Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Tanzania’s Economic Growth and Emission Trends
August 8, 2024  
Balancing Industrial Expansion with Sustainable Practices Tanzania In Scenario Two, Tanzania exhibits a modest increase in total emissions, with a 0.29% rise translating to an absolute change of 0.03 MtCO2. The breakdown reveals that emissions from production have risen significantly by 4.78%, corresponding to an absolute change of 0.38 MtCO2. In contrast, emissions from consumption […]

Balancing Industrial Expansion with Sustainable Practices

Tanzania

In Scenario Two, Tanzania exhibits a modest increase in total emissions, with a 0.29% rise translating to an absolute change of 0.03 MtCO2. The breakdown reveals that emissions from production have risen significantly by 4.78%, corresponding to an absolute change of 0.38 MtCO2. In contrast, emissions from consumption have decreased markedly by 12.99%, with an absolute reduction of 0.35 MtCO2. This indicates a significant shift away from consumption-related emissions towards increased production emissions.

Kenya

Kenya shows a notable increase in total emissions by 4.50%, equating to an absolute change of 0.92 MtCO2. The emissions from production have risen substantially by 5.29% (0.82 MtCO2), while emissions from consumption have increased by 2.00% (0.10 MtCO2). This reflects a rise in both production and consumption emissions, with a more significant impact from production activities.

Uganda

Uganda has the highest increase in total emissions among the East African countries, with a 24.95% rise (1.06 MtCO2). Emissions from production have increased by 24.86% (0.98 MtCO2), and emissions from consumption have also risen by 26.11% (0.08 MtCO2). This substantial growth in emissions from both sources highlights a significant escalation in Uganda’s overall emissions profile.

Rwanda

Rwanda shows a moderate increase in total emissions by 1.58%, resulting in an absolute change of 0.02 MtCO2. Emissions from production have increased by 2.00% (0.01 MtCO2), while emissions from consumption have seen a slight rise of 0.65% (0.00 MtCO2). The data suggests a small rise in emissions, primarily driven by production.

Burundi and South-Central Africa

South Central Africa shows a mixed picture with a 0.85% overall increase in emissions, or 0.24 MtCO2. Notably, emissions from production have decreased by 1.01% (-0.22 MtCO2), while emissions from consumption have surged by 6.86% (0.46 MtCO2). This indicates a shift in the region’s emissions profile from production to consumption-related sources.

Comparative Analysis

Production vs. Consumption:

  • Tanzania: A substantial increase in emissions from production with a decrease in consumption-related emissions.
  • Kenya: Both production and consumption emissions have risen, with production showing a more significant increase.
  • Uganda: Both production and consumption emissions have significantly increased, with the largest overall rise in the region.
  • Rwanda: Shows a modest increase in emissions from production, with minimal changes in consumption.

Regional Trends:

  • East Africa: Countries like Uganda and Kenya are experiencing significant rises in total emissions, driven mainly by increased production and consumption activities.
  • South Central Africa: Displays a decrease in production-related emissions but a substantial increase in consumption-related emissions, highlighting a shift in emission sources.

Tanzania’s emissions profile suggests a growing economy with increased production activities, coupled with efforts to reduce consumption-related emissions.

  1. Increase in Production Emissions: The significant rise in emissions from production (4.78%) indicates growing industrial or economic activities within Tanzania. This could reflect an expanding manufacturing sector, increased energy use, or enhanced production processes. Such growth might be linked to economic development initiatives aimed at boosting industrial output and creating jobs.
  2. Decrease in Consumption Emissions: The substantial decrease in emissions from consumption (-12.99%) suggests a reduction in consumption-related activities or a shift towards more sustainable consumption patterns. This could be due to improved efficiency in energy use, a transition to cleaner energy sources, or changes in consumer behavior.
  3. Economic Implications: The increase in production emissions alongside a decrease in consumption emissions could imply that Tanzania is focusing on enhancing its production capacity while possibly implementing measures to reduce emissions from consumption sources. This might indicate a strategic focus on industrial growth with efforts to mitigate the environmental impact of increased production activities.
  4. Sustainability Challenges: The rising production emissions may present challenges for sustainability, requiring policy interventions to ensure that economic growth aligns with environmental sustainability goals. This could involve adopting greener technologies, improving energy efficiency, or investing in sustainable practices within the production sector.
  5. Policy Focus: To support continued economic development while addressing environmental concerns, Tanzania might need to balance industrial expansion with strategies for reducing overall emissions. This could include promoting sustainable practices, incentivizing low-carbon technologies, and enhancing regulations to manage the environmental impact of economic activities.

Subscribe to TICGL Insights

Stay informed and gain the crucial information you need to make strategic decisions in Tanzania's vibrant market.
Subscription Form
crossmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram