 How Tanzania Surpassed Kenya to be East Africa's Largest Economy In less than a year after President Magoofuly took office, Tanzania is already gaining influence among its neighbors and moving away from its reputation as a lone ranger in the region. So what does this mean for Kenya? Despite having the largest population in East Africa, Tanzania has often been sidelined in regional politics. While Kenya's influence surged, Tanzania was accused of being too slow and cautious when it came to plans for regional integration and infrastructure. But since John Magoofuly's surprise election win last October, it seems Kenya could be losing its grip on East African politics as Tanzania increasingly presents itself as a viable alternative for regional cooperation. Tanzania has complained to the Five Nation East African community that it is being sidelined in discussions on future integration by members Kenya, Uganda, and Rwanda, highlighting strains in one of Africa's main economic blocks. Tanzanian officials demanded an explanation after the three states agreed on a new railway that would link them up, but without connecting Tanzania and on hoops to create a single customs area in a series of meetings that excluded Tanzania. Uganda, one of those blamed for creating the rift, said the three-way talks had not covered matters of integration, and that there was no effort to sideline Tanzania, the group's second-pickest economy after Kenya. Infrastructure projects Just last week, the Ugandan government announced it would route the country's valuable oil exports through Tanzania rather than Kenya, opting for a pipeline to the Tanzanian port city of Tanga. A report commissioned by the Ugandan government in March found that the pipeline route through Tanzania was cheaper and would be in operation more quickly than the Kenyan option. The decision was a blow to Kenya, which will now have to go through with its own ambitious oil pipeline project alone or find new partners. An international railway project, championed by Kenya, has also come up against difficulties as regional players consider their options. Widespread media reports claim that Rwanda was pulling out of plans to develop rail links to Indian ocean ports through Kenya in favor of routes through Tanzania, but the Rwandan government has now set it plans to continue with both routes. Before we continue, please take a moment to like, share, comment, subscribe, and turn on your notifications. Magu Fuli's New Approach The readiness of Uganda and Rwanda to embark on projects and agreements with Tanzania, particularly when it means breaking off deals with Kenya, is a mark of the shift of influence within the region. Kenyan political analyst and commentator Martin Allu told DW that President Magu Fuli's pragmatic, hands-on approach is making this possible. It is changing the way business can be done in a more efficient and effective way, he said. One of Magu Fuli's key policies is cracking down on corruption. What is endearing him to his own people and perhaps what is making sense economically for the region is that business can be done in cheaper ways, business can be done by minimizing corruption, Allu said. And corruption is expensive. So in countries where there is runaway corruption, like in Kenya, that's impeding its competitiveness. It's impeding its relevance within the region, he added. Stability and growth But Tanzania's recent political gains are not only down to Magu Fuli's leadership style. The country has enjoyed a steady growth rate of 6% to 7% over the past decade and is already starting to overtake Kenya economically. Magu Fuli's performance will only help that happen faster, Allu said. Despite widespread poverty, long-term political stability has provided a solid foundation for growth and development. You can decide to look at Kenya as a powerhouse, maybe on the economic side, but you've got to accept that Tanzania is a powerhouse in terms of stabilizing these countries, said Richard Shaba, program coordinator at the Conrad Adnar Foundation in Tanzania, a German political foundation. We take most of the refugees. We do most of the reconciliation whenever these countries have a problem. Shaba told DW, when it comes to stability, Kenya is struggling. Security has become a growing concern, not only for Kenyans, but also for investors. The country's border with Somalia makes it vulnerable to attacks by the Somali terrorist group Al-Shabaab, making Tanzania an attractive alternative. What's next for East Africa? In the face of these difficulties, Kenya will now have to up its game if it wants to retain its regional strength. What should be wording Kenyans is that we need to take on runaway corruption, we need to improve efficiency, and we need to make ourselves competitive within the region, said analyst Allu. And unless we do that, then our neighbors like Tanzania and Rwanda are actually going to run away with the opportunities. If the latest developments in regional cooperation are anything to go by that is already happening. But according to Richard Shaba, even Magyufilai's unconventional approach won't completely change Tanzania's traditionally guarded politics when it comes to cooperation and integration in East Africa. I think Tanzania will pursue more or less the same regional politics being a bit cautious, because when the East African community collapsed in 1977, we got our fingers burned very badly, he told DW. Willingness is always there, but the approach will be cautious. Tanzania has one of Africa's fastest growing economies with nearly 7% annual national GDP growth since the year 2000. Private sector engagement is an essential component of the economic development of Tanzania and the country's efforts to reach middle income status by 2025. Theist Tanzania is an economic powerhouse in East Africa. Do well to hit our like button or share, subscribe, and also turn on your notifications for more videos.