EAST AFRICA’S “GENEVA”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
Recent figures released by the UN predict that in the next decade half of the world's population growth will take place in Africa. According to the African Development Bank, Dar es Salaam will have grown by a staggering 85% by 2025.
These predictions have provoked a shift in the way cities in Africa are being considered. The Economic Commission for Africa's recently launched Economic Report on Africa (ERA) 2017 focused on urbanization as a key for industrialization. Well-managed and innovatively planned cities can provide more opportunities for small-scale businesses and the informal sector alike.
The 2017 World Bank Report, “Africa's Cities: Opening the Doors to the World,” indicates that Africa is urbanizing at a lower GDP per capita than developing regions. When countries in the East Asia and Pacific region reached a threshold of urbanization comparable to Africa's urban threshold today, the GDP per capita was USD3,600. In contrast, Africa has reached 40% urbanization, but GDP per capita remains low at USD1,000. Public spending on cities is even more critical with an emphasis on being as efficient as possible and leveraging other sources of financing.
In Tanzania, with industrialization at the core of the government's economic development goals, onlookers are interested to see how the urbanization policy will be realized. An injection of a further USD130 million into the Tanzania Strategic Cities Project (TSCP), announced in May 2017, can only bode well for the country's plans to transform its approach to urban living.
TSCP, officially launched in September 2010, is an initiative to improve the quality of basic urban services in the Tanzanian cities of Dar es Salaam, Arusha, Dodoma, Tanga, Mtwara, Mbeya, Kigoma, and Mwanza, as supporting these medium-sized cities will boost their industrial sectors. Initially planned to last five years, the TSCP was extended following an evaluation of the project's success up to 2013. Now, a further round of funds is being made available for a second round of developments.
There are three major components to the TSCP: core urban infrastructure and services, institutional strengthening on the whole, as well as support for the implementation and preparation for future urban pilot schemes launched by the Tanzanian government. The World Bank has been the key development partner in this initiative, followed closely by the Royal Danish government, which has also provided funds and expertise.
Throughout the course of the project, local government authorities (LGAs) have been equipped with better waste-management capacity, including more landfill facilities, enhanced transport links, and innovative administration tools, such as Geographical Information System (GIS)-based Local Government Revenue Collection and Information Systems (LGRCIS).
The latter is having a positive impact on revenue generated by LGAs, increasing this by 30% in the first year of implementation. Furthermore, as World Bank Group President Jim Yong Kim said, upon release of the latest round of funding, “investing in infrastructure has a significant multiplier effect, spurring growth in subsequent years.”
On a more pedestrian level, changes brought in by the TSCP in the various target cities have had a huge impact on the daily life of citizens. In mountainous Arusha in Tanzania's north, drainage, pavements, lighting, and walkways have so improved the appearance and functionality of the city that it has earned itself the sobriquet “the Geneva of East Africa.” What is more, Arusha generated TZS2.7 billion (USD1.2 million) in various taxes, levies, and licenses during the first three months following the inauguration of the LGRCIS system in 2014.
According to the World Bank's impact report, by March 2017, the project boasted a total of 1,491,005 individual beneficiaries. It is hoped that the new release of funds for the project will go a long way towards reaching the end target—forecast for May 2020—of over 1,700,000 direct beneficiaries.
EAST AFRICA’S “GENEVA”
TABLE OF CONTENTS
Guest Speaker
Hon. Patricia Scotland, Secretary General, Commonwealth of Nations
TBY talks to Hon. Patricia Scotland, Secretary General of the Commonwealth of Nations, on the advantages of being a member of the Commonwealth, the need to celebrate diversity, and Tanzania's war against corruption.
read articleGuest Speaker
Libérat Mfumukeko, Secretary-General, East African Community (EAC)
TBY talks to Libérat Mfumukeko, Secretary-General of the East African Community (EAC), on Tanzania's importance to the EAC, the major achievements of regional integration, and obstacles ahead of a monetary union.
read articleInterview
Raymond P. Mbilinyi, Executive Secretary , Tanzania National Business Council (TNBC)
TBY talks to Raymond P. Mbilinyi, Executive Secretary of Tanzania National Business Council (TNBC), on its work to support the private sector in the country, tackling challenges in the economy, and clamping down on corruption.
read articleReview: Banking
The Quest for Depth
If Tanzania is to meet its 2025 vision of attaining middle-income status, it will need to corral its bank-centric financial and capital markets for greater depth by extending participation and rendering credit more accessible to SMEs, women, and the young to spur economic growth.
read articleInterview
Dr. Baghayo A. Saqware, Commissioner , Insurance, Tanzania Insurance Regulatory Authority (TIRA)
TBY talks to Dr. Baghayo A. Saqware, Commissioner of Insurance, Tanzania Insurance Regulatory Authority (TIRA), on achieving universal healthcare coverage, the brilliance of microinsurance, and how to partner with public and private entities to increase the industry's penetration.
read articleReview
Legal Thunder
With the stepping down of Minister of Energy and Minerals Sospeter Muhongo in May 2017 over transparency issues and the introduction of three new laws that give the government the right to renegotiate or revoke existing mining and oil and gas rights, private players in the country are unsure of what future lies ahead. On the other hand, project-specific developments bode well for a sector in need of a breakthrough.
read articleInterview
Kapuulya Musomba, Managing Director, Tanzania Petroleum Development Company (TPDC)
TBY talks to Kapuulya Musomba, Acting Managing Director of Tanzania Petroleum Development Company (TPDC), on the planned expansion of the Mtwara-Dar es Salaam natural gas pipeline, entering northern industrial hubs, and empowering nascent industries.
read articleInterview
Marc Den Hartog, Managing Director, Shell/BG Tanzania
TBY talks to Marc Den Hartog, Managing Director of Shell/BG Tanzania, on the critical need for economies of scale, the importance of developing LNG for export, and why renewables must be taken into account in any long-term plan.
read articleInterview
Hon. Charles Mwijage, Minister, Industry, Trade and Investment
TBY talks to Hon. Charles Mwijage, Minister of Industry, Trade and Investment, on how to reach middle-income status, employing the private sector toward this end, and what sets the country apart from the rest of East Africa.
read articleFocus: Helium
Discoveries of Magna-tude
Despite being the second most common element in the universe, helium is in short supply on earth. With global reserves of the gas steadily dwindling, and demand steadily increasing, the discovery of a whopping 1.53 billion cbm of helium in underground chambers in Tanzania could not have come at a better moment.
read articleInterview
Gilliard W. Ngewe, Director General, Surface and Marine Transport Regulatory Agency (SUMATRA)
TBY talks to Gilliard W. Ngewe, Director General of Surface and Marine Transport Regulatory Agency (SUMATRA), on transportation budget allocation and cross-sector dialog and partnerships.
read articleInterview
Jared H. Zerbe, CEO, Tanzania International Container Terminal Services Limited (TICTS)
TBY talks to Jared H. Zerbe, CEO of Tanzania International Container Terminal Services Limited (TICTS), on regional trade flows and Tanzania's potential to take a leading role in orchestrating cargo movement.
read articleFocus: Tanzania Strategic Cities Project (TSCP)
East Africa’s “Geneva”
If Rome wasn't built in a day, it is not surprising that Tanzania's project to revamp eight of its largest cities is entering its eighth year of implementation. A release of further funds from the World Bank has given the project a new lease of life.
read articleReview
Lost in the Maize
Agriculture accounts for 30% of Tanzania's GDP, and the sector has experienced above-average output in recent years compared to the rest of the African continent. However, the sector's development is held back by poor rural farming practices and general infrastructure bottlenecks.
read articleInterview
Fred Kafeero, Tanzania Representative, Food and Agriculture Organization (FAO)
TBY talks to Fred Kafeero, Tanzania Representative of the Food and Agriculture Organization (FAO), on the organization's long-term support for Tanzania's development, recent initiatives in agriculture, and financing.
read articleFocus: 2020 Irrigation Target
Reap What You Sow
In 2006, the Tanzanian Ministry of Water and Irrigation set a target for Tanzania's agriculture sector: to irrigate 1 million ha of land by 2020. More than 10 years on and moving ever closer to the deadline, this target has not yet been met, though the first seeds are being sown.
read articleFocus: Southern Circuit Tourism
Hidden Gems
Tourism is frequently described as the jewel in Tanzania's economic crown. In 2016 alone, the industry contributed over USD2 billion in revenues. However, for at least three years, the government has expressed concern that tourism is not well distributed across the country.
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