United Nation Conference on Trade and Development (UNCTAD)
Tanzania's plans to become a middle economy have been undermined by the United Nations rating of its development noting that the country lags behind 49 other least developed countries (LDC) and will stay there not short of a decade.
Tanzania is not likely to graduate from LDCs group, not until the second half of the next decade (2025), the Executive Director at the Centre for Harnessing Knowledge for Development, Ambassador Marcel Namfua, projected.
The disappointing report was released late last week in Dar es Salaam at a conference to launch The Least Developed Countries Report 2013 published by the United Nation Conference on Trade and Development (UNCTAD).
It is reported that despite impressive performance in the UNs economic vulnerability criterion by 111 percent of the graduation threshold in 2012, Tanzania is not any where near to qualifying for graduation from LDC status, Ambassador Namfua said.
According to the UN, LDC is that which exhibits the lowest indicators of socioeconomic development and with the lowest Human Development Index ratings of all countries in the world.
For a country to graduate, it has to meet either two of the three criterions per capita income, human assets and economic vulnerability.
At least 34 countries from Africa including Tanzania have been again listed as LDCs.
Ambassador Namfua emphasised that the LDCs young population need quality jobs to earn decent livelihoods and that employment generations in LDCs has been disappointing, notwithstanding fast economic growth since 2000. Namfua advised the government to revisit macroeconomic, industrial, rural and infrastructure policies to promote employment generations and development of productive capacities.
He further suggested that proper mechanisms be put on board to rise above 50 percent of per capita income, which in 2012 was estimated at USD570.
On his part, the United Nations Resident Coordinator in Tanzania, Alberic Kacou, said efforts are needed to maximise production of the fast growing labour force.
At least 70 percent of the countrys population comprises the youth, according to the report while globally, the youth population is expected to soar from 169 million in 2010 to 300million in 2015.
This means the countries have to increase investments in the productive sectors especially agriculture and natural resources to improve their domestic revenues, Kacou noted.
In his statement, Kacou maintains that there are worrying signs that the improvement of the real domestic product (GDP) from 4.5 percent in 2011 to 5.3 in 2012 among LDCs has not been inclusive and that its contribution to poverty reduction is limited.
The report by itself recommends a policy framework that links investment with growth and employment creation to generate inclusive and sustainable development.
In an effort to establish a strong link between growth, employment creation and development of productive capacities, the report proposes policies on employment creation, development oriented fiscal, financial and credit policies and development of agriculture to become a central element of national industrial policy.
Maryvonne Pool Honorary Consul Republic of Seychelles on her contribution challenged the quality of education and skills amongst Tanzanians graduates saying it is a major issue to be addressed.
She said quality of schools in rural Tanzania for example is yet another area that undermines the kind of professionals required in the employment market, the extent which has been forcing majority institutions to outsource foreigners.
Its important to see job creations and employment are corresponding with the growing population in the country, Mariam Khan Deputy Representative United Nations Population Funds (UNFPA) noted.
Speaking on behalf of the Tanzanias Private Sectors Foundation (TPSF) Board Chairman Dr Reginald Mengi, TPSF Executive Director Godfrey Simbeye expressed dismay in the countrys slow pace to implement much needed policies.
United Nation Conference on Trade and Development (UNCTAD)
Tanzania's plans to become a middle economy have been undermined by the United Nations rating of its development noting that the country lags behind 49 other least developed countries (LDC) and will stay there not short of a decade.
Tanzania is not likely to graduate from LDCs group, not until the second half of the next decade (2025), the Executive Director at the Centre for Harnessing Knowledge for Development, Ambassador Marcel Namfua, projected.
The disappointing report was released late last week in Dar es Salaam at a conference to launch The Least Developed Countries Report 2013 published by the United Nation Conference on Trade and Development (UNCTAD).
It is reported that despite impressive performance in the UNs economic vulnerability criterion by 111 percent of the graduation threshold in 2012, Tanzania is not any where near to qualifying for graduation from LDC status, Ambassador Namfua said.
According to the UN, LDC is that which exhibits the lowest indicators of socioeconomic development and with the lowest Human Development Index ratings of all countries in the world.
For a country to graduate, it has to meet either two of the three criterions per capita income, human assets and economic vulnerability.
At least 34 countries from Africa including Tanzania have been again listed as LDCs.
Ambassador Namfua emphasised that the LDCs young population need quality jobs to earn decent livelihoods and that employment generations in LDCs has been disappointing, notwithstanding fast economic growth since 2000. Namfua advised the government to revisit macroeconomic, industrial, rural and infrastructure policies to promote employment generations and development of productive capacities.
He further suggested that proper mechanisms be put on board to rise above 50 percent of per capita income, which in 2012 was estimated at USD570.
On his part, the United Nations Resident Coordinator in Tanzania, Alberic Kacou, said efforts are needed to maximise production of the fast growing labour force.
At least 70 percent of the countrys population comprises the youth, according to the report while globally, the youth population is expected to soar from 169 million in 2010 to 300million in 2015.
This means the countries have to increase investments in the productive sectors especially agriculture and natural resources to improve their domestic revenues, Kacou noted.
In his statement, Kacou maintains that there are worrying signs that the improvement of the real domestic product (GDP) from 4.5 percent in 2011 to 5.3 in 2012 among LDCs has not been inclusive and that its contribution to poverty reduction is limited.
The report by itself recommends a policy framework that links investment with growth and employment creation to generate inclusive and sustainable development.
In an effort to establish a strong link between growth, employment creation and development of productive capacities, the report proposes policies on employment creation, development oriented fiscal, financial and credit policies and development of agriculture to become a central element of national industrial policy.
Maryvonne Pool Honorary Consul Republic of Seychelles on her contribution challenged the quality of education and skills amongst Tanzanians graduates saying it is a major issue to be addressed.
She said quality of schools in rural Tanzania for example is yet another area that undermines the kind of professionals required in the employment market, the extent which has been forcing majority institutions to outsource foreigners.
Its important to see job creations and employment are corresponding with the growing population in the country, Mariam Khan Deputy Representative United Nations Population Funds (UNFPA) noted.
Speaking on behalf of the Tanzanias Private Sectors Foundation (TPSF) Board Chairman Dr Reginald Mengi, TPSF Executive Director Godfrey Simbeye expressed dismay in the countrys slow pace to implement much needed policies.
Kwa bahati mbaya sana report kama hizi hazipewi kipaumbele sana ukilinganisha na maneno ya wanasiasa. Wanasiasa wanatudanganya wamefanya mazuri mengi na watakumbukwa kwa maendeleo yao, ingawa ukirejea kwa upande wa repoti unaweza kuona hakuna matumaini ya kusonga mbele bali bado tunarudi nyuma. Fedha zote tunazo wekeza kwenye mipango ya maendeleo haina imapact yeyote kwenye maendeleo ya uchumi wetu. Poor Tanzania
Sawa lakini tusikubali hatima yetu kuwa mikononi mwa watoa ripoti, badala yake tuchukue changamoto hiyo kuongeza kazi ya kuondoa umaskini na tunaweza kufanikiwa kwa haraka kuliko hii projection ya Unctad
Sawa lakini tusikubali hatima yetu kuwa mikononi mwa watoa ripoti, badala yake tuchukue changamoto hiyo kuongeza kazi ya kuondoa umaskini na tunaweza kufanikiwa kwa haraka kuliko hii projection ya Unctad
tatizo ni viongozi wanaopenda kuonekana kwenye luninga , picha mgando , kupiga ngoma, wakiwa wame panda chelezo, baada ya kukaa na kushughulikia mambo ya msingi. kama umeme mpaka Obama aje, Reli mpaka tuwasikie the willing vs unwilling.
hii report itabezwa na itawekwa kapuni kama kawaida ya wanasiasa wa kibongo nakumbuka wakati serikali ya uingereza kupitia yule mama claire short waliposema tusinunue rada ni ghali sana na ni mtumba mramba akamjibu bungeni yeye ni nani kutuambia kitu fulani ni ghali sana kwetu kama hawataki wasitupe na hiyo misaada yao lakini lazima rada tununue!!! matunda yake mpaka leo tunayaona!!!
BUSINESS Kenyas economy is growing, but middle income status way off
Kenya has been growing at a moderate four per cent per year. FILE IN SUMMARY
Over the past 10 years, Kenya has been growing at four per cent per year, slower than its neighbours
Kenya may find it difficult to become a middle-income state if it fails to achieve higher economic growth rates necessary for the provision of quality social services and creation of jobs for its youth.
The economy, with the potential to be one of the strongest in sub-Saharan Africa, has been underperforming in recent years raising doubt about the countrys ability to achieve double-digit economic growth, shows a new assessment by the World Bank.
As a result of the slowed growth, other sub-Saharan African countries are catching up with Kenya. Compared with its peers, Kenya is punching below its weight, the World Bank says in a report analysing Kenyas overall socio-economic performance.
The report, titled Achieving Shared Prosperity in Kenya, states that over the past decade, Kenya has been growing at a moderate four per cent per year.
This is higher than in the 1980s and 1990s, but substantially lower than the growth experienced by its East African neighbours and sub-Saharan Africa as a whole, where growth has averaged five per cent per annum, and six per cent if South Africa is excluded.
Economists have expressed concern that many African countries whose GDP per capita was below Kenyas in 1980, including some East African Community member states, are rapidly catching up. For example, in 1990, Ethiopias GDP per capita was 28 per cent of Kenyas, in 2011 it was 48 per cent.
Relative to Kenyas GDP per capita, a number of countries grew their economies; Ethiopia (69 per cent), Ghana (71 per cent), Mozambique (104 per cent), Tanzania (46 per cent), Uganda (98 per cent), Malaysia (94 per cent), Thailand (82 per cent) and Vietnam (213 per cent).
The growth has mainly been driven by consumption, while investments and exports have yet to be the major factors determining growth, said Ganesh Rasagam, the lead private sector development specialist at the World Bank.
Over the past 10 years, services have driven growth while agriculture and industry have lagged behind. A breakdown of the 3.9 per cent average growth over the past decade shows that services contributed 2.1 per cent, agriculture 1.1 per cent, and industry just 0.7 per cent, says the World Bank report.
Agriculture, which has been the countrys economic growth engine since Independence, is showing signs of fatigue for various reasons ranging from poor policies to failure to adopt modern farming and production methods.
Kenyas share in the global export market has declined sharply in the past three decades, Mr Rasagam said.
The economist said the countrys traditional exports namely coffee, tea and horticulture, which still accounts for 35 per cent of goods exports, are losing share in traditional markets in Europe and failing to penetrate potential emerging markets.
Ethiopia is fast becoming a large exporter of cut flowers, posing a threat to one of Kenyas major sources of revenue. Ethiopias flower sector has become a $200 million cut flowers export business in the past 10 years.
Production of some of Kenyas staple foods has also been on the decline, with maize being one of the worst hit. This year will not be any different as the Agriculture Ministry has already sounded the alarm over declining yields in some of the major crops.
A report covering January to May reveals that the country will record low grain yields due to erratic weather and crop diseases. This means the country will have to rely on imports.
Another contradiction is that even though Kenya produces the best tea in the world, it is the most inefficient producer of sugar, with Kenyans paying triple the world prices. Diversification of exports could cushion the country from growing reliance on food imports.
A growing population, declining agricultural productivity and increased oil imports have further increased the countrys vulnerability to external price shocks in recent years.
Implementation of laws in the public sector has not been good. We need to borrow the no-nonsense approach from Rwanda, which has succeeded in creating a conducive environment for business, said Gituro Wainainah, the acting director general of Vision 2030, Kenyas economic blueprint.
Despite the challenges, some economists are optimistic that the country will pull it off.
We just got out of an election and we are putting up structures as per the Constitution. Once everything is in place, we will achieve higher growth rates than some of our neighbours, said Prof Joseph Kieyah, the principal analyst at the Kenya Institute for Public Policy Research and Analysis (KIPPRA), the quasi-government think-tank.
Kenneth Kaniu, chief investment officer at Stanlib Kenya, links the faster economic growth of the neighbouring countries to recent discoveries of natural resources, mainly oil and gas.
As a result of these discoveries, countries like Ethiopia, Tanzania and Uganda have attracted higher foreign direct investments because they have discovered natural resources at a faster rate than Kenya, said Mr Kaniu.
Our agriculture economy is still rain-fed, and until we embrace modern methods of farming, problems facing the sector will be difficult to solve, he added.
Tanzanias annual GDP growth rate has averaged seven per cent over the past five years, reaching an all-time high of 11.2 per cent in 2007.
According to the Uganda Bureau of Statistics, the countrys economy grew by 5.8 per cent in the financial year 2012/2013. Rwandas real GDP grew by 7.7 per cent in 2012, and is expected to grow by 6.6 per cent this year. Kenya
BUSINESS Kenyas economy is growing, but middle income status way off
Kenya has been growing at a moderate four per cent per year. FILE IN SUMMARY
Over the past 10 years, Kenya has been growing at four per cent per year, slower than its neighbours
Kenya may find it difficult to become a middle-income state if it fails to achieve higher economic growth rates necessary for the provision of quality social services and creation of jobs for its youth.
The economy, with the potential to be one of the strongest in sub-Saharan Africa, has been underperforming in recent years raising doubt about the countrys ability to achieve double-digit economic growth, shows a new assessment by the World Bank.
As a result of the slowed growth, other sub-Saharan African countries are catching up with Kenya. Compared with its peers, Kenya is punching below its weight, the World Bank says in a report analysing Kenyas overall socio-economic performance.
The report, titled Achieving Shared Prosperity in Kenya, states that over the past decade, Kenya has been growing at a moderate four per cent per year.
This is higher than in the 1980s and 1990s, but substantially lower than the growth experienced by its East African neighbours and sub-Saharan Africa as a whole, where growth has averaged five per cent per annum, and six per cent if South Africa is excluded.
Economists have expressed concern that many African countries whose GDP per capita was below Kenyas in 1980, including some East African Community member states, are rapidly catching up. For example, in 1990, Ethiopias GDP per capita was 28 per cent of Kenyas, in 2011 it was 48 per cent.
Relative to Kenyas GDP per capita, a number of countries grew their economies; Ethiopia (69 per cent), Ghana (71 per cent), Mozambique (104 per cent), Tanzania (46 per cent), Uganda (98 per cent), Malaysia (94 per cent), Thailand (82 per cent) and Vietnam (213 per cent).
The growth has mainly been driven by consumption, while investments and exports have yet to be the major factors determining growth, said Ganesh Rasagam, the lead private sector development specialist at the World Bank.
Over the past 10 years, services have driven growth while agriculture and industry have lagged behind. A breakdown of the 3.9 per cent average growth over the past decade shows that services contributed 2.1 per cent, agriculture 1.1 per cent, and industry just 0.7 per cent, says the World Bank report.
Agriculture, which has been the countrys economic growth engine since Independence, is showing signs of fatigue for various reasons ranging from poor policies to failure to adopt modern farming and production methods.
Kenyas share in the global export market has declined sharply in the past three decades, Mr Rasagam said.
The economist said the countrys traditional exports namely coffee, tea and horticulture, which still accounts for 35 per cent of goods exports, are losing share in traditional markets in Europe and failing to penetrate potential emerging markets.
Ethiopia is fast becoming a large exporter of cut flowers, posing a threat to one of Kenyas major sources of revenue. Ethiopias flower sector has become a $200 million cut flowers export business in the past 10 years.
Production of some of Kenyas staple foods has also been on the decline, with maize being one of the worst hit. This year will not be any different as the Agriculture Ministry has already sounded the alarm over declining yields in some of the major crops.
A report covering January to May reveals that the country will record low grain yields due to erratic weather and crop diseases. This means the country will have to rely on imports.
Another contradiction is that even though Kenya produces the best tea in the world, it is the most inefficient producer of sugar, with Kenyans paying triple the world prices. Diversification of exports could cushion the country from growing reliance on food imports.
A growing population, declining agricultural productivity and increased oil imports have further increased the countrys vulnerability to external price shocks in recent years.
Implementation of laws in the public sector has not been good. We need to borrow the no-nonsense approach from Rwanda, which has succeeded in creating a conducive environment for business, said Gituro Wainainah, the acting director general of Vision 2030, Kenyas economic blueprint.
Despite the challenges, some economists are optimistic that the country will pull it off.
We just got out of an election and we are putting up structures as per the Constitution. Once everything is in place, we will achieve higher growth rates than some of our neighbours, said Prof Joseph Kieyah, the principal analyst at the Kenya Institute for Public Policy Research and Analysis (KIPPRA), the quasi-government think-tank.
Kenneth Kaniu, chief investment officer at Stanlib Kenya, links the faster economic growth of the neighbouring countries to recent discoveries of natural resources, mainly oil and gas.
As a result of these discoveries, countries like Ethiopia, Tanzania and Uganda have attracted higher foreign direct investments because they have discovered natural resources at a faster rate than Kenya, said Mr Kaniu.
Our agriculture economy is still rain-fed, and until we embrace modern methods of farming, problems facing the sector will be difficult to solve, he added.
Tanzanias annual GDP growth rate has averaged seven per cent over the past five years, reaching an all-time high of 11.2 per cent in 2007.
According to the Uganda Bureau of Statistics, the countrys economy grew by 5.8 per cent in the financial year 2012/2013. Rwandas real GDP grew by 7.7 per cent in 2012, and is expected to grow by 6.6 per cent this year. Kenya
BUSINESS Kenyas economy is growing, but middle income status way off
Kenya has been growing at a moderate four per cent per year. FILE IN SUMMARY
Over the past 10 years, Kenya has been growing at four per cent per year, slower than its neighbours
Kenya may find it difficult to become a middle-income state if it fails to achieve higher economic growth rates necessary for the provision of quality social services and creation of jobs for its youth.
The economy, with the potential to be one of the strongest in sub-Saharan Africa, has been underperforming in recent years raising doubt about the countrys ability to achieve double-digit economic growth, shows a new assessment by the World Bank.
As a result of the slowed growth, other sub-Saharan African countries are catching up with Kenya. Compared with its peers, Kenya is punching below its weight, the World Bank says in a report analysing Kenyas overall socio-economic performance.
The report, titled Achieving Shared Prosperity in Kenya, states that over the past decade, Kenya has been growing at a moderate four per cent per year.
This is higher than in the 1980s and 1990s, but substantially lower than the growth experienced by its East African neighbours and sub-Saharan Africa as a whole, where growth has averaged five per cent per annum, and six per cent if South Africa is excluded.
Economists have expressed concern that many African countries whose GDP per capita was below Kenyas in 1980, including some East African Community member states, are rapidly catching up. For example, in 1990, Ethiopias GDP per capita was 28 per cent of Kenyas, in 2011 it was 48 per cent.
Relative to Kenyas GDP per capita, a number of countries grew their economies; Ethiopia (69 per cent), Ghana (71 per cent), Mozambique (104 per cent), Tanzania (46 per cent), Uganda (98 per cent), Malaysia (94 per cent), Thailand (82 per cent) and Vietnam (213 per cent).
The growth has mainly been driven by consumption, while investments and exports have yet to be the major factors determining growth, said Ganesh Rasagam, the lead private sector development specialist at the World Bank.
Over the past 10 years, services have driven growth while agriculture and industry have lagged behind. A breakdown of the 3.9 per cent average growth over the past decade shows that services contributed 2.1 per cent, agriculture 1.1 per cent, and industry just 0.7 per cent, says the World Bank report.
Agriculture, which has been the countrys economic growth engine since Independence, is showing signs of fatigue for various reasons ranging from poor policies to failure to adopt modern farming and production methods.
Kenyas share in the global export market has declined sharply in the past three decades, Mr Rasagam said.
The economist said the countrys traditional exports namely coffee, tea and horticulture, which still accounts for 35 per cent of goods exports, are losing share in traditional markets in Europe and failing to penetrate potential emerging markets.
Ethiopia is fast becoming a large exporter of cut flowers, posing a threat to one of Kenyas major sources of revenue. Ethiopias flower sector has become a $200 million cut flowers export business in the past 10 years.
Production of some of Kenyas staple foods has also been on the decline, with maize being one of the worst hit. This year will not be any different as the Agriculture Ministry has already sounded the alarm over declining yields in some of the major crops.
A report covering January to May reveals that the country will record low grain yields due to erratic weather and crop diseases. This means the country will have to rely on imports.
Another contradiction is that even though Kenya produces the best tea in the world, it is the most inefficient producer of sugar, with Kenyans paying triple the world prices. Diversification of exports could cushion the country from growing reliance on food imports.
A growing population, declining agricultural productivity and increased oil imports have further increased the countrys vulnerability to external price shocks in recent years.
Implementation of laws in the public sector has not been good. We need to borrow the no-nonsense approach from Rwanda, which has succeeded in creating a conducive environment for business, said Gituro Wainainah, the acting director general of Vision 2030, Kenyas economic blueprint.
Despite the challenges, some economists are optimistic that the country will pull it off.
We just got out of an election and we are putting up structures as per the Constitution. Once everything is in place, we will achieve higher growth rates than some of our neighbours, said Prof Joseph Kieyah, the principal analyst at the Kenya Institute for Public Policy Research and Analysis (KIPPRA), the quasi-government think-tank.
Kenneth Kaniu, chief investment officer at Stanlib Kenya, links the faster economic growth of the neighbouring countries to recent discoveries of natural resources, mainly oil and gas.
As a result of these discoveries, countries like Ethiopia, Tanzania and Uganda have attracted higher foreign direct investments because they have discovered natural resources at a faster rate than Kenya, said Mr Kaniu.
Our agriculture economy is still rain-fed, and until we embrace modern methods of farming, problems facing the sector will be difficult to solve, he added.
Tanzanias annual GDP growth rate has averaged seven per cent over the past five years, reaching an all-time high of 11.2 per cent in 2007.
According to the Uganda Bureau of Statistics, the countrys economy grew by 5.8 per cent in the financial year 2012/2013. Rwandas real GDP grew by 7.7 per cent in 2012, and is expected to grow by 6.6 per cent this year. Kenya
Geza Ulole,hivi mwanao akiaga dunia ni bora wangu afe tutoshane?Wivu utakumaliza baba :-D
Ya Kenya yamekujiapi hapa?I thought this report was about Tanzania?
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