Tanzania’s Development Vision 2050 and important lessons from Singapore

By Mwita Chacha

Tanzania’s National Development Vision 2050 is motivated by a collective aspiration for a better society by 2050. Its main aim is to transform Tanzania into an industrialised, knowledge-based, upper-middle-income country, with a $1 trillion economy and a per capita income of $7,000 in the next 25 years.

The Vision is a product of a highly participatory, consultative and inclusive stakeholder engagement process. As detailed by the Minister of State in the President’s Office (Planning and Investment), Prof Kitila Mkumbo, the process involved extensive research and analysis, including lessons from countries such as Singapore, China, India and South Korea. 

Let us discuss Singapore’s current economic prowess and get to understand why the country is a global economic powerhouse.

Singapore is an island nation and city state in Southeast Asia. The country’s territory comprises one main island, 63 satellite islands and islets and one outlying islet. In 1965 when Singapore gained independence, it was far from the economic giant it is today.  The country struggled with a range of challenges — high unemployment rates, a tiny domestic market and an almost complete lack of natural resources.

The government, initially led by Prime Minister Lee Kuan Yew, had the enormous task of transforming this tiny nation into a functioning and viable state and in just 50 years, Singapore transformed and became one of the world’s fastest-growing economies. This transformation took place in the second half of the 20th century under Lee’s leadership. One of the key factors that contributed to Singapore’s economic miracle was and still is its strategic location, which made it an ideal hub for international trade and commerce.

Singapore’s economy is ranked as the world’s most open, the joint fourth least corrupt and the most pro-business. It is a major foreign direct investment (FDI) outflow financier in the world. In addition, Singapore has benefited from large inflows of FDI from global investors, financial institutions and multinational corporations due to its highly attractive investment climate along with a stable and conducive political environment.

Just like Tanzania, Singapore has a strategic port which makes it more competitive in carrying out port activities. The port is the second-busiest in the world by cargo tonnage and the busiest transshipment port globally.

It is worth noting that small and medium-sized enterprises (SMEs) are the backbone of Singapore’s economic landscape. In 2022 SMEs contributed 48 percent (S$284 bill) of Singapore’s total enterprise nominal value-added and employed 71 percent of Singapore’s total workforce of 3.63 million.

Lee Kuan Yew, the brains behind Singapore’s meteoric rise in a single generation, is long gone, but Singapore’s success story continues. GDP growth in the city state has been among the world’s highest, at an average of about 7 percent since independence and topping 9.2 percent in the first 25 years. Singapore is a high-income economy built on a business-friendly regulatory environment and strong investment in infrastructure, education, healthcare and public services.

Singapore has significantly reduced poverty, with estimates showing a fall from 12-14 percent in 2008 to around 3 percent currently. This decline is evident in both absolute poverty (unable to meet basic needs) and relative poverty (deprived of opportunities compared to the average citizen).

Lessons for Tanzania? We must stay engaged with the world at large. We must be open for business and put in place a business-friendly environment that creates jobs in Tanzania. Needless to say, we need FDI to complement locally-sourced funds and realise the capital investment needed. FDI is preferable to foreign aid as it usually comes with no strings attached and brings in much needed technological expertise.

Singapore did not rely on favourable climate, fertile soil or mineral resources to achieve success. Instead, it banked on knowledge, an enlightened government, good management and sheer hard work. What we need in Tanzania are a well-educated workforce, technical expertise, high levels of capital investment and entrepreneurial fervour.

We need more Tanzanians in fields such as engineering, medicine, finance and data analysis, but this goal can only be attained through world-class education and exposure. Let us also improve access to funding for rural folk and improve transport and energy infrastructure as part of efforts towards making Vision 2050 a success.

Mwita Chacha is the Head of Strategy and Human Capital at MnC Consulting Services in Dar es Salaam. [email protected]