Tanzanian Affairs is a magazine with news and current affairs issued by the Britain-Tanzania Society. It is published three times a year. The views expressed or reported are those of the person concerned and do not necessarily represent the views of the Britain-Tanzania Society. All the information is copyright – please refer here for more details.
TA ISSUE 140
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Dr Emmanuel Nchimbi with President Samia Suluhu Hassan shortly after his nomination as her running mate.
Find the latest issue (Feb 2025) on the Britain Tanzanian Society website https://www.britaintanzaniasociety.co.uk/member-zone/ (membership required).
The issue will be uploaded to this site in June 2025 to join the searchable archive.
TA ISSUE 139
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Cover shows a train on the new SGR (Standard Gauge Railway) route linking Dar es Salaam and Dodoma – see Transport article
Maasai Eviction Protests
SGR Rail Route Launched
Reviews
A pdf of the issue can be downloaded here
RESPECT FOR DEMOCRATIC NORMS
by Ben Taylor
Growing concern over President Samia’s respect for democratic norms
After President Samia Suluhu Hassan took office in March 2021, there were signs that she intended to “re-open” the country, both politically and economically. Her predecessor, President John Magufuli, had restricted the activities of opposition parties, and anyone critical of his government, as well as applying a firmly nationalist approach to economics that discouraged investment.
“Tanzania is less sinister and less mad since she took over,” wrote The Economist earlier this year. Right from the start, however, questions were being asked as to how concerted President Samia’s new direction would be, particularly on politics. In part, this was because President Magufuli remained popular both with the public and with some powerful figures within the ruling party, CCM, and it was clear that any pro-democracy moves the new President introduced would meet with resistance – resistance that would also carry the temptation and/or promise of a relatively easy ride in forthcoming elections. Would the demands of holding the party together trump her supposed democratic instincts? And in part, it was because President Samia’s own position was not well known. She had spent over five years as a loyal Vice President to her predecessor, without ever marking out her own position on key questions. How committed was she, truly, to moving the country in a more democratic direction?
A number of recent events and trends have led to rising concern that her commitment is lukewarm at best. One pan-African publication described this as Tanzania’s moment of truth, where “the red flags are getting redder.” Another went with “Back to bulldozer politics”.
A planned celebration in Mbeya in August of International Youth Day by the opposition party, Chadema, was blocked by the police. More than 500 young Chadema supporters were arrested as they attempted to gather in defiance of the ban. Several senior Chadema leaders – including secretary general John Mnyika, national vice chair, Tundu Lissu and central committee member Joseph Mbilinyi – were detained for 48 hours and allegedly roughed up by the police, and party leader Freeman Mbowe was also arrested. Police Commissioner, Awadh Juma Haji justified their actions by saying the police would do everything in their power “to resist such glaring threats to public order”.
Further, in recent months, numerous opposition figures have reportedly disappeared. In July, regional police in Tanga confirmed that they were holding Kombo Mbwana, a Chadema district leader – some 30 days after he went missing. He had not been presented before court, despite appeals by his lawyers. Two other party leaders – Dioniz Kipanya from Rukwa and Deusdedith Soka from Dar es Salaam – have gone missing in the past few weeks, with no word from authorities. In August, the Tanganyika Law Society (TLS) released a list of 83 people who had recently disappeared recently under mysterious circumstances.
There have also been other grounds for concern, too. There was the heavy-handed response to criticism of the controversial DP World contract to manage the port of Dar es Salaam (see TA136 and 137).
There was a recent announcement by Zanzibar’s police commissioner Hamad Khamis Hamad that they would review political speeches with the aim of identifying utterances made against the state or aiming to incite hatred. And there has been the reappointment of former close allies of President Magufuli to influential positions – most obviously the controversial Paul Makonda who was recently made regional commissioner for Arusha, after three years in the wilderness. He recently called himself the “favourite son of President Samia,” surely a knowing reference to the persistent rumours that he could be the illegitimate son of President Magufuli.
Even the reforms that the President herself had been strongly associated – such as establishing dialogue with opposition parties and forming commissions for criminal justice reform, constitutional reform and the running of elections – have slowed or stalled, showing little sign of progress in the past year. Recommendations are gathering dust on shelves, while local elections are due before the end of this year, and presidential and parliamentary elections will be held in October 2025.
Those elections are, of course, a major part of the context in which all of this is taking place. There is still an outside chance that President Samia may face a challenger in becoming the CCM presidential candidate. Having risen to the presidency through the untimely death of the previous incumbent, rather than through an election, as well as being the country’s first female president, President Samia could be forgiven for feeling nervous at the prospect of not delivering a victory as clear as that of President Magufuli. Indeed, such was the extent of his win in the 2020 official election results, she cannot hope to match that outcome, whether or not the country returns to a more credible democratic electoral process.
A second factor, particularly in the most recent developments, is the recent “Gen Z” protests in Kenya. Across several weeks, widespread protests by young Kenyans, organised on social media, piled pressure on President William Ruto to reverse tax changes. A heavy response by state security forces, which killed dozens, failed to quell the unrest, and eventually, President Ruto fired his entire cabinet and was forced to halt planned tax hikes.
When announcing the ban on Chadema’s youth day rally in Mbeya, Commissioner Haji specifically cited a statement by one Chadema youth leader that called upon opposition supporters to be “inspired by
our colleagues in Kenya”.
At the time of writing, the jury is still out on whether President Samia is genuinely committed to democratic reforms but having to proceed slowly in order to bring her party with her, or her stated commitment was only ever a strategy to buy herself time as the country’s new leader. What is clear, however, is that observers both within and outside the
country are becoming less willing to give her the benefit of the doubt, and that their doubts are growing.
MAASAI EVICTIONS
by Ben Taylor
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Thousands of Maasai gather to protest against evictions and are addressed by Arusha Regional Commissioner, Paul Makonda – Photo – IWGIA
Maasai evictions – and protests – and concessions
On August 18, 2024, hundreds of Maasai community members gathered to protest the denial of basic rights and the loss of their ancestral land in Ngorongoro, Tanzania. The protest is the latest in a series of actions against a government relocation plan aimed at moving 110,000 Maasai from Ngorongoro to Msomera, Sauni, and Kitwai, over 300 kilometers from their current homes.
Dressed in their traditional red clothing and holding leaves – as a symbol of peace recognized across many Tanzanian tribes – the demonstrators blocked the busy Ngorongoro-Serengeti Road. They carried posters, prayed, and marched, singing in the Maasai language to voice their grievances.
The government argues the relocation is essential to preserve the Ngorongoro Conservation Area, a UNESCO World Heritage site. “Due to escalating human-wildlife conflicts, overpopulation of humans and livestock, wide-spreading zoonotic diseases, shrinking wildlife corridor and grazing land, lack of safe water sources and poor sanitation, and the quest for socio-economic development of its citizens, the consensus was reached through a participatory and transparent process for a voluntary relocation program,” said Mudrik Ramadhan Soraga, the Zanzibar minister for Tourism and Heritage, speaking to a meeting of the World Heritage Committee in July in New Dehli, India.
Officials further maintain the relocation is voluntary, but residents have described the exercise as an eviction, pointing to the cutting off of essential services such as water and health to make their case. “Conservation is a good thing, we are not against it. We are against … discriminatory conservation, implemented in a militaristic way,” Maasai lawyer Denis Oleshangay told reporters. However, he said, “they are trying to make life so hard that no one will stay.”
The government has offered to build new homes to encourage “voluntary relocation” for those who agree to move to Msomera, as well as cash payments to support the move. The government reported having spent TSh 286 billion on the relocation effort, and said in early September that this has resulted in 9,778 residents moving since July 2022.
The immediate trigger for the latest protest appeared to be concerns that residents had been stripped of their right to vote in Ngorongoro. On August 3, some Ngorongoro residents alleged that the Independent National Electoral Commission (INEC) had transferred the names of voters from Ngorongoro to Msomera, a place where only 2% of Ngorongoro residents have relocated.
“We are shocked and saddened that the entire Ngorongoro Division, which currently has a population of 110,000, will not be voting at usual polling stations,” said James Moringe Mollel, Councillor of Loitile Ward. “They claimed the relocation was voluntary, but for example, I have been assigned to a hamlet in Msomera as my polling station, a place I’ve never even visited.”
Further, an official plan contained in the Government Gazette published on August 2, 2024, involved delisting 11 wards, 25 villages and 96 sub villages in Ngorongoro.
Prof Issa Shivji, one of Tanzania leading legal scholars, responded in a social media post that the villages’ delisting will have far-reaching legal and democratic implications for the people of Ngorongoro, and urged authorities to rethink their plan.
The protest than began on August 18th continued uninterrupted for five days, despite heavy-handed policing. According to some reports, this included the arrest of 39 members of the Maasai community. A week later, according to these same reports, the locations where the arrested were being held had not been revealed, and no charges had been brought.
The international human rights group, Amnesty, issued a statement calling on the government “to immediately disclose the whereabouts of the 40 arrested community members, grant them access to their lawyers, and due process, including being promptly brought before court to challenge the legality of their detention.”
Five days into the protest, the minister of State in the Prime Minister’s Office responsible for Policy, Parliamentary Affairs and Coordination, William Lukuvi, addressed residents in Oloirobi Village, in Ngorongoro Ward. He was accompanied by the Minister of Constitutional and Legal Affairs, Prof Palamagamba Kabudi, Deputy Minister of Natural Resources and Tourism, Mr Danstan Kitandula, Arusha Regional Commissioner, Paul Makonda, and the Police Force’s Commissioner of Operations and Training, Awadh Juma Haji.
Mr Lukuvi said in his speech that he had been sent by President Samia Suluhu Hassan, and that he had been instructed to ensure health and education services must continue to be adequately delivered. “Education services must be fully provided, and hospital services must be fully available. I want Mr Makonda to ensure that in all areas where services have been suspended, they are restored so that residents do not face difficulties in accessing social services,” he stated.
Mr Lukuvi also said that President Hassan has directed that local government elections, scheduled for November, should be held in Ngorongoro, and preparations should proceed accordingly in the area as per existing boundaries. “The President has sent us to assure you that your rights to vote in the forthcoming elections remain intact. The director of Elections (from the Independent National Electoral Commission) will ensure all polling stations are set up to enable citizens to exercise their constitutional rights,” he said.
At the same meeting, Prof Kabudi affirmed that all Tanzanians are equal and assured the residents that they will receive the same rights and treatment as those in other regions.
“Our country was founded by the Father of the Nation, Mwalimu Julius Nyerere, as one united nation built on love, peace, and unity. President Hassan upholds these principles and urges you to preserve peace and stability while safeguarding the nation. Let us embody the spirit of peace and love, just like all other Tanzanians,” he said.
In a separate development, the Arusha High Court has blocked implementation of the Government Notice that formally dissolved wards, villages, and hamlets, including those in the Ngorongoro District, until further court notice.
Thanking the government on behalf of the residents, Ngorongoro legislator Emmanuel Shangai said in the previous four years, residents have seen no leaders visiting the area, but today the President has sent them. “I urge you to trust the government because the President is for all Tanzanians. It is possible that some of her subordinates misled her, which is why these issues arose,” he said.
The government case
A series of articles in the (Tanzanian) Guardian newspaper presented the government case on the Ngorongoro issue, highlighting the legacy of a 1959 land use policy. Initially designed to accommodate human and wildlife populations, the policy aimed to harmonize their coexistence within the Ngorongoro Conservation Area (NCA).
The Maasai were allowed to graze their livestock within the conservation area, maintaining their cultural practices and livelihood. And in return, certain restrictions were imposed to ensure that wildlife habitats were preserved and that the ecological integrity of the region was not compromised. These restrictions included prohibiting permanent structures and agricultural activities that could disrupt wildlife habitats.
However, over time, the growth of both human and wildlife populations has intensified the competition for scarce resources like water and grazing land. Pressure on wildlife habitats intensified, leading to more frequent and severe human-wildlife conflicts.
Recently, the Tanzanian government, through the Ngorongoro Conservation Authority Area (NCAA), announced its goal to improve the living conditions of residents in the Ngorongoro division, especially those within the conservation area. This aims to separate human and wildlife habitats to enhance conservation efforts.
RESHUFFLES APLENTY
by Ben Taylor
In August, President Samia Suluhu Hassan announced her fourth cabinet reshuffle of 2024 and her fourteenth since taking office in March 2021.
The latest reshuffle sees the return of former ministers Palamagamba Kabudi and William Lukuvi to the cabinet, while two other ministers, Angela Kairuki and Ummy Mwalimu, have been removed. Kabudi, who has been reappointed as the Minister of Constitutional and Legal Affairs, and Lukuvi takes up the post of State Minister at the Prime Minister’s Office, overseeing Policy, Parliament, and Coordination. This role effectively makes him the Chief Whip in Parliament.
Lukuvi’s appointment reflects the trust President Samia places in him. Prior to this ministerial appointment he had been a key political advisor to the President since January 2022.
Jenista Mhagama, who was replaced by Lukuvi, has been reassigned to the Ministry of Health, where she takes over from Ummy Mwalimu, who has been completely removed from the cabinet. Mwalimu’s departure is widely attributed to recent challenges at the National Health Insurance Fund (NHIF).
Pindi Hazara Chana has also been reappointed, in her case to the Ministry of Tourism and Natural Resources, replacing Angela Kairuki, who has been made an advisor to the President. Chana, who was removed from the Ministry of Tourism in February 2023 and later served in the Ministry of Sport and Culture and then Constitutional Affair Minister, now returns to her former role.
President Samia also announced the appointment of Hamza Johari as the new Attorney General succeeding Dr Eliezer Feleshi who has been appointed as a Justice at the court of appeal. Johari, who previously served as the Director General of the Tanzania Civil Aviation Authority, played a key role in negotiating the Dubai-Tanzania port agreement, which granted multinational DP World a 30-year contract to run, operate, and develop Dar es Salaam port.
Earlier, in July, Tanzania’s information minister Nape Nnauye was removed from his post following an outcry over comments he made suggesting that elections could be rigged. He was filmed at a rally saying that he would help a fellow ruling party MP win in the 2025 election, and that “election results are not necessarily those in the ballot box, rather they depend on the person counting and making announcements”. He will now be replaced by former land and housing development minister Jerry Slaa.
At the same time, foreign minister January Makamba was also sacked, with Tanzania’s ambassador to Italy, Mahmoud Thabiti Kombo, chosen as his successor. This means that between 2021 and 2024, Tanzania has had five different foreign ministers, a post that the President describes as “the heart of the government.” The Ministry has not had any Minister who has stayed in the ministry for more than a year since President Samia Suluhu came into power.
Many observers have associated Makamba’s sacking with his political ambition for the Presidency. “She saw the previous minister was going against her expectations,” argued political analyst Thomas Kibwana. He added: “If the new minister is to serve for a long time, it is essential that they do not have excessive political ambitions that can detract him from the current responsibilities.”
In announcing the changes, President Samia did not mention specific reasons for her decisions but emphasised the need to put the national interest first. “Your own interests as a human being are secondary, but the nation’s interests come first,” she said. She referenced a Swahili proverb, saying that “positions of power are like borrowed clothes. If you use them well, and the owner sees you wearing them properly, looking neat, and not misbehaving they might let you keep the clothes for a while. But if they find that you are misbehaving with the clothes they lent you, they will not wait; they will take back their clothes.”
Since January, when Makamba had represented President Samia at the Italy-Africa summit, he had been on the receiving end of a social media campaign claiming that he used the trip to set up a network for his own bid for the Presidency.
Finally, the Director of the Prevention and Combating of Corruption Bureau (PCCB), CP Salum Hamduni, has been appointed as the Regional Administrative Secretary for Shinyanga Region. Hamduni, who was appointed as PCCB Director in May 2021, leaves the organization amid an ongoing public awareness campaign against election-related corruption. Crispin Chalamila, a senior official from the President’s Office, has been appointed as the new Director of PCCB.
MISCELLANY
by Ben Taylor
Tundu Lissu announces presidential bid for 2025
Tundu Lissu, the vice chair of the opposition party Chadema, has announced that he has informed his party about his intention to run for the presidency of the United Republic of Tanzania through his party. He was also the party’s presidential candidate in 2020.
“I have indicated my intention as a presidential aspirant through my party officially,” Lissu explained in an online interview in August.
In 2020, Tundu Lissu was a presidential candidate representing Chadema, competing against the late President John Magufuli. In that election, which many described as the most flawed election in Tanzania’s history, Lissu received 1,933,271 votes, while President Magufuli was declared the winner with 12,516,252 votes.
Lissu’s announcement comes after various signs suggest some tension with the party, between him and the party chair, Freeman Mbowe. This rift was reportedly heightened during Chadema’s recent internal party elections, where Lissu said that there was a lot of corruption fuelled by money coming from the ruling party, CCM.
Taxing cryptocurrency
In the 2024/25 budget, Tanzania has announced a 3% tax on digital assets transactions. The new measure defines digital assets as anything of value that is intangible, including cryptocurrencies, token codes, and numbers held in digital form generated through cryptographic or other means.
The Act specifically targets non-resident individuals or entities that own platforms or facilitate the exchange or transfer of digital assets. This means the law will require crypto exchange sites and brokers to register in Tanzania’s tax system and withhold a tax rate of 3% when making payments to a resident as a result of transfer or exchange.
While the global market value of cryptocurrency stands at an estimated USD $2.46 trillion (2.2% of global GDP), Tanzania does not yet have a specific legal framework for digital assets. However, in 2019, the Bank of Tanzania issued a public notice against the use or trading of cryptocurrency in the country.
Nevertheless, various reports indicate that a significant number of Tanzanians own cryptocurrencies. One report by a Singaporean cryptocurrency research firm, Triple A, estimates that about 2.3 million Tanzanians own cryptocurrency. A separate survey within Tanzania, conducted by Financial Sector Deepening Tanzania (FSDT), found that 1.7% of Tanzanian adults – equivalent to over 580,000 people – have invested in cryptocurrencies.
ECONOMICS – AIR TRAVEL
by Dr Hildebrand Shayo
Tanzania has launched a more modern passenger and cargo fleet to compete in the sky race
Many readers will remember that eleven years ago, British Airways (BA) discontinued direct flights from London Heathrow to Dar es Salaam, due to what was then described as an inability to operate profitably. This marked the end of nearly forty years of BA flight services to Tanzania.
If the agreement to fly to London is successful and Air Tanzania (ATCL) begins operating direct flights from Dar es Salaam to UK airports – ideally London Heathrow or Gatwick – will travel agencies and the business community be able to profit from the direct flight to Tanzania at a competitive rate?
British Airways (BA) was the most dependable passenger airline for diplomats, government officials and intellectuals flying through Heathrow to the UK and the US for nearly forty years. According to statistics, the United States and the United Kingdom are among the leading countries where tourists arrive in Tanzania yearly.
The relevant inquiry is whether the acquisition of a more modern passenger and cargo fleet and the potential for direct flights from Tanzania to the major airports in the United Kingdom will support the economies of these two historically significant countries. Can Tanzania, through market-driven competition, close the 13-year-old gap created by British Airways’ (BA) withdrawal of flight services between London Heathrow and Dar es Salaam?
In this analysis, I’ll examine the main factors driving this expansion and any potential financial effects on Tanzania’s aviation sector. Such discussion could signal what would keep ATCL competitive nationally, regionally and internationally.
After a history that is well known, ATCL now operates a fleet of sixteen aircraft, comprising three widebody Boeing B787-8s, one widebody freighter B767-300F, two narrow bodies B737-9, four Airbus A220-300s, six regional turboprops DHC-8-Q300 and five HDC-8-Q400s.
According to the ATCL route plan, the national carrier presently offers 13 domestic services and 11 international destinations. With further fleet expansion, it plans to add flights to other destinations including Kinshasa, N’Djili Goma, Lagos, and Muscat.
Economic benefits from fleet expansion will have a substantial financial impact, especially on revenue and tax contributions. They will increase Tanzania’s regional influence while at the same time increasing ATCL’s operational capacity. Tanzania continues to be a centre for our economic region. Improved business class seats with better cushions and a premium economy cabin on an extra new aircraft with a 262-seat capacity that can load 20 cargo tonnes on ATCL flights will put the ATCL fleet in a more competitive market.
Looking at the areas where ATCL can resist competition in African aviation, most countries, including Tanzania, with national airlines, strive to maintain their competitiveness through market protection, preferential treatment, and incentives.
Therefore, ATCL operators must pay close attention to how State-owned airlines in Africa and the Middle East manage to maintain a lopsided competitive advantage and continue to provide high-quality services. It is crucial to remember that the free market economy in the airline sector has not historically performed as predicted in countries attempting to resurrect their national carriers.
Competitors from other areas, for example, have different strategies and often do not subscribe to the same school of economic thought. It is absurd to believe that ATCL can successfully compete with heavily subsidised regional airlines that are well-known in the industry and dominate long-haul travel.
One important thing to remember as Tanzania expands its fleet to compete in the sky race is that the continent’s airline market structure differs significantly from other regions, such as the US, where the deregulation of the aviation industry has been a significant driver of the industry’s expansion. In specific markets, the one-size-fits-all approach is inapplicable, and replicating it would be detrimental to Tanzania’s long-term investment goals.
Building a sustainable enterprise requires certain fundamental principles, which the government is putting in place as it prepares to strengthen ATCL. The reciprocity principle is the first. ATCL must have an equivalent chance back home in regions around Tanzania where international airlines are permitted to operate.
Some airlines prefer to fly during the day into the nation, but on their soil, ATCL might only be permitted to utilise the airports during times that would be detrimental to the airline. Although open skies imply a mutual connection, certain airlines have often taken advantage of it. Tanzania shouldn’t fall into that trap with our ATCL.
Similarly, cargo is one of airlines’ primary sources of income. This corporate sector should support ATCL, just as other nations do. Rather than importing specific goods from Europe for the continent’s emerging industries sector, Tanzania should go in the same direction as the African Continental Free Trade Agreement (AfCFTA), cultivate relationships with African producers to import the raw material directly.
The new aircraft would improve trade potential. The efficiency and capacity of the B787-8 would enable improved trade connections, which will help industries like manufacturing and agriculture by giving them better access to international markets.
For airlines operating in Tanzania to genuinely establish Dar es Salaam and Tanzania as the primary hub of East Africa’s aviation sector, the airline must support its long-haul operations to reach global market destinations while simultaneously expanding service quality rapidly domestically and regionally.
By synchronising essential sectors and generating more economic value, ATCL should catalyze trade connections throughout Africa. It’s a chance to expand both intra-African trade and the airline. To establish Julius Nyerere International Airport and Amani Karume International Airport as the principal hubs of Africa’s aviation sector, ATCL should vigorously expand locally and regionally while supporting the airline’s long-haul operations.
Tanzania’s aircraft fleet is expected to boost air travel, demonstrating the aviation industry’s exceptional growth potential, which Tanzania, led by President Samia, has in this sector. In my view, expansion points to a bright future for the aviation sector in Tanzania that is driven by several causes, including the country’s strong economic growth, rising demand for air travel, government efforts, infrastructure development and fleet upgrades.
The enlarged fleet brings the potential for improved connection, job creation, economic growth, and tourism, all of which contribute to the nation’s overall development. To facilitate the smooth integration of the expanding fleet into the aviation ecosystem, industry stakeholders must prioritise environmental sustainability and tackle infrastructure issues that, if not well managed, could be a constraint in achieving ATCL’s full market potential.
ECONOMICS & BUSINESS
by Ben Taylor
Strong growth recorded, and projected
Tanzania recorded economic growth of 5.1% in 2023, according to the latest government figures. This was stated by the Minister of Planning and Investment, Prof Kitila Mkumbo, in his National Economic Status Report for 2023, presented to Parliament in Dodoma in June.
This represents a small improvement in growth rates compared to recent years. Tanzania was among a small number of countries to maintain economic growth throughout the Coronavirus pandemic, though growth slowed from 6.9% in 2019 to 4.5% in 2020, 4.8% in 2021 and 4.7% in 2022.
According to Mkumbo, the growth in 2023 was driven by the arts and entertainment sector, which expanded by 17.7%, followed by the finance and insurance sector at 12.2%, and mining at 11.3%. The accommodation and food services sector grew by 8.3% and the information and communications sector by 7.6%. Prof Mkumbo noted that sectors that had traditionally provided substantial employment saw slower growth rates. He noted particularly that agriculture, which is vital for the majority of Tanzanians, grew by only 4.2% while manufacturing and trade expanded by 4.3% and 4.2% respectively. The result, he said, was that the benefits of growth have not been evenly distributed, particularly among the nation’s poorest citizens
Nevertheless, the Minister also explained that the agriculture sector continued to make the largest contribution to GDP, accounting for 26.5%. This is followed by construction (13.2%) and mining (9%).
Prof Mkumbo told Parliament that the types of goods that Tanzania exports have changed over the past two decades. “In the 2000s,” he explained, “57% of Tanzania’s export goods involved agricultural products sold to markets in Europe, the United States, and Africa. However, twenty years later, Tanzania’s exports are now dominated by minerals, with many products being sold to markets in Asia and African countries.”
In 2023, 49% of exported goods were minerals, followed by manufactured goods (17%), with agricultural products (12%) coming in third, said the Minister.
Moreover, the country still continues to face a significant trade imbalance. The value of the country’s exports was $8.2 billion in 2023, while imports amounted to $13.7 billion. “This indicates that we are still spending a considerable amount of foreign currency on importing goods that could be produced domestically,” the minister told Parliament.
Going forward, Prof Mkumbo said the government’s target was to achieve 5.4% GDP growth in 2024.
Later in the same month, the IMF suggested that this target was in line with their projections. In a report, they predicted growth in Tanzania would pick up to 5.4% in 2024 and 6.0% in 2025, respectively, supported by improvements in the business environment and subsiding global commodity prices.
Njombe, Simiyu, Dodoma, Coast and Kagera regions experience growth spurt
Njombe, Simiyu, Dodoma, Coast and Kagera regions recorded the fastest economic growth at the regional level from 2018 to 2022, according to data from the Bank of Tanzania’s 2023 Consolidated Zonal Economic Performance Report. Despite having lower GDP figures than Dar es Salaam and other major urban centres, these regions posted notable growth during the five-year period.
Njombe’s GDP surged 48%from TSh2.1 trillion to TSh3.1 trillion, Simiyu’s jumped 45%, Dodoma and Coast regions both grew by 43% and Kagera by 39%.
In contrast, Dar es Salaam’s GDP grew by 34% during the same period, the second slowest rate in the country. It should be noted, however, that Dar es Salaam has continuously retained its status as Tanzania’s biggest and most important economic hub, with a regional GDP worth TSh29 trillion in 2023. “It’s the norm that the larger the economy, the slower the growth,” said Dr Daudi Ndaki of Mzumbe University. “That’s why you will see that Tanzania’s economy, for instance, is growing much faster than the GDPs of many developed countries,” Dr Ndaki said.
University of Dar es Salaam Business School assistant lecturer Godsaviour Christopher said the five regions’ economies are growing fast due to increased investment and untapped potential for growth.
“These regions still have many investment opportunities, while big cities such as Dar es Salaam have already used up a great deal of available resources and are approaching full capacity,” he said.
There is plenty of arable land available for investment in Njombe for the cultivation of maize, tomatoes, potatoes, beans, pineapples, avocados, tea production, flowers and timber. And Coast Region has in recent years emerged as a key destination of strategic projects such as the Julius Nyerere Hydro Power Project (JNHPP).
Common East African currency postponed
Secretary General of the East African Community (EAC), Ms Veronica Mueni Nduva, said in August that the process for monetary union and a single East African currency has been pushed back to 2031. Previously, EAC member states had committed to launching the currency in 2024.
“The Monetary Union was expected to be established in 2024 as per the Monetary Union Roadmap” she explained. “However, it has not been realised and the timeline was therefore revised to 2031.”
She said that so far, some aspects of the roadmap have been implemented even as members remain divided on several other aspects. She noted that central banks within the EAC have established the East African Payments System (EAPS), a multicurrency platform that enables settlements in the local currencies of the partner states, facilitating currency convertibility across the region, and said that partner states have signed and are implementing an MOU on currency convertibility and repatriation.
There have, however, been delays in obtaining a consensus on which country should host the East African Monetary Institute (EAMI), a precursor to an East African Central Bank, and member states have not yet managed to agree on the criteria to effectively converge the four macroeconomic fundamentals.
These include a headline inflation rate of 8%, a foreign exchange reserve cover equivalent to 4.5 months of imports, a ceiling on the overall fiscal deficit set at 3% of gross domestic product (GDP), and a limit on gross public debt capped at 50% of GDP for all partner states.
For context, Tanzania currently meets or is very close to meeting all four of these targets, with headline inflation at 3.1%, foreign exchange cover at 4.4 months of imports, an overall fiscal deficit at 3% of GDP and gross public debt at an estimated 38% of GDP.
TOURISM & ENVIRONMENTAL CONSERVATION
by James L.Laizer
Tour Operators Speak Out: Defending Conservation and Tourism
Tanzania’s tour operators voiced their concerns about the negative impact of allegations of human rights abuses on the country’s tourism industry. They criticized foreign NGOs for spreading what they perceived as unfounded claims that tarnish Tanzania’s image and portray it as a violator of human rights. The tour operators emphasized the government’s commitment to responsible tourism and conservation, highlighting instances where relocations were conducted voluntarily and with adequate compensation. They defended the government’s decision to incorporate key water catchment areas into the Ruaha National Park, arguing that it helped curb unsustainable agricultural and pastoral practices that were detrimental to the environment and the national economy. The tour operators’ stance reflects the complex interplay between conservation, tourism, and human rights in Tanzania, and the challenges of balancing these competing interests.
Tourism Sector Rebounds: A Record-Breaking Year
Tanzania’s tourism industry experienced a remarkable recovery in 2023, with tourist arrivals reaching a record high of 1.8 million visitors. The sector’s strong performance, driven by increased travel and transport receipts, contributed significantly to the country’s foreign exchange earnings. Tourism’s success, along with growth in gold exports and transportation earnings, helped narrow the current account deficit and boost the overall economy. The media highlighted the positive outlook for the tourism sector, despite ongoing external pressures, and its crucial role in Tanzania’s economic development.
Carbon Trading: A Tool for Conservation
Tanzania’s exploration of carbon trading as a means to support conservation efforts gained prominence in media discussions. The concept of carbon trading, which involves the buying and selling of carbon credits to reduce overall emissions, has been presented as a potential solution to address climate change and promote sustainable development. Reports highlighted the efforts of leaders in the Manyara region to involve local communities in conservation programs through carbon trade agreements. The participatory approach aims to not only protect wildlife and natural resources but also provide economic opportunities for villagers. The effectiveness of carbon trading in achieving its environmental goals remains a subject of debate, but its potential to contribute to conservation efforts in Tanzania has garnered attention.
Reforestation Efforts: A Commitment to a Greener Future
Tanzania’s commitment to reforestation and restoring forest landscapes was showcased in media reports. The government pledged to plant 5.2 million trees by 2030 as part of its efforts to combat deforestation and promote environmental sustainability. The initiative, led by President Samia Suluhu Hassan, has seen significant progress, with 2.4 million trees already planted. The focus on reforestation aligns with the global agenda to address climate change and protect biodiversity. The media highlighted the importance of these efforts in ensuring a healthy planet and promoting sustainable economic development in Tanzania.
TRANSPORT
by Ben Taylor
SGR rail route launched
The Tanzania Railway Corporation (TRC) in June officially launched the Standard Gauge Railway (SGR) operations from Dar es Salaam to Morogoro. The first day passengers enjoyed a free ride after President Samia Suluhu Hassan decided to provide free tickets to over 1400 travellers.
The first train started its journey from Dar es Salaam at 6.10 am and arrived at Morogoro main station at 7.56am. It had covered 300km in under two hours.
“This is a milestone in the history of transportation sector in the country,” said David Kihenzile, Deputy Minister for Transport.
A few weeks later, passenger trains began operating beyond Morogoro, as far as Dodoma. SGR electric train services from Dar es Salaam to Dodoma substantially reduce travel time, with the express train completing the journey in approximately three hours and 25 minutes. This is around half the time of a bus journey.
Alternatively, it is around three times the time of a flight that would cost more than ten times the price. The Land Transport Regulatory Authority (LATRA) announced rail fares for Dar-Dodoma of TSh 31,000 for adults, with children aged 12 and below paying half the cost. Air Tanzania’s price for one way trip to Dodoma is around USD $150 in economy class, while the fare on Precision Air is around TSh 250,000.
St Augustine University of Tanzania (SAUT) Economist, Dr Isaac Safari told Daily News that it is not easy for airline passengers to switch to trains, as many of them feel that flying is more prestigious.
“However, the route is too good for those who travel by buses as they may be more likely to switch to trains, as it offers greater safety,” he said.
Indeed, the impact on bus routes was felt immediately. Two weeks after the launch, a reported 4,000 passengers per day were using the train between Morogoro and Dar, equivalent to over 70 fully-laden buses. One company that previously made 20 bus trips a day from Dar es Salaam to Morogoro reduced its trips to nine or ten per day. Some drivers have been staying at home without much work to do, and bus owners were thus compelled to provide them with money to live on.
Faced with rapidly dwindling profits on the Dar es Salaam- Morogoro-Dodoma route, bus operators quickly devised a plan to maintain their business viability. A representative for Shabiby Bus Company, Mr Edward Magawa, said they were currently working on a way to their business by looking at other destinations instead of relying heavily on the Dar es Salaam-Dodoma route. He asked the government to establish bus stations near SGR stations so that it could be easy for passengers to connect or access buses and continue with their journeys.
Air France to replace Dar with Kilimanjaro
Air France has rescheduled its flight to Tanzania beginning mid-November by replacing the Dar es Salaam stop with Kilimanjaro.
The new route will now be Paris-Zanzibar-Kilimanjaro, flying three times a week with returns on alternate days instead of Paris-Zanzibar-Dar es Salaam.
Air France-KLM’s Tanzania Country Manager Rajat Kumar said the Paris-Kilimanjaro route is a strategic decision aimed at meeting the growing demand for travel to East Africa.
“The new route replaces the Paris-Zanzibar-Dar es Salaam route, but travellers to Dar will have access to the city via Air France’s partner airline KLM, which operates seven weekly flights to the region,” the firm’s statement said.
The decision means that Turkish Airlines and KLM will be the only remaining European airlines that fly direct to Dar es Salaam.