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Call for proper use of resources

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Part of Dar es Salaam City. More investment is needed to develop the city’s infrastructure. PHOTO | FILE 

By Sturmius Mtweve, The Citizen

Posted  Sunday, October 20  2013 at  01:00

In Summary

Despite the fact that the country is now growing at the rate of seven per cent, development growth and human development must go together, otherwise there will be inequality in wealth distribution.

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Dar es Salaam. Resources management and capacity building is seen as the best way to make Tanzania utilise abundant natural resources it has to support economic growth and human development, experts have said.

Despite the fact that the country is now growing at the rate of seven per cent, development growth and human development must go together, otherwise there will be inequality in wealth distribution.

Prof Delphin Rwegasira from the University of Dar es Salaam said important steps must be taken to ensure there was proper coordination of African resources to boost economic growth in the respective countries lest they become a lifetime curse.

Prof Rwegasira was speaking at the launch of the African Economic Outlook Report 2013 in Dar es Salaam recently. The report is produced annually by the African Development Bank (AfDB), the Organisation for Economic Cooperation and Development (OECD) Centre, the Economic Commission for Africa (ECA) and the UN Development Programme (UNDP).

Tanzania, as it has been for other African countries, has seen an increase in Foreign Direct Investment (FDI) inflows, but there are still some challenges on how these inflows are helping to spur human development and economic growth.

The 2013 Human Development Report: The Rise of the South: Human Progress in a Diverse World argues that striking transformation of a large number of developing countries into dynamic major economies with growing political influence is having a significant impact on human development progress.

But, this will depend on the extent to which the government is keen on creating capacities for managing the available resources and capacity building for people to reduce poverty levels.

Prof Rwegasira said there was a need for the government to do something – to create a conducive business environment in terms of the cost of doing business of which Tanzania has for some time now been ranked poorly in the global index.

“Investors will always like to do business in a cost effective environment, unfriendly business environments are chasing away investors and this makes the government lose the opportunity of collecting enough revenue,” he said.

For his part, United Nations resident coordinator and UNDP resident representative to Tanzania Alberic Kacou said according to the report, Africa’s economy was projected to grow by 4.8 per cent in 2013 and 5.3 per cent in 2014.

This is being influenced by financial flows to the region, including FDIs and remittances which are at high records of which the report estimates exceed $200 billion annually.

“More and more African countries adopt sound economic policies than before ensuring economic stability,” said Mr Kacou.

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