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National Strategy for Growth and Reduction Of Poverty (NSGRP) is the government and national commitments to accelerating economic growth and fighting poverty. MKUKUTA I yielded demonstrable positive results. Since 2005, the economy grew at 7 percent quite in line with the set target of 6 – 8 per cent per annum. However, the achievements could have been much higher had the Tanzanian economy not been affected by daunting local and global challenges during the implementation period. First, there was the most severe drought, which adversely affected crop production, livestock and power generation to proportions never experienced in recent decades.

At the global level, our economy was negatively impacted by high oil and food prices and the global financial and economic crises. Much affected, in this regard, have been the volume and prices of exports, the flows of capital and investment, tourist arrivals and earnings from tourism.