IF Tanzania is to be come prosperous on a meaningful and sustainable basis, then the Government must deliberately invest in key strategic areas such infrastructure, mining, energy, industries, natural resources and tourism.This was said by a former vice-president and prime minister of the United Republic, Cleopa David Msuya, in an exclusive interview held at his residence in Upanga, Dar es Salaam, this week.
The challenge that the fourth phase Government led by President Jakaya Kikwete is that the provision of adequate quality goods and services cannot be attained sustainably unless and until there is huge growth in the production of good and services provision to cater for relentlessly increasing national demand.
“We should have the ability to plan so as to alleviate various problems; plans that would lead the country forward in terms of socio-economic development,” Msuya stated.
If the Government would improve infrastructure – in such areas as extending the Dar es Salaam port; improving the railways system; expanding/constructing airports, etc – Tanzania could earn huge sums of money from such economic infrastructure.
In the agriculture sector, Msuya urged the Government to enable farmers to produce more – and be able to readily export surpluses.
Msuya also urged the Government to increase domestic industrial activity as another key strategic plan.
“It is unfortunate that... there has not been a single major industry built for decades now. So, if we could construct ten new industries under the Five-year Development Plan introduced recently by the president, this would certainly have a major impact on our economy. To-date, we are importing toilet paper, toilet soap... I think we should concentrate on building new industries for beer, soda, cigarettes and soap,” he explained.
Noting that Tanzania has enough natural gas reserves, Msuya he said “if and when these are exploited well, it would make the country as rich as like Qatar!
Further noting that, currently, Tanzania has enough human capital of which the Government could take full advantage to make the country prosper, Msuya said: “we have a lot of intellectuals, professors, doctors, etc, who can make analyses in Parliament and elsewhere. All we need is to work hard, and not talk too much!”
Turning to the domestic aviation industry, Msuya urged the Government to hunt for a new, competent management to revive the national carrier, ATCL...
“It is a shame to see Rwanda – who came to the aviation business only recently – are already flying everywhere... We have to look for an alternative way to revert the situation,” he said.
In spite of the challenges ahead, “we thank God for the efforts by the Kikwete Government towards extending socio-economic development activities such as infrastructure” whereby, in terms of cellular telephony, millions of Tanzanians today have a mobile telephone!
The construction of primary and secondary schools in every ward, as well as the establishment of more Universities, are other examples of development.
At the time the country attained Independence from foreign rule in 1961, the total population was around eight million souls, Msuya stated. Since then, the population has grown to up 43 million!
“However – unlike the increase in population – economic growth has in some cases slipped especially in terms of what the country produces for export. The slip can better be measured by comparing what the population of eight million was producing vis-à-vis what 43 million Tanzanians are producing today!”
No body can say with a straight face that the country had not achieved any economic development, Msuya said, hastily adding that “the developments were not enough.
“One of the reasons why Tanzania’s economy has being growing slowly during 50 years of Independence is that we are importing more than what we are exporting. This is not good for any country’s development!”
According to Msuya, production of export like coffee, tea, cashew nuts and tobacco have generally gone down, or stagnated, while the population has increased.
For instance , the country was producing up to 200,000 metric tons of sisal a year in the past; but, now. only 30,000 metric tons are produced. Coffee production was 48,000 metric tons in the early 1960s... But, 50 years later, production has only increased to around 56,000 metric tons only.
The increase, Msuya stressed, does not match with the population increase!
This forces the country to import almost all that it consumes –and, hence, the need to spend much more in otherwise scarce foreign currency!
In the meantime, as the country exports little, it gets very little in export earnings. This is an unhealthy situation when it comes to world economics. The development of a country to a certain extent is measured by how much it produces for its own consumption and exports, Msuya explains.
It is partly for this reason that Tanzania still very much depends on foreign loans, aid and donations for both its recurrent and development budget.
“The challenge now is for the Government, working in collaboration with other stakeholder, to ensure increased production of export commodities and increased revenue collections so as to be able to finance it national budget,” Msuya counselled.
In fact, if there were ten more new industries like Tanzania Breweries Limited – which is among the few large taxpayers in the country – Msuya said Tanzania could then be in a position to at least finance its recurrent budget!
According to Msuya, the Government cannot completely exclude itself from production but should, instead, take be the first to go ahead and invest. This is especially considering that the private sector does shun investing in areas where they feel they won't pay! |
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