the low-income group.
The Lower Middle-Income categories now include Kenya, Benin, Morocco, Nigeria, Mauritania, Ghana, Zimbabwe, Lesotho, Ivory Coast, and Tanzania.