2007-12-21 14:49:38
By Guardian Reporter
President Jakaya Kikwete has said the national economy is steadily growing, with solid signs showing that it will continue to become healthy in the coming years.
The President made these assertions on Wednesday at a media gathering where he cited a number of economic indicators.
``If you look at the situation from the premises of economic indicators, the gross domestic product (GDP) growth, inflation, foreign exchange reserves, government budget�you will clearly see that in most indicators, things are going pretty well.
The GDP, he said, was now growing at the leap of 6.2 per cent and foreign exchange reserves have not gone below USD2bn.
The inflation rate is hovering on the single digit marks, and has actually fallen from nine percentage point in October to around 7.3 per cent as of now, he said.
He said the fundamental causes for the fluctuation of commodity prices was not very clear, but he indicated the rising of global oil prices could be the factor.
As regards implementation of the Presidential Economic Empowerment Fund, Kikwete admitted that in some areas, the going had been tough and that some re-organisation was needed to ensure effective disbursement of the remaining 10.5bn/-.
He reiterated that the so called (JK) billions set aside by the government were not intended for middle income traders, but to small and medium enterprises (SMEs).
The creating of a middle class would require interventions mainly by banks so that they can access credit for investment purposes, he stressed.
The funds were channeled through the National Microfinance Bank (NMB) and CRDB banks. He said the main focus of CRDB Bank was savings and credit co-operative societies (Saccos) while NMB has taken care of personal and group loans.
Kikwete said these banks were not found everywhere, and some districts have missed the well intended facility.
``In the subsequent phase, we shall use microfinance institutions like Pride and others, which have a wider network, to issue the remaining 10.5bn/-.
The encouraging thing is that loans` repayment has been quite good, thus allaying fears for long harboured by banks on the ability of petty debtors to service their loans``, he said.
The President was, however, precautionary for those who had expected for gigantic outcomes over the past two years, calling for patience and comprehensive evaluation after five years.
``We cannot complete everything in just two years.
I believe that by 2010, the foundations that we have laid on education, health, water, agriculture etc, there are things that we will clearly show to Tanzanians that we have kept the promise�, he said.
Arguing with statistical evidence, he said his fourth phase government has managed to enhance primary school enrollment up to 97 percent from the previous 95 per cent.
``When we came to power, annual secondary school enrolment was mere 190,000. But as late as last year, 444,000 fresh students were enrolled. University intake stood at 55,000 but this year we have 82,000``, he contended.
In health, our main goal is to prepare a basic health development plan, and once ready, we shall begin implementing it next year.
The target is to have a dispensary within a five kilometre radius from where the people are living, a health centre in each ward, as well as strengthening district and regional hospitals, the President said.
He added that over the past two years, 1,174 long kilometres of tarmac roads were constructed.
In the areas of energy sector, he said his government�s immediate task was to revive Tanzania Electric Supply Company (Tanesco) until it became healthy enough for privatization.
However, he reminded journalists that an earlier decision by his government to allow private operators to invest in electricity generation was very much valid.
``What remains is the finalisation of legal aspects that would allow investors to generate, transmit and distribute electricity. The current law allows the monopoly of Tanesco.
So far private power generating companies are compelled by existing legal framework to sell power to Tanesco.
We want to draft a law that will not bar private power companies to operate freely and compete with Tanesco``, he said.
* SOURCE: Guardian
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