TANZANIA MEDIA REACTION: Avoid Panic over Global Economic

UNCLAS DAR ES SALAAM 000212 SIPDIS FOR INR/OPN/MR, AF/E:JLIDDLE and AF/EPS:MJOHNSON E.O. 12958: N/A TAGS: OPRC KPAO KMDR ECON TZ SUBJECT: TANZANIA MEDIA REACTION: Avoid Panic over Global Economic Crisis ¶1. The March 29 edition of English language "The Sunday Citizen" (circulation 7,500) carried the editorial commentary entitled "Africa Should Avoid Panic Over Global Crisis," on page 8 from Bank of Tanzania's Governor Benno Ndulu: "The impact of the global financial crisis has been largely muted in many African countries. That is thanks in no small part to the prudent management of these economies in recent years. The fundamentals of the economy in Tanzania, for example, remain sound. Banks are well capitalized and although interest rates have edged up marginally, we have not seen the dramatic disruptions witnessed in developed countries. Yet the effects of the downturn in the West--faltering demand for primary commodities, pressure on capital flows and a drop in tourism arrivals--will inevitably mean slower growth o~hTher&eI\