SPEECH
BY THE MINISTER OF STATE, PRESIDENT’S OFFICE, PLANNING AND PRIVATISATION, HON.
DR. ABDALLAH OMARI KIGODA (MP), PRESENTING TO THE NATIONAL ASSEMBLY THE
ECONOMIC SURVEY FOR 2002 AND PROPOSALS FOR THE MEDIUM TERM PLAN AND
EXPENDITURE
FRAMEWORK FOR 2003/04 – 2005/06
1. Mr. Speaker, I beg to move that
this House now resolves itself into a committee to receive and consider the
Economic Survey for 2002 and the Proposals for the Medium Term Plan and
Expenditure Framework for 2003/04 – 2005/06.
Together with this speech, I submit two documents, namely, the Economic
Survey for 2002 and the Development Plan for 2003/04.
2. Mr. Speaker, before presenting the
Economic Survey for 2002 and the Proposals for the Medium Term Plan and
Expenditure Framework for 2003/04 – 2005/06, I would like to thank the Members
of the Finance and Economic Committee of the Parliament under the able
Chairmanship of the Hon. Njelu Kasaka, (MP) for Lupa for its valuable
contribution which enabled us to finalize our submissions to this House. I
would also like to take this opportunity to thank colleagues in the Ministry of
Finance and all other stakeholders with whom we worked together in the
preparation of these documents.
3. Mr. Speaker, lastly I would like
to thank the Permanent Secretary, Planning and Privatisation, Dr E. S. Bukuku;
Deputy Permanent Secretary, Mr. O. M. S. Bendera; Directors; Heads of
institutions under this Office; and all staff members who worked diligently
during the preparation of the Economic Survey and Development Plan.
4. Mr.
Speaker, allow me now to take this opportunity to congratulate Honourable
Members of Parliament who won by-elections conducted in May this year by
mentioning their names: Hon. Abu Towagale Kiwanga (MP) for Kilombero, Hon.
Nazir Mustafa Karamagi (MP) for Bukoba Rural, Hon. Ndeka E. Nziriye (MP) for
Kigoma South, Hon. Sumri Abdallah Salum Mohamed (MP) for Mpanda West, Hon.
Karim Saidi Othman (MP) for Chambani, Hon. Masoud Abdalla Salim (MP) for
Mtambile, Hon. Mohamed Juma Khatibu (MP) for Chonga, Hon. Ali Said Salim (MP)
for Ziwani, Hon. Shoka Khamis Juma (MP) for Micheweni, Hon. Salim Omar Ali (MP)
for Tumbe, Hon. Mchande Salim Mchande (MP) for Konde, Hon. Khamis Ali Saleh
(MP) for Mgogoni, Hon. Mohamed Ali Said (MP) for Wingwi, Hon. Khalifa Seleman
Khalifa (MP) for Gando, Hon. Khalifa Mohamed Issa (MP) for Mtambwe, Hon. Bakar
Shamis Faki (MP) for Ole, Hon. Mwadini Abass Jecha (MP) for Utaani, Hon. Ali
Said Juma (MP) for Kojan, and Hon. Omar
Juma Omari (MP) for Pandani.
5. Mr. Speaker, the President’s
Office Planning and Privatisation has focused on addressing three major broad
areas. The first and foremost critical
area is to ensure that our economy is growing at a higher and faster rate than
previous years. We believe that the attainment of sustained higher growth and
macro-economic stability is one of main prerequisites in meeting the challenge
of poverty alleviation effectively. We are aware that this is a necessary
condition, but is not sufficient to improve the lives of all Tanzanians immediately.
As it will be noted later that we have not only registered good performance in
the growth of Gross Domestic Product but also that there notable growth was
attained in all sectors.
6. Mr.
Speaker, the second focal area is the challenge of how to ensure that the achievements realized in the
course of the implementation of macro- economic policies trickle down to
benefit the people, particularly in villages.
The Government’s efforts in the implementation of the Poverty Reduction
Strategy have shown signs of success in the reduction of non-income poverty
among the people. For instance,
programmes planned for implementation under the agricultural sector e.g. the
Agricultural Sector Development Strategy along with the setting up of
regulations for micro-credit schemes;
the Government’s determination to implement the Devolution and Empowerment
Policy as well as the local government reforms which aim at restructuring
District Council operations; will greatly assist in reducing income poverty
among people especially those in rural areas.
The challenge is for every able- bodied person to work hard, efficiently
and productively; and the government to meet its responsibilities in ensuring
good governance and creating a conducive environment.
7. Mr.
Speaker, the third focal area is monitoring of national development programmes,
promotion of private investment, and privatization process. We are of the view
that investments will strongly assist in expanding national capital base and
therefore improve our economy. The
investment climate instituted to attract local and foreign investors should be
sustained, together with improving the regulations and procedures that are pro-
indigenous Tanzanians. As we shall see
from the investment data, this preferential arrangement is now being exercised. The privatization exercise is aimed at restructuring
of the management of our parastatals.
We have recorded notable successes in the exercise, however there are
pending issues which pose a challenge to the Government. Economic indicators
show that the privatization exercise is only a part of the whole exercise of
restructuring our economy.
Privatization is nearly completed in our country, but the remaining
challenge is to sustain the success so far attained and to continue promotion
of private sector development. The
Government will continue to pursue proper monetary and fiscal policies to
enable investors to work efficiently and productively. Current information
indicate that among the privatized industries, 51 percent are owned by
Tanzanians.
8. Mr. Speaker, nevertheless,
we have noted that some serious and diligent Tanzanian investors have been
plagued with the following problems: Firstly, the burden of huge capital
investment costs needed to replace outdated equipment. This burden has excluded them from starting
production using up-to-date technology and making them incapable to compete at
the market place. Secondly, the high
cost of production due to either the burden of inherited debts and/or the high
cost of production especially those emanating from high electricity
tariffs. Thirdly, a weak management and
know-how. Lastly, inherent weakness
among some Tanzanian investors to manage and to prepare project write ups, that
are bankable and viable and that can be used to solicit financing from banks. It
is now imperative for the Government to make deliberate arrangements to reduce
this burden for the serious and committed Tanzanian investors so that they can
success fully rehabilitate these industries and commence operations. Therefore,
it is of paramount necessity for the Government to articulate modalities and
procedures that can be undertaken to reduce the following burden to Tanzanian
investors: the industries’ purchase
price, debt cancellation, extension of debt repayment period, and lastly to enable
them to have access to loans from banks and other financial institutions in
order to enable them to implement trade and investment plans.
9. Mr. Speaker, when I was
presenting the Economic Survey for the year 2001 and Proposals for the Medium
Term Plan and Expenditure Framework for 2002/03–2004/05, I informed your
esteemed House that the following were to be the overall economic targets for
the year 2002/03: -
·
To achieve a GDP growth rate of 5.9 percent in 2002 and 6.3
percent in 2003;
·
To achieve an inflation rate that will not exceed 4.2 percent
by June, 2003;
·
To increase domestic revenue to 12.5 percent of GDP in year
2002/03;
·
To increase broad money supply levels consistent with GDP
growth rate and levels of inflation; and,
·
To increase foreign reserves to a level equivalent to four
months of imports.
Gross Domestic Product
10. Mr. Speaker, with regard to
macro-economic performance benchmarks, the Gross Domestic Product grew by 6.2
in 2002 in real terms compared to 5.7 percent in 2001. This growth exceeded the target rate of 5.9
percent that was set for the year 2002.
11. Mr. Speaker, the average economic
growth rate of 5.6 percent per annum attained in the last three years when
compared with previous growth rates and an average of 3.4 percent achieved by
African countries, is encouraging. However, this growth is still too low to the
needs of the population growing at 2.9 percent per annum, and to have a
significant impact on our problems of poverty and unemployment. Indeed, the major means to promote economic
growth rate to a satisfactory level is to increase our efforts and skills,
innovativeness, creativity at all levels, stimulate exports, increasing the
rates of savings and investments, and for the people themselves to work hard
and diligently. The Government will continue to do all that is within its means
and power to stimulate economic growth, especially in creating a conducive
environment, but the major responsibilities to bring about such growth in the
economy lies with the people themselves.
12. Mr. Speaker, the rate of inflation
has continued to drop, reaching 4.3 percent in April 2003 as compared to 4.5
percent in June 2002. This decline in inflation is attributed to improvement in
food availability and distribution, coupled with deliberate government policies
to control expenditure as well as money supply in the country.
13. Mr. Speaker, the decline in the
inflation rate from 30 percent in 1995 to 4.3 percent has been of great
benefit. The economy has stabilized, which, among other things, is a
prerequisite for its growth and sustainability, attract investments, and bring
improvements in the monetary sector.
Due to improved quality of our products we are now able to sell cement,
cables and wires, transformers, beer, cigarettes and blankets outside the
country. On the other hand, the unsatisfactory increase in disposable income
among the majority of our population in the rural and urban areas, the fall of
the inflation rate has not been of much benefit to the majority of the people.
What is at stake is to increase the production of goods and services in order
to enhance their purchasing power.
14. Mr. Speaker, during the period June
to December 2002, broad money supply (M2) increased by 13.0 percent,
which was close to the target of 12.0 for the year 2002/03. Government borrowing during the same period
increased by 30.4 percent as compared to the decrease of 11.1 percent during
the same period in the previous year.
This trend is due to the sale of government securities/bonds. Private sector borrowing increased by 18.4
percent as compared to an increase of 6.6 percent during the same period in
2001. The average interest rate charged
by commercial banks registered a small decrease to reach 15.7 percent by December
2002 from 16.4 percent in June 2002.
The average interest rate for time deposits increased to 3.1 percent by
December 2002 from 3.5 percent in June 2002.
15. Mr. Speaker, the level of money
supply of 13.0 percent reached in 2002
was an indication that the economy was well on its way to being
self-sustaining, self-regulating and as would be expected; an economy whose
money supply is compatible with production and quality standards of services
available in the country, bank loans available at reasonable rates of interest,
efficient productive sectors and with a strong currency within and outside the
country.
Foreign
Reserves
16. Mr. Speaker, during 2002, there was an
increase of 32.3 percent in foreign reserves amounting to USD 1,529.9 million
compared to USD 1,156.6 million in 2001. This amount was sufficient to meet 8.9
months of imports compared to 6.3 months in 2001.
17. Mr. Speaker, the value of Tanzanian
shilling to the dollar depreciated by 7.6 percent from shs. 888.9 to the dollar
at the end of June 2001 up to shs 956.8 to the dollar at the end of June 2002.
The shilling continued to fall, reaching shs.1040 to a dollar at the end of May
2003. The depreciation of the shilling
was triggered by low export sales, which was caused by the fall in the prices
of traditional exports on the world market.
Increased exports earnings is the main way of strengthening the value of
the shilling.
GOVERNMENT FINANCE
18. Mr. Speaker, during the year
2001/02, the government revenue collected through income tax and value added
tax and other sources was only 12.2 percent of the GDP; which was equivalent to
that of 2000/01. The medium term focus of the revenue policy is to enable the
government to raise revenue by expanding the tax base, curb tax evasion,
control tax exemptions and strengthen tax administration. Implementation of
these measures in the year 2003/04 will enable the Government to raise revenue
collection up to 13.2 percent of GDP.
Expenditure
19. Mr. Speaker, government expenditure
for the year 2001/2002 was directed to poverty reduction and economic
growth. All priority areas and sectors
were allocated the funds as budgeted.
National Debt
20. Mr. Speaker, by December 2002, the
national debt stood at USD 8.9 billion, which is equivalent to an increase of
7.2 percent compared to a figure of USD 8.3 billion by the end of the year
2001. Out of the USD 8.9 billion, USD 8.0 billion or 89.9 percent was external
debt and USD 0.9 billion, which is equivalent to 10.1 percent, was domestic
debt. The observed increase in the national debt is attributed to maturity of
past debts.
21. Mr. Speaker, a National Debt
strategy targeted at controlling both domestic and foreign debts was launched
in August 2002. This strategy aims to provide guidelines and procedures for
foreign borrowing, legal and institutional framework for foreign debts
management to ensure that the debt burden is sustainable.
Merchandise Trade
22. Mr.
Speaker, export of goods for the year 2002 increased by 16.25 percent to USD
902.55 million compared to USD 776.40 million recorded in year 2001.The good
performance of exports was mainly explained by large exports of non-traditional
goods, especially minerals, fish and fish products as well as manufactured
goods, which contributed 77.16 percent to total exports of goods as compared to
70.1 percent in 2001. In general, the value of traditional goods export
(coffee, cotton, sisal, cashew nuts and clove) continued to deteriorate,
causing the contribution of traditional exports to decline to 22.8 percent
compared to 29.9 percent of total exports in 2001. As regards imports, the
value of imported goods declined from USD 1,560.5 million in 2001 to USD
1,511.3 million in 2002. The decrease is attributed to low imports of capital goods,
especially for the mining sector, and low food imports.
Export development
strategies
23. Mr. Speaker, in order to reduce the balance of trade deficit, the
government in 2002 continued to implement various exports promotion strategies
with the aim of increasing exports. It will be recalled that, in July 2002 the
Parliament passed an Act to launch the Export Processing Zones (EPZ). Following
the Parliament’s approval of the Act, the government prepared regulations and
management modalities of EPZ. As a result of these developments, registration
for three factories earmarked for EPZ, namely Urafiki Textile Mill, Ubungo
Millennium and NIDA factory at Tabata has been completed. NIDA factory was
inaugurated in May 2002 and preparatory arrangement for the remaining two is
proceeding well. In order to increase exports, it is imperative to continue
implementing export promotion strategy, strengthening economic infrastructure,
expanding markets, improving the quality of products and mounting product
promotion campaign.
STATE OF THE WORLD ECONOMY AND INTERNATIONAL ECONOMIC COOPERATION.
Economic
Growth: -
24. Mr. Speaker, despite uncertainties and difficult economic
environment, the world output grew by 3.0 percent in 2002 compared to 2.3
percent in 2001. For developed countries output grew by 1.8 percent in 2002,
compared to 0.8 percent in 2001 while growth in developing countries increased
by 4.6 percent in 2002 compared to 3.4 percent in 2001. The decrease in the
growth rate of some African countries has been attributed to poor adherence to
principles of good economic governance, drought conditions, political crises
and effects of HIV/AIDS pandemic.
World Economic Prospects
25. Mr. Speaker, prospects for the world
economic growth in the short and medium term, is clouded by two major problems
namely: - security and health hazards.
§
Security problem is
much associated with increase in global risks of terrorism, political problems
in the Middle East, African continent and some countries in Latin America; and,
§
The health problem is
due to increasing HIV/AIDS epidemic and recent outbreak of Severe Acute
Respiratory Syndrome (SARS).
These problems if not tackled
immediately, will continue to disrupt the world production, trade and tourism
activities. The Government is taking adequate measures to meet the challenges
posed by these problems and is committed to provide information both within and
outside the country.
The East African
Community (EAC)
26. Mr. Speaker, during 2002, the EAC directed its efforts towards
finalization of the protocol on establishment of the E.A.C Custom Union
expected to be completed and signed in November, 2003; continued promoting
business and investment in EAC: and procedures for opening stock exchange
markets especially in the Dar es Salaam, Nairobi and Kampala. Draft of the EAC
Agricultural Sector Development Strategy (ASDS) and Rural Development Strategy
are being finalized with the aim of enhancing development cooperation in
agriculture and food security as well as finalizing analysis of opportunities
and obstacles to efforts for developing the Lake Victoria Basin into a special
Economic Growth Zone. In the medium term plan, the identified areas will
continue to be accorded priority.
Southern Africa Development Community
(SADC)
27. Mr. Speaker, Tanzania was the host of
the SADC Council of Ministers that took place in Zanzibar in February 2002,
which among other issues proposed holding a conference in London in July 2003
to evaluate investment potentials prevailing in Southern African countries.
28. Mr. Speaker, in 2002 SADC completed
the first draft of the Regional Indicative Strategic Development Plan (RISDP)
for the next fifteen years. This
strategic plan aims at addressing economic and social problems facing SADC,
especially those related to poverty eradication, balanced regional development,
globalization, sustainable development and gender related matters. It is
expected that when the plan is in place, it will serve as a roadmap for
realizing the SADC development agenda.
29. Mr. Speaker, in pursuance of the objectives of SADC Declaration
and Treaty, the government of Tanzania in 2002 ratified the protocols for
Tourism, Health, Protection and Preservation of Wildlife, Politics, Cooperation
in Security, Control of Small Firearms and SADC Implementation Procedures. For
the year 2003/04, SADC’s efforts will be directed towards completion of the
institution’s restructuring exercise in accordance with its new
responsibilities.
OVERVIEW OF DEVELOPMENT SECTOR’S PERFORMANCE PRODUCTIVE SECTORS
Agriculture Sector
30. Mr. Speaker, with regard to sectoral
growth in 2002, the agriculture sector grew by 5.0 percent, which was below the
sector growth of 5.5 percent in 2001. The main contribution to the sector
growth in 2002 was from growth of the sub- sectors of livestock (3.5 percent)
forestry and hunting (3.0 percent) and fisheries (6.5 percent). The sub- sector of agricultural crops
production, which is the main contributor, grew by 6.2 percent in 2002 being
below the growth of 7.3 percent in 2001.
31. Mr. Speaker, during 2002/2003 the
government continued to lay the foundation which will enable the agriculturel
sector to lead in the economic growth, to increase the level of employment and
to reduce poverty in the country through the following initiatives: -
·
To complete the
programme for implementation of the strategy for agricultural sector
development;
·
The major irrigation
programme that was completed in October 2002. For this programme to be
beneficial it is essential that districts, wards and villages be empowered to
come up with participatory programmes for implementation at these levels so as
to enhance ownership of the this programme;
·
To continue
harmonizing the central government and local government tax systems in order to
reduce taxes levied to farmers;
·
To rehabilitate the
roads and bridges in the villages which have been given priority under the
Poverty Reduction Strategy, in order to reduce production costs in the
sector;
·
The extend telephone
network into the villages so as to enhance communication by farmers in seeking
for markets of their crops, agricultural inputs and equipments;
·
To educate investors
of the cancellation of the backlog of land tax debts which was previously
levied at shs. 600 and now shs.200 per acre;
·
The financial
institutions have been urged to provide credit to large scale and small-scale
farmers in the country. The government will continue with its efforts to
sensitize the people to come together to form co-operative and community banks. The Government is also committed to the
formation of a development bank to service the agricultural sector; and,
·
The Government will
increase the budgetary resources for collecting core statistics in the
agricultural sector to facilitate the monitoring of trends in the performance
of the agricultural sector.
32. Mr. Speaker, in 2003/04, the
government is committed to continue with its efforts of creating an appropriate
environment, which will enable the nation to bring about changes in the
agricultural sector. However, it is clear that the government efforts alone
will not increase productivity and bring about the anticipated changes in this
sector. I believe we can succeed in transforming the agriculture sector in a
short time if all stakeholders in the sector will undertake their
responsibilities fully. On one hand, the government will have to sustain
its efforts of creating good environment for attracting investors in the
agricultural sector by strengthening extension services, harmonizing and
reducing tax, appealing to financial institutions to provide loans and
incentives, assisting farmers to access markets, and facilitating the
availability of agricultural inputs and utilities. On the other hand, banks and
financial institutions will provide loans, farmers will form co-operative
societies which will facilitate availability of the agricultural inputs at
reduced costs, the private sector will initiate small scale industries to
process farmers’ crops, regions and
districts will supervise diligently the preparation and implementation of the
agriculture sector development plans, and non-government organizations and
religion denominations will sensitize the people to change their attitude
towards agriculture.
Manufacturing
33. Mr.
Speaker, during the 2002, the manufacturing sector had significant
achievement whereby the sector grew by 8.0 percent as compared to the 5.0
percent in 2001. The rehabilitation of some industries and increase of
production and productivity are among the causes of this growth.
34. Mr. Speaker, in 2002 the
manufacturing sector topped the attraction of foreign and local investors as
compared to other sectors, whereby 103 manufacturing projects worth Tshs.
195,072 million were approved by TIC as compared to 82 projects in 2001 that
could create employment opportunities for 15,685 people. It is gratifying to note that the domestic
private sector is expanding and increasing investments, as out of the approved
projects, 35 were by local investors, 42 projects were by foreign investors and
26 projects were under joint venture between local and foreign investors.
35. Mr. Speaker, in 2003/04, the
government expects to implement the Small and Medium Enterprises Policy in
order to increase employment opportunities, to create enabling environment to
attract investors into production of value added products and export oriented
industries, especially in the areas of textiles, leather processing of fruits
and vegetables, and packaging.
36. Mr. Speaker, in 2002, the mining sector grew
by 15.0 percent compared to 13.5 per cent in 2001. The contribution of the mining sector to the Gross Domestic
Product in 2002, increased to 2.7 percent compared to 2.5 percent in 2001. The
mining sector is expected to contribute significantly in medium and long term
in the increasing employment opportunities, additional revenue to the
government, facilitating the manufacturing sector, enhancing availability of
foreign exchange, and contributing towards combating poverty.
37. Mr. Speaker, the export of minerals in 2002
reached USD 372.8 million from USD.302.2 million in 2001, an increase of 23.3
percent. The major contribution of over 88.5 percent was from gold exports,
which has expanded due to participation of foreign and local investors who have
substantial capital and modern technology.
38. Mr. Speaker, in 2003/04, efforts will
continue in implementing the Mineral Policy of 1997, the Mineral Law of 1998
and the Investment Strategy of 1998, which are geared towards creating 50,000
employment opportunities and increasing production of minerals to 10 per cent
or more every year. Furthermore, the government will ensure that there is peace
and tranquility between small and major investors and that the community
residing near the mining areas benefit from the infrastructure and social
services such as roads, schools, health facilities, water and electricity.
Tourism and Trade Sector
39. Mr. Speaker, during 2002, the
wholesale, retail, restaurants and hotels sector grew by 7.0 percent as
compared to 6.7 percent in 2001. This increase is due to the prevailing
availability of commodities in the country.
Also, the tourism business contributed greatly to the level of growth
especially due to external and local tourism attractions promotion. The government also organized the first
international tourism sector investor’s forum in October, 2002.
40. Mr. Speaker, during 2003/04, the
government will continue to promote the tourism attractions locally and
externally in the traditional and new markets, with emphasis on investments in
the tourism sector to improve tourism services, to strengthen the tourism
infrastructure especially roads, transport and communication, to broaden
traditional tourism attractions, and to ensure peace and security to the
tourists and their properties.
ECONOMIC INFRASTRUCTURE
Construction
41. Mr. Speaker, the construction sector
grew by 11.0 percent in 2002 compared to 8.7 percent in 2001. This growth was spurred by the building and
maintenance of trunk and feeder roads, the building of culverts and small
bridges, the construction of residential and commercial housing as well as
primary school buildings as well as the completion of the bridge over the
Rufiji river.
42. Mr. Speaker, in the course of 2002,
the Government completed the compilation of and initiated action on the
construction policy, which included a ten-year master plan for the development
of roads in the country. Consequently, the Government has embarked upon the
implementation of many construction projects including the building,
rehabilitation and maintenance of trunk roads to paved tarmac standards using
our own internally generated revenues. Honourable members will recall that
recently, His Excellency, President William Benjamin Mkapa inaugurated the
construction of these projects. Among which were the following trunk roads: -
Mtukula-Muhutwe-Kagoma (136kms); Songwe-Tunduma (70kms); Sheki-Nzega (108 kms)
Chalinze-Melela (129kms);
Mkuranga-Kibiti (60kms);
Somanga-Masaninga (33kms); and the bridge over the Matandu river.
43. Mr. Speaker, with respect to rural
roads, a total of 180 bridges and 3,780 kilometers were rehabilitated compared
to 73 bridges and 3,573 kilometers of road in the year 2001. The Government
also completed the documentation on implementation strategy of East African
Community roads, which was submitted to a donor’s conference on 29th
April, 2003 in Arusha. Tanzania is expected to gain greatly from this programme
as 75 percent of the roads given priority are in our country. Examples of trunk roads included under this
programme are: -
-
Chalinze – Tanga-Horokoto,
Same-Mkumbara,Marangu-Tarakea;
-
Mtwara-Miungoyo-Dar es
Salaam-Dodoma-Isaka-Mtukula;
-
Biharamulo-Mwanza-Musoma;
-
Tunduma-Sumbawanga-Kasulu-Nyakanazi;
and,
-
Tunduma-Iringa-Dodoma-Arusha-Namanga.
44. Mr. Speaker, in the 2003/04, the
government will continue to give due weight to the construction, maintenance
and rehabilitation of bridges and trunk roads as well as rural roads assigned
due priority under the Poverty Reduction Strategy and East African Community
Road Programme. The implementation of
these works will fully involve the participation of the private sector.
45. Mr.
Speaker, during
2002, transport and communications sector grew by 6.4 percent 2002 compared to
6.3 percent in 2001. This level of growth shows that the sector is increasingly
becoming stable as most of the telecommunication sub- sector, road haulage, and
airfreight are currently owned and managed by the private sector to a large extent.
This phenomenon has contributed to an increase in sector contribution to the
GDP growth from to 5.4 percent in 2001 to 5.5 percent 2002.
46. Mr. Speaker, during 2003/04, the
sector will continue to improve efficiency in passenger and haulage transport
in the rural and urban areas. Likewise, railways and water transport will be
strengthened as well as improving safety in all modes of transport.
Energy
47. Mr.
Speaker, in
2002, the Government continued implementing plans aimed at reviewing energy sector
policies together with restructuring the Tanzania Electric Supply Company
(TANESCO) to enable it operate efficiently. Furthermore, the government will
continue with its commitment of promoting new and renewable energy sources,
which are currently in use and being researched. These include; micro hydro,
natural gas, geo – thermal, solar and coals.
48. Mr.
Speaker, as far
as natural gas is concerned, the Government in collaboration with the World
Bank and other development partners, concluded the agreement on developing
Songo Songo Gas. Implementation of the project started in October 2002 after
the Government had signed a contract for the construction of pipes for
transporting the gas from Songo-Songo to Dar es Salaam. The project is expected
to be completed by the end of 2004.
49. Mr. Speaker, the government in its
effort to ensure that macro-economic achievements trickle down to the people
living in the rural areas, deliberately launched the implementation of Poverty
Reduction Strategy aimed improving social services. The main objective is
reduce, both income and non-income poverty.
Education Sector
50. Mr.
Speaker, during 2002/03, the Government continued to strengthen education
environment by collaborating with the private sector and other stakeholders.
Private sector and individuals have contributed significantly in the provision
of education at pre-primary, secondary and higher education levels.
51. Mr. Speaker, through effective
participation of the community in the implementation of the Primary Education
Development Programme (PEDP), 15,991 classrooms were constructed in 2002,
against the target of 13,868 classrooms. The remarkable achievement during the
year has raised the General Enrollment Rate (GER) to 98.6 percent while Net
Enrollment Rate (NER) was recorded at 80.7 per cent a little bit below the
target of 85 per cent by 2003. Furthermore, the data shows that total number of
students in private and government primary schools has increased by 23 percent.
Out of this, those in the private schools have increased threefold. In order to
meet students’ requirements, government primary schools have increased by 4.8
per cent and teachers by 5.8 per cent.
52. Mr. Speaker, on secondary education,
the transition rate from primary to secondary has increased from 19.5 per cent
in 2001 to 21.7 percent in 2002. The number of girls joining form five has also
increased from 38 percent to 42 per cent and a total of 4,367 students of forms
I-VI continued to be supported under the Girls Secondary Education Support
(GSES) programme, which supports competent female students whose parents cannot
afford to meet school fees. In addition, the higher education and technical
wing continued to improve the provision of training in the various colleges of
higher learning and to upgrade qualified institutions.
53. Mr. Speaker, for the financial year
2003/04, the sectors’ development plan will continue to put emphasis on the
improvement of environment for providing education and training at all levels. This includes construction and renovation of
classrooms and teacher houses in order to increase enrollment and recruiting
new teachers.
Water Sector
54. Mr. Speaker, in 2002, the government
approved the implementation of the National Water Policy which emphasizes easy
access of water to people to enable them spend short time thereby enabling them
to have enough time for productive purposes to improve their well being and
thereby combat poverty.
55. Mr. Speaker, in 2002, the identified sources
of water in the river basins of Rufiji and Pangani and Lake Victoria were
4,849. A total of 1,773 sources of
water have been issued with certificates of water control while 3,076 have not
been issued with certificates. In
addition by December 2002, 369 deep wells were drilled in different parts of
the country and 1,278 drilling agencies were formed.
56. Mr. Speaker, in 2002, the rural water supply
coverage reached 53 percent, being an increase of 3 percent as compared to
2001. The urban water supply coverage
increased to 73 percent in the year 2002 as compared to 70 percent 2001.
Measures taken by the government for the above water supply increase include
the completion of the major Dodoma water project, which was inaugurated in
December 2002, and the Shinyanga urban emergency water project. The privatization of DAWASA was also
completed and a new company, Dar es Salaam City Water Services has been formed
which has obtained a ten-year Lease of the main water infrastructure and will
commence its operations in July 2003.
57. Mr. Speaker, to attain more achievement, the
government will continue to advocate the involvement of private, national and
international private companies, non-government organizations, individuals as
well as the citizens to contribute and participate in the construction and
rehabilitation of water projects in the villages. The target of the water
sector is to provide adequate clean and safe water supply in urban and rural
areas in order to increase the number of people who access water from 50
percent in 2002/03 to 55 percent in 2003/04. The water sector also envisages
strengthening and protecting the sources of water.
58. Mr. Speaker, the achievements reached during
2002/03 include reviewing of the 1990 Health Sector Policy. The vision of the new Policy (2002) is to
improve the health and well being of all Tanzanians, with a focus on the poorer
and vulnerable. The recent policy developments such as Proposals for Health
Sector Reforms of 1994, Tanzania Development Vision 2025, Poverty Reduction
Strategy, Gender mainstreaming and HIV/AIDS have been integrated in the new
policy document.
59. Mr. Speaker, other achievements in
the sector include, increasing the number of districts covered in the
Integrated Management of Childhood Illnesses (IMCI) from 31 to 92; and
increasing the under five-immunization coverage from 74 percent in 2001 to 79
percent in 2002. With regard to
HIV/AIDS pandemic, the Ministry of health in collaboration with other
stakeholders had been able to scale up voluntary testing in 110 hospitals. In addition, Community Health Fund
activities have continued to be implemented. 53 districts were implementing
this programme up to 2002. On the other hand, the Government in collaboration
with development partners continued with the efforts of supplying drugs and
medical equipments in all health facilities.
60. Mr. Speaker, for 2003/2004, the
health sector will start implementation of the Second Health Sector Strategic
Plan (2003 – 2006). The plan aims at
improving service delivery and quality cure. This includes putting emphasis on
the rehabilitation of health facilities, provision of treatment and ensuring
that primary health care is more easily accessible to people. In addition, there will be continued efforts
in providing mother and child health care and service to vulnerable groups; and
control of communicable diseases and epidemic out – breaks.
61. Mr.
Speaker, in 2002/03, the Government though Tanzania Investment Centre has
continued to promote and attract local and foreign investors by improving the
country’s investment environment and quality of services offered to investors
through the “One Stop Centre” concept.
In addition, during 2002, the Government through the Centre and in
collaboration with the United National industrial Development Organization
(UNIDO) came-up with an initiative (Domestic Investors Capacity Building) to
assist and facilitate local investors prepare Bankable Business Plans and
promote them to local and foreign investors that will enable them to get loans,
joint venture partners and technology.
Currently, more than 60 local projects are promoted globally for that
purpose.
62 Mr. Speaker, in executing its
responsibilities of issuing derivative land titles to investors, as stipulated
in section 20 of Land Act, 1999, the Centre in collaboration with Ministry of
Lands and Human Settlements Development has established a proper land bank for
investors. For the time being, four
million acre has already been identified and the modalities for ownership are
being worked out by Government Officers in all mainland regions. I would like to emphasize that no Tanzanian
will be stripped off land to give it to a foreigner, instead Tanzanians who own
land will have the opportunity to use land as capital for investment.
63. Mr. Speaker, Moreover, in 2002, the
Centre registered 311 projects worth Tshs. 1,024.5 million, out of which 126
are owned by local investors, 104 by foreign investors, and 81 are Joint Venture
projects. Furthermore, in 2002. a
number of investors who were facilitated by the Centre on various permits,
licenses and registrations were 260 on TRA issues, 243 on company registration,
214 on business licenses, 926 on work permits, 976 on resident permits and 61
on land issues.
64. Mr. Speaker, in implementing the
strategy of enhancing participation of the private sector to accelerate
development, the government, in 2002/03 undertook the following policy
measures:-
·
Establishment of the
Export Credit Guarantee Scheme and Micro Credit Schemes;
·
Reducing conditions
for issuance of business licenses and abolition of nuisance taxes;
In addition, the Business
Environment Strengthening programme for Tanzania (BEST) has been approved and
will be launched in July 2003. This programme aims at providing an enabling
environment for business and private sector development by addressing existing
constraints in policy formulation, commercial disputes resolution and reduction
of administrative and regulatory impediments.
65. Mr. Speaker, during 2002/03, the
government in consultation with the private sector under the umbrella of TNBC,
has reviewed various laws and policies aiming at providing a better environment
for business and investment. The issues that have been acted upon by the
government include: -
·
Reviewing Land Acts
for the purpose of facilitating provision of credit;
·
Formation of the land
bank for attracting investment in agriculture;
·
Revision of the
various labour related legislations for increased growth of employment; and,
·
Reviewing the tax
regime by reducing the burden of numerous taxes.
66. Mr. Speaker, the level of investment
has been increased from 14.8 percent of GDP in 1997 to 17.4 percent in 2003.
However, this level of investment is still below the required level to
accelerate rapid economic growth. The ideal investment as a percentage of GDP
to spur growth for a developing country like Tanzania should not be less than
25 percent. During 2003/04, the government will continue with its efforts of
creating enabling environment and putting in place attractive incentive package
and procedures that would attract investors and facilitate their access to
credit.
67. Mr. Speaker, despite the modest
increase in investment, the pace of development in our country is still low due
to lack of saving culture. The ratio between saving and Gross Domestic Product
in the country for the year of 2002 was only 11.1 percent, whereas in other
countries such as Kenya is 17 percent, Uganda 14.7 percent, Nigeria and South
Africa 18 percent and Korea and China is over 30 percent. It is therefore our
duty as Members of Parliament to sensitize and encourage people in our
constituencies acquire saving culture, and to invest in some economic
activities, that would enable them to reduce poverty. Furthermore, it is also
our duty to sensitise people to be disciplined in the utilisation and repayment
of loans.
68. Mr. Speaker, up to March 2003, a total of 266 parastatals were privatised
including 47 that were placed under LART.
Among the privatised parastatals, 134 were 100 percent acquired by Tanzanians and 16 paratastals were 100
percent acquired by foreigners, and 116 were privatised through joint venture
between local and foreign investors.
Among the privatised companies sold to Tanzanians, 16 were sold to the
employees of the respective companies through management buyout. In addition,
265 non-core companies were sold.
69. Mr. Speaker, in 2002, emphasis was
on preparing strategies to privatise or rehabilitate the infrastructure of
service companies including DAWASA, ATC, TANESCO, THA, TRC, NIC and NMB. Up to February 2003, the government managed
to privatise Air Tanzania Corporation on joint venture basis and DAWASA on
lease Agreement System.
70. Mr. Speaker, in order to control
the major utility companies, the government has established four regulatory
authorities which are Energy and Water Utilities Regulatory Authority (EWURA),
Surface and Marine Transport Regulatory Authority (SUMATRA), Tanzania
Communication Regulatory Authority (TCAA), and Tanzania Government Aviation
Regulatory Authority (TGARA). Consequently, for the year 2003/04, the
government will continue to privatise the major utility companies and their
infrastructure, major agricultural and livestock farms. Also, the government will continue to
monitor the companies, which have been privatised to ensure that the companies
operate efficiently according to the sale contracts.
Poverty Reduction Strategy
71. Mr. Speaker, the analysis of the
information and data from the Household Budget Survey (HBS 2000/01) which was
carried out as part of the Poverty Monitoring system, and the Integrated Labour
force Survey (ILFS) of 2000/01 has revealed that there were no significant
improvements in reducing income and non- income (health, education, employment
and housing) levels of poverty of the population over the past ten years. The
results show that 19 percent of the population lie below the food poverty line
in 2000/01 compared to 22 percent in 1991/92. 36 percent of the population also
lies below the basic needs poverty line in 2000/01 compared to 39 percent in
1991/92. Poverty is still more severe in the rural areas. However, income
inequality has increased significantly in Dar es Salaam. The implementation of
the Poverty Reduction Strategy has started registering notable achievements
especially in the education sector and in some poverty indicators within the health
sector, urban water supply and rural roads.
72. Mr. Speaker, the challenge facing us
in poverty reduction is: -
·
To attain a
sustainable economic growth that will reach at least, 8 percent;
·
To improve service
delivery to the community (the Government in collaboration with the private
sector);
·
To strengthen existing
infrastructure, especially key roads, and agricultural irrigation projects;
·
To enable each
district prepare and implement medium term poverty reduction plans; and,
·
To stress the need for
all able bodied citizens to work.
73. Mr. Speaker, the population and
housing census was conducted from August 25th to 4th September 2002 as
planned. The Population and Housing
Census General Report was published in January 2003. According to the General Report, the number of persons who were
counted during the census is 34.6 million. This represents an annual growth
rate of 2.9 percent between 1988 and 2002. Out of the total population counted
during the census, 17.7 million were females and 16.9 million were males. Out of the total population, 33.6 million
were from Tanzania Mainland (17.2 million females and 16.4 males) and 985,000
were from Tanzania Zanzibar (502,000 females and 483,000 males). The annual population growth rates during
the inter- censural years were 3.1 percent for Tanzania Zanzibar and 2.9
percent for Tanzania Mainland.
74.
Mr. Speaker, the success of 2002 Population and Housing Census
is a result of full cooperation and hard work of all the leaders at various
levels of government and institutions, development partners and the public at
large. I would like to make use of this opportunity to thank all, including
you, Honourable Members of Parliament, who participated in one way or another
to make the Census exercise a success.
On the part of development partners, I would like to thank UNFPA, DFID,
UNDP USAID, SIDA and the Government of Japan for their financial and material
support to the census project. I ask
them to continue with the same spirit of assisting the country not only in the
census projects but also in other projects in the economic and social sectors.
75.
Mr. Speaker, the main purpose of conducting a census is get
information which we can use for planning, implementation and monitoring of
development plans at all levels of government.
For this purpose, the Government will, during the 2003/2004 financial
year continue to prepare and publish more reports, which have more detailed
information and disseminate them to users from various fields of activity and
various levels of government.
75. Mr. Speaker, the results of the
Integrated Labour Force Survey conducted in 2000/01 show that out of 17.8
million able bodied people, 15.5 million people were employed by the national
definition. This implies that more than 650,000 have been entering the labour
market every year. Out of the 17.8 million people, those employed by Tanzania
definition were 15.5 million. This definition takes into account the employment
conditions pertaining in Tanzania, where the majority of people are
self-employed rather than wage earners, and most of the work is seasonal in the
agricultural and informal sectors. Of the 15.3 million people employed, 13.0
million were engaged in traditional agriculture, 0.9 million in the informal
sector, 0.6 million in the private formal sector, 0.5 million in domestic work,
0.4 million in the government and 0.1 million in the parastatal sector.
76. Mr.
Speaker, unemployment for the whole country stood at 2.3 million people,
which is equivalent to 12.9 per cent of the total labour force. Unemployed
women were 1.3 million and men were 1.0 million. Nearly half of the unemployed
were living in urban areas. Unemployment for the City of Dar es Salaam alone
was 46.5 per cent while in the other urban areas it was 25.5 per cent and in
rural areas 8.4 per cent. The survey results have also revealed that
unemployment is a serious problem for the youth aged between 10 and 34. In
terms of gender, women are more vulnerable to this problem than men.
77. Mr. Speaker, the survey results have
also revealed that traditional agriculture, the informal sector and the private
formal sector are the greatest employers. Hence the Government efforts in
addressing the problem of unemployment and poverty reduction should therefore
focus on the improvement of the agricultural sector and promote investment in
agro-processing industries also in order to add value to the agricultural
products. The vocational training centres will be directed to offer courses
that are demanded in the labour market.
Given that the textile industry has the potential of employing
significant number of people, the Government will continue to provide incentive
package to such industries with high employment propensity.
Gender Issues
78. Mr. Speaker, the national Population
and Housing Census conducted in august, 2002 revealed that women are 17,156,905
or 51.1 percent of the total Mainland population of 33,584,607. Taking into
consideration the great contribution women are making towards economic growth
of this nation, the government in collaboration with the Tanzania Gender
Networking Programme implemented the following: -
·
Established gender
focal points in the various government institutions to ensure that gender
issues are mainstreamed into development planning, budgeting and economic
management at all levels.;
·
Assessed the number
women in leadership positions in the ministries, regions and districts to
achieve equality; and,
·
Provided training to
women in order to enhance their skills and knowledge in various fields.
79. Mr. Speaker, during 2003/04, the
Government in collaboration with other institutions will continue with capacity
building efforts through training in order to enable them initiate, prepare,
analyse, implement, and evaluate plans and projects with a gender perspective.
HIV/AIDS PANDEMIC
80. Mr. Speaker, during 2002, the number
of people infected during the period continued to grow reaching a total
population of 2.2 million which is equivalent to 6.5 percent of the total
population. Out of the total infected population, more than a third, which is
more than 700,000, are people already full-blown AIDS cases. The social
economic impact of people suffering and dying from AIDS is very enormous. The
most disturbing fact is that fact the rate of infection has not declined from
that prevailing during previous year, which is between 7 and 10 percent in the
rural areas and 20 to 24 percent in urban areas. Statistics indicate that infections are higher in the urban centers
than in the rural areas. The year 2002
also witnessed vigorous implementation of the National Strategy for the Control
of HIV/AIDS and also expanding the networking of the stakeholders in the fight
against AIDS.
81. Mr. Speaker, for the year 2003/04, the
government will continue making the war against HIV/AIDS a permanent agenda at
all workplaces in order to mitigate the negative impact of the pandemic to
avoid the increased loss of labour force in the country.
82. Mr. Speaker, macro economic targets
for the year 2003/04 –2005/06 will be as follows: -
·
A 6.3 percent real
growth of the Gross Domestic product (GDP) in the 2003, 6.6 percent in 2004,
7.0 percent in 2005, and 7.4 percent in 2006;
·
A reduction of the
rate of inflation to 4.0 percent by June 2004 and thereafter at rates equal to
those of our major trading partners;
·
Domestic revenue to reach 13.2 percent of GDP for 2003/04,
13.5 percent for 2004/05, and 13.7 percent for 2005/06;
·
Decline in broad money
supply (M2) so that it is consistent with the growth of GDP and
inflation rate targets; and,
·
Foreign reserves to
meet the equivalent of five months of import of goods and services.
PLAN AND BUDGET FRAME 2003/04 OBJECTIVES AND PRIORITY AREAS
83. Mr. Speaker, the main objective of
the Plan and Budget Frame for the fiscal year 2003/04 is to implement Poverty
Reduction Strategy, to consolidate our macro economic achievement, enhance
private sector participation, and strengthen local government through
devolution power and increased allocation resources. In order to realize
macro-economic and sectoral targets, the Government has developed various
strategies including the following: -
·
Promote the use of
irrigation in agriculture wherever this is viable in all areas of the country;
·
Increase production
and efficiency of services in the sectors of manufacturing, mining, tourism and
the informal sector;
·
Maintain the policy of
tight control of money supply;
·
Promote and facilitate
private sector development to enhance its contribution in the growth of the
economy.
·
Provide an attractive business environment by
strengthening the various relevant policies and regulations;
·
Putting in place the
right mechanism for the preparation and implementation of the Poverty Reduction
Strategy at district and village levels;
84. Mr. Speaker, areas accorded
priority in the Plan and Budget Frame for the
financial year 2003/04 include:
i. The improvement of social services and
the strengthening of economic infrastructure
Sectors given priority are: education,
health, water, rural roads and bridges, and land services;
ii. Agriculture
Emphasis has been placed on irrigation
agriculture by the rehabilitation of traditional and modern irrigation for the
small holders as well as the harvesting of rainwater and to vigorously
implement all strategies and measures aimed at improving the agricultural
sector;
iii. Development Plans for the Agricultural
Sector Development plans
Up to now, the objectives and targets of
national strategies like the Poverty Reduction Strategy, the Agriculture Sector
Development Strategy and the Rural Development Strategy; have not been
translated into action at the district level. In order for the nation to realize the targets of these strategies,
which are to a large extent aimed at accelerating economic growth and reducing
poverty, the Government is of the position that each district should prepare
and implement a MediumTerm Development Plan which will integrate and adapt the
objectives and target of various national strategies at the district level;
iv. Good Governance
The Law and justice, gender and the war
against corruption; and,
v. Peace and Security
Recently there has been a wave of crimes
to the level that peace and security are now threatened to the extent of
disrupting the country’s development. In order to contain this situation, the
Government has prepared strategies aimed at sensitizing the people,
strengthening the various organs of security for the war against increasing
waves of crimes.
85.
Mr. Speaker, allow me to
conclude by emphasizing that despite the notable macro-economic achievements
that our country has attained such as: economy growing at 6.2 percent in the
year 2002; the reduction in the inflation rate to 4.2 percent, foreign exchange
reserves growing to reach six months worth of imports; the level of capital
formation reaching 17.4 percent of national GDP in 2002; the economy is still
faced with many challenges and problems which we have to find solutions with
all of capacity and, energy at our disposal. Problems facing our economy
include; a donor dependent budget, poverty in urban and rural areas, the lack
of “saving culture”, the low level of investment, unemployment, poor
infrastructure, and inadequate social service delivery.
86. Mr.
Speaker, in order that we solve these problems I have listed, we have to
take the following measures: -
·
To explore all venues
which will lead to increased collection of taxes from various sources and at
all levels so that we may reduce our dependence on outside sources to enable us
to a large extent fund our own development;
·
To work hard and
resourcefully by utilizing existing resources in our various areas. Thus, the
nation, every village, ward, division, district and region, should identify
what is feasible to be done using opportunities available in their respective
areas;
·
To acquire a “savings
culture” which will enable our people to invest in various production projects
and services. The promotion of such a culture is fundamental;
·
To direct our efforts
forward the establishment and promotion of small and medium enterprises in the
areas of the processing of locally available raw materials together with
providing services. To this end it is imperative that we promote the establishment
of income generating groups, provide them with loans and promote
entrepreneurship;
·
To improve the
investment climate for both local and foreign private sector investors;
·
To put in place an
appropriate strategy for sale outside the country of finished and non-
traditional goods using opportunities now available to us, such as AGOA EBA and
New Canadian Initiatives; and,
·
The Government to
continue to harmonise the tax system in order to remove nuisance taxes and
unnecessary complaints to enable them concentrate on production in order to
increase their income.
87.
Mr. Speaker, the resolve of the government, as Members of
Parliament are aware, is to consolidate our economic co-operation with all
countries, institutions and international organizations. We congratulate all our economic co-operating partners. I wish to seize this opportunity to thank
our friends, countries and all bilateral and multilateral development partners
who support us in our development endeavours.
I wish to take this opportunity to recognize the enumerable assistance
we have received from the countries multilateral, and bilateral donors as
follows:- the World Bank, International Monetary Fund, the United Nations
Institutions such as UNDP, UNESCO, UNFPA, UNHCR, UNICEF, UNIFEM, FAO, WFP and
WHO, the European Union, OPEC-FUND, NORAD, USAID, SIDA, FINNIDA, DANIDA, ADB,
the governments of Switzerland, the Netherlands, Germany, France, United
Kingdom, Spain, China, South Africa, Japan, Kuwait, Italy, Ireland and many
other friendly countries and
non-governments international organizations. (NGO’S).
All of them have contributed
tremendously to our development efforts.
We are optimistic that they will continue to assist us to consolidate
our economy and improve the welfare of our people as well as our resolve to
build the national capacity and local ownership for policy
preparations, plans, strategies and projects.
I wish also to recognize the advice, contributions and co-operation of
Honourable Members of Parliament and the public for enabling us to fulfill the
mandates of President’s Office, Planning and Privatization.
88. Mr.
Speaker, I beg to move.
|
Indicator |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
|
Real GDP Growth- (%) |
3.6 |
4.2 |
3.3 |
4.0 |
4.7 |
4.9 |
5.7 |
6.2 |
|
Inflation-Annual Avarege- % |
27.1 |
21.0 |
16.1 |
12.9 |
7.8 |
6.0 |
5.2 |
4.5 |
|
Exchange Rate (Tshs/USD)-Annual Average |
574.8 |
580.0 |
612.1 |
664.7 |
744.8 |
808.4 |
876.4 |
978.9 |
|
Merchandise Exports (Mill. US. $) |
682.9 |
763.8 |
752.6 |
588.5 |
543.3 |
663.3 |
776.4 |
877.0 |
|
Merchandise Imports (Mill. US$) |
1340.5 |
1212.6 |
1148.0 |
1382.2 |
1497.9 |
1366.3 |
1560.5 |
1506.5 |
|
Export/Import Ratio (%) |
50.9 |
63.0 |
65.6 |
42.6 |
39.7 |
49.6 |
52.0 |
58.7 |
|
Investment/GDP Ratio (%) |
19.7 |
16.5 |
14.7 |
16.0 |
15.4 |
17.5 |
17.2 |
- |
|
Foreign Reserves (Month of Imports) |
1.6 |
2.4 |
3.8 |
3.0 |
4.1 |
5.6 |
6.3 |
8.9 |
|
|
1995/96 |
1996/97 |
1997/98 |
1998/99 |
1999/00 |
2000/01 |
2001/02 |
2002/03 |
|
Fiscal Balance (before Grants)-(% of GDPmp) |
0.1 |
-1.7 |
-2.3 |
-2.3 |
-5.8 |
-4.6 |
-6.6 |
|
|
Average Deposit Rate-% |
12.0 |
11.0 |
10.0 |
7.9 |
7.1 |
4.2 |
3.5 |
3.1 |
|
Average Lending Rate-% |
28.0 |
26.5 |
24.0 |
24.5 |
22.1 |
19.6 |
16.4 |
15.
7 |
Table No.
2: Real GDP and projected Real GDP for the period 1996 – 2006
|
Sector |
1996 Actual |
1997 Actual |
1998 Actual |
1999 Actual |
2000 Actual |
2001 Actual |
|
Agriculture |
3.9 % |
2.4 % |
1.9 % |
4.1 % |
3.4 % |
5.5 % |
|
Mining and Quarrying |
9.6 % |
17.1 % |
27.4 % |
9.1 % |
13.9 % |
13.5 % |
|
Manufacturing |
4.8 % |
5.0 % |
8.0 % |
3.6 % |
4.8 % |
5.0 % |
|
Electricity and Water |
11.1 % |
2.2 % |
5.5 % |
3.9 % |
5.9 % |
3.0 % |
|
Construction |
7.6 % |
35.5 % |
-12.3 % |
8.7 % |
8.4 % |
8.7 % |
|
Trade, Hotels and Restaurants |
3.5 % |
5.0 % |
4.7 % |
6.0 % |
6.5 % |
6.7 % |
|
Transport and Communication |
1.1 % |
-16.1 % |
32.8 % |
5.8 % |
6.1 % |
6.3 % |
|
Financial and Business Services |
0.4 % |
7.7 % |
5.6 % |
4.1 % |
4.7 % |
3.3 % |
|
Public Administration and Other Services |
1.6 % |
3.2 % |
2.7 % |
3.5 % |
3.6 % |
3.5 % |
|
Real GDP Growth |
4.2 % |
3.3 % |
4.0 % |
4.7 % |
4.9 % |
5.7 % |
|
Financial Year |
1995/96 |
1996/97 |
1997/98 |
1998/99 |
1999/00 |
2000/01 |
|
Real GDP Growth Financial Year |
3.9% |
3.7% |
3.7% |
4.4% |
4.8% |
5.3% |
|
|
|
|
|
|
|
|
Table
continue
Table No. 2: Real GDP and projected Real GDP for the period
1996 – 2006 (Continues)
|
Sector |
2002 Actual |
2003 Actual |
2004 Actual |
2005 Actual |
2006 Actual |
|
Agriculture |
5.0 % |
5.3 % |
5.5 % |
5.4 % |
5.7 % |
|
Mining and Quarrying |
15.0 % |
11.1 % |
10.2 % |
9.6 % |
9.5 % |
|
Manufacturing |
8.0 % |
6.9 % |
7.1 % |
8.1 % |
9.0 % |
|
Electricity and Water |
3.1 % |
6.9 % |
7.1 % |
8.1 % |
7.9 % |
|
Construction |
11.0 % |
4.8 % |
5.3 % |
6.7 % |
8.0 % |
|
Trade, Hotels and Restaurants |
7.0 % |
8.9 % |
9.6 % |
10.4 % |
10.8 % |
|
Transport and Communication |
6.4 % |
7.9 % |
8.3 % |
9.2 % |
9.9 % |
|
Financial and Business Services |
4.8 % |
6.3 % |
6.6 % |
7.0 % |
7.4 % |
|
Public Administration and Other Services |
4.1 % |
4.1 % |
4.2 % |
4.2 % |
4.6 % |
|
Real GDP Growth |
6.2 % |
6.3 % |
6.6 % |
7.0 % |
7.4 % |
|
Financial Year |
2001/02 |
2002/03 |
2003/04 |
2004/05 |
2005/06 |
|
Real GDP Growth (Financial Year) |
6.0% |
6.1% |
6.5% |
6.8% |
7.2% |
Source: National Bureau of Statistic and
President’s Office, Planning and
Privatisation.
|
Exports |
1999 |
2000 |
2001 |
2002 |
Change 2001/02 |
|
Traditional exports |
|
|
|
|
|
|
Coffee |
76.63 |
83.7 |
57.05 |
35.14 |
-38.4% |
|
Cotton |
28.46 |
38 |
33.7 |
28.15 |
-16.5% |
|
Sisal |
7.26 |
5.6 |
6.68 |
6.65 |
-0.4% |
|
Tea |
24.65 |
32.7 |
29.03 |
29.35 |
1.1% |
|
Tobacco |
43.44 |
38.4 |
35.69 |
50.50 |
41.5% |
|
Cashew nuts |
100.89 |
84.4 |
56.58 |
46.26 |
-18.2% |
|
Cloves |
19.86 |
10 |
12.32 |
5.40 |
-56.2% |
|
Sub-total (Traditional Exports) |
301.18 |
292.8 |
231.05 |
201.46 |
-12.8% |
|
|
|
|
|
|
|
|
Minerals |
73.26 |
178.2 |
302.23 |
372.78 |
23.3% |
|
Manufactured Goods |
30.05 |
43.4 |
56.17 |
67.10 |
19.5% |
|
Fish and Fish Products |
56.75 |
76.3 |
96.77 |
116.76 |
20.7% |
|
Horticultural products |
8.88 |
9.7 |
11.01 |
10.86 |
-1.4% |
|
Other Exports |
72.74 |
62.9 |
79.34 |
108.09 |
36.2% |
|
Sub-total ( Non-Traditional
Exports) |
241.67 |
370.5 |
545.52 |
675.58 |
23.8% |
|
Grand Total |
542.85 |
663.3 |
776.37 |
877.04 |
12.9% |
Source: President’s
Office, Planning and Privatisation and Bank of
Tanzania.