Kikwete and the Economy of Tanzania

Before Kikwete took office in December 2005, Mr. Mkapa had transformed the country from a socialist state to a free market economy during his 10 years as president.Mkapa's legacy continues.

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Tuesday, October 31, 2006

TANZANIA: Profile


"Tanzania

Tanzania has been spared the internal strife that has blighted many African states.
Though it remains one of the poorest countries in the world, with many of its people living below the World Bank poverty line, it has had some success in wooing donors and investors.
Tanzania assumed its present form in 1964 after a merger between the mainland Tanganyika and the island of Zanzibar, which had become independent the previous year.
OVERVIEW
Unlike many African countries, whose potential wealth contrasted with their actual poverty, Tanzania had few exportable minerals and a primitive agricultural system.
AT-A-GLANCE
Politics: President Jakaya Kikwete won elections in 2005
Economy: Annual growth rate between 2000 and 2006 averaged 5.8 per cent, one of best performers in sub-Sahara Africa. Power supplies are erratic and fall short of demand.
International: Tanzania hosts thousands of refugees from conflict in the neighbouring Great Lakes region
Timeline
To remedy this, its first president, Julius Nyerere, issued the 1967 Arusha Declaration, which called for self-reliance through the creation of cooperative farm villages and the nationalisation of factories, plantations, banks and private companies.
But a decade later, despite financial and technical aid from the World Bank and sympathetic countries, this programme had completely failed due to inefficiency, corruption, resistance from peasants and the rise in the price of imported petroleum.
Tanzania's economic woes were compounded in 1979 and 1981 by a costly military intervention to overthrow President Idi Amin of Uganda.
After Mr Nyerere's resignation in 1985, his successor, Ali Hassan Mwinyi, attempted to raise productivity and attract foreign investment and loans by dismantling government control of the economy.
This policy continued under Benjamin Mkapa, who was elected president in 1995. The economy has grown, though at the price of painful fiscal reforms. Tourism is an important revenue earner; Tanzania's attractions include Africa's highest mountain, Kilimanjaro, and wildlife-rich national parks such as the Serengeti.
The political union between Zanzibar and mainland Tanzania has weathered more than four decades of change. Zanzibar has its own parliament and president.
FACTS
OVERVIEW
Full name: United Republic of Tanzania
Population: 38.4 million (UN, 2005)
Capital: Dodoma
Area: 945,087 sq km (364,900 sq miles)
Major languages: English, Swahili
Major religions: Christianity, Islam
Life expectancy: 46 years (men), 46 years (women) (UN)
Monetary unit: 1 Tanzanian shilling = 100 cents
Main exports: Sisal, cloves, coffee, cotton, cashew nuts, minerals, tobacco
GNI per capita: US $340 (World Bank, 2006)
Internet domain: .tz
International dialling code: +255
LEADERS
OVERVIEW
President: Jakaya Kikwete
Ruling party candidate Jakaya Kikwete, Tanzania's long-serving foreign minister, won presidential elections in December 2005.
Ruling party's Jakaya Kikwete won a decisive victory
He vowed to continue the economic reforms set in motion by the outgoing president, Benjamin Mkapa, and to create jobs and tackle poverty.
A veteran of the ruling Chama Cha Mapinduzi (CCM), which has controlled Tanzania since the country's inception and also governs in semi-autonomous Zanzibar, his presidential aspirations were thwarted in 1995 when he made an unsuccessful bid to represent the party in polls.
The former military officer was an unswerving supporter of Tanzania's founding president, Julius Nyerere.
Mr Kikwete, who was 55 at the time of his election, is married and has eight children.
His predecessor Benjamin Mkapa retired after 10 years in power. He was credited with being the driving force behind Tanzania's extensive economic liberalisation, which was well received by the IMF and World Bank.
Under his presidency inflation dropped, the economy grew and Tanzania's foreign debt was wiped. But Mr Mkapa's critics said that, behind the statistics, most Tanzanians remained impoverished.
· Prime minister: Edward Lowassa
· Foreign minister: Asha-Rose Migiro
· Finance minister: Zakia Meghji
MEDIA
OVERVIEW
Tanzania's media scene, once small and largely state-controlled, developed rapidly following the advent of the multi-party era in the mid 1990s.
Television was a latecomer: President Nyerere opposed it as a luxury which would widen the gap between rich and poor. State-run TV launched in 2001, several years after the first private station went on the air in 1994. TV viewing is eroding radio's traditional dominance.
Although the growth of the broadcast media has been hindered by a lack of capital investment, dozens of private FM radio stations are on the air, most of them in urban areas.
News bulletins from international radio stations - including the BBC, Voice of America and Germany's Deutsche Welle, are carried by many stations.
The mainland and Zanzibar have separate media policies. Liberalisation measures enshrined in a 2001 media bill did not apply to the islands. There are no private broadcasters or newspapers in Zanzibar, though many locals can receive mainland broadcasters and read the mainland press.
The press
· Daily News - government owned, Tanzania's oldest newspaper
· Uhuru - government owned, in Swahili
· The Guardian - private
· Daily Mail - private
· Nipashe - private, in Swahili
· Alasiri - private, in Swahili
· Business Times - private weekly
· The Express - private weekly
· Arusha Times - private weekly
Television
· Televisheni ya Taifa (TVT) - state-run TV, has yet to achieve complete national coverage
· Independent Television (ITV) - widely-watched private network, owned by IPP group
· Dar es Salaam Television (DTV) - private network operated by Africa Media Group
· Coastal Television Network (CTN) - private, Dar es Salaam
· Star TV - private
· TV Zanzibar - state-run
Radio
· Radio Tanzania Dar es Salaam (RTD) - state-run
· Parapanda Radio Tanzania (PRT) - state-run FM station set up to counter competition for younger listeners from private stations
· Radio Free Africa - private FM network
· Radio One - private network owned by IPP group
· Radio Uhuru - private FM station
· Kiss FM - private Dar es Salaam English-language station
· Clouds FM - pop music station available in Dar es Salaam and Arusha
· Orkonerei Radio Service (ORS) - community network operated by non-governmental agency
· Voice of Tanzania-Zanzibar - state-run radio on Zanzibar
News agency
· Press Services Tanzania"

Source: BBC NEWS
http://news.bbc.co.uk/2/hi/africa/country_profiles/1072330.stm

Thursday, October 19, 2006

Will Kikwete Deliver his Promises?

It is almost a year since Kikwete became the president of Tanzania but most critical problems such as Power Rationing remain unsolved. Tanzanians have waited for the great leader to solve most problems but Kikwete remains the great hope and the great leader to his people unless proved otherwise. Critics have urged that as long as CCM is the ruling party, chronic problems like power shortage, embezzlement, water shartage just to mention a few will prevail.

I called my brother yesterday, I could barely hear from him due to noises generated by power generators in Dar es Salaam. Businesses run generators to continue business because there is no power during the day. While most generators run on petroleum, petroleum prices go unregulated. Power comes back at night for only a few hours to combat robbery and burglary. Since power rationing has intensified, Dar es Salaam residents go without power for 14 to 20 hours per day for seven days. There are not enough lights to combat robbery and burglary anymore therefore number of robberies have increased. What is Wizara ya Mambo ya Ndani doing?

If you own a business in Tanzania, this is the most unproductive time ever. How long will this last? No one has the right answer yet. Does this reflect Mkapa’s economic achievements, economic reforms and the pride he earned from the international world? Think again! Mkapa is considered the reviver of Tanzania's economy through his privatization economic ideology. Unlike Mkapa, charismatic Kikwete has created close tie to his people which sounds patriotic and commitment to the country. Is kikwete different from Mkapa or Mwinyi? Some critic believe that Kikwete continues Mkapa's legacy and like Mkapa, he is doing enough. I personally think it is too early to judge him. I hope that he will keep his promises and therefore solve most of the chronic problems.

According to sources, Mwanza, Arusha and Singida face total darkness. Kidatu power plant was closed down this week and the only hope left is God's miracles. I pray that God brings early rainfall to fill Kidatu dam with water. Are there any other alternatives out there other than hydroelectric power sources? Is the government doing enough? Kikwete has discussed the problem with developed countries and called them to help but nothing has seemed to materialize yet. Where is all the money that TANESCO collected over the years? Can't that billions of shilling be used to purchase giant generators? I hope some day Tanzania will go all year long without power rationing.

Power rationing has been the endless song that all Tanzanian presidents must sing. Some critics say each president gets his fortunes and pass problems to the next president. I hope Kikwete is different. They will promise to change the country during campaigns but at the end of their terms in office, nothing will seem different from the previous terms. I hope Kikwete does a better job.

In this era of computer technology and digital technology, online financial products, online markets, online investments, ecommerce, automated businesses and frozen food, Tanzania has no stable power sources yet. Our president, the hope of the nation seems to have so much on his plate than he can digest. Power crisis must be given first priority and requires quick response. In developed nations, power outage is like a state of emergency, in Tanzania it is a normal day of business. If Kikwete solves the power problem before his time runs out, I will consider him the hero of all times and Tanzania will be a true showcase for economic development to other African countries. “Mungu Ibariki Tanzania

Mtanzania, Jacob Kashimba


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Thursday, October 05, 2006

Kikwete Spoke to NYSE Officials

Have you ever heard of Dar es salaam Stock Exchange (DSE)? Unlike New York Stock Exchange(NYSE), DSE has only nine companies listed. This is a good start. President Kikwete has a mission to improve Tanzania's economy. On his Business Mission to USA spoke to New York Stock Exchange officials and expressed the need for them to assist DSE. "They agreed to look at the possibilities of assisting our stock exchange," he said.

DSE is at its early stage of development and really needs support. How will NYSE assist? Well, it is still unknown but president Kikwete expressed hope on his national address after his trip to USA.

NYSE can assist DSE in many ways such as modern trading technologies and stock market experts. Since NYSE enjoys stable US economy, what is the future of DSE? Well, it is tough to answer this question especially when our capital market is not stable and when the country has other more important issues to deal with before concentrating on DSE. DSE needs capital financing so do education, electricity, food and clean water. With nine companies listed, DSE processes are not yet automated. The automation exercise is expected before the end of this year according to some sources.

To develop DSE, we should expect its officials to visit developed world as part of learning and exposure that Kikwete believes will be very helpful. Well, some critics are concerned with Kikwete's government spending on trips abroad. I personally think that exposure to developed world is what made us think the way we think today. How much of that exposure is needed and at what cost? Well, we all pay the price for the good stuff so do the govenment. I am with Kikwete on this matter and I am sure in the course of time, the economy will tell. Although it is too early to speak about results, Kikwete's trips are yielding positive results. For results, Stay tuned!

If power rationing continues, will the automated Dar es Salaam Stock Exchange operate to its full potential? If yes, will companies listed in DSE maintain stable performance?. Again, the power issue is being addressed and I hope the solution is underway.

With Kikwete's commitment for economic change, many issues are at hand and all need his attention; food shortage, power shortage, Water shortage, education and corruption. One great thing Tanzanians have in mind, is faith in their leader. Kikwete's beginning has seemed so promising. Let the beginning continue to the end of his term.

Mtanzania, Jacob Kashimba.

Wednesday, October 04, 2006

STATEMENT BY HIS EXCELLENCY JAKAYA KIKWETE AT THE MICROSOFT GOVENMENT LEADERS' FORUM-AFRICA

Here is the portion of Kikwete's speech at Microsoft Goverment Leaders' Forum in South Africa.
I quote,
"Your Excellencies
Heads of State and Government;
His Excellency Bill Clinton,
Mr. Bill Gates, Chairman of Microsoft Corporation;
Distinguished Participants;
Ladies and Gentlemen.

.............
Excellencies and Distinguished Participants, Before I conclude, allow me at this point to reiterate and underscore the centrality of ICT development in Africa. It’s the way for us to take. I also reiterate the need for support to ICT development in Africa. Africa needs to be assisted to be part of the global system by overcoming the constraints relating to infrastructure, skills, PCs availability and development of local entrepreneurship. While these areas are important, African Governments also need to ensure that they develop conducive environments for ICT investments to grow harmoniously. In this context, partnerships between private sectors and Governments will ultimately determine the success of our endeavours in this age of Globalisation.
Excellencies, Ladies and Gentlemen;
I wish to express my sincere appreciation to Microsoft for demonstrating how the peering between ICT entrepreneurs of developed and developing countries can be fostered in order to bridge the digital divide. And finally, may I take this opportunity to once again thank Chairman Bill Gates for bringing together in this venue a valuable network of African Government Leaders and other important players and great personalities of world reknown like His Excellency Bill Clinton, former President of the United States, to share ideas with one another on this dynamic field. We look forward to useful exchanges.
Thank you for your attention."

For more information on Kikwete's speech, visit http://www.tanzaniagateway.org/docs/PresidentKikweteStatement_MicrosoftGLFAfrica.pdf#search=