Battle: Dar es Salaam vs Nairobi

Battle: Dar es Salaam vs Nairobi


Why Tanzania is Not Overtaking Kenya Anytime Soon

By Gathu Kaara


Kenyans are being treated to a season of gloom and doom because Kenya is supposedly about to be eclipsed as the region’s dominant economy by Tanzania. Kenyans have “authoritatively” been informed by expert economic analysts that Tanzania is the new king of East Africa, and Kenya has lost out big time.

What is behind this invitation to Kenyans to beat themselves? The first is the decision by Uganda to “abandon” its deal with Kenya to build a joint pipeline to the Port of Lamu in favour of one with Tanzania. The second is the decision by Rwanda to “abandon” Kenya’s Standard Gauge Railway (SGR)

in favour of the one proposed by Tanzania. Never mind that not even one kilometer of track or pipeline has been laid, or even one dollar of the necessary finance been mobilized for both projects.

The truth is that when you compare Tanzania’s economy to Kenya, it’s almost laughable that anybody can actually state that it can supplant Kenya’s dominance in this region. This is just self-serving analysis meant to push a given political narrative.

What are the facts about these two economies? Tanzania’s 2016 budget of $ 13.5 billion (Sh1.35 trillion) pales beside Kenya’s budget of $ 22.6 billion (Sh 2.26 trillion), almost double in size.

Further, the size of Tanzania’s economy, measured through its Gross Domestic Product (GDP), at $ 48 billion, is almost 25 per cent smaller than Kenya’s at $ 61 billion. These gaps have only grown in the last decade, and nothing suggests they will be narrowing anytime soon.

Tanzania’s key port of Dar es Salaam has been declared much more inefficient than the Port of Mombasa, over control movement of labour, capital and other factors of production. No wonder there’s a huge skills gap in that economy.

Tanzania has a mountain to climb. The turmoil that Kenya underwent as it liberalized and reformed its economy in the 90s is something that Tanzania must go through to become a modern economy. By the time Tanzania is through, Kenya will be eons away. Tanzania’s first shock when it starts liberalizing will be capital flight as Tanzania’s elite move huge amounts of dollars abroad, and a massive depreciation of its currency as it finds its own market level amid a huge dollar outflow.

Nairobi remains the financial and and above clearing much less cargo for the region’s landlocked countries, principally the tiny economies of Rwanda and Burundi. In fact, the World Bank estimates that the Tanzanian economy could gain over Sh8 billion annually if the Dar Port was as efficient as the Port of Mombasa. For the longest time, Kenyans were told by the selfsame experts that Dar es Salaam would soon supplant Mombasa as the key port in this region. Again, it looks like it is not going to happen anytime soon.

Those experts then “abandoned” Dar and latched onto the Port of Bagamoyo where Tanzania had planned a mega port. Kenyans were told that Bagamoyo will put Mombasa in the shade, never mind that then not a single stone had been laid, nor was there a highway to link the port with its landlocked neighbours to facilitate the proposed new corridor to supposedly compete with Mombasa and the Northern corridor.

The truth is that $ 10 billion Bagamoyo Port was a white elephant, and the Tanzanian government has abandoned it as unviable, and will instead concentrate on refurbishing and expanding the Port of Dar.

It would have to be a hopeless optimist who would proclaim that the Northern corridor anchored on the Port of Mombasa is about to lose to a rudimentary corridor anchored on a port that is much more inefficient and is way behind in modernization and expansion.

The scenario is similar with Tanzania’s standard Gauge Railway linking Tanzania and Rwanda. While Kenya’s SGR is rapidly snaking its way across the Nyika, Tanzania’s is still on the drawing boards.

Tanzania’s economy is still living in the past , and remains globally uncompetitive. Successive Tanzanian governments have lived in a Utopia where they think they can forever shield their economy from competition. So, they commercial flight hub for the entire Eastern and Central Africa. The financial and ICT infrastructure the country has built over decades is among the most advanced anywhere in the continent. That’s why leading global brands like Google, General Electric, Huawei, Pepsi, Coca Cola, Diageo, Toyota, AVIC International and Visa Inc have made Kenya either their regional or continental headquarters. It will take a huge flight of fantasy to imagine companies like IBM or Pfizer relocating from Nairobi to Dar es Salaam.

It might be the politically correct narrative to talk up Tanzania as the new kid on the block set to put Kenya in its place. The truth, however, is that Tanzania is really a backwater economy that is yet to begin the hard, backbreaking and nerve wracking work of reforming its economy to become competitive even by regional standards. Rwanda has done a much better job of it.

Gathu Kaara can be reached at gathukara@gmail.com
Sasa alieandika link ni mkenya ataacha kusema uongo kweli😀😀😀😀
 

Why Tanzania is Not Overtaking Kenya Anytime Soon

By Gathu Kaara


Kenyans are being treated to a season of gloom and doom because Kenya is supposedly about to be eclipsed as the region’s dominant economy by Tanzania. Kenyans have “authoritatively” been informed by expert economic analysts that Tanzania is the new king of East Africa, and Kenya has lost out big time.

What is behind this invitation to Kenyans to beat themselves? The first is the decision by Uganda to “abandon” its deal with Kenya to build a joint pipeline to the Port of Lamu in favour of one with Tanzania. The second is the decision by Rwanda to “abandon” Kenya’s Standard Gauge Railway (SGR)

in favour of the one proposed by Tanzania. Never mind that not even one kilometer of track or pipeline has been laid, or even one dollar of the necessary finance been mobilized for both projects.

The truth is that when you compare Tanzania’s economy to Kenya, it’s almost laughable that anybody can actually state that it can supplant Kenya’s dominance in this region. This is just self-serving analysis meant to push a given political narrative.

What are the facts about these two economies? Tanzania’s 2016 budget of $ 13.5 billion (Sh1.35 trillion) pales beside Kenya’s budget of $ 22.6 billion (Sh 2.26 trillion), almost double in size.

Further, the size of Tanzania’s economy, measured through its Gross Domestic Product (GDP), at $ 48 billion, is almost 25 per cent smaller than Kenya’s at $ 61 billion. These gaps have only grown in the last decade, and nothing suggests they will be narrowing anytime soon.

Tanzania’s key port of Dar es Salaam has been declared much more inefficient than the Port of Mombasa, over control movement of labour, capital and other factors of production. No wonder there’s a huge skills gap in that economy.

Tanzania has a mountain to climb. The turmoil that Kenya underwent as it liberalized and reformed its economy in the 90s is something that Tanzania must go through to become a modern economy. By the time Tanzania is through, Kenya will be eons away. Tanzania’s first shock when it starts liberalizing will be capital flight as Tanzania’s elite move huge amounts of dollars abroad, and a massive depreciation of its currency as it finds its own market level amid a huge dollar outflow.

Nairobi remains the financial and and above clearing much less cargo for the region’s landlocked countries, principally the tiny economies of Rwanda and Burundi. In fact, the World Bank estimates that the Tanzanian economy could gain over Sh8 billion annually if the Dar Port was as efficient as the Port of Mombasa. For the longest time, Kenyans were told by the selfsame experts that Dar es Salaam would soon supplant Mombasa as the key port in this region. Again, it looks like it is not going to happen anytime soon.

Those experts then “abandoned” Dar and latched onto the Port of Bagamoyo where Tanzania had planned a mega port. Kenyans were told that Bagamoyo will put Mombasa in the shade, never mind that then not a single stone had been laid, nor was there a highway to link the port with its landlocked neighbours to facilitate the proposed new corridor to supposedly compete with Mombasa and the Northern corridor.

The truth is that $ 10 billion Bagamoyo Port was a white elephant, and the Tanzanian government has abandoned it as unviable, and will instead concentrate on refurbishing and expanding the Port of Dar.

It would have to be a hopeless optimist who would proclaim that the Northern corridor anchored on the Port of Mombasa is about to lose to a rudimentary corridor anchored on a port that is much more inefficient and is way behind in modernization and expansion.

The scenario is similar with Tanzania’s standard Gauge Railway linking Tanzania and Rwanda. While Kenya’s SGR is rapidly snaking its way across the Nyika, Tanzania’s is still on the drawing boards.

Tanzania’s economy is still living in the past , and remains globally uncompetitive. Successive Tanzanian governments have lived in a Utopia where they think they can forever shield their economy from competition. So, they commercial flight hub for the entire Eastern and Central Africa. The financial and ICT infrastructure the country has built over decades is among the most advanced anywhere in the continent. That’s why leading global brands like Google, General Electric, Huawei, Pepsi, Coca Cola, Diageo, Toyota, AVIC International and Visa Inc have made Kenya either their regional or continental headquarters. It will take a huge flight of fantasy to imagine companies like IBM or Pfizer relocating from Nairobi to Dar es Salaam.

It might be the politically correct narrative to talk up Tanzania as the new kid on the block set to put Kenya in its place. The truth, however, is that Tanzania is really a backwater economy that is yet to begin the hard, backbreaking and nerve wracking work of reforming its economy to become competitive even by regional standards. Rwanda has done a much better job of it.

Gathu Kaara can be reached at gathukara@gmail.com
Soma na hapo basi

Tanzania set to surpass Kenya as East Africa's economic giant
Business | 26 August 2016, 06:00am
Mnaku Mbani
Tanzania’s economy has been growing at an average rate of 7 percent annually over the past decade – a trend which economists predict will turn the country into the eastern African economic powerhouse by the year 2022.

Kenya is ranked as the regional economic powerhouse with a gross domestic product (GDP) of $55.2 billion. Tanzania’s GDP is $45bn, while Uganda’s is $30bn.

Share this story
620x349

Tanzania can achieve her vision of accelerated and shared growth through fiscal prudence; cost-effective reforms in the education sector; and smart policies aimed at promoting the transformation of firms, the World Bank says.

According to its analysis, Tanzania's economic performance has remained strong. Preliminary estimates suggest that GDP grew by 7 percent last year, with activity particularly buoyant in the construction, communication, finance and transport sectors.

The strong growth is supported by stability in power supply, moderation in oil prices and high growth of credit to the private sector. The highest growth rates last year were registered in construction (16.8 percent), information and communications technology (12.1 percent), finance and insurance (11.8 percent).

The strong performance in construction was attributed to increased real estate development for residential and non-residential purposes and building of road networks.

Less than a year after President John Pombe Magufuli took office, Tanzania is gaining influence among its neighbours and moving away from its reputation as a lone ranger in the region. But since Magufuli’s surprise election win last October, it seems Kenya could be losing its grip on East African politics as Tanzania increasingly presents itself as a viable alternative for regional co-operation.

Magufuli’s pragmatic, hands-on approach is making this possible.

He is changing the way business is done: making it more efficient and effective.

One of his key policies is clamping down on corruption.

What is endearing him to his own people and perhaps what is making sense economically for the region, is that business can be done in cheaper ways; it can be done by minimising corruption.

But it's believed that Tanzania’s recent political gains are not only down to Magufuli’s leadership style. The country has enjoyed a steady growth rate of 6-7 percent over the past decade and is already starting to overtake Kenya economically.

“You can decide to look at Kenya as a powerhouse maybe on the economic side, but you've got to accept that Tanzania is a powerhouse in terms of stabilising these countries,” said Richard Shaba, programme co-ordinator at the Konrad Adenauer Foundation in Tanzania.

Another measure taken by the new government is that of modernising agriculture. The government believes that improving the agriculture sector will raise rural incomes and reduce poverty.

TradeMark East Africa chief executive Frank Matsaert believes Tanzania has the potential to become the economic powerhouse in East Africa, given her natural wealth and strategic geographical positioning, but first there are challenges to overcome.

Huge growth potential in land, water bodies, minerals, and the strategic positioning of the country, were enough to make Tanzania the economic giant in the region.

Matsaert said TradeMark East Africa was keen to help Tanzania use her potential to become the leading economic powerhouse in East Africa. Kenya’s GDP still accounts for 40 percent of the region’s GDP, followed by Tanzania at 28 percent, Uganda at 21 percent, Rwanda at 8 percent, and Burundi at 3 percent.

World Bank officials believe vigorous reforms will be needed to foster further structural transformation of the economy and sustain high productivity gains and investment. It would also free up labour resources for other sectors of the economy and could foster the development of certain industries, such as food processing.

The economy continues to flourish as the government focuses on industrialisation and infrastructure development.

Following a $4bn oil-export pipeline agreement with Uganda in April, the country signed a deal regarding a $900m railway project that will connect Rwanda’s rail links to Tanzania's main port.

The Central Corridor railway project, one of Tanzania’s major infrastructure projects, is set to receive $6.8bn in foreign investment by Chinese authorities to implement the first phase of the project, which will establish a railway connection from Dar es Salaam to Mwanza, at the north-west border.

The 2016/2017 budget aims to further increase funding for development projects while addressing the need for fiscal consolidation.

If fully implemented, the budget promises to support growth and promote macro-economic stability.
 

Why Tanzania is Not Overtaking Kenya Anytime Soon

By Gathu Kaara


Kenyans are being treated to a season of gloom and doom because Kenya is supposedly about to be eclipsed as the region’s dominant economy by Tanzania. Kenyans have “authoritatively” been informed by expert economic analysts that Tanzania is the new king of East Africa, and Kenya has lost out big time.

What is behind this invitation to Kenyans to beat themselves? The first is the decision by Uganda to “abandon” its deal with Kenya to build a joint pipeline to the Port of Lamu in favour of one with Tanzania. The second is the decision by Rwanda to “abandon” Kenya’s Standard Gauge Railway (SGR)

in favour of the one proposed by Tanzania. Never mind that not even one kilometer of track or pipeline has been laid, or even one dollar of the necessary finance been mobilized for both projects.

The truth is that when you compare Tanzania’s economy to Kenya, it’s almost laughable that anybody can actually state that it can supplant Kenya’s dominance in this region. This is just self-serving analysis meant to push a given political narrative.

What are the facts about these two economies? Tanzania’s 2016 budget of $ 13.5 billion (Sh1.35 trillion) pales beside Kenya’s budget of $ 22.6 billion (Sh 2.26 trillion), almost double in size.

Further, the size of Tanzania’s economy, measured through its Gross Domestic Product (GDP), at $ 48 billion, is almost 25 per cent smaller than Kenya’s at $ 61 billion. These gaps have only grown in the last decade, and nothing suggests they will be narrowing anytime soon.

Tanzania’s key port of Dar es Salaam has been declared much more inefficient than the Port of Mombasa, over control movement of labour, capital and other factors of production. No wonder there’s a huge skills gap in that economy.

Tanzania has a mountain to climb. The turmoil that Kenya underwent as it liberalized and reformed its economy in the 90s is something that Tanzania must go through to become a modern economy. By the time Tanzania is through, Kenya will be eons away. Tanzania’s first shock when it starts liberalizing will be capital flight as Tanzania’s elite move huge amounts of dollars abroad, and a massive depreciation of its currency as it finds its own market level amid a huge dollar outflow.

Nairobi remains the financial and and above clearing much less cargo for the region’s landlocked countries, principally the tiny economies of Rwanda and Burundi. In fact, the World Bank estimates that the Tanzanian economy could gain over Sh8 billion annually if the Dar Port was as efficient as the Port of Mombasa. For the longest time, Kenyans were told by the selfsame experts that Dar es Salaam would soon supplant Mombasa as the key port in this region. Again, it looks like it is not going to happen anytime soon.

Those experts then “abandoned” Dar and latched onto the Port of Bagamoyo where Tanzania had planned a mega port. Kenyans were told that Bagamoyo will put Mombasa in the shade, never mind that then not a single stone had been laid, nor was there a highway to link the port with its landlocked neighbours to facilitate the proposed new corridor to supposedly compete with Mombasa and the Northern corridor.

The truth is that $ 10 billion Bagamoyo Port was a white elephant, and the Tanzanian government has abandoned it as unviable, and will instead concentrate on refurbishing and expanding the Port of Dar.

It would have to be a hopeless optimist who would proclaim that the Northern corridor anchored on the Port of Mombasa is about to lose to a rudimentary corridor anchored on a port that is much more inefficient and is way behind in modernization and expansion.

The scenario is similar with Tanzania’s standard Gauge Railway linking Tanzania and Rwanda. While Kenya’s SGR is rapidly snaking its way across the Nyika, Tanzania’s is still on the drawing boards.

Tanzania’s economy is still living in the past , and remains globally uncompetitive. Successive Tanzanian governments have lived in a Utopia where they think they can forever shield their economy from competition. So, they commercial flight hub for the entire Eastern and Central Africa. The financial and ICT infrastructure the country has built over decades is among the most advanced anywhere in the continent. That’s why leading global brands like Google, General Electric, Huawei, Pepsi, Coca Cola, Diageo, Toyota, AVIC International and Visa Inc have made Kenya either their regional or continental headquarters. It will take a huge flight of fantasy to imagine companies like IBM or Pfizer relocating from Nairobi to Dar es Salaam.

It might be the politically correct narrative to talk up Tanzania as the new kid on the block set to put Kenya in its place. The truth, however, is that Tanzania is really a backwater economy that is yet to begin the hard, backbreaking and nerve wracking work of reforming its economy to become competitive even by regional standards. Rwanda has done a much better job of it.

Gathu Kaara can be reached at gathukara@gmail.com
Dystopic neighbor
 
Nijenge kwanini na naweza nunua au kukodisha nyumba niishi, wewe tumia akili ya kuzaliwa, unadhani utajenga kila pahali unapohamia. Unareason kama mtu hajawai fika shule wewe. Kuna kitu inaitwa convenience hii dunia. Engage your brain in that line au utaishi kulia shida.

Your level of education may be poor but let me school you.
According to the English Dictionary this is the difference between an apartment/flat and a dormitory.
Apartment/Flat
noun
1.
a room or a group of related rooms, among similar sets in one building, designed for use as a dwelling.
2.
a building containing or made up of such rooms.

3. any separated room or group of rooms in a house or other dwelling:
Dormitory
noun, plural dormitories.
1.
a building, as at a college, containing a number of private or semiprivate rooms for residents, usually along with common bathroom facilities and recreation areas.
2.
a room containing a number of beds and serving as communal sleeping quarters, as in an institution, fraternity house, or passenger ship.

Now go ask your English teacher the meaning of the word dwell, then come shout your loud ignorance in this group full of intellectuals.
Ata ulete dictionary ya kabila lako
Ni kwamba dormitory ni sehemu ambapo watu wanaishi kwa makundi

Sasa kama upo sehemu unaishi kwa makundi upo dormitory kama secondary schools

Usilete excuse za kuita majina na kuremba remba

Jipange mwanaume halisi kama huna nyumba au hujajipanga kujenga tunakuweka kwenye kundi la wanawake usikawe ukabweteka na dormitory zinazo tafutiwa majina mazuri,

Ndio maana wanaume wa Kenya wanawake wenu wanawapa kipigo mtu badala uwaze Ku fight ujenge your dream house una fight Ku rent dormitory ya dream zako poor u
 
Soma na hapo basi

Tanzania set to surpass Kenya as East Africa's economic giant
Business | 26 August 2016, 06:00am
Mnaku Mbani
Tanzania’s economy has been growing at an average rate of 7 percent annually over the past decade – a trend which economists predict will turn the country into the eastern African economic powerhouse by the year 2022.

Kenya is ranked as the regional economic powerhouse with a gross domestic product (GDP) of $55.2 billion. Tanzania’s GDP is $45bn, while Uganda’s is $30bn.

Share this story
620x349

Tanzania can achieve her vision of accelerated and shared growth through fiscal prudence; cost-effective reforms in the education sector; and smart policies aimed at promoting the transformation of firms, the World Bank says.

According to its analysis, Tanzania's economic performance has remained strong. Preliminary estimates suggest that GDP grew by 7 percent last year, with activity particularly buoyant in the construction, communication, finance and transport sectors.

The strong growth is supported by stability in power supply, moderation in oil prices and high growth of credit to the private sector. The highest growth rates last year were registered in construction (16.8 percent), information and communications technology (12.1 percent), finance and insurance (11.8 percent).

The strong performance in construction was attributed to increased real estate development for residential and non-residential purposes and building of road networks.

Less than a year after President John Pombe Magufuli took office, Tanzania is gaining influence among its neighbours and moving away from its reputation as a lone ranger in the region. But since Magufuli’s surprise election win last October, it seems Kenya could be losing its grip on East African politics as Tanzania increasingly presents itself as a viable alternative for regional co-operation.

Magufuli’s pragmatic, hands-on approach is making this possible.

He is changing the way business is done: making it more efficient and effective.

One of his key policies is clamping down on corruption.

What is endearing him to his own people and perhaps what is making sense economically for the region, is that business can be done in cheaper ways; it can be done by minimising corruption.

But it's believed that Tanzania’s recent political gains are not only down to Magufuli’s leadership style. The country has enjoyed a steady growth rate of 6-7 percent over the past decade and is already starting to overtake Kenya economically.

“You can decide to look at Kenya as a powerhouse maybe on the economic side, but you've got to accept that Tanzania is a powerhouse in terms of stabilising these countries,” said Richard Shaba, programme co-ordinator at the Konrad Adenauer Foundation in Tanzania.

Another measure taken by the new government is that of modernising agriculture. The government believes that improving the agriculture sector will raise rural incomes and reduce poverty.

TradeMark East Africa chief executive Frank Matsaert believes Tanzania has the potential to become the economic powerhouse in East Africa, given her natural wealth and strategic geographical positioning, but first there are challenges to overcome.

Huge growth potential in land, water bodies, minerals, and the strategic positioning of the country, were enough to make Tanzania the economic giant in the region.

Matsaert said TradeMark East Africa was keen to help Tanzania use her potential to become the leading economic powerhouse in East Africa. Kenya’s GDP still accounts for 40 percent of the region’s GDP, followed by Tanzania at 28 percent, Uganda at 21 percent, Rwanda at 8 percent, and Burundi at 3 percent.

World Bank officials believe vigorous reforms will be needed to foster further structural transformation of the economy and sustain high productivity gains and investment. It would also free up labour resources for other sectors of the economy and could foster the development of certain industries, such as food processing.

The economy continues to flourish as the government focuses on industrialisation and infrastructure development.

Following a $4bn oil-export pipeline agreement with Uganda in April, the country signed a deal regarding a $900m railway project that will connect Rwanda’s rail links to Tanzania's main port.

The Central Corridor railway project, one of Tanzania’s major infrastructure projects, is set to receive $6.8bn in foreign investment by Chinese authorities to implement the first phase of the project, which will establish a railway connection from Dar es Salaam to Mwanza, at the north-west border.

The 2016/2017 budget aims to further increase funding for development projects while addressing the need for fiscal consolidation.

If fully implemented, the budget promises to support growth and promote macro-economic stability.
As much as i would want to believe that report, some facts have to be gotten right, like when was the economy of kenya $55 billion.
Plus some common sense should be applied here, ill quote that post " Matsaert said TradeMark East Africa was keen to help Tanzania use her potential to become the leading economic powerhouse in East Africa. Kenya’s GDP still accounts for 40 percent of the region’s GDP, followed by Tanzania at 28 percent, Uganda at 21 percent, Rwanda at 8 percent, and Burundi at 3 percent."
What are the plans to bridge that gap and how long will it take considering that as you are growing, Kenya ain't sitting her ass but working her butt hard...
 
As much as i would want to believe that report, some facts have to be gotten right, like when was the economy of kenya $55 billion.
Plus some common sense should be applied here, ill quote that post " Matsaert said TradeMark East Africa was keen to help Tanzania use her potential to become the leading economic powerhouse in East Africa. Kenya’s GDP still accounts for 40 percent of the region’s GDP, followed by Tanzania at 28 percent, Uganda at 21 percent, Rwanda at 8 percent, and Burundi at 3 percent."
What are the plans to bridge that gap and how long will it take considering that as you are growing, Kenya ain't sitting her ass but working her butt hard...
So u want to tell me kenya economy is 71$ b
 
As much as i would want to believe that report, some facts have to be gotten right, like when was the economy of kenya $55 billion.
Plus some common sense should be applied here, ill quote that post " Matsaert said TradeMark East Africa was keen to help Tanzania use her potential to become the leading economic powerhouse in East Africa. Kenya’s GDP still accounts for 40 percent of the region’s GDP, followed by Tanzania at 28 percent, Uganda at 21 percent, Rwanda at 8 percent, and Burundi at 3 percent."
What are the plans to bridge that gap and how long will it take considering that as you are growing, Kenya ain't sitting her ass but working her butt hard...
Ndio maana kuna siku moja nilisema hvi kenya economy imeshikwa na investors hata majengo mengi nairobi ni ya investors so wananchi wa kenya mtaendelea kusugua meno
 
Usd 84Billions zinanukia hivi hiyo ela bado tu wakenya mtakua mnachakuongea?poor neighbour
 
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