By Gabriel Andre – Art in Tanzania internship
Environmental Advocacy Program
TANZANIA, A DEVELOPING COUNTRY AMID AN ECOLOGICAL SHIFT
Economic and demographic development
General Introduction
The primary export commodities include gold, tobacco, fish products, coffee, cotton, diamonds, horticulture, and sisal. Tanzania’s main trading partners are China, Switzerland, South Africa, Kenya, and India.
Agave sisalana, or Sisal, is a plant native to southern Mexico. It’s a resistant fibre for ropes, fabrics, or carpets.
Religions
Tanzania is mainly composed of two religions: Christianity and Islam.
Both religions live in perfect harmony thanks to Tanzania’s first president, Julius Nyerere. Each religion is respectful to the other beliefs. The island of Zanzibar is predominantly composed of Muslims, accounting for 96% of its population.
Demographic development
On October 24th, 2020, Tanzania’s population was estimated at 59 million, whereas on July 1st, 2015, it was at 52 million. Due to high birth rates in the country, on March 18, 2021, the total population approached 61,006,138, representing 0.77% of the world population. In 6 years, Tanzania’s population has increased by 8 million people, whereas the French population has increased by less than 1 million during the same period. Around 37% of the Tanzania’s population is urban.
Additionally, 44% of the population consists of people under the age of 15, 52% are between 15 and 64, and 3.1% are above 64 years old. Tanzania is comprised of diverse cultures and traditions, and the country is home to 120 ethnicities, with the Sukuma being the largest, representing 16% of the total population. Despite receiving aid and grants from the IMF, Tanzania still relies on foreign countries due to its substantial debt. It has an external debt of approximately USD 7.9 billion; debt servicing accounts for about 40% of government expenditures. To repay this debt, the country is compelled to seek loans from other countries. Adelaide Mkwawa, ICT and Communications Officer at Climate Action Network Tanzania, are preoccupied with Tanzanian debt: “A lot of aid is coming from other countries such as Switzerland, USA, China, but it’s more to have a position in the country than to help. Tanzanians are heavily dependent on foreign aid in every domain.
One of the main concerns in Tanzania is the eradication of poverty. According to World Bank data, in 2017, 49.4% of Tanzania’s population lived on less than $1.90 per day (the poverty line in 2011), almost half of the population. The lack of resources to conduct surveys hinders the World Bank’s ability to obtain up-to-date data. This same year, the World Bank announced that 76.8% of Tanzanians were under the $ 3.20 a day poverty headcount ratio (PPP in 2011) and 91.8% under the $ 5.50 threshold. In comparison, France’s poverty headcount ratio of 5.50% in 2017 was under 0.1%.
The development of trade in Tanzania has played a crucial role in reducing poverty in the country, as the private sector drives the growth of the national economy. Major imports include capital goods, intermediate goods, and consumer goods, with trading partners such as the USA, China, Norway, the UK, Finland, Kenya, and Zambia. Trade has attracted foreign investors due to its proof of political stability and natural gas discoveries. On the other hand, Tanzania is becoming increasingly dependent on the financial investments of those countries.
Environmental politics in Tanzania
Non-banking financial Institutions and non-governmental organisations play a key role in providing free education to citizens, especially women in rural areas, to raise their awareness about economic developments and environmental issues. The Tanzanian government has established environmental sections within all its ministries, and a key result of this is the integration of environmental problems into the medium-term expenditure framework (MTEF) budgeting. This funding should enable NGOs working on climate issues to play a significant role. Nevertheless, Adelaide Mkwawa never saw those government funds when she was at the United National Appeal Tribunal (UNAT) or the Climate Action Network (CAN) where she works. The same conclusion for Hadija, Team leader at Art in Tanzania, a non-governmental organization that promotes volunteer and intern projects in climate change, education, social work, medical and health practices, social media, arts and music, sports, and HIV/AIDS awareness. “From my experience, I’ve never heard of any funds from the government for Art in Tanzania that can help with environmental projects. Perhaps the government planned to fund NGOs, but the funds haven’t reached Art in Tanzania yet. I hope that if there are some funds for NGOs, then Art in Tanzania will be among those NGOs to be considered”, Hadija said.
The primary issue with environmental policies is the lack of information and communication. The government doesn’t provide any information about the strategies or any concrete actions that have been put in place. Most of my research has guided me to environmental information provided by other countries or institutions (U.S Agency for International Development, United Nations Environment Program, Netherlands government, etc.) or from the last government environment data update in 2013. For more recent information, it’s necessary to talk directly with government employees, but as you can imagine, it’s even more complex than seeing a cheetah on a safari. According to Adelaide Mkwawa, even the Parliamentary Assembly for the Implementation of Sustainable Development Goals (Parliamentary Assembly) has provided information and strategies on how to implement the SDGs in the government budget. That’s where the UNAT’s help comes to a limit. After this, the government takes responsibility for the project. “That’s why there is a lack of information and monitoring. Hard to find the progress because the government hides a lot of info,” said Adelaide.
Corruption
The African Union estimates that corruption around Africa represents $50 billion in yearly losses. Significant changes have been implemented in all African countries to combat corruption. Legislation has been drafted, and anti-corruption authorities have been formed. However, on the ground, approximately everywhere, especially in Tanzania, nothing seems to have changed. Corruption is a noneconomic factor which creates a gap among the Tanzanian people. Since 1968, with the establishment of the Anti-Corruption Commission in Tanzania (Bertelsmann Foundation, 2014), the country has attempted to combat corruption. Most of Tanzania’s presidents ‘ mandates focused on the fight against corruption. In 1995, President Benjamin Mkapa declared “war” on corruption and established the Presidential Commission against Corruption to assess the state of corruption and provide recommendations. This led to adopting the National Anti-Corruption Strategy and Action Plan (NASCAP) in 1999 and to implementing a revised NASCAP by the new president, Jakaya Kikwete, in 2005. At the end of 2014, a new report was made with a new anti-corruption strategy. All that information suggests that, by the end of 2015, corruption had increased compared to 2005 and was less transparent than ever. Despite the government’s efforts, Tanzania suffers badly from rampant corruption. Good governance is essential for reducing poverty and controlling corruption in the country. Tanzania faces both grand and petty corruption due to weak laws in various government agencies. Most foreign investors have stated that corruption in areas such as taxation, customs services, and procurement creates a challenging environment for them to do business in the country due to the high demand for bribes.
The diagram above illustrates the corruption rate level, ranging from low (1) to high (6). Tanzania is one of the countries with the highest rate of corruption. The USA and France are not even listed in the World Bank dataset because their respective rates are under 1. Cape Verde and Bhutan are the two countries with the highest corruption rates, at 4.5.
New President Magafuli, like his predecessors, has made the fight against corruption a point of honour in his mandate. Nicknamed “the Bulldozer” because of their leadership style, he earned himself credibility for his fight against corruption. He rebuilt lost trust with foreign donors and with his population by firing public officials who were incompetent and corrupt. In November and December 2016, six senior officials at the Tanzania Revenue Authority were dismissed.
Unfortunately, President Magafuli was fighting alone in this battle against top officials, influential leaders, and wealthy individuals of great power. Despite the efforts and hope Magafuli brought to the Tanzanian people, corruption remains one of the main problems in Tanzania. As a personal example, I was able to witness and experience the drama of corruption firsthand during my car trip between the cities of Arusha and Moshi. In only 3 hours, we were stopped no less than 9 times without any reason, and we had to pay between 1000 and 4000 schillings each time. This represents between 50 cents and 2 euros. Sometimes the bill is more expensive, sometimes they let you pass, it’s random. Corruption is a disaster, with 91.8% of the population living on less than $5.50 per day and 48.9% on less than $1.90.
Unfortunately, President Magafuli passed away on Wednesday, 17 March 2021, at the age of 61. For instance, Vice President Samia Suhulu Hassan was sworn in as president, becoming the first female president of an East African country. Due to Magafuli’s 21 days of mourning, President Hassan has not yet revealed her strategy to combat Tanzania’s corruption.
Sectors Promoting Economic Development of Tanzania
Agriculture
As the primary economic activity in Tanzania, agriculture contributes 26% to the GDP and employs approximately 75% of the labour force. Agriculture, a key sector of the economy, plays a crucial role in poverty reduction, particularly in rural areas where many people struggle to afford food or experience food insecurity. Not only does agriculture provide employment opportunities, but it also provides 95% of the food to the people. During the 1990s, agriculture was primarily controlled by the government; however, after the economy was liberalised, many people were able to engage in this activity freely. Some areas receive sufficient rainfall throughout the year, making cultivation easy, while others are prone to tsetse flies, which significantly affect crop production.
The lack of access to the banking sector makes it difficult for farmers to obtain loans to carry out their production, as only 9% have access to financial services, and only 4% can obtain loans. Smallholder farmers often have limited education and knowledge, which results in the production of poor-quality crops. This causes the crops to fetch low prices in the markets. Tanzania relies heavily on the export of cash crops, which generate significant revenue. Since the 20th century, coffee has been the main exported commodity, with each year producing 30 to 40,000 metric tons. Of this, 30% is Robusta and 70% is Arabica. However, none of this coffee is consumed by Tanzanian people, as they prefer cheaper, low-quality coffee. About $115 million is generated from coffee exportations. Coffee consumption accounts for 7% of the country’s total production in its national output (Gupta & Bose, 2019).
According to UNESCO (United Nations Educational, Scientific and Cultural Organization), only 24% out of the 44 million hectares of land have been used to cultivate crops. Moreover, the existence of water resources, favourable climatic conditions and fertile lands have led to a decrease in poverty conditions.
Challenges facing the agriculture sector include:
- High rainfall dependency and low irrigation process
- Lack of agricultural knowledge and low level of technology, such as the use of ploughs
- Lack of financial access to farm inputs, such as chemical fertilizers and pesticides
- Low quality of agricultural production resulting in crops fetching low market prices
- Lack of storage facilities and poor infrastructure in rural areas make it challenging to transport commodities for processing and sale.
To address these challenges, the government established the Tanzania Agricultural Development Bank. This bank was established in 2015 to ensure the implementation of agricultural policies and strategies that guide the sector’s overall performance. Agriculture is also the first sector to be severely affected by climate change. Without help and innovation in the next 20 years, Tanzania will likely face an 80% decrease in its production, plunging the country into deep poverty.
Mining industry
Mining is one of the fastest-growing sectors in the Tanzanian economy. In 2013, it contributed approximately 3.3% of Tanzania’s GDP, significantly impacting its economic growth. The country possesses various mineral resources, including gold, diamonds, gemstones, nickel, coal, tanzanite, and uranium. Approximately 55 trillion cubic feet of natural gas have been discovered, helping to supply the country’s electricity needs. The UK, India, China, the USA, South Africa, Kenya, the Netherlands, Oman, Canada, and Germany are the leading investors in the Tanzanian mining sector. Like in many countries, the mining sector faces multiple challenges related to climate change, including health security and illegal practices. Here are some examples of the impacts of the Mining Sector in Tanzania:
- Silica dust affecting the miners as well as tuberculosis disease
- The existence of illegal mining in the country creates a risk to the workers
- The previous Minister of Mining and Energy resources was found guilty after conducting fraud deals and supplying gold to some firms
- Child labour employed in mines
There was a serious case on the 17th of April 2015, where 19 people were killed after the collapse of an illegal mine near the Bulyanhulu Gold mine in the Kahama district. Many children were rescued from the same collapse. Most developed countries involved in the Tanzanian mining sector are already aware of these problems. Still, the economic interest is too high to be involved in reducing those political challenges.
Þ Financial sector
Rural areas in Tanzania lack access to the banking sector because people do not own valuable assets that would support loan extensions. There is also a lack of education on how banks operate. Most of the rural population leads a day-to-day life, using only cash and having no access to credit cards. Even people with a reasonable income mainly use cash. Indeed, if you have a low flow of money entering your bank account, institutions know that you are running a business, and numerous fees appear. That’s why most people use cash in their daily lives; apart from tourist facilities, credit cards are not widely accepted.
Þ Transport sector
Transport is critical in any economy to facilitate smooth trade. Tanzanian roads are maintained under the management of TANROADS, “Tanzanian Roads”, which has improved the national roads. Road safety remains a significant problem due to poor vehicle maintenance, overloading, flooding, and poor driving practices. Tanzania plans to import about 138 Chinese modern buses into Dar es Salaam. This is due to the government’s support, which has improved marine transport by modernising ports and increasing spending on infrastructure. The port currently collects over TZS 40 billion monthly, equivalent to approximately 18 million euros.
