Negative impacts on GDP growth were contained for Tanzania in 2020, compared to other sub-Saharan African (SSA) countries. However the country lifted its lockdown measures earlier than most other SSA countries. Accommodation and restaurants sector was severely hit, with a 13.2% reduction in sector GDP. Tanzania introduced less discretionary tax-benefit measures to alleviate household income and consumption pressures than other African countries, such as Mozambique, Uganda, and Ghana. The existing general tax-benefit system had negligible effects on mitigating negative effects of the pandemic. Question marks remain regarding future developments with the crisis protracting and the tax-benefit system little prepared to cushion larger shocks.
