Sunday , April 14 2024

Mining reforms start bearing fruits in Tanzania

Tanzania continues to benefit from mining sector reforms, with the sector’s contribution to GDP in 2018/19 increasing to 5 per cent, up from 4.8 per cent the previous year.

Since taking the office in 2015, President Magufuli has been pushing for more revenues from the mining sector.

His government introduced several government-controlled mineral trading hubs in most of its mineral-rich regions early this year in an effort to curb tax evasion and illegal exports of the country’s precious minerals, following a directive from President Magufuli.

Increased domestic revenues and financial discipline in the use of public funds has helped Tanzania cut down donor dependency by over 71 per cent during the fifth phases regime.

The notable cut down of donor dependency on budget financing is on the General Budget Support (GBS) that is set to go down to only 138.32bn/- in the 2020/21 from 483bn/-in 2016/17 fiscal year.

Others on the ‘Top 50 Disruptors’ include: 2019 Nobel Peace Prize Winner, Abiy Ahmed, Prime Minister of Ethiopia; Aliko Dangote a businessman and a reformist, the Presidents of Ghana and Ivory Coast Nana Akufo-Addo and Alassane Ouattara; João Lourenço of Angola; Koos Bekker, a Tech king based in South Africa; Anas Aremeyaw Anas, an investigative journalist bent on naming, shaming and jailing corrupt officials of government, among others.

According to the report, Ethiopia’s Prime Minister Ahmed has topped the list of top 50 African disruptors.

Abiy is perceived as a dynamic reformer and an adept diplomat and Prime Minister who is at the heart of tectonic change in Ethiopia and in the region.

“The country was starting to outgrow the governing and economic model that had turned it into East Africa’s largest economy. Cue Abiy’s great opening: of the economy to foreign investment, the landlocked country to ports in the Horn of Africa, the state to differing opinions, and the region to new dynamics,” the report notes.

Meanwhile, President John Magufuli’s staunch leadership is consistently earning international accolades after the Tanzanian leader made the top ten list of African disruptors.

In the latest release by the Africa Report, President Magufuli is recognised for facilitating massive socio-economic reforms during his first term in office.

It is yet another deserved accolade for Dr Magufuli, a no-nonsense reformist, who is set to conclude his much-lauded first five-year term in office in a couple of months.

“The Disruptors”, according to the African Report, are African women and men who are shaking up the status quo, asking uncomfortable questions, upending business models and fighting preconceptions.

The exclusive ranking of Africa’s Top 50 disruptors is based on three factors: Innovation, disruption and heft. These criteria take into account how new the idea is, how big the change is and how many people are impacted.

With the road back to the top office ever clearly, the latest acknowledgement of President Magufuli’s splendid service for his country just cements the case for his reelection.

The report noted that Dr Magufuli is celebrated in the country for economic reform, noting further that the country of 58 million people now boasts one of the highest economic growth rates in Africa.

It also acknowledged the fact that Magufuli has shaken things up in Tanzania from day one- when he arrived unannounced in various civil-servant offices and started slapping tax writs on bill dodgers.

“Magufuli set an example by cutting his own salary from 15,000 US dollars to 4,000 US dollars per month, has ensured that civil servants turn up for work and has made it easier to do business,” the report read in part.

“He has taken full advantage of Chinese financial help, and has embarked on a vast programme of infrastructure development, particularly in the rail industry,” it added.

Thanks to his steady leadership, President Magufuli has enjoyed massive support from ordinary Tanzanians who feel their lives have improved since he was sworn-in five years ago.

His first term in office has seen Dr Magufuli efficiently deliver his promise to fight incompetent government officials and use the government’s money more effectively.

Resolved to get rid of decades-long donor dependency in financing its development budget, President John Magufuli’s government has implemented a number of tax and revenue measures since its first budget in the 2016/17 fiscal year.

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