Prime
Samia’s scorecard on attaining three years in office
President Samia Suluhu Hassan delivers her maiden speech in Parliament in Dodoma on April 22, 2021. PHOTO FILE
What you need to know:
- It is exactly three years today since President Samia Suluhu Hassan was sworn in as Tanzania’s sixth head of state and Tanzanians can look back at her performance in various fields so far
Dar es Salaam. It is exactly three years today since President Samia Suluhu Hassan was sworn in as Tanzania’s sixth head of state and Tanzanians can look back at her performance in various fields so far.
When one talks about President Hassan’s achievements, business and politics immediately come to the fore as these two areas are almost unrecognisable from their state before she came into office.
Her performance can also be gauged in the delivery of social services such as health, education, water and electricity, among others.
Having taken over the leadership of Tanzania at a time when members of the business community were at loggerheads with the government on issues such strong-arm tactics in tax collection and policy unpredictability, President Hassan had to hit the ground running.
Her relentless efforts to improve the business climate have yielded positive results.
Addressing Parliament on April 22, 2021, President Hassan did not hide her disappointment that investors were perceiving Tanzania as a country of unpredictable policies, unstable tax procedures and bureaucratic hurdles in providing services to investors.
Business environment improved
“As such, the Sixth Phase Government intends to make significant improvements in this area. Firstly, we will ensure the full implementation of the Blueprint for Improving Tanzania’s Business Environment. I have also placed the Ministry of Investment under the supervision of the Prime Minister to facilitate joint coordination and proximity in ensuring the removal of bureaucracy in investment matters, including issuing permits and licences within a short period and addressing land access for investment,” she said.
She moved in swiftly. Through her visits and meetings, she managed to restore and improve relations between Tanzania and a number of foreign countries and multilateral organisations, including the International Monetary Fund (IMF) and the World Bank, among others.
President Hassan also directed the establishment of a one-stop service system for all issues pertaining to investments. This has been implemented, with Prime Minister Kassim Majaliwa gracing the launch last September of the Tanzania Electronic Investment Window developed by the Tanzania Investment Centre (TIC) as a single window for facilitating investment-related applications – namely certification, permits, licences and authorisations – by ensuring timeliness, effectiveness and efficiency in the processes.
Another goal was to make operational reforms in the tax administration and collection system by creating a convenient system for taxpayers and broaden the tax base.
Jump in tax collection
The focus on avoiding intimidation in tax collection, coupled with an improvement in the business environment, has seen a monumental increase in the sum the taxman collects each month. The average monthly collection has jumped by Sh600 billion from an average of Sh1.4 trillion when she assumed the Presidency to Sh2 trillion at present.
Investments galore
With an improved investment climate, Tanzania’s participation in conferences both domestically and internationally and visits by top leaders abroad have seen a sharp rise in the number of projects registered by the Tanzania Investment Centre (TIC).
In an official report, the TIC notes that from March 2021 to March 10, 2024 it registered a total of 1,188 projects, representing an increase of 63.19 percent compared to 728 projects registered during the same period from March 2018 to March 10, 2021.
In terms of employment generated from project registration, there has been an increase of 231.63 percent from 104,172 jobs created in the three years from 2018 to 2021 to an estimated 345,464 jobs generated from March 2021 to March 2024.
Among these projects, 35 percent are owned by Tanzanians, 41 percent by foreigners and 24 percent are joint ventures between Tanzanians and foreigners.
Furthermore, the assessment indicates that the majority of registered projects are in priority sectors, namely 538 in manufacturing (45.29 percent), 225 in transportation (18.94 percent), 110 in tourism (9.26 percent), 106 in commercial building construction (8.92 percent) and 106 in agriculture (8.5 percent).
Impressive global rankings
In 2023, a number of African countries including Kenya and Nigeria had their credit ratings downgraded by Moody’s Investor Service, while Tunisia and Egypt had theirs downgraded by both Moody’s and Fitch. In contrast, Tanzania had favourable ratings.
In its regular country update, which was issued in April, Moody’s Investors Service gave Tanzania a rate of B2 Positive, attributing it to the positive outlook to lessened political risks in Tanzania, the country’s engagement with the international community and its structural reform agenda.
The June 2023 Fitch Ratings also assigned Tanzania a rating of “B+” with a stable outlook, saying it reflects the country’s “fairly strong macroeconomic performance with high real GDP growth and contained inflation, a moderate level of debt and increased reform momentum backed by a new IMF program”.
So far so good
Tanzania Private Sector Foundation (TPSF) head of research and policy advocacy Kennedy Rwehumbiza told The Citizen that the President’s inaugural address demonstrated a strong commitment and provided a clear roadmap for action, instilling a sense of confidence and assurance within the private sector with regard to the stability and predictability of the business environment.
“The President’s outlined plans have been diligently pursued, as evidenced by their implementation thus far,” he said.
Mr Rwehumbiza also highlighted President Hassan’s efforts in restoring global confidence in Tanzania, citing proactive economic diplomacy and the successful attraction of foreign investors.
He outlined her initiatives to broaden the tax base and enhance professionalism in tax collection, saying, “She has bolstered confidence, increased tax compliance and facilitated domestic economic growth through the promotion of local content.”
Mr Rwehumbiza also underscored the significance of government subsidies for local raw materials, tax incentives for traders and substantial investments in infrastructure and social services, which have collectively contributed to the improvement of the business environment.
The economy remains sound
Tanzania’s economy remains sound under President Hassan despite facing multiple external shocks.
According to the Bank of Tanzania (BoT), the domestic economy is forecast to continue recovering as growth in Mainland Tanzania is projected at around 5.2 percent in the second half of 2023/24 and 5.5 percent in 2024.
“The growth projections are attributable to the improving business environment, public investment, a rebound in tourism activities, and implementation of policies and reforms,” the BoT says in part.
Inflation has been maintained and is projected to remain low, between 3 and 5 percent for both Mainland Tanzania and Zanzibar, attributable to monetary policy impact, adequate food supply, and exchange rate stability.
Foreign exchange reserves are projected to remain adequate and Tanzania has experienced fewer consequences of the dollar crisis as President Hassan’s administration continued to increase the production of import substitutions and export goods, overseen the recovery of tourism activities and the export of traditional and non-traditional goods.
Record earnings from tourism
With the Covid-19 pandemic disrupting tourism, President Hassan had to come up with an immediate solution, hence the Tanzania: The Royal Tour documentary.
As a result of the global pandemic, the number of international tourist arrivals in Tanzania dropped to 620,867 in 2020. But with concerted promotional efforts, including Tanzania: The Royal Tour documentary, which featured President Hassan as a tour guide and the global Covid-19 recovery, the number of arrivals rose to 1.8 million in 2023. As such, tourism sector revenues rose from $715 million in 2020 to $3.36 billion in 2023 – crossing the $3 billion mark for the first time.
Agriculture budget up
The agriculture budget has increased from Sh229 billion in 2020/21 to Sh970 billion in 2023/24, with the lion’s share of the money going to irrigation.
As such, the production of major cash crops has risen from 898,967 tonnes in 2021 to 1.3 million tonnes in 2023, according to official data from the Agriculture ministry.
The export of agricultural products has increased from $2.12 billion in 2020/21 to $2.33 billion in 2022/23, representing a 9 percent increase.
The production of quality seeds has increased by 60 percent from 35,199 tonnes in 2021/22 to 44,344 tonnes in 2022/23 due to the increase in budget from Sh7.39 billion in 2021/22 to Sh43.03 billion in 2023/24, along with an increase in research budget from Sh9.4 billion to Sh40.73 billion in 2023/24.
The development budget for irrigation has increased from Sh46.5 billion in 2021/22 to Sh361.5 billion in 2023/24 and, as a result, the irrigated area increased from 727,281 hectares in 2020/21 to 822,000 hectares in 2022/23.
Education sector reforms
One of the most significant changes initiated under President Hassan was the extension of compulsory education from seven to ten years. This policy decision aims to ensure that every child, regardless of their background, has access to quality education.
An education policy consultant, Dr Jane Mdoe, said, “This is the period where we have been able to see at least the government’s determination to bring about significant changes in the education sector. We see boldness, and the president emphasizes this consistently.”
It was during President Hassan’s three years in office that the government raised the Higher Education Students Loans Board (HESLB) budget from Sh464 billion in the previous year to Sh570 billion in 2021/22.
In the following financial year, the government allocated Sh684 billion before increasing it further to Sh731 billion in 2023/24.
In 2023/24, diploma students will also be able to benefit from higher education loans, especially those studying priority subjects for the nation.
The loan beneficiaries in higher learning institutions were also left with a sigh of relief after a long time following the president’s nod, which resulted in an increase in the subsistence allowance from Sh8,500 to Sh10,000 per day.
The recent introduction of the Samia Scholarship further underscores President Hassan’s dedication to promoting excellence in science subjects.
The Education ministry announced in July last year the allocation of Sh6.7 billion for the scholarship for the 2023/24 academic year. This was the second year of funding for students who excelled in science subjects.
Additionally, the Higher Education for Economic Transformation (HEET) project, with a budget of $425 million, aims to strengthen the learning environment and labour market alignment of priority programs at beneficiary higher education institutions.
During the period, a total of 34,904 new classrooms have been built, according to data from the Ministry of Education, Science and Technology. Similarly, a total of 508 new secondary schools have been built.
New face of multiparty politics
President Hassan had shown support to allow adherence to the rights to organize political activities, including peaceful demonstrations and rallies across the country, things that had been stalled six years before her.
Her participatory and democratic approach led to different changes, including the return of Chadema Vice Chairman Tundu Lissu to the country from Belgium, where he had been living in exile after an assassination attempt during the Magufuli reign in September 2017.
In fact, it was in January last year (2023) when she lifted a six-year ban on politicians holding political rallies and meetings outside of election periods.
Last year, President Hassan attended the International Women’s Day commemorations organized by opposition Chadema’s women’s wing, Bawacha.
To strengthen free and fair elections the parliament introduced three electoral bills including the National Electoral Commission (NEC) Bill, the President, Parliamentarians and Councillors Bill, as well as the Political Parties Affairs Bill.
New vigour for strategic projects
President Hassan wasted no time in advancing key initiatives, including the multi-billion dollar Standard Gauge Railway (SGR) and Julius Nyerere Hydropower Project among others.
The 2,115MW Julius Nyerere hydropower project which was at 37 percent when she came to office, is now almost complete and the first turbine, which produces 235 Megawatts, has already been switched on while much more will be switched in due course. Similarly, the Samia Suluhu Hassan administration has almost completed the Dar es Salaam-Morogoro and Morogoro-Makutopora SGR sections. Other stages of construction, including the sections from Makutopora to Tabora (294km), Tabora to Isaka (130km), and Tabora to Kigoma (506km), were currently under construction.
Encouraging press freedom
President Hassan came into power in March 2021, and since then Tanzania has significantly improved media reporting, freedom of expression, as well as regulations framework.
The country has undergone a profound transformation from a regime that heavily censored the media to one that values free expression and a vibrant press.
The new government has taken several steps to improve the media environment, including repealing restrictive laws, ending harassment of journalists, and creating a more open and transparent regulatory framework.
One of the most significant changes under President Hassan has been the tabling of the proposed amendments to the Media Services Act on February 10, 2022, and the lifting ban on four newspapers – Mwanahalisi, Mawio, Mseto and Tanzania Daima – in 2022 was a step in the right direction, stakeholders say.
Health sector on the move
An official statement from the Health ministry shows that there has been a significant increase in healthcare facilities just as there has also been the construction and renovation of healthcare infrastructure; the increase in hospital beds, strengthening access to medicines and health products, and strengthening maternal, newborn, and child health services.
Other areas are: access to specialist and super specialty services; improving access to specialised and super-specialised medical services at a affordable costs, strengthening emergency and accident services; expansion of emergency medical department, procurement and distribution of ambulances, human resources in the human resources in the sector; combating HIV/Aids, malaria, and tuberculosis to control epidemic diseases, a universal health insurance law was enacted, to mention a few.
Dr Zaitun Bhokary, a paediatric surgeon at Muhimbili National Hospital and president of the Medical Women Association of Tanzania, said the medical field is lucky to witness a lot of improvement.
“At MNH, we were not able to diagnose some complicated surgeries for children, and we were referring them to India. Currently, Tanzania is able to do a lot of surgeries as we have enough equipment and skilled people,” she said.
She said the President also invested a lot in making sure women are able to get treatment and early screenings for breast and cervical cancer at different hospitals like MNH, Ocean Road and Benjamin Mkapa.
Challenges still exist
While geopolitical tension is the main downward risk to Tanzania’s economic growth outlook, there are also some domestic factors that President Hassan’s administration will have to work on.
Domestically, concerns about inflation, rising costs of living, and unsustainable supply of electricity and water had been key issues to the citizens.
According to the World Bank, Tanzania has made progress in access to water supply, sanitation, and hygiene services, but more can be done to meet targets set by the UN’s Sustainable Development Goals.
Last year, the World Bank estimated that only 61 percent of households in Tanzania currently have access to a basic water supply.
Each year, at least six million working days are lost, while the time required to reach distant water and sanitation facilities costs adults another 1.1 billion hours, for a total of over $1.4 billion in foregone annual income.
Whilst 2023 and 2024 becoming the hottest years yet, the situation had worsened.
Tanzanians are also grappling with electricity shortages
A power rationing crisis that caused public discontent over the increased frequency of power cuts saw President Hassan dissolve the Tanzania Electric Supply Company board of directors and appoint a new one.
The power rationing was blamed on reduced generation as a result of inadequate water levels in dams and a lack of repairs to the electricity infrastructure.
However, the government had suggested that there is also a prospect of increasing electricity generation from the Julius Nyerere Hydro Power Plant and other sources during the second half of 2023/24.
There is also the issue of sugar whose costs have been spiking for months, forcing the government to step in and stabilize the prices.
By January 2024, the price of a kilogramme of sugar rose from an average of Sh2,700 to Sh4,500, prompting the Tanzania Sugar Board to step in and regulate the prices.
Additional reporting by Salome Gregory
