TANZANIAN ECONOMIC ACHIEVEMENTS

By Joseph Kilasara

Tanzania has come of age with the onset of the fourth phase government as we like to call it. The third phase government of Mr Mkapa has made tremendous achievements in addressing the macroeconomics fundamentals of the economy with the exception of unemployment which remains astronomically high.

At the start of Mkapa’s government in 1995, the economy was in a dire state with inflation hovering around 29% and growing; the currency was depreciating daily; foreign donors had deserted the country; tax evasion and corruption, both high level and petty, was seen as a norm; and, as the government was not collecting revenue, salaries were extremely meagre and frequently delayed. For some time the economic and business environment was all but chaotic and the government had lost its credibility and was becoming more of a joke. Continue reading

BUSINESS & THE ECONOMY

In an effort to boost the capacity of local microfinance institutions the Governor of the Central Bank of Tanzania, David Balali, has launched the ‘The Financial Sector Deepening Trust (FSDT)’. The objectives of the fund are to support any organization that contributes to realizing the objectives of the government’s ‘Poverty Reduction Strategy Plan (PRSP).’ The Trust’s investments will include research and development of financial markets, products and services, training, capacity building, strengthening smaller financial institutions as well as developing regulatory and supervisory frameworks – The Guardian.

The Guardian has also reported some good news for coffee farmers in Kilimanjaro thanks to the introduction of the Tanzania Kilimanjaro brand initiated by a company called Peet’s Coffee & Tea. The coffee is being marketed as a single origin coffee in the US as the result of a project funded by USAID, the Swiss State Secretariat for Economic Affairs, Farm Africa and other private donors.

Creditors have been closing in on the once high-flying flag of the road transport sector – The Scandinavian Express Services Limited – which operates throughout East Africa with its luxury buses. The liquidation bid has been filed in the High Court by Shell Tanzania seeking to recover about Tzs 1.5bn in unpaid oil supplies. This petition was immediately followed by those of several major local banks leaving the future of the company in a gloomy state. Nevertheless, this could in a way be a blessing in disguise to the credit market in general as it will instill a much needed debt-repayment culture.

MUHIMBILI DOCTORS STRIKE

Doctors at Muhimbili Hospital went on strike over pay in November demanding that their starting salary should be raised substantially. On November 20th the government complied by raising junior doctors’ salaries by over 60% from Tsh. 226, 000 to Tsh. 420,000 and to Tsh. 1,141,000 from Tsh. 1,030,000 for specialists and consultant doctors. On November 25th the doctors rejected the award. The government then sacked 176 doctors, nurses and pharmacists and quickly moved to replace them with doctors from the Tanzania People’s Defence Forces (TPDF) and Ministry of Health. Heavily armed police stormed the hostels to evict the sacked junior doctors and the interns who were still at the hospital. Some retired doctors reported at the hospital for duty. When the striking doctors changed their minds and accepted the pay award, the government said it would consider only individual requests to return to duty. In an interview with The Express, MNH Managing Director Dr. David Treggoning said the hospital administration was forced to take the decision to sack the doctors but they had not wanted t do so.

MISCELLANY

Lake Victoria, the source of the White Nile could be reduced to a swamp within decades unless action is taken to save it according to the Executive Director of the UN Environmental Programme, quoted in THE TIMES (2nd November). The report compared past and present satellite pictures revealing the growing danger to African Lakes. The water level of Lake Victoria, which provided fishing and transport for 30 million people, had dropped by a metre in the past 10 years alone he said. (Thank you Simon Hardwick for this – Editor) . Continue reading

OBITUARIES

ROGER CARTER, who died in December, was one of the founders of the Britain Tanzania Society (BTS) and built it up over the years into the significant organisation it has now become. He originally graduated in Natural Sciences and Economics from Cambridge and then, in the 30’s, worked with an educational settlement during the depression. He later helped the Quakers in Germany to assist people wanting to leave the country and was himself on the last train from Berlin before the second world war began. From 1964 to 1976 he was in Tanzania, firstly as an Educational Planner in the Ministry of Education, and later at the University, helping in the development of the Department of Engineering.

(Thank you Nick Carter for giving me this information. A much fuller obituary has been published in the BTS Newsletter. Readers wishing to see this are invited to contact the editor, Julian Marcus at e-mail address: xxomitted to avoid spamxx – Editor).

DR FREDERICK THOMAS KASSULAMEMBA (61) who had a long career in secondary education in Tanzania from 1971 onwards took his PhD at Reading University. He then became a lecturer in the Foreign Languages and Linguistics Department of the University of Dar es Salaam and later worked on education with underprivileged ethnic minority children in England. He died on October 3. (Thank you Ken Mpopo for this – Editor).

MRS RUTH JASON KESSI (68) died in a hospital in Geneva on 26th October from breast cancer which she had been battling against for two years. She was a teacher and had taught in many countries including Russia where she married her husband Jason. She was also a member of the Britain Tanzania Society. Prof. Esther Mwaikambo writes that she was a woman of strong character, courageous and highly principled. Her body was cremated in Geneva and the ashes were spread in the gardens of her homes in Marangu and Dar es Salaam and in the Indian Ocean near her beach plot.

MRS SOPHIA MUSTAFA (82), one of the most famous freedom fighters of Asian origin in the 1950s died in Toronto on September 1 after a short illness. Known in Tanzania as ‘Mama Sophia’ she lived in Arusha from about 1950 to 1980 and played a huge role in helping nationalists led by Mwalimu Nyerere to gain independence for Tanzania in 1961. She was elected an MP in the 1960’s, representing both Arusha and Moshi districts – Guardian.

FATHER GEOFF SWEENEY, who died in December 2004, first went to Tanzania as a missionary in 1945 and worked in the country for 50 years. He was essentially a pastoral man in Bukoba and Singida dioceses where his little white Suzuki became a familiar sight on the rough roads of the area. He grew to love the people and they loved him. From 1987 to 1990 he took over as guestmaster in the Regional House at Nyegezi. (Thank you John Sankey for sending this – Editor).

REVIEWS

Edited by John Cooper-Poole (UK) and Marion Doro (USA)

TREVOR HUDLESTON – TURBULENT PRIEST
. Piers McGrandle. Continuum, 2004. ISBN 0 8264 7123 4 h/b £16.99.

‘Trevor meant nothing to people of my generation; he is as relevant to them as the Campaign for Nuclear Disarmament and the three day week’

So Piers McGrandle starts his biography of Trevor Huddleston. It was a sentence that brought me up short. To people of my generation, Trevor was a household word, the scourge of apartheid, a highly political presence in Stepney and subsequently Archbishop of the Indian Ocean. He was also an unyielding critic of anyone who could not recognize that the one subject which could not be discussed objectively was the sin of apartheid. In spite of some 30 years of friendship, I fell victim to his wrath when treading the BBC’s path of objectivity at the World Service. Continue reading

ELECTION GUIDE

THE TWO PARLIAMENTS -WHAT HAPPENED LAST TIME?
At the end of the 2000 elections President Benjamin Mkapa, leader of the ruling party, Chama cha Mapinduzi (CCM) was elected with 71.7% of the vote. Prof. Ibrahim Lipumba, leader of the main opposition party, the Civic United Front (CUF) got 16.3%. Mkapa cannot stand again as he has completed two terms. Prof. Lipumba is standing again, in his third attempt.
There are likely to be up to 12 other candidates standing for the presidency from smaller opposition parties – see below. Continue reading

THE ELECTIONS IN ZANZIBAR

THE HISTORICAL BACKGROUND

In a paper published in Oxford University Press’s African Affairs in August 2005 Ben Rawlence gave the background to the unhappy history of elections in Zanzibar. Extracts:
The 2000 elections were cancelled and then re-run but were subsequently boycotted by the opposition. In the 1995 elections the official margin between the CCM and CUF was only 0.4%.
Before that, the last elections held on the islands under a British mandate in 1963 precipitated a revolution. British gerrymandering ensured a victory for the Zanzibar National Party (ZNP) in alliance with another party. Despite forming a government, these twp parties only commanded 46% of the national vote, whereas the Afro-Shirazi Party (ASP) won 54%. The ZNP with its roots among Zanzibar’s elite, left the constitutional monarchy unchanged and the Sultan on his throne. After only a month, the Government and the Sultan were overthrown in the bloody revolution of January 1 1964. The ‘Revolutionary (now CCM) Government’ of Zanzibar has ruled ever since.
Zanzibar’s first President, Abeid Karume, agreed to the establishment of a Union between Zanzibar and the mainland of Tanzania creating the new state called Tanzania in 1964. The second President, Aboud Jumbe, supervised the union between the mainland’s Tanzanian African National Union (TANU) party and the ASP, forming the Chama Cha Mapinduzi (CCM – the Party of the Revolution) in 1977.
Some observers see the current political division between CCM and the CUF as nothing more than a reincarnation of the old 1963 divisions. However, although these historical associations undoubtedly have some relevance to older voters, well over half the voters were born since the Revolution and around 45% are under 30. Rawlence goes on: In fact, the current divisions between the two parties are more rooted in events that have taken place since 1964. In the 1963 elections, the ASP won 44% of the vote in the northern island of Pemba but only two seats. At the elections in 2000 and by-elections in Pemba of 2003, CCM’s own official figures put their share of the vote at around 15%. On Unguja island, the south and central regions have remained faithful to CCM but Zanzibar town and parts of the north that were always oriented towards the mainland, have now become either CUF seats or marginal seats. CUF officials claim that of the 32 seats on Unguja, they now have a majority of potential voters in 13. CCM denies this but some CCM officials are said to privately accept the figures. It was after CCM appeared to be losing the supposedly safe CCM seat of Rahaleo in the 2000 elections that police were ordered to seize ballot boxes and the election was cancelled.

PARTY POLICIES
In all previous elections in Tanzania the emphasis has been on personalities rather than polices. This election might be different.
President Karume claims to have done much during his first term. He refers to the Chake Chake Road in Pemba linking Mkoani port with the rest of the towns and villages in the area; improved water supplies; achievement of Millennium Development Goals in education – every child who is at the age of going to school goes to school. Karume has also eased political tensions with the result that international donors have resumed aid. He plans to complete the construction of the Michenzani flats – work stopped during the First Phase Government under his father.
CUF, which is a member party of ‘Liberal International’, is proposing some radical new polices, especially in its Zanzibar stronghold. These include privatisation of the clove industry and the other state-run organisations including those concerned with oil, insurance, tourism, together with lots of public housing and the state farms which were established after the 1964 revolution.

WHAT WILL HAPPEN THIS TIME IN ZANIBAR?
CCM has admitted that holding on to power in Zanzibar is going to be difficult but there is a lot at stake for both parties and it is this factor which creates the political tension for which Zanzibar is renowned.
Acccording to Rawlence, CCM is divided about the causes of its woes. Presidents Karume and Mkapa say that the opposition is fuelled by troublemakers who are intent on power at any cost. In recent speeches, they have both called the opposition, ‘people of violence’. They have suggested that CUF is motivated variously by Islamic fundamentalism, Zanzibari nationalist secessionism and foreign intervention from the Gulf States as well as Britain. However, according to Dr Mohamed Bilal, former CCM Chief Minister, who recently challenged incumbent President Karume for the 2005 CCM presidential nomination, the President has failed to deliver on CCM’s promises to the people. Bilal was persuaded to withdraw his challenge by President Mkapa at the last minute before the final vote at the National Executive Committee of CCM in Dodoma on 3rd May.

HamadSeif Sharrif Hamad (CUF Presidential Candidate)

Rawlence quotes CUF Zanzibar Presidential candidate, Seif Shariff Hamad, as saying that CCM is guilty of corruption and economic mismanagement; discrimination against people of Arab or Pemban ethnicity; ceding too much sovereignty to the Union government over energy, customs duties, and security; and politicization of the security forces and civil service as well as abuse of human rights.
In October 2001, following the violent January riots, CCM and CUF signed a historic agreement, called ‘Muafaka’ (see earlier issues of Tanzanian Affairs – Editor) which provided a framework for ensuring free and fair elections in 2005. Since then a constitutional amendment has been passed, the electoral laws have been reviewed and the Zanzibar Electoral Commission (ZEC) has been overhauled. ZEC has just completed a nationwide computerized registration process to create a permanent voters’ register.

KarumePresident Amani Abeid Karume (CCM Zanzibar Presidential Candidate)

However, other Muafaka provisions including a reform of the judiciary have not been implemented according to CUF, the police and security organs are still heavily politicized and compensation promised to the victims of the shootings of January 2001 has not been paid. The Muafaka Committee has started meeting again on a regular basis which is encouraging news.
Many observers believe that a government of national unity is the only solution for Zanzibar but CCM has said that it is opposed to this. Continue reading

BUSINESS & THE ECONOMY

Exchange rate: 1US$ = Tzs 1,136

At the G8 summit in Scotland in July President Mkapa received assurances that in view of its impressive record in economic management, poverty reduction, good governance and good use of aid and previous debt relief, Tanzania can expect to receive a significant share of the new resources being added to the aid programme. The actual amount will be worked out by the boards of the IMF, the World Bank, and the African Development Bank over the next few months. The President said that to him, debt relief was the most assured form of development assistance as it freed revenues in his government’s budget to help in poverty reduction. Continue reading