REGIONAL INTEGRATION
TBY talks to Dr. Augustine Mahiga, Minister of Foreign Affairs and East African Cooperation, on economic policy, working on economic integration in the EAC, and ensuring security in the region.
BIOGRAPHY
Dr. Augustine Mahiga is a Tanzanian diplomat who has been Minister of Foreign Affairs and East African Cooperation since 2015. He previously served as the Permanent Representative of Tanzania to the United Nations from 2003-2010 and as the UN Special Representative and Head of the United Nations Political Office for Somalia from 2010-2013. In December 2015, he was nominated as a Member of Parliament by President John Magufuli and thereafter appointed to the Cabinet as Minister of Foreign Affairs and East African Cooperation.What are the objectives of the ministry's strategic economic policy?
The ministry has adopted economic diplomacy in recent years to respond to the reality of the international economy. As well as reaching out to other governments for economic development, it has become vital to reach out to the business community for direct investment, dealing not just with other governments and government agencies, but also with economic institutions like the IMF and emerging economic actors and individuals. It is an approach geared to deal with these new realities, committing resources to enhance our economic standing and increase our access to opportunities in the international arena. In particular, such diplomacy has to be directed toward two areas. The first is to ensure that we reshape our economic performance domestically along these lines, promoting a competitive economy and embracing the private sector. The second is to publicize the fact that Tanzania is ready to engage with its own private sector as partners to enable the private sector from overseas to come and work on collaborative projects. This includes making room for PPPs.
What must be done to ensure that economic integration in the EAC acts in favor of the interests of each and every Tanzanian citizen?
Bilateral, national-oriented development cannot be complete without regional integration. East Africa has gone through painful experiences: political differences, fractures in our community, conflict, and ideological clashes. The common services—railways, harbors, the postal system, telecoms, and even the monetary system—that we inherited after liberalization broke down, and we wound up establishing national services. All these are behind us now, fortunately. However, we still need to find a new way of harmonizing, which proves to be difficult. We need these national services to be synchronized in terms of regulatory provisions. That being said, the lynchpin of the new common market is economic trade and investment. We started with the customs union and are now advanced in the common market, heading toward a monetary union. There may be hurdles along the way—as we see with the EU Economic Partnership Agreement (EPA), for instance—but we hope the benefits of economic integration will incrementally become more evident. We may have to readdress the way in which our communities interact to counter any possible imbalances, and it may not take the form of the federation we know. At the recent EAC summit, we discussed fundamental issues such as non-tariff barriers and the aspects of infrastructure that should be coordinated. There are the northern, central, and southern corridors to consider in terms of issues related to energy and resource sharing. It is also too early to tell how the outside world will respond to this proposal for increased integration. Regarding the EPA, we have yet to iron out the difficulties, and it is still clear that some of the agreements are favorable to Kenya as a much more advanced economy and do not necessarily benefit other nations to the same extent. However, we remain open to discussions, and while the timing is not right yet, this will be a vital moment for the EAC to define a new approach to cooperation with Europe
What policies is the ministry implementing to ensure that safety and security are a key priority in Tanzania and the region?
Tanzania takes its humanitarian responsibilities seriously. We have received refugees from nearby states like Rwanda since 1959, before independence, throughout the liberation movement, and during the Great Lakes crisis. We still receive and host refugees as part of our international obligation. We have an important role that we must continue to play in conflict resolution and promoting peace and stability in the region. The role we have particularly in maintaining and facilitating the resolution of conflict is an extension of our own independence and stability. That is why we swore a dedicated commitment to the UN to operate peacekeeping operations in Sudan, the DRC, and Jordan.
REGIONAL INTEGRATION
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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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