The services sector’s contribution to the Gross Domestic Product (GDP) in Tanzania is greater than that of other segments of the economy, including agriculture since 1998, a new report shows.

The Tanzania Services Sector 2013 report says the services sector and agriculture contributed 48 per cent and 27 per cent to the GDP respectively.

Based on the report, the services sector is growing faster than others, a trend predicted to continue. In 2012, the sector expanded by eight per cent, twice as fast as agriculture.

The report says Tanzania ranks among 20 fastest-developing countries in the world. Over the past two decades, the growth indicators have outpaced Tanzania’s neighbours and most sub-Saharan Africa countries.

The country currently enjoys the second biggest growth rate in the region.

Now stakeholders in the country’s services sector say there is a need to put in place a services platform to coordinate and represent their interests at national and regional levels.

The platform is expected to ensure regulatory and enabling environment as well as engage and participate effectively in consultations for negotiations affecting the sector at both levels.

A consultative meeting on the formation of a platform for Tanzanian traders in services was held in Dar es Salaam on Friday.

Speaking during the meeting, the permanent secretary in the Ministry of Industry and Trade Musa Uledi said there is an urgent need for developing a competitive services sector in Tanzania.

Referring to the October 4-5 steering committee meeting, he said it was agreed to set up a formal organization of services sector stakeholders. 

“The meeting recommended the need to establish a services platform under the Tanzania Private Sector Foundation (TPSF) to leverage on the recognition, networks and influence of TPSF as the apex private sector study in Tanzania,” he said.

According to Uledi the meeting considered preliminary strategic issues on how to operationalize the platform. “Among these were the proposed mission and vision of the platform and the need to hold a stakeholders meeting to agree on the structure of the platform,” he added.

The platform is expected to be a tool for private sector as well as improve the sector through innovative ideas.

For his part, TPSF Chairman of Policy and Advocacy Committee Gideon Kaunda said despite Tanzania succeeding in various services sectors, providers must create applicable strategies to make needed improvements.

For instance, he said the hotel and tourism sector in Tanzania lags behind because the country has few or lacks reputable universities with curricula to pursue the studies.

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Source: Statistical Abstract 2013 (Tanzania National Bureau of Statistics)