Zanzibar Strategy for Growth

REVOLUTIONARY GOVERNMENT OF ZANZIBAR

ZANZIBAR STRATEGY FOR GROWTH

AND THE REDUCTION OF POVERTY

(ZSGRP)

FIRST DRAFT JUNE 2006

2 Table of Contents CHAPTER I: BACKGROUND...... 3 1.1 Introduction...... 3 1.2 Geo-political Description...... 3 1.3 The Zanzibar Poverty Reduction Plan – 2002 – 2005...... 4 1.4. The ZPRP Review and Justification...... 12 CHAPTER II: ZPRP REVIEW PROCESS...... 13 2.1 Introduction...... 13 2.2 Challenges of the Review Process...... 15 2.3 Consolidation of the Findings...... 16 CHAPTER III: GROWTH AND POVERTY STATUS...... 18 3.1 Introduction...... 18 3.2 Growth and Income Poverty...... 18 3.3. Social Well-being...... 26 3.4. Good Governance...... 31 3.5. Cross-cutting Themes...... 33 CHAPTER IV: FRAMEWORK OF THE ZSGRP...... 37 4.1 Introduction...... 37 4.2 Principles of the Zanzibar Strategy for Growth and Reduction of Poverty...... 37 4.3 Major Clusters of ZSGRP...... 43 4.4 Growth and Reduction of Income Poverty...... 45 4.5 Social Services and Social Well-being...... 45 4.6 Good Governance and National Unity...... 46 4.7 Core Reforms...... 46 4.8 Structure of ZSGRP and Key Definitions...... 47 CHAPTER V: THE STRATEGY...... 48 5.1 Introduction...... 48 5.2 Cluster 1: Growth and Reduction of Income Poverty...... 48 5.3 Cluster 2: Social Services and Well-being...... 53 5.4 Cluster 3: Good Governance and National Unity...... 63 CHAPTER VI: IMPLEMENTATION ARRANGEMENT...... 71 6.1 Introduction...... 71 6.2 Cluster and Outcome Approach...... 71 6.3 Roles and Responsibilities of Key Actors...... 72 6.4 Harmonized and Aligned Key National Processes: Policy and Planning, Public Expenditure Review and Budgeting, Monitoring and Evaluation...... 74 6.5 Principles of the Joint Assistance Strategy...... 74 6.6. Review of Ongoing Core Reforms and Envisaged New Reforms...... 75 6.7. Structure...... 75 CHAPTER VII: COORDINATION, MONITORING AND EVALUATION...... 77 7.1 Introduction...... 77 7.2 The Coordination...... 77 7.3 Monitoring and Evaluation of the ZSGRP...... 77 7.4. Monitoring at Various Levels...... 78 7.5 Sources of Information...... 78 7.6 Key Outputs of the ZSGRP Monitoring System...... 79 7.7 Challenges...... 79 CHAPTER VIII: RESOURCE MOBILIZATION FOR FINANCING OF ZSGRP...... 81 8.1 Introduction...... 81 8.2 Review of ZPRP Financing Framework...... 81 8.3. Resources for ZSGRP...... 82 8.4 Potential Risks to ZSGRP Financing Framework...... 84

3 CHAPTER I: BACKGROUND

1.1 Introduction

This document of the Zanzibar Strategy for Growth and Reduction of Poverty Strategy (ZSGRP) has eight chapters. The background chapter (1) discusses geo-political facts about Zanzibar. It presents the achievements and challenges during the implementation of the Zanzibar Poverty Reduction Plan (ZPRP). It also presents justification of ZPRP review. The discussion on the review of the ZPRP is divided into three areas, namely: macro-economic, provision of social services and good governance. These three areas form the clusters of the ZSGRP.

1.2 Geo-political Description

1.2.1 Position and Area Zanzibar consists of two main islands, Unguja and Pemba, and several other smaller ones some of which are uninhabited. It is located in the Indian Ocean, about 30 kilometres off the East Coast of Africa between latitudes 5 and 7 degrees south of the Equator. It has a total area of 2,654 square kilometres. Unguja being the largest has an area of 1,666 square kilometres while Pemba has an area of 988 square kilometres.

1.2.2 Population According to the Population and Housing Census (2002) Zanzibar had a population of 981,754 with a growth rate of 3.1% and a population density of 370 people per square kilometre. Of the total population 40% dwelled in the urban area and the rest, that is, 60% dwelled in rural areas. The outburst of the population growth rate was highly attributed to high fertility rate of 5.3. The projected population in 2005 was 1,072,000.

1.2.3 Administration As part of the United Republic of Tanzania, Zanzibar is semi-autonomous. It has its own Government, a legislative assembly known as the House of Representatives, the Executive, headed by the President of Zanzibar and its own Judicial System. Zanzibar is divided into five regions (three in Unguja and two in Pemba), 10 districts two in each region, 50 constituencies and 296 shehias.

4 1.3 The Zanzibar Poverty Reduction Plan – 2002 – 2005

Zanzibar launched its first comprehensive ZPRP in May 2002. It was a three-year Plan targeted to end by 2005. The Plan focused on a selected number of priority sectors, and thematic issues, namely: education, health, agriculture, infrastructure (rural roads), water, good governance and combating HIV/AIDS. These were considered to have high direct impact on growth and improvement of social welfare. ZPRP was the first short-term programme for implementing the Vision 2020. The ZPRP was an operational plan with strategies to mobilise and utilize domestic financial resources, both public and private, and a framework for attracting external resources to support prioritised expenditure plans. It focused on reducing income poverty, improving human capabilities, survival and social well-being and containing extreme vulnerability.

The ZPRP interventions aimed at generating higher economic growth and improved service delivery. It targeted 5.0% of economic growth during the first year, 5.5% during the second year, and 6.0% during its third year. Efforts were directed to selected sectors, including agriculture for reducing income poverty; tourism and trade for higher growth; education, health and water for improvements in human capacity, survival and well-being; and infrastructure for accessibility and lower costs of production. Other areas of strategic interventions pursued were on promotion of investment, strengthening of the financial sector, enhancing social stability and good governance.

To support implementation of the ZPRP, a number of diagnostic studies were undertaken. They included the Public Expenditure Review (PER FY03), the Country Financial Accountability Assessment (CFAA), Analysis of Zanzibar’s Economic Situation, Study on the Clove Industry, and Study on Local Government Reform and Strategic Plan of Good Governance. The studies identified strengths and weaknesses in financial accountability, public expenditure management and procurement arrangements in the public sector. The diagnostic work also provided a common point of reference for the Government and Development Partners (DP) in understanding the current situation and hence in mapping plans for immediate and future actions. They also identified benchmarks against which progress can be gauged, using both international and national standards as well as drawing appropriate lessons from best practices. Thus, it is on the basis of these diagnostic works that Economic and Financial Reforms, Institutional and Human Resources Reforms and Good Governance Reforms were undertaken in order to set Zanzibar on a better position in her pursuit for a total development, and succeed in eradicating absolute poverty by 2020. There had been policy initiatives and processes that called for or provided

5 opportunities for harmonisation and cross-learning from within Zanzibar, the United Republic of Tanzania and the international initiatives.

1.3.1 ZPRP Achievements and Challenges

1.3.1.1 Macroeconomic Over the 1990s, constraints to long-term growth were identified as low level of productivity, low rate of investment and declining levels of external assistance. Economic performance has been variable even during the implementation of the ZPRP. Growth of the economy, in real terms has been sustained at positive rates, recording 8.6% in 2002, 5.9% in 2003 and 6.4% in 2004. Per capita nominal income increased from Tshs. 261,000 (equivalent to US $ 276) in 2002 to Tshs. 331,000 (equivalent to US $ 303) in 2004. Inflation rate on the other hand was contained at single digit but above the target of 5%. The inflation rate recorded was 5.2% in 2002, 9.0% in 2003 and 8.1% in 2004 mainly attributed to low production of domestic food commodities and high prices of imported food commodities.

There is a consensus among development actors that economy of a small island can achieve the Millennium Development Goals (MDGs) and some regional and international agendas if it has political commitment, good policies and increased resources. Zanzibar being an economy of a small island is still facing several challenges. The key challenge during implementation of any plan or strategy for economic development is the increase of population. It reduces the effect of high growth of GDP on improving per capita income.

In agricultural sector, key challenges are lack of comprehensive framework for enhancing food security, low promotion of paddy as staple food crop, land use conflicts, insufficient provision of agricultural services for example, credit and grants, frequent outbreak of crop and zoonotic diseases. Others challenges are insufficient technical know how on post harvest losses, insecure tenure of agricultural land, over-dependence on rain-fed agriculture, inadequate budgetary support, low land and labour productivity, inadequate rural micro-finance system, poor marketing of agricultural produce, weak linkage with tourism sector, weak inter sectoral linkages for addressing issues such as HIV/AIDS, drought, trade and infrastructure. .

6 The main challenges in manufacturing sector include: the underdeveloped industrial infrastructure for attracting Foreign Direct Investments (FDI) and local investors, low industrial skills, cumbersome licensing and investment approval procedures, low quality of products, low knowledge of accessing market among the business community as well as limited credit facilities.

The challenges in tourism sector are: poor infrastructural services such as road networks, airports, power, water, dominance of low class hotels, weak linkage between tourism and other related sectors, low capacity of collecting revenue, underutilization of tourist attractions, low skills of tourism management and dilapidating historical, heritage and tourist attractions. Other challenges include the existence of multiple trade licensing agencies, application of non-tariff barriers on Zanzibar’s exports, existence of multiple trade/exports examination points, poor information, market research and market intelligence and absence of an export strategy.

In financial sector, commercial lending rates have generally been relatively high, ranging between 13 to 17% but negotiated lending rates have been lower ranging between 7.0% to 11.0%. On the other hand, savings rates have been extremely low on average of 2.4% since 2002. The challenge is to narrow the spread rate between lending and saving. Micro Finance Institutions (MFIs) have been lending out at relatively higher interests rate compared to commercial bank. The average lending rate has an average of above 30.0% . There is a need of lowering down the rates with a view to encompassing more people in the scheme and attain multiplier effects of the funds for loan, employment opportunities and income.

1.3.1.2 Social Services Education There has been considerable expansion of schools and hence increase in enrolment. In comparison to the targets set, of improving access and quality, there has been an increase in both number of schools and enrolment rate at all levels. With regard to infrastructure, for example, the number of schools in 2002 and 2005 were respectively 139 (of which 117 private) and 205 (of which 180 private) for pre-primary; for primary, 195 (of which 27 private) and 245 (of which 38 private).

Quality of education delivery has also improved. Some of the indicators that showed improvements include improved pass levels at three levels: transition from Form II to Form III, Form IV to Form V and A level graduates who qualify to join universities. Gender equity has

7 been achieved in enrolment at primary and secondary education level while inclusive education. Three universities of which one is Government owned and have been established with the marked increasing of female enrolment at higher institutions. HIV/AIDS topics have been included in school curriculum. Development of new Education and Vocational Training Policy has identified the importance of improving the quality of education as well as frequency of in-service training and cater for out of school children and those who need these alternative skills.

Despite the achievements, the following challenges remain. There are inadequate secondary schools, congestion in classrooms, shortage of science and mathematics teachers, laboratories and lack of transport facilities for teachers, insufficient qualified teachers and high (parental) contributions. Also, there are insufficient toilets, teachers’ houses and teaching facilities as well as low attention given to people with disabilities. In addition, Zanzibar has not achieved a 100% enrolment at all levels. Currently, the enrolment for pre-school children is only 15.9%. Enrolment in lower secondary education is high but it has not reached a 100% mark. Among those not enrolled are children with disabilities and those from poor families. The disparities in enrolment among districts are still wide.

The new education policy (2005), aims at addressing the weakness of education system with a view of making it more responsive to current challenges. Among the essential element of education reforms to be instituted is the restructuring of the current system of basic education. It is supposed to be compulsory and universal.

Health The achievements in health were identified in reconstruction of six PHC units and rehabilitation of fifty-two others as well as rehabilitation of ten-second line PHCs and construction of ten new staff houses. Four PHCs were equipped with x-ray services. In public health services the availability of essential drugs improved. Screening and surveillance services for some disease conditions such as poliomyelitis, measles and neonatal tetanus were established. Two facilities were established for delivery services in rural areas; a maternity block was constructed at Mnazi Mmoja hospital and a maternity ward at Wete hospital was rehabilitated. Youth friendly services were introduced in ten PHC units. RH strategy for five priority areas: maternal, child, adolescent, men, elderly were established.

8 A Malaria Strategic Plan has been developed to guide the implementation of planned activities, an effective anti malaria drug (use of artemisiniun compounds) was introduced and the use of ITN’s promoted. Health sectors HIV/AIDS strategy has been developed. Also, care and treatment services were established as well as introduction of Prevention of Mother to Child Transmission of HIV/AIDS (PMTCT and PMTCT plus). The number of diagnostic centers for Tuberculosis and leprosy were increased from 11 to 40 and for DOT/MDT from 46 to 134. Implementation of a leprosy elimination plan has begun and staff in eight functional integrated NCDs clinics at all hospitals including cottage have been equipped and trained. Health Human Resource (HRH) policy and five year HRH plan were completed. Incinerators were constructed. Post Exposure Prophylaxis (PEP) interventions to health care workers and to sexually assault people were introduced.

Despite achievements expressed, there are a number of challenges that have been identified in the provision of quality health care related to poor financial and human resources, inadequacy of infrastructural facilities, poor institutional arrangements and the ensuing undesirable outcomes. The se include a shortage of qualified doctors, essential drugs and equipment as well as drug abuse, poor health services and inadequate hospital facilities as well as poor attendance at birth and lack of nutritional education for pregnant women, low knowledge on Reproductive Health services and insufficient housing to medical personnel especially in rural areas. In addition, there are inadequate facilities and limited capacity in the Office of Chief Government Chemist and for the General Hospital, rendering it difficult to serve as a referral hospital; and there is inadequacy of basic Reproductive and Child Health (RCH) equipment and supplies, especially for people with disabilities. In terms of human resources, there is a shortage of qualified personnel at all levels and geographical imbalance in the allocation of human resources, with the shortage being more acute for qualified and skilled staff in HIV/AIDS diagnosis and care provision. Coupled with the above are poor institutional arrangements, including lack of coordination strategy in TB/HIV services, lack of data on Non-communicable Diseases (NCD), absence of policy on environmental sanitation and low sanitation capacity, poor administration, and outdated system of personal information.

Despite concerted efforts to combat HIV/AIDS pandemic, a number of challenges still need to be addressed. These include, insufficient response in terms of action, inadequate mainstreaming of HIV/AIDS at various levels, increased prostitution and its correlation to poverty, low level of comprehensive knowledge on HIV/AIDS, high unemployment and increasing substance abuse

9 among young peoples, urban bias of HIV/AIDS activities and the difficulties in changing behaviour despite high HIV/AIDS/ awareness. In light of all above, the most challenging issue is to contain the prevalence rate at the present low level and reduce it.

Water and sanitation Access to safe water and sanitation improved following implementation of 75 projects that included the digging up of new wells and construction of water storage tanks, improved solid waste management, construction of VIP toilets, rehabilitation of Stone Town sewage system. Also, construction of 300 pit latrines in Jambiani has been completed.

With regard to water, the challenges included irregular supply caused by aged pumps, few water sources, insufficient availability, and shortage of water in some urban and rural areas as well as shortage of water experts. In urban areas especially the high price charged by water vendors. In sanitation the main challenge was poor drainage system

Water supply and sanitation services are constrained by several factors that include an adequate quantity and quality of water supply in both urban and rural areas, dilapidated water supply infrastructure, limited human and financial resources to sustain water supply and maintenance and low stakeholder participation, lack of facilities for collection and disposal of waste as well as for recycling solid and liquid waste. Supply is constrained by high costs due to poor operational technology; maintenance; high amount of wastage; water losses in production, transmission, storage and distribution; and limited access to supply outlets both in rural and urban areas. As for the institutional arrangements, there is lack of coordination of activities between water supply and sanitation. The constraints on water related environment include salinity and intrusion risks in the coastal areas, encroachment of water sources, depletion and degradation of ground water reserves, poor management of drought and floods, and limited monitoring of groundwater.

Gender and Social Protection Despite all efforts and affirmative actions to integrate gender in development there are still a number of challenges including, perpetuation of social cultural practice, effects women development, inadequate mainstreaming of gender issues in policies and programmes, existence of gender based violence and insufficient support to vulnerable groups, which include women, youth, children and people with disabilities.

10 There is insufficient attention and support includes inadequate paid pensions and difficulties in getting them. The social security schemes are also challenged with limited coverage to only public sector and lack of saving culture in the society. There are interventions that are in-adequate safety nets for the most vulnerable population. The environmental degradation is a challenge to social wellbeing due to low awareness on environmental conservation and weak enforcement of the environmental laws and regulations. Poverty among the population leads to high dependency on natural resources for livelihood.

1.3.1.3 Good Governance There have been several achievements in improving governance in Zanzibar. They were, to name a few, the establishment of an independent office of the Director of Public Prosecutions (DPP), strengthening the House of Representatives including increasing the percentage of women members to 30%, strengthening the Controller and Auditor General’s Office (CAGO), review and revision of several existing laws the Penal Act and the Criminal Procedure Act, new financial and procurement acts were enacted and many of the registration functions of the Office of the Registrar General were computerized. Capacity development within judiciary system was done. Legal professionals, received training, and the number of law graduates from the Zanzibar University increased. MUAFAKA between Chama cha Mapinduzi (CCM) and Civic United Front (CUF) was agreed, signed and implemented. Voter and civic education was delivered to the public. A partnerships relation between government and civil society has been enhanced. A study on how to strengthen local government was completed.

In spite of significant achievements a number of challenges remain to be addressed in the governance sector. Underlying these challenges is the reality that there is poor understanding of the components of or importance of good governance among the public in general. Most Government institutions continue to lack capacity and therefore do not function to the expected levels. For example, the Controller and Auditor General’s Office is not performing up to the standard, the House of Representatives is not fully equipped as it lacks research and support capacity for members, and the Office of the Director of Public Prosecutions (DPP), while having made incredible strides in a short time, continues to need support to ensure that professional and independent prosecution services are available throughout the islands.

Government staff often do not have adequate capabilities to plan and implement reforms. This is due to the lack of experience and/or level of education required. There are weaknesses even in

11 the buildings used as offices of the Government. Some of them are not structured to suit tasks assigned to them. For example, the existing House of Representatives is not suited to its purpose. Also repair for these buildings are hardly done. Office supplies and equipment for better execution of duties are generally inadequate. . They are either lacking or insufficient for proper performance of the tasks. In total there is a poor delivery of services that generally impedes economic development. Hence significant civil service reforms remain to be undertaken.

Public confidence in the administration of justice is low. Complex and sometimes even relatively simple cases can take a long period of time to resolve. Most litigants are unrepresented in court, and there are few private lawyers and very limited access to legal aid services. Contract and commercial disputes are not readily resolved. Legislative frameworks are sometimes absent and often inadequate to meet real needs or expectations. There is a need to increase the voice and participation of people in the Government. Local governments are generally weak and ineffective. Transparency and accountability mechanisms are generally poorly developed within Government ministries. Corruption exists at most levels and there are few effective strategies in place to reduce or eliminate corruption. Human rights violations do occur. There is no Human Rights Commission or similar body operating in Zanzibar charged with the protection and promotion of human rights. Other challenges include the need for: a. all District Courts to have professional and independent prosecution services throughout the isles, b. improved publication of record of activities of the House of Representatives through Hansard, c. strengthening of the capacity of Committees of the House of Representatives, d. continued improvements of the capacity of Auditor General’s Office to carry out Value for Money Audits and computerized audits, e. improvements in the registration and electoral process as well as access to media, f. improved participation by women in governance, g. efforts to increase the number of legal professionals, h. registration of companies, intellectual property, births, deaths and marriage, and i. improved capacity to collect, analyse, disseminate and use data from sectoral and centralized sources to support government decision making.

12 1.4. The ZPRP Review and Justification

The review provided an opportunity to identify the limitations of the ZPRP and deliberated on them in a shared way. It involved all stakeholders in the process of developing a common understanding on the direction of the review and measures that will make the next ZPRP more successful.

It also aimed at alignment and harmonisation of the ZPRP with core reforms and policy processes that have been undertaken both on the Mainland and in Zanzibar. These include the ZPRP/National Strategy for Growth and Reduction of Poverty (NSGRP), Local Government Reform Policy (LGRP), the Public Expenditure Review (PER) and Public Financial Management (PFM), Tanzania Assistance Strategy (TAS)/Joint Assistance Strategy for Tanzania (JAST), Institutional and Human Resources Reforms, Macroeconomic Reforms and Governance Reforms1.

On the other level, the review has been an opportunity to further mainstream global initiatives and commitments since these initiatives potentially will contribute to the attainment of the ZPRP aspirations of growth, social wellbeing and good governance. The review has specifically sought ways of internalising the aspirations and targets, suggested (country or sector) responsibilities, and any possible technical or financial assistance through respective sector programmes.

The rest of the document is organised as follows. Chapter two addresses the review, consultative process and outcomes in various levels of consultations. Chapter three examines levels and trends of poverty in Zanzibar based on existing primary and secondary sources of data in chapter three. Chapter four addresses the strategic framework. It explains the linkages of the three clusters. It also expresses Government commitment towards the implementation of the major reforms.

Chapter five presents the ZSGRP. It highlights the, broad outcomes, goals, operational targets and interventions of the three clusters. It points out issues generated from the consultations, key interventions and leading stakeholders in implementing the specified interventions. Chapter six assesses the responsibilities and roles of each institution in implementing the strategy. Chapter seven presents Monitoring and Evaluation System (M&E) that will facilitate the performance of the implementation of ZSGRP and will provide feedback that will enable its updating. Chapter eight provides resources framework for implementing ZSGRP.

1 Examples include regional integration schemes, New Partnership for African Development (NEPAD), Commission for Africa, Millennium Development Goals (MDG’s), the 2003 Rome Declaration on Aid Harmonisation and the 2004 Shanghai Conference on Scaling-up Poverty Reduction and others

13 CHAPTER II: ZPRP REVIEW PROCESS

2.1 Introduction This chapter highlights the consultation process and the main issues that emerged from the consultations that influenced the design of the Zanzibar Strategy for Growth and Reduction of Poverty (ZSGRP which is known by its Kiswahili acronym MKUZA2 as Mkakati wa Kukuza Uchumi na Kupunguza Umasikini Zanzibar).

The overall purpose of the review process was to up date the ZPRP by making it more comprehensive and pro-poor. The key objectives of the review included expansion and deepening interventions to reduce poverty, raise awareness and widen ownership of the new strategy. Specifically, the ZPRP review sought to build consensus on:  the ZPRP review process and outcomes;  harmonization and rationalization of processes around ZPRP; and  capacity building for formulation, implementation and management of the  Poverty Monitoring System (PMS) of the new strategy.  further fostering of government leadership and country ownership of the development agenda.

The process of the review of ZPRP was participatory. It involved wider sections of stakeholders and in so doing it created a wide awareness on poverty related issues. This approach was opposite to the past practice, where was little and unnoticeable participation of stakeholders. As a result, the last ZPRP was narrow focused. It selected and involved few key sectors for consultation. On the contrary, the consultation process for the ZPRP review covered all the sectors and cross-cutting themes. It was based on MDGs and mainstreamed gender, environment and HIV/AIDS. It was also result based and outcome oriented strategy.

In developing ZSGRP, the Government aimed at opening up the process with extensive consultations to seek views from wide range of stakeholders. The consultations were conducted in three rounds. The first round included structured consultations, the second round covered focus groups and grass-root consultations while third round covered the invited representatives

2 Throughout the entire document MKUZA will refer to ZSGRP.

14 from first and second round consultations and development partners. The feedback from all consultations were compiled and synthesized.3

2.1.1 First Round Consultation The First Round Consultation or the Structured Consultations, was launched in October 2005 involved Ministries, Departments, Agencies (MDAs), Civil Society Organizations (CSO), Youth, Children, Women, Trade Union and the Private Sector. The invitees convened and the modalities of consultation were presented and explained to them. The Directors of Planning and Administration in ministries and heads of other institutions were the invitees. The Drafting Team supervised these consultations. Prior to the launch of the consultation process, the Drafting Team was trained.4 The Directors of planning from ministries, members of Zanzibar Trade Union Congress (ZATUC), Faith Based Organisations (FBOs) and Youths, had a one-day meeting to brief them on the procedures to follow when they carry out the structured consultations in their MDAs. The report format on what was expected at the end of the process was also discussed.

The consultation meetings were arranged in Pemba and Unguja. Later, a joint meeting was held in Unguja, where the ideas from the two islands were combined, synthesized and submitted to the Drafting Team. Donors/Development Partners (DPs) attended the joint meetings. The participating institutions indicated the achievements of the ZPRP, the challenges and the way forward. The findings were shared with Principal Secretaries of the ministries.

2.1.2 Second Round Consultations The Second Round Consultation was conducted using two different methodologies, the Focus Group Discussions and the use of Questionnaires. The Focus Group Consultations led by Association of Non-governmental Organization of Zanzibar (ANGOZA) took place between 15th December and 1st February 2006. It involved youths, women, people with disabilities, widowed, retired people, farmers, community leaders, members of the House of Representatives and representatives of political parties. Special consultations were also conducted for people with special needs such as people living with HIV and AIDS. As were the cases for all consultations, it aimed at delineating three main issues: achievements of ZPRP, challenges faced and proposed actions for ZSGRP. The facilitators for the consultations were adequately trained to handle the consultations.

3 The details of consultations are found in consultations synthesis reports Vol 1 and II of 2006. 4 Drafting Team is composed of experts from MDA’s, CSO’s, Private Sector and Development Partners.

15 The Grassroots Consultations were administered by OCGS. Students of Standard IV – VI in selected public primary schools in Unguja and Pemba were used to send questionnaires to their parents. The results of the second round consultations were similar, on average, to the first round consultations. However, they revealed four interesting aspects. There were differing opinion ranks:  On achievements, challenges and proposals for ZSGRP, by location and profession. It thus emphasized the importance of addressing the issue of equity in ZSGRP more proactively.  Between Focus Group and Grassroots consultations, which called for the need to localize interventions in ZSGRP because that is where the issues are felt more and thus where actions should take place.

Other revelations were:  Less interest in macro issues at the Grassroots level (unlike in the First Round Consultations).  Importance of sectoral interdependencies5.

2.1.3 Round Consultations The Third Round Consultations involved stakeholders from First and Second Round Consultations and DP. A national consultation workshop was conducted on 30th – 31st March 2006 to deliberate on the proposal of ZSGRP draft.

The workshop provided another opportunity for the stakeholders to identify and fill up the gaps in the Zero Draft, check and rectify the proposed broad outcomes, goals, key interventions and implementing institutions and suggest ways for improvements. Also the consultation was used in assessing the adequacy in streamlining the crosscutting issues, the inclusion of the MDGs and other global commitments.

2.2 Challenges of the Review Process As the consultation process proceeded, the following issues were posed as critical challenges for the implementation of new strategy:

5 In fact the opinions expressed link actions in many sectors (actors) outside the conceived “own sectors”. Farmers (agriculture), for example, saw their hopes in ZSGRP to come from education, roads, agricultural interventions, health, good governance, and environment and HIV/AIDS interventions. Such an outlook emphasized synergy and outcome approach

16  Most of the MDAs lack long term plans hence challenges raised during consultations were adhoc.  Weak institutional capacity in terms planning and implementation of plans and strategies.  Weak analytical review of achievement and shortfalls of implementation of ZPRP within institutions and therefore there was not benchmark to measure where the institutions are and where they are focusing to go. In this manner, most of interventions proposed lack sequencing and priority.  Lack of inter-sectoral collaboration and linkages.  Overall sectors objective are not integrated Development Partners funded activities.  Limited awareness of planning and implementation of ZPRP by community hence there was no integration of activities to the poverty reduction plans.  Most communities are not well organised hence lack plans and strategies.  Focus on Most Vulnerable Groups was not adequate.  The questionnaire format during the second round consultations was very general. Hence discussions were more on few sectors of health, education and water.

2.3 Consolidation of the Findings The First and Second Round Consultations were designed to come up with three broad areas as far as implementation of ZPRP was concerned, achievements, challenges and proposed actions. The reporting was structured along four clusters – Growth and Reduction of Income Poverty, Social Services and Well-being, Cross-cutting Issues and Good Governance and National Unity.

The consultation results were consolidated into clusters for discussions. After deliberations with stakeholders, the Crosscutting issues were mainstreamed into the three clusters (the Growth and Reduction of Income Poverty, Social Services and Well-being and Good Governance and National Unity). The results of the first two consultations were used as direct inputs into the development of the new ZPRP or ZSGRP outputs, operational targets and strategic interventions presented in Chapter V. The results of the Third Round Consultations on the other hand, were used to improve the ZSGRP document. They helped a great deal in refining the goals, operational targets, strategic interventions and implementing institutions.

17 Key Issues from consultations:  lack of comprehensive framework for enhancing food security, land use conflicts, land degradation, drought,  lack of credit facilities,  underdeveloped industrial infrastructure for attracting FDI and local investors,  lack of energy policy,  weak inter sectoral linkages for addressing issues such as HIV / AIDS,  under utilization of tourists’ attractions,  shortage of qualified number of teachers at secondary and technical institutions,  encroachment of water sources,  high population growth,  low participation of women in the economy,  high infant and child mortality, and maternal mortality,  poor transparency and accountability mechanisms.

18 CHAPTER III: GROWTH AND POVERTY STATUS

3.1 Introduction This chapter reports progress and status on several indicators of growth, income and non-income poverty mainly from the Household Budget Survey 1991/92, Tanzania Reproductive and Child Health Survey (TRCHS-1999), Census 2002, the recent Zanzibar Household Budget Survey 2004/2005 and recent sectoral and thematic studies and surveys, for example, state of environment and HIV and AIDS. The main thrust of the chapter is to provide the poverty profile of Zanzibar and develop baseline information upon which the performance of the MKUZA will be based and future assessment of the poverty reduction efforts can be undertaken. This baseline information will involve comparison of poverty across districts, between urban areas and rural areas, between Unguja and Pemba and to the extent possible make use of disaggregated data. This chapter will also report trend of poverty over time and wherever possible draw a comparison between Zanzibar and the rest of Tanzania and the rest of the world.

3.2 Growth and Income Poverty 3.2.1 Growth Status and Trends Zanzibar’s current GDP is Tshs 395.7 billions, a significant increase from the average of Tshs. 189.5 billions in the 1990s (Table 3.1). This translates to an annual per capita income of Tshs. 369,000/= in 2005 equivalent to USD 327 per person per year.

Table 3.1: Income per capita 1990- 2005 Index 1990-1999 2000-2004 2005 GDP at market price (Tshs millions) 189,500 255,600 395,700 Population (Nos) 725,000 966,400 1,072,000 Per capita income (Tshs) 142,000 263,800 369,000 Per capita income (USD) 157 276 327 Source: OCGS (2005) Socio-Economic Survey 1999 and 2004

Since 2000, economic growth has been robust with an average growth rate of 6.8 percent over the period 2000 – 2004. The economy grew at 5.6 percent in 2005. As illustrated in Figure 3.1, growth rate peaked in 2001 and 2002 and from 2003 onwards; growth has remained at 6 percent. Per capita real GDP Growth rates are still low although they have increased from 2.1 percent in 1995 to 2.5% in 2005. This is due to the effect of the high population growth rate estimated at 3.1 percent over the period.

19 Figure 3.1:) GDP Growth 1995 – 2005 % (

R 8.6 8 h t

w 6 6.2 6.4 o 5.5 5.9 5.6 r 5.2

G 4.5 4 4 l

a 3.3 2.8 u 2.5 2 2.1 n 1.4 n 0.9 A 0 1995 1999 2000 2001 2002 2003 2004 2005

Real GDP Growth Rate Per capita real GDP Growth

Source: GOZ – Economic Survey Data

Economic growth has been driven mainly by the increasing contribution and growth of the service sectors, which now represents up to 51 percent of GDP. The service sector has grown at an average of 8 percent over the period (2000 – 2004), due mainly to tourism related activities. Tourism emerged as one of the important economic activities in Zanzibar. The number of tourists visiting Zanzibar increased by an average of 17.5 percent between 2002 and 2005. Tourism- related income rose from Tshs. 108.2 million in 2001/02 to Tshs. 198.5 million in 2004/05.

The high contribution of the service sector to GDP is followed by agriculture (23 percent) and Industry (14 percent). As shown in Table 3.2 below, the sectoral composition of GDP has changed since the 1990s when agriculture accounted for up to 35 percent of GDP, with industry accounting for 22 percent and services with 32 percent.

The agricultural sector remained the dominant sector to the economy as 70 percent of the population of Zanzibar depends on it for their livelihood. The share of agriculture in Gross Domestic Product (GDP), at 2001 prices, was 25 percent in 2002, declined to 21 percent in 2003 and slightly rose to 23 percent in 2004. Overall, the declining share of agriculture in GDP could be explained as a consequence of the rising contribution of other sectors, particularly public administration, trade, transport and tourism.

20 During the period 2002-2004, agriculture recorded a growth rate of - 1.5 percent in 2002, 4.2 in 2003 and 2.7 percent in 2004, with an average 23 percent contribution to GDP. Production of food crops improved from recording a negative growth rate of - 3percent in 2002 to 1.8 percent in 2004, livestock, slightly from 3 percent to 4 percent, forest and hunting sub sectors from 2 percent to 5 percent and fisheries sub sector from -1 percent in 2002 to 5 percent in 2004. Production of cloves and other export crops increased at an average of 1.2 percent per annum.

Table 3.2: Major sector shares in GDP (at market prices) Share in GDP (%) 1990-1999 2000-2004 2005 Agriculture (forestry, livestock & fishing) 35 24 23 Industry (manufacturing, infrastructure, 22 12 14 water) Services 32 49 51 Source: MOFEA, 2006

Growth in the agricultural sector has stagnated and fallen (see Table 3.3); at the same time there has been little change in the growth of the industrial sector, which includes manufacturing. Since the majority of the population derives their livelihood from agriculture related activities, the stagnation and decline in growth in the agricultural sector adversely affects the income of many Zanzibaris. In addition, poor growth in the industrial sector constrains efforts to increase incomes and reduce poverty. Also, the distribution of direct benefits from tourism related activities do not impact positively on the lives of the majority of Zanzibaris; the sector remains to be an enclave.

Table 3.3: Growth by Sector (1990-2005) 1990 - 1999 2000-2004 2005 GDP growth rate (%) 4.2 6.8 5.6 Inflation rate (%) 18 6.5 9.3 Growth by Sector (%) (i) Agriculture (livestock, forestry and fishing). 3.5 3,6 2.4 (ii) Industry (manufacturing, infrastructure, water) 14.5 7.9 6.6 (iii) Services: 6.2 8.3 6.8 Of which Hotels and Restaurants 5.5 3.5 4.0 Source: OCGS (2005) Socio-Economic Survey -2004

The value of exports to the rest of the world rose from Tshs 7.4 billion in 2002 to Tshs 14.2 billion in 2004. Similarly there had been an increase in the export value to Mainland Tanzania. The total interstate trade increased from Tshs 8.9 billion in 2002 to Tshs 15.8 billion by 2004. Nevertheless, the overall trade balance showed a negative balance. It increased from Tshs. 49.8 billion in 2002 to Tshs 56.7 billion in 2004. Other trade sector achievements include a completion

21 of the Trade Policy, which emphasizes private sector participation, regulations and incentives to local and external investors.

The financial sector, on the other hand, has shown remarkable achievements during the period. The sector was vital for financial intermediation, trade facilitation and financing projects that had direct impact on poverty reduction efforts. Statistics showed that banking lending had shown an upward trend. It increased from Tshs 22,497.58 million in 2002 to Tshs 27,860.81 million in 2005. This was a 19.25 percent increase. These loans were directed to agriculture, trade and personal loans. Micro Finance Institutions (MFIs) financed Small and Medium Enterprises (SMEs) and other business ventures operated individually or in groups aiming at reducing poverty. Numerically MFIs increased from 62 in 2002 to 86 in 2005 while MFI members increased from 5,522 in 2002 to 12,203 people in 2005 making 121.0 percent increase. The money lent out amounted to Tshs. 4,491.76million by May 2005.

In promoting the SMEs, a policy was drafted and a study on promotion of fish and fruits processing was completed. The sector recorded a declining growth of 15 percent in 2002, 13 percent in 2003 and 5percent in 2004 with an average contribution to GDP of 6 percent. About 2,567 jobs were created in this sector for the period 2002-2004. During the period, labour laws were reviewed to provide the needed conducive environment for private sector engagement and protection of employees’ rights.

3.2.2 Income Poverty and Inequality Status and Trends The 1991/92 Household Budget Survey showed that 61 percent of Zanzibaris lived below the basic needs poverty line and 22 percent lived below food poverty line. According to the HBS 2004/05, it is estimated that 49 percent of Zanzibaris live below the basic needs poverty line6, while 13 percent live below the food poverty line. Food poverty measures the inability to afford basic dietary requirements (recommended calorie intake) while basic needs poverty takes into account additional resources expended on non-food items. Due to differences in the time frame and methodology adopted it is not possible to compare these poverty rates with the mainland, however, it should be noted that in 2000/01 it was estimated that 36 percent of the people in Tanzania Mainland lived below the basic needs poverty line and 19 percent lived below the food poverty line.

6 The percentage of population which has difficulties in attaining basic needs of food, shelter and clothing

22 Female headed-households, account for 21.4 percent of all households in Zanzibar. Poverty among female-headed households is lower than for male-headed households, 42 percent of female-headed households are poor while 51 percent of male-headed household are poor. Poverty is related to household size and the education attainment of the household head. The majority of poor households have a larger number of dependents while the head of the household has very low or no education at all. For poor households, 40 percent of the household heads have no education at all, 30 percent have basic education, 24 percent have above basic education and 5 percent have adult education.

Poverty in Zanzibar is largely characterized by: (i) Higher poverty incidence in rural areas than in urban areas; (ii) Concentration of the poor in certain areas; (iii) Low-income inequality.

Higher poverty incidence in rural than in urban areas: About 55 percent of people in the rural areas live below the basic needs poverty line (Tshs, 20,185) as compared with about 41 percent in the urban areas (Tshs 22, 841). Similarly 16 percent of people live below the food poverty line (Tshs 12, 573) in the rural areas as compared with the 9 percent in the urban areas (Tshs 14,303)

Concentration of the poor in certain areas: The HBS 2004/05 shows that in percent terms, there is more poverty in Pemba than in Unguja. About 61 percent of people in Pemba live below the basic needs poverty line. This compares with 42 percent of people in Unguja who live below the basic needs poverty line. The HBS 1991/92 showed that 64 percent of people in Pemba and 59 percent in Unguja lived below the basic needs poverty line. There is also more food poverty in Pemba as compared to Unguja. It is estimated that 22 percent of people in Pemba live below the poverty line, as compared with only 10 Percent in Unguja.

However, the absolute figures indicate that there are more poor persons in Ugunja than in Pemba who cannot adequately meet their basic needs. On the contrary, there are more poor persons in Pemba than in Ugunja who cannot get adequate food (See Table 3.4). The general trend seems to suggest that there has been a slight decline in poverty between 1991 and 2004/05 – detailed studies are required to confirm this general conclusion.

23 Table 3.4: Number of People living below the Food and Basic Needs Poverty Lines.

Number of Food (Percent) Number of Basic Needs (Percent) Total Population Poor Persons Poor Persons Pemba 376,987 75,192 20 229,997 61 Unguja 678,938 63,958 9 288,122 42 Zanzibar (2004/05) 1,055,925 139,150 18 518,119 49

Zanzibar (1991/92) 878,688 193,311 22 536,000 61 Source: HBS (1991/92 and 2004/05)

There is a significant disparity in poverty levels between districts, with Micheweni district in Pemba coming out as the poorest. The percentage of people living below the basic needs poverty line in Micheweni is 74 percent, a remarkably high figure compared to the national average of 48 percent. Micheweni has also the highest incidence of extreme poverty, with 35 percent of people living below the food poverty line. After Micheweni, Wete district has the second highest incidence of poverty. It is estimated that 70 percent of people in Wete live below the poverty line and 27 percent live below the food poverty line. See Table 3.5 below.

Table 3.5: Distribution of Poor Persons by Type of Poverty and District (2004/05)

Number of Food Number of Basic Needs (%) (%) District Total Population Poor Persons Poor Persons Kaskazini "A" 88,285 10,753 12 47,054 53 Kaskazini "B" 55,073 6,639 12 26,588 48 Kati 65,328 5,454 8 29,830 46 Kusini 34,992 3,406 10 18,823 54 Magharibi 221,416 21,131 10 85,389 39 Mjini 213,844 16,575 8 80,438 38 Wete 106,438 25,367 24 75,346 71 Micheweni 87,012 29,020 33 64,593 74 Chake Chake 86,905 13,792 16 49,391 57 Mkoani 96,633 7,015 7 40,667 42 Total 1,055,925 139,150 13 518,119 49 Source HBS 2004/05

Income inequality: Economic inequality as measured by the Gini coefficient shows that inequality is generally low in Zanzibar. In principle, a higher value of Gini coefficient means a higher income inequality. The estimate for the whole of Zanzibar is 0.31 with inequality in Pemba at 0.27 and in Unguja at 0.31. This demonstrates that the current level of inequality is still

24 low. In addition, there is no marked difference in the measure of inequality between rural and urban areas. The estimated value of Gini coefficient for the urban area is 0.32, as compared to 0.28 for the rural area. The district with the highest inequality in Zanzibar is Mjini (0.34) followed by Magharibi (0.29). Micheweni 0.26), Mkoani (0.25), Kusini (0.25) and Kaskazini “B” (0.26) have the lowest inequality. Although there is very limited comparability of poverty and inequality between Zanzibar and the rest of Tanzania using the currently existing data, it is useful to report that in the year 2000/2001 Tanzania Mainland registered a Gini coefficient of 0.35. Zanzibar also compares favourably with Eastern and Southern African countries see Table 3.6 below. Table 3.6: Inequality in selected countries in Eastern and Southern Africa

Gini Coefficient Reference year Zanzibar 0.31 2004/05 Pemba 0.27 2004/05 Unguja 0.31 2004/05 Tanzania Mainland 0.35 2000/01 Mozambique 0.396 1996 Kenya 0.425 1997 Uganda 0.43 1999 Malawi 0.503 1997 Zambia 0.526 1998 South Africa 0.578 2000 Swaziland 0.609 1994 Botswana 0.63 1993 Lesotho 0.632 1995 Namibia 0.707 1993 Source: UN Human Development Report 2005; Zanzibar HBS (2004/05), Mainland HBS (2000/01)

3.2.3 Employment According to the HBS 2004/05 about 42 percent of the labour force are engaged in agriculture related activities, which provides employment for a majority of the population. It is also estimated that currently 7 percent of the working age population are unemployed. It should be noted that this figure might not take into account those that are currently under-employed. In addition, this overall figure masks the large number of unemployed youth aged 15 – 24, which is estimated at 20 percent of the youth population. See below.

25 Table 3.7: Unemployment by Age Group

AGE LABOUR LABOUR UNEMPLOYED UNEMPLOYED RATE RATE GROUP FORCE (1) FORCE (2) USUAL EXTENDED (Usual) (Extended) A B C D C/B D/A 15-19 28,430 28,024 6,021 6,427 21 23 20-24 54,156 53,889 9,829 1,0097 18 19 25-29 56,660 56,577 3,943 4,026 7 7 30-34 52,059 52,015 1,416 1,460 3 3 35-39 45,935 45,914 6,54 676 1 1 40-44 44,722 44,688 454 488 1 1 45-49 31,476 31,476 249 249 1 1 50-54 26,401 26,395 178 183 1 1 55-59 15,033 14,999 212 246 1 2 60-64 13,820 13,814 156 162 1 1 Total 36,8692 36,7791 23,112 24,014 6 7 COLUMN A: This is the total Labour Force, including discouraged workers COLUMN B: This is the total Labour Force, excluding discouraged workers COLUMN C: Unemployed usual excludes persons unemployed but not seeking work COLUMN D: Unemployed extended includes persons unemployed but not seeking work Source: Household Budget Survey 2004/5

3.3. Social Well-being

3.3.1. Education Zanzibar fares better than the rest of Tanzania in terms of literacy rates. However, just like in the rest of Tanzania, men are more literate than women. The latest literacy estimates indicate that 77 percent of Zanzibari women and 86percent of Zanzibari men are literate compared to 67 percent of the women and 79 percent men in the Mainland. There are higher literacy rates for men and women in Unguja than their counterparts in Pemba. The disparity in literacy rates between men and women is also much higher in Pemba where the illiteracy rate for women is 40 percent compared to only 20 percent for men. The Urban West Region has the highest literacy rate to 82 percent for men and 76 percent for women followed by South Unguja district with 76 percent for men and 68 percent for women. The district with the lowest literacy is North Pemba with only 55 percent literacy rates for men and 43 percent for women. Table 3.8 reports the literacy situation of women and men in Zanzibar, Unguja and Pemba and compares it with the situation in the rest of Tanzania.

Table 3.8: Adult Literacy Rates (Zanzibar, Pemba, Unguja, Tanzania Mainland) 1988 (percent) 2002 (percent) Women Men Women Men Tanzania Mainland Missing Missing 67 79 Zanzibar 46.0 66 76.8 86

26 Unguja 54 74 83.2 88.8 Pemba 32 53 62.5 80.3 Source: National Bureau of Statistics (NBS)[Tanzania] and OCGS (2005), Census 2002, 1988

Primary enrolment rates have increased over time with near gender parity and improving completion rates (see Table 3.9). Net Enrolment Rates (NER) for primary education increased from 51 percent in 1990 to 79 percent in 2002. Primary transition rates have been consistently high at an average of 80 percent since 1990. There is a higher proportion of females moving from primary to secondary schools compared to males since 2000 with 80 percent for females compared to 72 percent for males in 2004. Secondary transition rates are still low although there has been an improvement from 10percent in 1990 to 40percent in 2004. The areas facing the biggest challenge in terms of enrolment and transition rates for both primary and secondary education include Micheweni and Kaskazini A as well as Wete, Mkoani and Chake Chake.

A majority of students live less than 2 kilometres away from Primary schools (75 percent), although the figure is higher in urban areas (92 percent) compared to rural areas (66 percent). However, the distance to Secondary schools is further with only 62 percent of all students living less than 2 kilometres from the schools. In urban areas 86 percent of the children and 48 percent of rural children live less than a kilometre from secondary schools. The districts with students living farthest away from both primary and secondary schools include Micheweni, Chake Chake, Mkoani and Kaskazini B. Table 3.9: Primary and Secondary education trends Indicators 1990 1995 2002 2004 2005* Primary net enrolment ratios (percent) 51 65 79 77 (M/F) (52/50) (66/65) (79/79) (76/78) Primary Transition Rates (percent) 79 80 81 76 (M/F) (80/79) (81/78) (77/84) 72/80 Primary Gender Parity (F/M in Net Enrolment) 0.94 0.98 0.99 Primary Gender Parity (F/M in Gross Enrolment) 0.92 0.95 0.96 0.98 Secondary Transition Rates (%) 10 36 40 44 (M/F) 13/7 30/47 42/39 44/42 Secondary Gender Parity (F/M in Gross 1.0 0.97 0.94 1.00 Enrolment) Ministry of Education, HBS (2005)

3.3.2. Health Life expectancy at birth in 1978 was 47; in 1988 it was unchanged at 47 reflecting high mortality rates. Recent estimates of life expectancy show an increase to 57 years in 2002 (male 57 and female 58). The fertility rate is still high estimated at 5.3 with higher rates in rural areas compared

27 to urban. This is due the difference in age of first marriage, which is 18.4 years Unguja and 17.6 years in Pemba as well as variations in levels of literacy. Another important non-income measure of welfare is the mortality rate of women, children and infants. Table 3.10 provides data on infant, child and under-five and maternal mortality rates for Zanzibar and the rest of Tanzania for the years 1996 and 2004/05.

Table 3.10: Infant, Child, Under-5 and Maternal Mortality

Zanzibar Tanzania Mainland 1996 2004/05 1996 2004/05 Infant Mortality (per 1,000) 75.3 61 94.7 83 Child Mortality (per 1,000) 34.8 42 56.6 42 Under 5 Mortality (per 1,000) 107.5 (114.3*) 101 146 133 Maternal Mortality (per 100,000) 377** Not available 529 578 Proportion of Births attended by skilled personnel 37* 49 36* 47 (percent) Source: Census 2002: National Bureau of Statistics (NBS); TDHS (2004/2005), *TRCHS (1999) ** 1998 UNICEF Study (add definitions)

There has been a decline in infant mortality since 1988 falling from 99 per 1,000 live births (Census, 1988) to 75.3 per 1,000 in 1996 (DHS, 1996), 83 per 1,000 in 1999 (TRCHS 1999) and 61 per 1,000 in 2004/5 (DHS, 2004/5. There has also been a small decline in under-five mortality from 1996 and 2004/05 to 101 per 1,000 live births. However, child mortality increased from 34.8 to 42 over the same period. Maternal mortality in Zanzibar is lower than the rest of Tanzania although the figure of 377 per 100,000 is still quite high. The improvement in the proportion of births attended by skilled personnel from 37 percent in 1999 to 50 percent in 2005 is noteworthy and provides a good basis for reducing maternal mortality. However there is still a high fertility rate and unmet need for contraceptives suggesting the provision of universal access to family planning and strengthening of reproductive health systems is required. Over all, Zanzibar fares better than the rest of Tanzania in terms of infant, child under-five and maternal mortality. However, more needs to be done to achieve the global millennium development goal of reducing maternal and child mortality by two thirds between 1990 and 2015.

Concerted efforts in immunization lead to increased immunization coverage to above the set global target of 80 percent. At district levels, coverage reached 88.8 percent for DPT-HB3. Use of iodated salt by households increased from 1percent in 2002 to 25 percent in 2005. Increased attendance by skilled health personnel at deliveries in health facilities from 40 percent to 50percent was reached. With regard to use of contraceptives, prevalence rate increased from 16 percent to 18 percent in 2005.

28 The HBS 2004/05 show that the percentage of households within 5 km to a primary health care centre is estimated at 96.9 percent and the percentage of ill individuals attended or consulted any health provider was estimated at 83.7 percent. However, there are large urban/rural differences with 77 percent of urban residents within less than a kilometre to a health center compared to only 34 percent in rural areas. Rural residents are mostly between 2 and 5 kilometres from a primary health care center. In addition 20 percent of rural residents live over 20 kilometres from the nearest hospital. The average distance to a hospital is 13 kilometres for rural residents compared to 3 kilometres for urban residents. The districts with the longest distance to a health care centres include Kusini, Chake Chake while Kaskazini B and Kati have the longest distances to the nearest hospital.

According to routine data system from the Ministry of Health and Social Welfare, Malaria continues to be the leading cause of morbidity in Zanzibar. Out of 812,520 in-patient and outpatient diagnosis in 2004, Malaria accounting for about 45 percent of the total diagnoses (see Table 3.11). Although there has been a slight decrease, the proportion of people treated for Malaria has remained high from 49.2 percent in 2000 to 44.6 percent in 2004. The same trend is observed in malaria cases from 51percent to 44 percent in Pemba and 54 percent to 39 percent in Unguja. ITN coverage for under-five increased from 23.8 percent to 36.8 percent and for women from 18.3 percent to 36.8 percent. However, there are increasing incidences of bronchitis, pneumonia and respiratory infections. Bronchitis and pneumonia account for 7 and 6 percent of diagnosis respectively.

29 Table 3.11: Leading diagnoses in Zanzibar PHC-units, 2000-2004 Percentage of Diagnoses (percent) Diagnoses 2000 2001 2002 2003 2004 Malaria 49.2 46.9 46.2 47.1 44.6 Bronchitis 6.6 7.6 6.5 7.8 7.2 Pneumonia 3.9 4.4 4.4 5.3 5.8 Upper Respiratory 4.7 4.8 5.4 5.5 5.8 Infections 5.7 4.8 5.0 4.2 4.5 Open wounds 3.7 3.7 3.5 3.6 4.1 Gastro-enteritis 3.1 3.7 3.0 2.9 2.4 Anaemia * 1.6 1.9 1.9 2.2 Other skin diseases 2.4 2.1 2.9 2.0 2.1 Conjunctivitis 3.0 3.8 3.1 2.2 1.9 Intestinal worms 17.7 16.6 18.1 17.5 19.4 Other diagnoses 100.0 100.0 100.0 100.0 100.0 Total percent All diagnoses 435,177 547,705 620,559 510,985 812520 Source: Health statistical bulletins

3.3.3 Water and Sanitation The supply and condition of water supplies in Zanzibar is a top priority. Currently, the water demand in Zanzibar is not being met fully and some sources are contaminated. Access to water for Zanzibar’s population has increased, but is still low in certain districts. Water in many areas is not healthy for consumption, thus higher levels of awareness are required. It is estimated that 75 percent of urban residents and 51percent of rural residents currently have access to clean and safe water within 400 metres7.

As indicated in Table below, although on average 11percent of the general population rely on unprotected water sources, almost 20percent of the very poor rely on unprotected public wells as their primary water source.

7 The latest estimates from the HBS 2004/05 indicate that 86.2 percent of households in Zanzibar have access to water sources for drinking (80 percent rural and urban 96 percent) for drinking. This is a slight progress compared with, for example, in 1991 only 46 percent in rural areas in Unguja had access to water source. The HBS results and sectoral data are not comparable due to differences in definition

30 Table: 3.12: Source of Water Supply by Wealth Status Poverty Status Very Poor Poor Non Poor Total Source of Water Supply percent percent percent percent Private piped water in housing unit 16 22 35 28 Private piped water outside housing unit 15 20 19 19 Piped water on neighbour's housing unit 5 4 4 4 Piped water on community supply 22 21 20 20 Public well: Protected 19 15 10 13 Public well: Unprotected 19 13 8 11 Private well: Protected 2 1 2 2 Other Sources 2 4 3 3 378,96 537,80 1,055, Total population 139,150 9 6 925 Source: HBS 2004/05

With regard to sanitation, it is estimated that 67 percent of the population are using improved sanitation facilities including toilets and VIPs (50 percent rural and urban 96 percent) according to 2004/05 HBS. This is a good progress made compared to the situation in 1991 (HBS), when 48.3 percent had no toilets and only 43 percent had pit latrine. Further analysis of HBS 1991 shows that 74.5 percent of rural household had no toilets and 23.7 percent for urban.

3.4. Good Governance

In the 1990s, the political crisis in Zanzibar contributed to increasing and widespread poverty in the Isles as also linked to unclear political commitment, lack of good sectoral and poverty- reducing policies. Removal of all forms of political discrimination and designing strategies to minimize political tensions, enhancing the role of non-state stakeholders as agents of economic change, development and reduction of poverty in Zanzibar was seen and recognized as being crucial in the design and implementation of ZPRP.

31 The Government and people of Zanzibar continue to recognize and cherish the importance of promoting good governance and national unity. It is good governance and national unity that create everlasting or sustainable development. In 2000/01, during the ZPRP consultation process, many stakeholders were concerned with governance issues including poorly functioning and structural arrangements within government, cumbersome decision making processes, poor implementation capacity, poor relationship between government officials and the public and weak capacity and separation of powers among legislature, the executive and the judiciary.

During the last five years, the Government has implemented several governance reforms, which have created enabling environment for promoting pro-poor growth and development of poverty- reducing policies. Some of the on going major reforms including Public Service Reforms, Local Government Reforms, Business Environment Reforms and Public Financial Management Reforms. Also, the Government introduced a number of national participatory processes to enable Non-State Actors such as Non-Governmental Organizations; Faith Based Organizations; Community Based Organizations and the private sector to participate in national development dialogues and debates, and to influence policy-making processes. These processes include the Public Expenditure Review, Medium Term Expenditure Framework and the Poverty Monitoring System. Public Private Partnership has been enhanced through the establishment of the Zanzibar Business Council.

The established Office of the Director of Public Prosecutions (DPP) has civilianized prosecutions from all Regional Courts to High Court. All prosecutions are now being handled by DPPs staff instead of them being conducted by the police. Establishment of DPP’s office was also an attempt to depoliticise prosecution activities, which were originally under the Attorney General who was seen as political figure for his being an ex-officio member of the House of Representatives and a Member of The Zanzibar Revolutionary Council.

To complement the implementation of MUAFAKA Accord, which was signed in 2001, the Revolutionary Government of Zanzibar has reformed the Zanzibar Electoral Commission (ZEC) to give room for Political Parties to be represented in the Commission. ZEC introduced a permanent voters’ register in its bid to improve electoral processes and reduce Government cost in registering voters in every elections. The register has been first used to recognise the voters in the last General Elections.

32 In recognition of human rights in the isles, a number of laws have been reviewed in promotion and progressively realisation of these rights. These include Copyright Act of 2003, Penal Act of and The Criminal Procedure Act of 2004. The Civic Education is imparted to the public to increase awareness in good governance principles.

3.5. Cross-cutting Themes

3.5.1. Food Security and Nutrition

Food security in Zanzibar is related to access to food, availability of food and the utilization of food. Food availability is determined by the production of smallholder farmers and to a larger extent by the importation of foodstuffs. Zanzibar is a net importer of food, with a rather significant deficit between the values of local production and food imports.

The nutritional status of children is used as an indicator of access to food. Stunting (low height for age) is linked to longer-term lack of access to food while wasting (poor weight for age) is linked to short term deficiencies. Weight for age is a combination of both indicators. The most recent estimates indicate that 23 percent of the children in Zanzibar suffer from stunting and 6 percent suffer from wasting. Table 3.13 gives estimated values of the measures of nutritional status for Zanzibar, Unguja, Pemba and Tanzania Mainland for the year 1996 and 2004/05.

An investigation of the disaggregated data shows that child malnutrition is more prevalent in Pemba where 32 percent of children are malnourished and 11percent severely malnourished compared with 18 percent and 5 percent in Unguja. The survey also indicates that the level of malnutrition is higher in mainland Tanzania than in Zanzibar (38 percent malnourished and 12.9 percent severely malnourished) and that malnutrition tends to be deeper in rural areas in both Zanzibar and Mainland Tanzania.

There has been an improvement of nutritional status in Zanzibar between 1996 and 2004/05. The proportion of children with low weight for age dropped from 34 percent in 1996 to 19 percent in 2004/05. The proportion of children with low weight for age is slightly higher in Zanzibar than in the rest of Tanzania. The percentage of children with low weight for age is higher in Pemba than it is in Unguja, once again indicating that poverty is more widespread in Pemba than in Unguja.

33 Table 3.13: Nutritional Status in Zanzibar, Unguja, Pemba and Rest of Tanzania percent of stunted children percentage of wasting percent with low weight for age children 1996 1999 2004/05 1996 1999 2004/05 1996 1999 2004/05 Mainland 43.6 44.0 38 7.1 5.3 2.9 30.5 29.5 21.9 Zanzibar 37 35.8 23.1 11.0 6.3 6.1 33.8 25.8 19 Unguja n.a 27.0 18 n.a 3.5 6.7 n.a 17.2 17 Pemba n.a 46.2 32.1 n.a 9.5 4.9 n.a 36.0 22.5 Source: Tanzania Demographic and Health Survey {1996, 1999, 2004/05}

3.5.2 Vulnerability Vulnerability analysis helps to clarify the risk profiles of households and their susceptibility to shocks, particularly their exposure and sensitivity to livelihood shocks. The ability to distinguish vulnerable groups enables social support to be temporally and spatially targeted in order to prevent such groups from sliding into destitution when shocks occur. Some groups may be chronically vulnerable, requiring support on a routine basis; others may experience transitory vulnerability (e.g. in the lean season before the next harvest).

Vulnerable groups comprising women, widows, youth, orphans, elderly, neglected children, the persons with disabilities, those infected and affected by HIV and AIDS and the poorest of the poor are an important target group. Factors contributing to their vulnerability include: food and nutrition insecurity, limited access to productive assets, traditional roles ascribed by society, poor health, unemployment, lack of support networks, lack of access to education, discrimination and social exclusion. Unfortunately, information and data on issues pertaining to vulnerable groups is often limited and not collected in a consistent manner. The latest estimates on the number of orphans indicate that 0.4 percent is currently living without one or both parents. In addition, there are currently 0.6 percent of Zanzibaris [Validation study by MoH, 2002] estimated to be living with HIV and AIDS. This figure does not take into account the large number of people affected by the disease including care providers and families who bear the brunt of providing both material and other support.

34 3.5.3. Environment According to the State of the Environment Report 2004/05 (RGoZ), it is estimated that 41 percent of Zanzibar’ woody biomass is indigenous and 59 percent is exotic. About 500ha of coral rag forest is cleared each year for fuel-wood and pressure on mangroves for building poles is increasing as a result of growing demand, which is partly fueled by population growth. The proportion of people using solid fuels that includes wood, charcoal is still very high at 96 percent. This is higher in rural areas (98 percent) compared with urban areas (93 percent). It is a fact that Zanzibar relies a great deal on wood products for household energy for cooking.

Access to an improved water source and use of improved sanitation has improved in Zanzibar since the 1990s. Nevertheless, the water demand is not being met and some sources are contaminated, mainly from human waste. Contamination of water supply from human waste8 remains a serious concern affecting some of Pemba’ main water supplies, such as in Chake Chake.

In agriculture sector, poor agricultural and soil management techniques result in topsoil loss, erosion, and soil deterioration. As a result of poor soil management the production of food remains a problem with some areas, such as Pemba’s east and Northeastern areas. Also, problems caused by habitat destruction of coral reefs and mangroves from illegal fishing techniques, such as spearfishing, drag netting and dynamiting continue to be addressed by government and other stakeholders.

3.5.4. HIV and AIDS The latest estimates indicate that 0.6 percent of Zanzibaris are living with HIV (Validation Study, 2002). The number of reported cases increased from 3 in 1986 to 4,652 in 2005 (Surveillance Report, 2005). The age group most at risk is 20-49 years, which include the youth and the skilled working population.

The data from sentinel surveillance (2005) indicates a prevalence rate of 0.87 percent among pregnant women attending anti-natal clinics. If this is taken as a proxy indicator of the HIV prevalence in the general population, then it can be estimated that out of a population of

8 See access and use of toilets under water & sanitation section – social well-being.

35 1,078,964 (projection from 2002 Population and Housing Census) currently living in Zanzibar, about 9,387 persons are HIV positive. This is an indication that HIV has not been contained. The challenge still remains to provide adequate treatment, care and support for those infected and affected by the virus and to promote behaviour change among the population with more focus on most at risk population groups.

3.5.5 Gender To ensure women participation in decision making is improved, the constitution was reviewed in 2003, which led to a further increase in the percentage of special seats for women in the House of Representatives from 25 percent to 30 percent. Similarly, this has happened at the Municipal and District Council where the Municipal Act was revised in 2005 and now provides for 30percent participation of women. Despite these efforts women continue to be under represented at various levels of decision making as shown in the table below.

Table 3.14: Representation of women in decision-making positions (2006) Positions Male Female Total 2000 2006 2000 2006 2000 2006 Members of the House of Representatives 60 63 19 15 79 78 Ministers 11 10 1 4 12 14 Deputy Ministers 4 5 1 1 5 6 Principal Secretaries 11 14 1 1 12 15 Deputy Principal Secretaries 7 8 2 2 9 10 Regional Commissioners 5 5 0 0 5 5 District Commissioners 9 9 1 1 10 10 Source: Ministry of Labour, Youth, Women and Children Development (2006)

36 CHAPTER IV: FRAMEWORK OF THE ZSGRP

4.1 Introduction

This chapter provides the framework that is holistic to address the challenges and show the roadmap to achieving the objectives and goals of the vision 2020 through the ZSGRP. The objective of the Zanzibar’s overall Development Vision 2020 is to eradicate absolute poverty and attain sustainable human development. Poverty in the vision has been defined as not merely the lack of income but also the lack of accessibility to the basic needs of the people.9

The framework translates the Zanzibar Vision 2020 and presents the major building blocks that will facilitate achievement of the objective of the Vision 2020. It also highlights key principles and on-going reforms necessary for growth and poverty reduction. It elaborates the major clusters of the strategy, namely, (i) Growth and Reduction of Income Poverty; (ii) Social Services and Well-being; and (iii) Good Governance and National Unity.

4.2 Principles of the Zanzibar Strategy for Growth and Reduction of Poverty

The Strategy is aimed at improving the first ZPRP in terms of process and content. It observes ten principles that guide its interventions and actions with a view to ensuring integrity of the Strategy. The purpose is to have a strategy that will bring about rapid growth and improvement of the well-being of the people.

4.2.1 National ownership

The strategy is viewed as a next step to scale up the efforts that will lead to the national ownership of development process. The strategy identifies the limitations of the ZPRP10 and deliberates them in a shared way. It encourages participatory mechanisms at national and local levels. It accommodates contributions of stakeholders. Efforts have been made to reach all sectors at Government level, civil society, Private Sector, communities and individuals 11. The thrust was to make the participation more institutionalized rather than a one – off event. Thus, the ZSGRP underscore the need to build capacity among its stakeholders in policy formulation,

9 Zanzibar Vision 2020 10 The ZPRP was seen as an issue of the Ministry of Finance and Economic Affairs. 11 Full discussion on the consultation is presented in chapter two

37 implementation, monitoring and evaluation. The capacity building interventions will target MDA, Private Sector, civil society and community at large.

4.2.2. Political Commitment

There will be a need for sustained political will and commitment to continued democratisation and human rights. Political stability, tolerance and consistency in policies will be vital and a basis for accountability of the Government to the citizenry and development partners.

4.2.3 Commitment to Socio-economic and Structural Reforms

4.2.3.1 Financial Management Reforms

(i) Harmonization of financial matters with United Republic of Tanzania (URT):

The formation of the Joint Finance Commission is expected to clear most of the impediments in the current financial relations. It will also roll a tax administration programme, which is already in operation in the Mainland to Zanzibar. The programme will enhance the efficiency of tax administration and the Zanzibar revenue Board capacity. Aide-Memoir for working collaboration between Tanzania Revenue Authority (TRA) and Zanzibar Revenue Board (ZRB) has been developed and is operational.

(ii) Public Expenditure Review (PER) and Medium Term Expenditure Framework (MTEF):

Introduction and implementation of the PER and Medium Term Expenditure Framework (MTEF) processes in the Government and public enterprises has improved financial planning and budgeting processes, by enhancing transparency and predictability of resource outlays, in effect improving budget execution. A Public Expenditure Review Institutional Framework has been put in place where macro stakeholders the Central Bank, the TRA, the ZRB, the Chief Government Statistician and the Ministry of Finance and Economic Affairs (MOFEA) are present. A revenue- forecasting model has been developed. The remaining challenge is to hook the MDA budget with key interventions outlined in the ZSGRP.

38 (iii) Government Financial Accounting and Reporting: Government financial accounting and reporting has improved as a result of the finalization and Publications of Financial Administration Regulations and the introduction of Information Technology in Accounting and reporting. The formation of a strong Fiscal Policy Unit and the introduction of an effective but liberal tax administration system have greatly enhanced domestic revenue collection.

(iv) Central Payment Office (CPO): The CPO has been established to facilitate centralization of all government accounts. Through the CPO the Government of Zanzibar operates four accounts with the Bank of Tanzania (BoT) as the sole Government banker. This system has improved the management of Government financial operations. A quarterly cash flow plan approved through monthly Ceiling Committee meetings is the basis from which MDAs make their expenditure requests. This move has enhanced the quality of cash management.

(v) Central Payroll System: In the same lines, a central payroll system has been instituted. This unit housed in the Ministry of Finance and Economic Affairs, through data coordination between the unit, the Zanzibar Social Security Fund (ZSSF) and the Zanzibar residents, prepares all Government employee payment vouchers. It has been able to right size the list of the payroll of the Government by discarding possible fake employees. The system together with the ongoing civil service reform initiative will determine the correct existing size of the civil service. This will inform on future policy decisions on the structure, size and quality of the civil service.

(vi) National Debt Management Unit: The establishment of a National Debt Management Unit has improved management of Zanzibar’s public debt, and hence enhances its sustainability. The Unit coordinates the implementation of the debt strategy that has been used to guide the Government on the limits to borrowing, specify types of loans, their maturities including an assessment of repayment capacity and repayment schedule. The strategy ensures that debt service is in line with the operations of the budget.

39 4.2.3.2 Economic Management Reforms (i) Economic Diversification:

Economic diversification for employment creation and income generation are being pursued to enable Zanzibar get out of the clove-industry trap that has hitherto determined its economic growth path. Promoting the export diversification towards non-traditional (such as vegetables, fruits, flowers and spices) which promise increased contribution to GDP is in progress.

(ii) Infrastructure Development: Improvement of comprehensive transport and communications network, covering both urban and rural areas, is being laid out. The airport and the seaport in Unguja and Pemba respectively, are being modernized. The water and electricity supply infrastructure are improving to meet the growing demand. The legal and regulatory frameworks are being reviewed to facilitate the development of Private Sector in activities. The energy sector reform which responds to energy challenges aim at strengthening the financial operation of State Fuel and Power Corporation (SFPC), cutting down on technical and other power losses, improve billing collection through regular tariffs, review tariff and increased use of prepaid meters, improve the institutional and human capacity of SFPC and review and draw and implement energy sector policy. Currently, the reform has started by review of the Presidential Decree of SFPC Establishment by enacted new legislation of 2005, revision of electric tariffs, introduction of new tariffs and approval of water legislation, which among other things stipulated the establishment of water authority.

4.2.3.3 Governance Reforms (i) Legal System and Access to Justice: Initiatives have been taken to address legal and administrative framework. The Government continues to review laws and procedures, capacity building, improvement of facilities and working condition. The Anticorruption and Leadership Ethics has been drafted.

(ii) Participatory Democracy: A Local Government Reform is being undertaken. Electoral process has been reviewed and the draft of Non-governmental Organization Policy has been completed. The capacity of Civic Society Organizations (CSOs) is improving and the Government – CSOs partnership is strengthened.

(iii) Political Stability and Tolerance:

40 The Government has developed Civic Education Programme and Non-Governmental Organizations (NGO) have developed Voter Education Programme for 2005 general election. The Government has reviewed policies and procedures relating to the operations of religious institutions so that further stability and tolerance is achieved.

4.2.3.4 Institutional and Human Resources Reforms (i) Human Resources Development: The reforms on human resources development aim at undertaking an orderly and planned transition towards the acquisition of strategic skills and high incentives for staff. Emphasis is placed for newly recruited staff to join on-job training. High motivation is placed for skilled staff, and professionals for them to improve their performance. Currently, the Government has started the process of undertaking Civil/Public Service Reform. Also the drafting of Human Resource Development Policy has started. The Policy is expected to address various issues including HIV and AIDS education.

(ii) NGOs Performance: The Government is committed to build capacity of Community Based Organizations (CBO) and NGO for them to be able to compliment the Government efforts in the development process. Emphasis is placed in broadening NGO activities in the rural areas where the burden of poverty is severe and rate of spread of communicable diseases including HIV/AIDS is significant.

(iii) Private Sector Development: Zanzibar’s Private Sector is still at infant stage. It has not established itself as an institution capable of effectively meeting the demands of a fast globalizing world. However, the Private Sector is expected to address the challenges of a poor economy of a small island where majority of its workforce is unemployed and its share of export trade in regional and global markets is very small. During the reforms, the Government has initiated and implemented measures to improve Private Sector operations in Zanzibar by offering attractive investment incentives to private investors. The new Investment Policy has been developed and approved.

41 4.2.4 Sector Strategies, Linkages and Collaboration The ZSGRP recognises the roles of specific sector development and/or reform programmes. 12 Effective implementation of the strategy requires sectors collaboration in order to achieve the identified outcomes. It also calls for sector to take advantages of backward and forward linkages and their synergies.

4.2.5 Local Partnership The ZSGRP provides a space for local stakeholders, including citizens, communities, civil society and the Private Sector in policy dialogue. Efforts will be made to foster private-public partnership.

4.2.6 Harmonised Assistance The strategy seeks ways to align and harmonise the ZSGRP with core reforms and policy processes that have been undertaken both on the Tanzania Mainland and Zanzibar. These include the NSGRP, LGRP, the PER and Public Financial Management (PFM), Tanzania Assistance Strategy (TAS)/ Joint Assistance Strategy for Tanzania (JAST). The strategy aim at mainstreaming global initiatives and commitment since these initiatives potentially will contribute to the attainment of the ZSGRP aspirations of Growth, Social Well-being and Good Governance.

4.2.7 Equity The ZSGRP will be focusing on reducing inequalities and improving social well-being particularly of the poor. The effort will be directed to improve accessibility to productive assets by the poor. Attention will also be paid to address geographic disparities of public services across regions and districts.

4.2.8 Sustainable Human Development The strategy seeks ways to align and harmonise the ZSGRP with core reforms and policy processes that have been undertaken both on the Tanzania Mainland and Zanzibar. These include NSGRP, LGRP, PER, PFM, and TAS/JAST. The Strategy aims at mainstreaming global initiatives and commitment since these initiatives potentially will contribute to the attainment of 12 These reforms include Human and Institutional Reforms, Good Governance Reforms and Financial and Economic Reforms.

42 the ZSGRP aspirations of Growth and Reduction of Poverty, Social Services and Well-being and Good Governance and National Unity. Judicious use of resources during the implementation of ZSGRP will be stressed. Exploitation of natural resources will be made in such a way it does not affect needs of future generations. The strategy will ensure all negative effects on environment are avoided.

4.2.9 Macro-micro Linkages These are connections between macro and micro economic activities. For ZSGRP it is the fostering of the decentralisation process and enhancing efficiency in service delivery. It is also the designing and or implementing policies that ensure benefits of growth in high-growth sectors such as fisheries, trade and tourism, are transmitted to the poor in order to improve their well- being.

4.2.10 Mainstreaming Cross-Cutting Issues All cross-cutting issues have been mainstreamed in the three clusters of the strategy. The goals, operational targets and key interventions and actors responsible to take the lead in implementation are included in the clusters strategies. Monitoring the progress of cross cutting issues will also be part of ZSGRP. The mainstreaming of cross cutting issues calls for collaboration within and across sectors.

4.3 Major Clusters of ZSGRP

The strategy identifies three major clusters of poverty reduction outcomes: (i) Growth and Reduction of Income Poverty; ii) social Services and Well-being, and (iii) Good Governance and National Unity (Figure 4.1). Each cluster contains a broad outcome, goals, key issues raised during consultations, key interventions and key actors to coordinate implementation. Many of these are interrelated and support each other.

43 Figure 4.1: Major clusters of ZSGRP

Growth and Reduction of Poverty

Social Services Core Reforms Growth & reduction and well-being of income poverty

Good Governance and National Unity

Economic growth is important for poverty reduction initiatives. Development of the economy depends on the efficiency and effectiveness of resources utilizations. 13 The above three clusters relates to each other. Growth, ceteris peribus, leads to higher incomes, thus reducing income poverty. Higher incomes enable households to improve their well being through improvement of social services (i.e. education, health, nutrition, shelter). Improved social wellbeing ensures effective participation of population in economic activities and hence stimulates economic growth. Also, growth facilitates expansion of tax base and hence more revenue can be collected. Increased government revenue is necessary condition for improving social services such as health, education, administration and infrastructure. The availability of basic social services that are qualitative and affordable to the population cements the national unity. Governance and national unity, on the other hand, provides conditions within which growth, social services and peoples’ well-being take place.

13 Resources includes land, capital and labour

44 4.4 Growth and Reduction of Income Poverty

4.4.1 Sources of Growth The key sources of growth that Zanzibar needs to focus during the implementation of the strategy includes: investments in human capability and physical capital, increases in factor productivity, Private Sector Development (PSD), Domestic Trade and Investment (DTI), and FDI.

4.4.2 Broad-Based Growth and Equity In order to ensure broad based growth and equity the focus will be on the accessibility of productive assets for the poor. Also attention will be made to address geographic disparities by identifying economic potentials of the disadvantaged districts and supporting exploitation of these potentials and raising returns and productivity in the poorer districts. Equal and universal access to public services through the budgetary financing of social programmes will be applied. Support to community-based initiatives that focus the special needs of the vulnerable groups will be provided.

4.4.3 External Shocks and Disaster Management The first cluster addresses growth and reduction of income poverty. The thrust of the cluster is to ensure high economic growth that can withstand both external and man-made shocks.14

4.5 Social Services and Social Well-being

The second cluster addresses social services and well-being of the Zanzibar community. Improvement of the well-being of the peoples depends on the provision, affordability and accessibility to social services like education, information, health, water, HIV and AIDS treatment and prevention, and social protection programmes. For social services to be available both to the users and providers, the Government and her stakeholders have to generate enough revenue to invest in those services. On the other hand, improved peoples well-being ensures both effective participation in production processes and high productivity.

14 External shocks include adverse terms of trade and erratic commodity prices. Man-made shocks include epidemics, pest infestation, drought, floods, and fire.

45 4.6 Good Governance and National Unity

The third cluster is Good Governance and National Unity. The focus on governance centres on both financial and non-financial governance. It pays attention to rule of laws, public and personal security, and capacity of Government institutions, leadership ethics, and participation in decision- making, accountability, transparency and national unity. For economic growth and improvement of people’s wellbeing to happen good governance and national unity has to prevail. There must be effective, transparent and accountable use of resources in a fair and corruption free system. Stakeholders need to be well informed with policies, laws that are being implemented by the Government. The public access to information in ZSGRP is a catalyst for effective policy implementation, monitoring, evaluation and accountability. The non-state actors will also be expected to demonstrate accountability to the people.

4.7 Core Reforms

The ZSGRP implementation is supported by core reforms. These include financial and economic management, good governance, and institutional and human resource reforms. The other reforms include those introduced by URT namely, Public Expenditure Review (PER), Public Financial Management Reform Programme (PFMRP), and Joint Assistance Strategy for Tanzania (JAST). The achievements of outcomes in all the three clusters are being facilitated by the core reforms. The desired outcomes of growth depend, to a large extent, on the implementation of financial management reform. The reform points out a need to improve working relations between TRA and ZRB on revenue collection. It also emphasizes streamlining and improvement of Government financial accounting and reporting. These reforms institute culture of transparency, which is a critical ingredient to governance.

The reforms for economic management call for employment creation, introduction of non-traditional crops, improvement of infrastructure and provision of legal and regulatory framework. The interventions of reform aim at fostering growth and at the same time creating foundation for good governance. Governance reforms advocate for participatory democracy and call for political stability and tolerance. All reforms have effects on both economic growth and improvement of social wellbeing. Institutional reforms recognize the contribution of non-state actors in the development process. The non-state actors

46 compliment efforts of the Government in stimulating growth and improve service delivery to the communities. The reform of human resources on the other hand, aims at providing necessary skills and expertise needed for economic and social interventions. Thus, the achievement of desired outcomes in all the three clusters depends on the quality of human resources deployed in key interventions of the strategy.

4.8 Structure of ZSGRP and Key Definitions

The ZSGRP has three clusters, for each cluster there are broad outcomes, under which a set of goals are defined with an associated set of specific operational targets with timeframes. For each operational target, key interventions are listed. In each key intervention there are number of actors identified to take the lead in its implementation. . Definitions for these terms with examples are given in Table 4.1.

Table 4.1: Definitions of terms and examples

Term Examples Broad outcomes: Wider longer-term sectoral or national outcomes Zanzibar would like to realise as specified in national policies such as Vision 2020: for example.  Achieving peace, political stability, good governance, integrity, national unity and social cohesion. Goals Outcome aimed at achieving one of the broad outcomes. This does not necessarily need to have a timeframe and target, for example  Promotion of high class tourism Operational target Outcomes that have specific timeframes and target: for example.  Improved revenue collection from 12.5% of GDP (2005) to 18% of GDP (2010). Key Issues raised These are problems and challenges mentioned during the consultations which need to be addressed: for example.  Inadequate number of classrooms. Key Interventions Activities that different actors will do in order to address problems and challenges mentioned during consultations. These activities are also geared to achieve the intended operational outcome/ target: for example.  Institute reproductive health and HIV/AIDS prevention programmes in primary and secondary schools Actors These are Ministries, Department and Government Agencies. It also include Non State Actors (Civil Society Organizations, Private Sectors and Trade Unions) for example. Ministry of Agriculture

The ZSGRP specifically sees a possibility of different sectors and actors working together toward specific outcomes. This also came up in the course of the public consultation during the preparation of the ZSGRP.

47 CHAPTER V: THE STRATEGY

5.1 Introduction This Chapter explains the Strategy that has three clusters, namely; Growth and Reduction of Income Poverty; Social Services and Well-being; and Good Governance and National Unity. The three clusters reflect the concerns of stakeholders which were generated during consultation process. It also addresses the on going reforms which are being implemented by different MDAs and Non State Actors. The Strategy takes into account the commitments that URT and the Revolutionary Government of Zanzibar (RGoZ) have signed at global, regional and at national levels.

5.2 Cluster 1: Growth and Reduction of Income Poverty

Growth in national income only helps the poor if they share in the growth process. Social inequality, a usual correlate of poverty, dilutes the benefits of growth to the poor. In fact, inequality has a tendency to increase with growth unless specific measures are taken. Economic growth in itself does not automatically redress inequality and reduce poverty. This is not to say that growth is not necessary for poverty reduction; but it affirms that, unless specific measures are taken to reduce inequality, growth may have no or even regressive effects on the poor. Thus, growth is a necessary but not sufficient condition. The challenge therefore is to identify policies that increase growth while yielding tangible benefits to the poor, both men and women, in rural as well as urban areas.

In this regard, the first cluster of ZSGRP builds on the achievements of ZPRP and focuses on ensuring that growth is inclusive and benefits the poor and marginalized groups. In addition, in order for growth to have a significant impact on poverty reduction, it should be high, pro-poor and sustainable. The broad outcome for this cluster is to achieve and sustain pro-poor growth. To achieve this outcome three goals have to be achieved. The goals are outlined in the Box 1 below.

Box 1. Goals for the Broad Outcome – Cluster I  Create an enabling environment for growth  Promote sustainable pro-poor and broad-based growth  Reduce income poverty and attaining overall food security

48 5.2.1 Goal 1: Create an Enabling Environment for Growth In order to achieve the broad outcome of pro-poor and sustained growth, there is a need to create an enabling environment which will be the basis for the achievement of set targets and accompanying aspirations of all sections of society in an environmentally sound manner. The achievement of an enabling environment for growth is currently constrained by a number of challenges raised during the consultations. They include weak fiscal and monetary environment; weak public financial management systems, poor business infrastructure and related services, low levels of investments, HIV/AIDS pandemic and low human capacity.

To address these challenges a series of interventions will have to be made in order to achieve respective targets including a stable macro-economic environment, improved revenue generation, a more conducive environment for private sector development and external investment, improved access to factors of production, and development of infrastructure. Box 2 summarises the operational targets of goal 1.

Box 2. Operational Targets for Goal 1– Cluster I.  Stable Macroeconomic environment promoted.  Revenue collection increased from 13.8 percent of GDP (2005) to 18.5percent by (2010).  A conducive environment for private sector development with a focus on SME developed.  Improved access and utilization of medium and long term credit to productive sectors.  Quality of workforce improved and population growth rate reduced  Increased allocation of land rights  Increased access to affordable and sustainable energy by 2010.  An enabling environment for investment created  Sustainable and gender focused environmental management system developed  Constructed and rehabilitated all remaining roads (266 kilometres of trunk and feeder roads) by 2010.  Zanzibar International Airport Master Plan developed and implemented and Pemba airport services improved  Access and use of ICT facilities and services promoted.

Key interventions to address challenges and targets are outlined in Appendix 1. They include pursuing prudent fiscal and monetary policies, implementing recommendations of financial sector reforms, expansion of the revenue base, operationalization of Business Council and programme

49 of Business Environment Strengthening for Tanzania (BEST), finalizing and implementing SME policy, implementing population policy action plan, targeting HIV/AIDS workplace programmes and mainstreaming HIV/AIDS interventions in sectors and institutions and promoting participation of private and informal sectors in HIV/AIDS responses, creating a conducive legal environment for land ownership and allocation, implementing energy policy and reform, implementing strategy on the development of an integrated infrastructure , and developing and implementing Information Communication Technology (ITC) policy.

5.2.2 Goal 2: Promote Sustainable Pro-Poor and Broad Based Growth Despite positive economic growth of 5.6 percent (2005), poverty still remains a major development challenge affecting majority of people, particularly women and other vulnerable groups, in both urban and rural areas. The major challenge remains to be how the benefits of economic growth can reach the poor. In order to overcome this challenge, the Government aims at promoting increased and sustainable pro-poor and broad based growth in order to achieve poverty reduction objectives, as envisaged in the Zanzibar Development Vision 2020. These objectives will be achieved through improving agricultural production and productivity, improvement of tourism, infrastructure and services, creation of a favourable environment for external trade and access to micro-financial services. In order to achieve sustainable pro-poor growth, the agricultural sector has to grow significantly. This entails increasing budget allocation to the sector and initiating programmes that aim at increasing agricultural productivity and access to market and containing HIV/AIDS. In addition there will be a need to promote high-class tourism through improvement of tourism infrastructure and attractions and promoting linkages with the agricultural sector. If Zanzibar is to fully benefit from the competitive export trade, it must ensure that high quality goods are produced to meet export markets standards. In this respect, there is a need to develop the legal framework and strategic plan to implement Trade Policy and export strategy and develop domestic capacity to produce and supply high quality products and services. In addition, continued support will have to be provided for the development of the informal sector SMEs , undertake product diversification for export and carry out liberalization of clove marketing. From the consultations with various stakeholders, several issues were identified as critical for the promotion of sustainable pro-poor and broad based growth. These issues are related to challenges and constraints for the development of potential economic sub-sectors (agriculture, tourism and trade), availability and accessibility of micro-finance services and weak inter-sectoral linkages for

50 pro-poor and broad based growth. The operational targets for ensuring sustainable pro-poor and broad based growth are outlined in Box 3.

Box 3. Operational Targets for Goal 2– Cluster I.  Increased rate of economic growth from 5.6 percent (2005) to between 8% and 10% by 2010  Heritage sites preserved and maintained, while eco and cultural tourism developed.  Increased growth of agricultural sector from 2.4% (2005) to between 6 and 8 percent by 2010  Improved availability and accessibility of gender responsive microfinance services  Favourable external trade environment created  Increased high class tourist hotels and facilities

The strategic interventions that will be pursued so as to promote sustainable pro-poor and broad based growth are annexed. They include developing and implementing a focused Growth Strategy, implementing HIV/AIDS Strategic Plan, improving agriculture extension, supporting research services, promoting agro-processing and strengthening agricultural market intelligence and information system, implementing Soil Fertility Initiatives and Land Husbandry Strategy, encouraging crops diversification and intensification, developing and implementing cooperative policy and undertake cooperative reforms, promoting and preserving Stone Town cultural heritage sites and improving attractions of other historical sites and promoting and preserving tourist attraction areas, implementing tourism policy and its master plan, developing and implementing micro-finance policy and promoting establishment of micro-finance institutions, facilitating the access of women and people with disabilities to export markets, gradually liberalizing clove marketing and review functions of ZSTC as well as implementing Clove Development Strategy.

5.2.3 Goal 3: Reduce Income Poverty and Attain Overall Food Security Unemployment is a widespread and persistent challenge in Zanzibar, currently affecting 7percent of overall labour force population15. Some of the most critical concerns raised by stakeholders are the high level of unemployment in Zanzibar, especially amongst the youth. This situation has been linked to the low skills base and scarcity of affordable vocational and training centres, of which only two in Unguja and one in Pemba exist. The limited employment opportunities in both urban and rural areas also contribute to the unemployment situation in Zanzibar.

15 Source: HBS (2004/05) The unemployment rate of labour force includes persons unemployed but not seeking work.

51 Unemployment exacerbates the fragility of the livelihood profiles in Zanzibar, where households typically have a low and undiversified income and livelihood portfolio. Rural households suffer from this condition acutely, as they are often subjected to volatile agricultural conditions and have limited access to farms and off-farm incomes. The condition is more severe for low asset livelihood groups such as firewood collectors who have limited access to land and sea resources and clove labourers and pickers who depend on the clove market for most of their cash income.

It also follows that where unemployment is persistent and livelihoods are fragile, food insecurity also forms a challenge to the wellbeing. The food security status of households in Zanzibar is precarious, with many of the poorest households having an extremely low level of income flexibility that prevents them from coping with food and expenditure shocks. Moreover, the low productivity of the agriculture and fishery sectors in Zanzibar poses a challenge to the stability, availability and access to food in the Isles and the nutritional status of its residents. Whilst these are all symptoms of overall poverty, food and nutrition insecurity has proven to be a factor that deepens deprivation and lessens the ability of the poor to exit poverty and participate in economic activities In addition it contributes to the weakening condition of HIV/AIDS infected persons. In order to address the above issues, five operational targets have been developed as outlined in Box 4.

Box 4. Operational Targets for Goal 3– Cluster I.  Reduced overall unemployment rate from 7%in 2005 to 4% in 2010  Increased gender sensitive youth training and employment  Reduce population below basic needs poverty line from 49% (2005) to 25% (2010)  Reduce population below food poverty line from 18% (2005) to 12% (2010)  Decreased children with stunting from 23% (2005) to 12% (2010)

Some of the specific interventions for achieving these targets, as annexed, include strengthening the policy and information environment relating to employment, promoting youth employment and increasing gender balanced access to training and vocational education opportunities, diversifying of rural livelihoods by promoting farm and off-farm income linkages and opportunities, containing HIV/AIDS and substance abuse, fostering investments in the rural economy, developing policies and programmes that target those vulnerable to food insecurity, establishing an effective early warning and response mechanism for food insecurity.

52 5.3 Cluster 2: Social Services and Well-being

This cluster addresses the issues of human capability in terms of survival and access to social services. Improving social services and well-being is a key to poverty reduction. A healthy and educated population leads to increased productivity, better income distribution and a generally improved standard of living.

In spite of increasing number of schools, both in urban and rural areas, equitable access has not been achieved yet. Disparities in enrolment among districts are still wide and the number of disabled children enrolled at basic education level is very low. The number of students, particularly girls, attaining higher education is lower compared to the total population attending basic education. The reasons for this occurrence are: the access to higher education is extremely low, early marriages, dropouts, harassment and inadequate policy environment which is gender sensitive. There are other observations on education. First, students are inadequately prepared for employment and there is inadequate promotion of literacy among adult population, especially women in rural areas.

The consultations have shown that there have been an increasing numbers of dispensaries and related centres but, as a constraint, standards of services, mostly in the rural areas, are still very low. Among the disadvantaged groups such as poor men and women, children, the disabled, people with suffering from chronic illnesses and those under extreme poverty levels the situation is even worse. Drug availability and affordability, especially for poor men and women, is still not satisfactory. Those affected and living with HIV/AIDS and the vulnerable groups face difficulties in accessing good health care and services at different levels.

The health status of pregnant women, mothers and children is another area of MMR and CMR concern. The level of quality of reproductive health services, particularly in rural areas and among the most vulnerable groups, poor women and men, adolescents as well as youth, is still not satisfactory. On mental health, there is a lot of room for improvement of institutional and human resources management. In addition to these issues referral hospital is not well equipped.

The nutritional status of people, food availability and food affordability are the concern of many, particularly children, pregnant women, vulnerable groups and those living with HIV/AIDS. Like any other developing country, Zanzibar suffers from both protein energy malnutrition and

53 micronutrient malnutrition. Issues of access to and affordability of safe water, sanitation and environment are important for a better livelihood of the people, especially poor men and women. The current situation shows that accessibility to and affordability of safe water is still a challenge at policy and intervention level. This has a gender implication as it increases workload for women, withdrawal of girls from school and gender based harassment and violence. Planning water supply schemes, conserving their sources, maintaining good sanitation standards, proper management of solid waste, protection of the environment, housing schemes and human settlement plans are better done with due consideration of population issues, pro poor and gender equality.

For the old and vulnerable groups there must be access to essential services equal to the ordinary person. There must be some form of social protection and safety-nets for these groups. For the retirees, effort must be deployed to phase out gratuity backlog and speeding of timely issuance of retiring benefits.

5.3.1 Broad Outcome and Goals The social services and well-being broad outcome, goals, operational targets and cluster strategies were formulated from issues raised during the first and second round consultations, researches/studies and reviews of other relevant documents from MDAs. The broad outcome for this cluster is improved social well-being and access to quality social services with emphasis to the poor men and women and most vulnerable groups. Goals to achieve and sustained the broad outcome are summarised below

Box 5. Goals for the Broad Outcome – Cluster II.

 Ensure equitable access to demand driven quality education, which is gender responsive.  Improve health status including reproductive health, survival and well-being of children, women, men and vulnerable groups  Increase access to clean, safe and affordable water especially to poor men and women, and most vulnerable groups  Improve sanitation and sustainable environment  Provide adequate and sustainable human settlement  Improve food and nutrition security among the poorest, children and most vulnerable groups  Strengthen and expand social security and safety-nets for the disadvantaged and most vulnerable groups  Promote and preserve historical, cultural and natural heritage and sports for social and economic development

54 Seventeen operational targets have been designed to achieve the goals. These operational targets will be achieved by implementing specific interventions identified. The operational targets and strategies to achieve the above goals are as follows:

5.3.2 Goal 1: Ensure equitable access to demand driven quality education, which is gender responsive. In order to attain equitable access to quality education for both boys and girls, there is a need to reinforce existing efforts by providing necessary inputs in the education system. Very broadly this implies enhancement of capacity building at all levels, institutional reforms and aggressive advocacy to include the participation of private sector and communities. At the moment enrolment of pre-school education is still low and teacher quality is inadequate. Most of these schools are in urban areas denying access to rural children. Equally there is inequity of access to education for girls and children with special needs at all levels. Quality of education is still low being affected by inadequate numbers of qualified teachers, equipment, laboratory and library facilities. Furthermore, school leavers are not fully prepared for the world of work. Another challenge to equitable access is the prevalence of diseases, malnutrition, HIV/AIDS/STD, inadequate change of attitude regarding reproductive health, and gender based violence. These have negative affects on access to school and achievement.

Box 6. Operational Targets for Goal 1– Cluster II.

A. Early Childhood Care and Development.  Increased Gross Enrolment Rate for pre-school from 15.9% in 2005 to 50% in 2010  Increased Net Enrolment Rate from 77%in 2005 to 90% in 2010  Increased proportion of children with disabilities, enrolled, attend and completing school. B. Secondary Education  Increased transition rate at form two examinations from 47.6% in 2005 to 70% by 2010  Increased proportion of girls who join low and higher secondary education  Increased number of qualified secondary school teachers  Increased quality of secondary education and promote acquisition of knowledge  Increased proportion of orphans and vulnerable children and children with disabilities who join secondary education

C. Science and Technology

55  Enhanced teaching of science, mathematic and technology in schools  Information and Communications Technology  Expanded access to ICT for education development. F Non-Formal Education  Increased literacy rate from 75.8% in 2005 to 100% in 2010.  Increased literacy rate of women from 69.8% in 2005 to 100% in 2010 G Vocational Education and Training  Enhanced entrepreneurial skills among youth. H Tertiary Education  Increase proportion of graduates of tertiary education institutions I Quality education  Improved quality of education at all level J Institutional Reform  Improved efficiency in the delivery of educational services. K Cross Cutting Issues  Integrated cross cutting issue into education system. (Gender, environment, population, HIV/AIDS, employment, disaster preparedness).

The involvement of all stakeholders in the provision and funding of education at all levels is essential in order to attain equality of access to all groups and improvement of quality. Training of teachers and other players in the services of education must be enhanced. For the advancement of science, mathematics, technical and vocational education, there must a strategy that will provide incentive schemes to attract more teachers into these fields. To keep up pace with advancement of knowledge, plans have to be instituted in support of research in science, technology at all other levels of the Government. Appropriate curriculum at all levels, provision of laboratory facilities, equipment, textbooks and the introduction of alternative means of delivering education, including the use of ICT, are among the key interventions. Programmes to combat the spread of various diseases, including HIV/AIDS/STD, should be initiated to discourage early marriages and promote gender equality. In order to improve efficiency in the delivery of educational services, there must be a promotion of sector wide approach in planning and financing. Decentralising of school management and changing the role of central level bodies to facilitation, monitoring and evaluation will enhance equity of access and quality in education.

56 5.3.3 Goal 2. Improved health status including Reproductive Health, survival and well-being of children, women and vulnerable groups

For a society to take an active role in all aspects of a country’s development, a health well-being of all children, women and the vulnerable groups is essential. Currently infant, under -five and maternal mortality rates are still high. Malaria, which is the main cause of such incidences, is also high. There is a limited awareness on sexual and reproductive health facilities and no policy to address these issues. Similarly programmes for human resources development are not comprehensive enough to produce the quality of human resources demanded at different levels. Shortages of equipment and essential drugs further inhibits the advancement in the provision of health services.

Box 7. Operational Target for Goal 2– Cluster II.

A. Infant and Child Health.  Reduced infant mortality from 61/1000 (2005) to 57/1000 in 2010.  Reduced children (under five) mortality rate from 101/1000 in 2005 to 71/1000 by 2010. B. Maternal and Reproductive Health  Reduced Maternal Mortality from 377/100,000 in 1999 to 251/100,000 in 2010.  Increased percentage of births delivered in health facilities from 49% in 2005 to 60% in 2010. C. Communicable Diseases  Reduced HIV prevalence among 15-24 years pregnant women from 1% in 2005 to 0.5 % in 2010.  Reduced HIV and AIDS prevalence among women and men aged 15 – 35 years from 5.1percent in 2005 to 2.5% by 2010  Increased knowledge on HIV and AIDS transmission in the general population  Reduced HIV and AIDS stigma  Reduced incidence of malaria from 44.6% (2004) to 35% (2010)  Reduced TB incidence by 2010 D. Non Communicable Diseases (NCD)  Reduced prevalence of NCD E. Substance Abuse  Reduced prevalence of substance abuse among youth F. Human Resource Development  Human Resource and management health board and committee operational and effective

57 It is essential to increase immunization coverage for all antigens. Likewise programmes to strengthen and expand child survival, protection and development are required. There must be improvement of access to quality of maternal health services including antenatal care, emergency obstetric care, post abortion care, post natal care and newborn care. Reported malaria cases are still high, and the need to improve its management is essential. Strengthening and scaling-up of prevention and treatment of communicable and non-communicable diseases is another area of intervention. Increasing prevalence of substance abuse among youths calls for the design and implementation of harm reduction programs to address this problem. In this vein, strengthening capacity of the Chief Government Chemist is crucial.

Since HIV/AIDS is still a threat, efforts are needed to facilitate implementation of national HIV/AIDS policy and strategic plan. Attention to be given to women and those most at risk in the population. A substantial work has been done in dissemination of information on HIV/AIDS, yet advocacy and communication strategy must be strengthened particularly to combat the increasing trend of reported cases, stigma and discrimination of PLHA. There is a shortage of skilled personnel and professionals at all levels which calls for the health sector reform

5.3.4 Goal 3: Increase access to clean, safe and affordable water Water is essential commodity and its availability and accessibility must be guaranteed to all. Similarly water must be of good quality in terms of standards of safety, cleanliness and reliability.

 Increased access to clean, safe and sustainable water supply in urban areas from 75% in 2004/5 to 90%, in 201016.  Increased access to clean, safe and sustainable water supply in rural areas from 51% in 2004/5 to 65%, in 2010.

In order to address these issues and achieve earmarked operational targets, first and foremost an implementation of water policy and water sector reforms must start. All related legal and regulatory frameworks are to be put in place. These will strengthen management of schemes, (including exploitation of water resources and protection of catchments areas). Better management of water supply will also involve efficient rehabilitation and regular maintenance of infrastructure in both urban and rural areas. Water is a prerequisite for the sustainability of a well- being of a society; hence there will be efforts to strengthen public-private partnership in its

16 This data refers to access to clean and safe water within a radius of 400 meters for piped and protected water. The HBS refers to access to water within 1 kilometre radius and includes seasonal wells.

58 development, supply and financing. Henceforth, implementation of user fees will be expedited. Under this intervention plan, there will be an improvement of the system of water supply which is community managed. For long term water supply sustainability, there shall be a strengthening of human resources capacity in management, rehabilitation, regular maintenance of water supply infrastructure and the introduction of appropriate and affordable technology.

5.3.5 Goal 4: Improved sanitation and sustainable environment. Proper and well managed sanitation facilities are important for a sustained healthy society. Currently there is a limited access to sanitation facilities in both urban and rural areas. Weak management of delivery of sanitation services is endangering not only the health within the communities it is also a retardant to the creation of an enabling environment for the promotion of trade and investment. Industrial and medical waste is a hazardous environmental concern. Sanitation levels in industry, major businesses and medical establishments are not to the expectation.

Deforestation, environmental degradation, excessive exploitation of non – renewable energy sources further endangers the future livelihood of the many in the rural areas. For those communities whose main occupation is fishing and exploitation of other marine resources , destruction of oceans by the use of inappropriate fishing gear and disposal of wastes is a major concern to their livelihood.

 All schools and other public places have adequate sanitary facilities by 2010.  Increased proportion of households with access to basic sanitation from 66.8% in 2005 to 83% by 2010.  Increased provision and management of sewerage facilities.  Reduced environmental degradation.

All public places, for example, schools, hospitals, clinics and market places are to have 100 percent levels of sanitation standards acceptable for a sustainable management of solid and liquid wastes. Similarly in larger business areas, there must be policies to encourage the use of modern sewage and solid waste treatment methods which are environmental friendly. At the village level, there will be a promotion in the use of Ventilated Improved Pits (VIPs).

59 These interventions will be better addressed by enforcement of laws and regulations on the provision of sanitation facilities and environmental management. To increase public awareness, hygiene and environmental education will be promoted into water and sanitation delivery. Promotion of public-private partnership, CSO and communities will be enhanced in sanitation delivery, environmental and solid waste management.

5.3.6 Goal 5: Adequate and sustainable human settlements provided Land use plan is not enforced and there is an increase in unplanned human settlements with little concern on other uses. This is happening in both, rural and urban areas. Further more, there is a weak inter-institutional linkage and institutional coordination in implementing settlement plans. Due to inadequate human and financial capacity there are inadequate housing and settlement programmes.

Box 10. Operational targets for goal 5 – Cluster II.

 Improved management of urban and rural settlements  Increased number of women and men with decent shelter.

There shall be development and implementation of housing and urban development policy that will ensure an increased and improved access to adequate and affordable settlement with particular focus in rural areas and disadvantaged communities. All those concerned must see that there are improved institutional coordination activities in implementing settlement plan.

A comprehensive plan will involve the private and non profit sector, community based organization and other actors to provide adequate shelters for people, particularly those belonging to disadvantaged groups. Establishment of credit facilities for human settlement will further assist the provision of decent housing for both men and women.

5.3.8 Goal 6: Improve food and nutrition security among the poorest, pregnant women, children and most vulnerable groups The staple food in Zanzibar is rice, for which its domestic production is inadequate to meet daily needs. Poultry products, meat, fish, legumes and green vegetables are main sources of protein and vitamin. However, availability and affordability is a major concern among women (particularly pregnant women), children and the most vulnerable groups. Within the society, there is a lack of

60 awareness in nutritional issues/diets. Nutritional habits do not include the consideration of balanced diet and/or nutritional requirements for special cases.

For those suffering from long illnesses, those affected with HIV/AIDS, with diseases such as malaria and diarrhoea, recovering is slow due to insufficient dietary standards, poor nutrition levels and insecurity to food accessibility. Box 11. Operational Targets for goal 6– Cluster II.

 Reduced prevalence of micro-nutrient deficiency among under five children from .. .in 2005 percent to …% by ….% 2010…….  Reduced prevalence of stunting among under five children from 23% in 2005 to 10%by 2010  Reduced prevalence of wasting among under five children from 6.1% in 2005 to 2%by 2010.  Increased access to food support and nutritional supplements for PLHA and the most vulnerable pregnant women.  Reduced level of malnutrition among under five children and pregnant women

Building awareness and promoting sound feeding and weaning practices for infants and under five children should be a major concern. Health and nutrition education to the communities and strengthening IMCI programmes should be enhanced. Likewise those responsible should create and build the capacity of Government and private sector/CSO in addressing food security and nutrition problems particularly for the most vulnerable including pregnant women, the terminally ill PLHAs and the community at large.

5.3.8 Goal 7: Strengthening and expanding social security and safety nets for the disadvantaged and most vulnerable population groups

Currently there are inadequate interventions to support the disadvantaged and most vulnerable groups. There is a poor quality of life among them. For those retiring from public services, gratuities are not forthcoming on timely basis thus exposing them to hardships. In addition to this issue, there is a large backlog of gratuity payment to retirees. The social security schemes have little coverage. They do not include the self employed and casual labourers. Since contribution to the Zanzibar Social Security Fund (ZSSF) is less than 10percent of the working population, it is evident that a large sector of the community does not have any form of safety-nets.

61 Box 12. Operational Targets for Goal 7– Cluster II.

Safety nets  Strengthened and expanded welfare support to the most vulnerable  Strengthened capacity of families and communities to effectively support the most vulnerable Social security  Reduced backlog and ensure prompt payment of gratuity for retirees  Expanded coverage of social security schemes

Efforts will be deployed that will lead to the establishment and implementation of programmes to enhance economic empowerment of the disadvantaged and most vulnerable groups. This is a long term plan. For the gratuity back log, the Government will clear the outstanding and pay pensioners timely. The Government will strengthen networking with CSOs dealing with matters of disadvantaged and most vulnerable groups. Also the Government will implement a social security policy.

5.3.9 Goal: 8 Promote and preserve historical, cultural and natural heritage and sports for social and economic development. A full exploitation of natural and cultural heritage is lacking. Likewise Zanzibar is lagging behind in sports. There is a shortage of resources, in terms of human capacity, equipment and promotional strategy. The use of Kiswahili is spreading to other parts of Africa and is increasingly taking position at the international scenes. All these areas have potential to advance the economy and the culture of the country.

 Policies, strategies and legal framework for culture and sports development in place and operational by 2010  Cultural and historical sites promoted and preserved by 2010  Improved sports gears, facilities and training by 2010  Participated effectively in regional and international tournaments by 2010  Kiswahili language promoted at local and international level by 2010

In order to achieve the above mentioned operational targets, efforts are being made to develop and implement policies and institute legal framework for restoration and exploitation of natural

62 heritage sites, cultural activities and antiquities. Traditional cultural activities and historical sites are to be promoted to enhance the development of sustainable eco-tourism.

Sports and music have an important place in the community and hence its promotion in terms of capacity building, provision of essential gears, involving Private Sector/CSO and all groups will further improve performance and increase economic significance. To ensure ownership, plans will be made to promote and protect intellectual property rights.

The national media, the cultural and national heritage institutions are still not operating with full utilization of ICT. In consideration of their significance to conservation and dissemination of information and effective promotion activities, there shall be developed a system of training and retraining of staff on mass media, culture and sports in the use of ICT.

Activities of the media and culture can be extended to encompass the participation of disadvantaged groups and can be accommodated in performances. The power of the media and cultural performances can be used to advocate combating the spread of AIDS and other NCDs.

5.4 Cluster 3: Good Governance and National Unity

Good Governance is a broad concept that captures issues of promotion of the rule of law and development of democratic and participatory government processes. The major principles of good governance include transparency, accountability and predictability of government actors and actions.

Governance is the system of values, policies and institutions by which a society manages its economic, political and social affairs through interactions within and among the state, civil society and private sector. It is the way a society organizes itself to make and implement decisions achieving mutual understanding, agreement and action. It comprises the mechanisms and processes for citizens and groups to articulate their interests, mediate their differences and exercise their legal rights and obligations. It is the rules, institutions and practices that set limits and provide incentives for individuals, organizations and firms. Governance, including its social, political and economic dimensions, operates at every level of human enterprise.

63 ZPRP considered Good Governance to be among the critical areas of extensive consultations with stakeholders who raised a number of issues for intervention. Broad outcome for this cluster is to ensure a society governed by the rule of law and a Government that is predictable, transparent and accountable. To achieve the broad outcome, box 13 outlines goals that have been designed to be achieved.

Box 14. Goals for the Broad Outcome – Cluster III.

 Ensure inclusiveness in the governance and in the development process  Equitable allocation of public resources and improved service delivery and civil service reform  Respect for the Rule of Law and Access to Justice  Improve public safety and security  Increase the capacity of Government Institutions and actors  Combat corruption and its manifestations and strengthen leadership ethics  Strengthen Legal framework to support economic growth  Strengthen the institutions of oversight and accountability, including improving accessing to information  Provision of timely and reliable data for monitoring and evaluating Government activities and governance initiatives  Inculcate good governance practices at all levels  Promote and observe human rights

5.4.1 Goal 1: Ensure inclusiveness in the governance and in the development process To achieve goal one, there are seven operational targets as indicated in the box below. Consultations with stakeholders’ revealed impelling need for people to participate more fully in the processes that affect them, ensures democracy and actively engage people at the grass root level in policy making and service delivery.

Box 15. Operational Targets for Goal 1– Cluster III.

 Enhanced decentralization functions at the District level  Enhanced Public Private Partnership  National heritage policy developed

The interventions to meet this goal are specified in the appendix and they include: developing and implementing a decentralization strategy, strengthening the consultative process in law making and revision, reviewing and implementing local government reforms, implement affirmative

64 action programmes for hiring and promotion in the civil service, and revise laws and policies to mandate inclusion of representatives from vulnerable groups in decision making bodies.

5.4.2 Goal 2: Equitable allocation of public resources and improved service delivery and civil service reform Six operational targets are set for goal 2 as indicated in the box below. The significant challenges in service delivery as raised during consultations with stakeholders include inadequate resource allocation for public service provision, inadequate coordination in policy formulation and implementation, and inadequate human resource management and inadequate access to basic services by vulnerable groups.

Box16. : Operational target for Goal 2– Cluster III.

 Enhanced services delivery at local level

The interventions to achieve this goal include developing new mechanisms for revenue collection between regions and all level of Government, adhere to and ensure pro-poor and pro-gender budget implementation, enhance and implement programme for civil service reform, and develop mechanism to identify and remove barriers to accessing services to vulnerable groups.

5.4.3 Goal 3: Respect for the rule of law and access to justice Operational targets for this goal are indicated in the Box 16. Issues raised during consultation were ineffectiveness of Law Reform Commission, lack of consolidation of amended laws, ignorance of the rule of law and limited access to legal services by vulnerable groups and poor people. Significant reforms have been made to the institutions of justice in Zanzibar. More need to be done to ensure and improve public confidence in the administration of justice.

Box 17. Operational Targets for Goal 3 – Cluster III.

 Enhanced working environment and capacity of the Judiciary in Zanzibar  Enhanced working environment and capacity of the Law Enforcement Agencies in Zanzibar  Government printing capacity strengthened

The interventions identified are directed at ensuring that laws reflect the realities of a developing Zanzibar, are understood and are properly enforced and applied. The interventions include

65 strengthening the independent office of the DPP, improving court performance and administration facilities; improving law making and revision, including the development of an effective law review commission; improving legal literacy among members of the public, promoting religious, cultural and political tolerance, improving the printing and distribution of legislation, including regulations, establishing a system of legal aid, strengthen the Attorney General’s Chamber, the Office of the Mufti and Commission for WAKF and Trust Property, etc.

5.4.4 Goal 4: Improve public safety and security There is a clear desire to see a system of governance that is able to anticipate and respond effectively to threats to public safety and security. Development of Zanzibar’s potential as a tourist destination and desirable place to invest and do business, depends to a large extent on the degree to which Zanzibar is able to maintain a reputation as a safe, peaceful and stable place to visit, live and do business. There are three operational targets for this goal.

 Peace and tranquillity enhanced in Zanzibar  Improved Disaster Management and early warning system.  Enhanced Consumer protection measures

The interventions set to address this goal include developing and implementing an effective anti- smuggling campaign (that will reduce the flow of illicit drugs and small arms to the islands), modernizing prison system and facilities, adopt a rehabilitative philosophy and develop community based sanctions, implement a strategy for national crime prevention , improving police response and investigative capacity, supporting and strengthening the Disaster Management Unit and developing an early warning system,

5.4.5 Goal 5: Increase of the capacity of Government Institutions and actors Consultations with stakeholders indicated significant capacity constraints at all levels. There are insufficient resources in MDA to carry out day to day operations let alone for implementing the broad scale reforms envisioned. Buildings and equipment are in poor repair and are often ill suited for the functions intended. Capacity constraints were expressed to limit the effectiveness of non-state actors as well. Three operational targets for this goal were identified.

66 Box 19. Operational Targets for Goal 5 – Cluster III.

 Strengthened Government institutions and actors  Strengthened central ministries coordination capacity  Mainstreamed HIV/AIDS in policies and programmes

In order for Zanzibar to improve in these areas significant capacity deficits must be remedied. This can be achieved through interventions such as upgrading existing physical structures, building new ones where necessary and modernize office equipment and procedures; reorganization of MDA to improve operational efficiency and reduce the duplication of work, promoting public-private partnership in provision of services, and strengthen capacity of Chief Minister’s Office to Coordinate Government activities.

5.4.6 Goal 6: Combat corruption and its manifestation and strengthen leadership ethics The consultations revealed concerns about the level of corruption in government and private institutions. The existence of corruption creates barriers to access of basic services like health service. Corruption in the justice system was identified as a particular concern. The existence of corrupt practices undermines public confidence in the administration, the operation of the rule of law and creates real barriers to accessing justice services. Finally corruption in government operations siphons off limited resources available for development activities, results in unequal enforcement of Government policies and laws, and can add unnecessary complexity to regulatory processes. A reduction in corruption is necessary to the development of a transparent and accountable system of Government. Operational targets for this goal are indicated in the box below.

 Enhanced fairness in the society

The following interventions have been identified as central to achieving this goal: expediting enactment of the anticorruption and leadership code legislation, enforcing the Public Procurement and Disposal of Public Assets Act, developing and implementing anti-corruption strategies and codes of ethics for police, prison staff, the judiciary, legal counsel prosecutors and revenue collectors, and strengthen the Office of Controller and Auditor General.

67 5.4.7 Goal 7: Strengthen legal framework to support economic growth Zanzibar needs to review its laws, legal processes and procedures to ensure a relevant, transparent and responsive system that protects interests of Zanzibar while providing an environment conducive to responsive economic development by the private sector. Eight operational targets for this goal are identified as indicated below.

Box 21. Operational Target for Goal 7 – Cluster III.

 Reviewed Commercial laws, regulations, Environmental policy and legislative.

In order to achieve this goal, interventions have been identified. They include reviewing and updating commercial and law of contract, banking law and laws of bankruptcy; reviewing and improving regulatory framework, establishing and operationalizing commercial court, enforce property rights, clarify roles and responsibilities of various levels of government in regard to revenue collection and service provision, to ensure needed services are provided to business and community

5.4.8 Goal 8: Strengthen the institutions of oversight and accountability, including improving accessing to information Government operations should be transparent and Government officials must be held accountable. Separate and independent oversight mechanisms/institutions should be promoted. A key aspect of good governance is transparency. A cornerstone of transparency is access to information. People need to know the information that Government bases its decisions upon. People need to know how Government functions, how it allocates resources, how it sets and manages budgets, what the laws are and how they are enforced, what their rights are, what they should expect from Government Departments and services, who is responsible for what and how they can complain or seek redress for wrongs done. Much information is currently made available through radio and print media. Existing means of disseminating information are inadequate as revealed during consultations. Operational targets for this goal are indicated below:

 Enhanced accountability and transparency  Enhanced Public awareness and information sharing

68 Key interventions identified include supporting the development of reliable data collection and analysis mechanism to enable fact based analysis and decision making, improving capacity of non-state actors to effectively implement, monitor, evaluate Government policies and strategies. Other interventions are implementing information policy, developing and implementing Freedom of Information Act, developing and implementing a national ICT policy, establishing and strengthening Government web site, reviewing Zanzibar Broadcasting Act of 1997.

5.4.9 Goal 9: Provision of timely and reliable data for monitoring and evaluating Government activities and governance initiatives During consultations lack of reliable, fact-based analysis of government performance in some areas, particularly with respect to the operation of the justice system and Government institutions in general were pointed out. The conduct of surveys like the Household Budget Survey (HBS) and the current move to centralize statistical services in the office of the Chief Government Statistician are positive steps towards improving this situation. These strategies are necessary to cement these gains and provide a platform upon which to achieve this important goal. Operational targets to address this goal are as stated in the Box 23 below:.

 Improved Monitoring and evaluation of governance activities.

The key interventions to the goal include developing a Governance Monitoring and Evaluation Framework, supporting and strengthening the office of Chief Government Statistician, establishing and strengthening Information, Education and Communications (IEC) at all levels.

5.4.10 Goal 10: Inculcate good governance practices at all levels During the consultations, it was proposed that good governance must be at the centre of development policy. The link between these desires and good governance is not apparent to the rural communities. An effort must be made to engage all the peoples of Zanzibar in understanding how important good governance is in improving their lives and their roles and responsibilities. Good governance practices must become the rule, not the

69 exception. The goal of achieving good governance must underlie Government actions, decisions and policies of Government and non-state actors.

 Strengthened leadership and commitment to good governance at all levels

The proposed interventions include reviewing and updating Good Governance Strategic Plan, developing Good Governance Policy, raising awareness of the principles of good governance, engaging media awareness and to promote good governance for Government and NSAs.

5.4.11 Goal 11: Promote and observe human rights There are some allegations of Human Rights abuses in Zanzibar. The mechanisms for responding when violations do occur are inadequate. During the consultation process concerns were expressed that people continue to experience discrimination on the basis of gender, age, HIV/AIDS status, political affiliation, and economic status. Three operational targets for this goal are indicated in box 25 below.

 Enhanced Human rights.  Enhanced productive and decent work/employment for all.  Enhanced fair treatment for all

Some key interventions to address this issue include: establishment of Human Rights Commission in Zanzibar, provision of legal advocacy and legal aid services to those whose rights have been violated, and provision of training on human rights to law students, lawyers, judges, other legal professionals, police and special departments. Other interventions are to institute laws to address issues of HIV and AIDS, stigma and discrimination of People Living With HIV and Aids (PLWA) and orphans in communities and workplaces and to improve justice system capacity to deal with sensitive cases involving violence against women, children and other vulnerable groups.

70 CHAPTER VI: IMPLEMENTATION ARRANGEMENT

6.1 Introduction

This chapter explains the implementation arrangements of MKUZA in the context of: (i) cluster and outcome approach; (ii) harmonized and aligned key national processes namely: policy and planning, Public Expenditure Review and Budgeting, monitoring and evaluation; (iii) Joint Assistance Strategy; (iv) review of on going core reforms and envisaged new reforms whenever necessary in each cluster and across clusters; and (v) need for capacity development at all levels of government and key non-state actors.

Capacity development is the key driver for successful implementation of MKUZA. The lead and convening actors for each cluster will be identified through the Public Expenditure Review process, which is linked to budgeting and implementation. The outcome/cluster based PER process will be the forum for promoting dialogue and cross-sectoral linkages among the planning and budget departments of sectoral ministries. The process will allow the alignment of sector budgets, MTEFs and MKUZA operational targets and outcomes.

6.2 Cluster and Outcome Approach

The new cluster-based and outcome approach adopted by MKUZA presents a major shift from its predecessor ZPRP. Its implementation requires close collaboration of sectors, MDAs and non- state actors working under each cluster. The collaboration mechanism is an opportunity to strengthen linkages and maximize synergies in implementation process, which will ultimately reduce unnecessary duplications, wastage of resources and reduction of transaction costs. The focus will be on priority “results/outcomes” rather than priority “sector” because the bottom line is that people served by government expect results in form of goods and services delivered.

6.2.1 Cluster I: Growth and Reduction of Income Poverty All actors involved in the direct production sectors; tourism, trade, agriculture and infrastructure will collaborate through stakeholders’ dialogue in planning, budgeting and implementation of activities, which lead to achievement of outcomes articulated under the cluster. The stakeholders involved are included as actors in the matrix of this document. The detailed milestones for

71 implementing this cluster will be articulated in the growth strategy, which is anchored on the growth cluster of MKUZA. The cross-cutting themes namely: food security, HIV and AIDS, population, environment and gender will also be mainstreamed in the growth strategy.

6.2.2 Cluster II: Social Services and Well-being Actors involved in provision of social services will collaborate through stakeholders dialogue in planning, budgeting and implementation of activities, which lead to achievement of outcomes articulated under the cluster. The detailed milestones for implementing this cluster will be guided by the current and envisaged reforms in sectors of education, health, water and cross-cutting themes namely: population, food security, HIV and AIDS, environment and gender.

6.2.3 Cluster III: Good governance and National unity Governance issues cut across government structures, legislative bodies and judicial system. The implementation of interventions under this cluster has a bearing on the other clusters. It is important to continue fostering autonomy and strengthening capacity of the major governance organs. Already the governance reforms are underway. Reforms in Political system, business environment, public expenditure management, public service, local government, etc, will make a critical contribution to the success of MKUZA. The key actors are required to collaborate and scale up the efforts to implement the envisaged interventions articulated under this cluster.

6.3 Roles and Responsibilities of Key Actors

This section discusses only the roles of Key stakeholders and is not an exhaustive list. The House of Representatives will continue to oversee government business. However, the capacity of the representatives will be strengthened through imparting skills, training and raising awareness on critical development issues. The House of Representatives as an institution will be strengthened through provision of new working tools such as ICT, keeping regulations up to date, etc.

The MDAs will continue to play a lead role in policy formulation, management of public resource, implementation and monitoring of progress made. However, in order to improve performance of MDAs, there is a need to increase participation of non-state actors in policy discussions, budget processes, implementation and monitoring. Also, the MDAs staff requires re- tooling to improve their capacity. The government is committed to improve these processes to enable increased participation of stakeholders and promote transparency and accountability of

72 MDAs to the citizens they serve. The cluster approach will be used as a preferred modality for dialogue.

The private sector will continue to lead the growth (wealth creation) process. It will work closely with the government through the established dialogue processes. More specific the public-private sector partnership will be scaled up through the established Business Council and Chamber of Commerce. Appropriate mechanisms to foster participation by the growing number of SMEs will be explored. The growth strategy under NSGRP will provide a road map for further dialogue and implementation between the public and private sectors. The private sector will provide its views on business environment (regulations, procedures, tax and financial sector, etc). It will also increase its participation in provision of social and economic services and abide to the best practices of corporate responsibilities. The private sector expects further support from government for its development and expansion. The government will create enabling business environment for the private sector to thrive (profit making, retained earnings after paying taxes) and contribute significantly to the wealth creation process. Also, government-private sector partnership will enable the private sector to seek support from development partners to provide a link with private businesses in their home countries.

The civil society organizations, which include the Faith-based Organizations (FBOs) and Community-Based Organizations (CBOs) will continue to participate in policy and planning, budget discussions, implementation and monitoring processes. The CSOs contribution is valuable in shaping policy, public sector interventions and implementation of activities to achieve MKUZA targets. More space and enabling environment will be created for CSOs to scale up their contribution to national development. The government-CSOs partnership will be strengthened and nurtured through capacity development. The capacity of CSOs will be improved to enable them to fully engage in development process.

Development partners are expected to continue to support national efforts for growth and reduction of poverty. The expected support will be in form of financial resources and demand- driven technical assistance. The support on technical assistance will focus on building local capacity to manage the development process. The participation of development partners will follow the JAS principles and MKUZA clusters. The national processes for dialogue are open to development partners to participate.

73 6.4 Harmonized and Aligned Key National Processes: Policy and Planning, Public Expenditure Review and Budgeting, Monitoring and Evaluation

The government will work towards internal alignment of the budget process and systems to MKUZA. Effective implementation of MKUZA depends to the extent, which the resource allocation will be aligned to priority interventions. New innovative systems of resource allocation will be sought and put in place to facilitate resource allocation, tracking and monitoring and reporting. The current monitoring system will also be reviewed and aligned to MKUZA and Public Expenditure Review process. A document that explains the details of the alignment and links among the key processes will be developed before 2007/08 budget to guide the implementers in government. Including the mechanisms for coordinating the planning and implementation of the crosscutting issues such of population, food security, HIV and AIDS, environment and gender.

In addition, the government of Zanzibar and URT will work closely to align policy and planning processes, budgeting systems and monitoring systems. Already, MKUZA is aligned with MKUKUTA in terms of approach and time framework i.e. 2010. Other processes to be aligned include dialogue of Public Expenditure Review, MKUZA monitoring and evaluation system and core reforms.

6.5 Principles of the Joint Assistance Strategy

The JAS is a new guiding framework for the government and development partners in managing and enhancing Aid effectiveness for development. The JAS implementation calls for further harmonization and alignment of development processes between Zanzibar and Mainland. Zanzibar and the development partners will also work closely to align Aid and national priorities. The Government of Zanzibar will work closely with URT to ensure that processes are harmonized; foreign resources are mobilized and properly allocated to the two parts of the Union. The government will strengthen its office in Dar es Salaam and MOFEA to be able to engage effectively with development partners and URT in implementing the JAS.

74 6.6. Review of Ongoing Core Reforms and Envisaged New Reforms

Achievement of MKUZA outcomes and targets require a “change” in the way government and other key actors conduct their business. Business as usual will not enable the government and other key actors to deliver the required services to the Zanzibaris. In recognition of this reality, the government is committed to continue to implement on going reforms, and identify new reforms needed to fast track the implementation of MKUZA. In order to undertake reforms the government will engage with URT and development partners to ensure that some of the reforms, which have been implemented in Mainland and they are relevant to Zanzibar are rolled-out to Zanzibar. Also, the government would like to appeal for increased support from development partners in implementing on going reforms and any new reforms, which will be designed in the future.

6.7. Structure

The MoFEA will be responsible for overall coordination. In keeping with the principles of a cluster and outcome approach, harmonization and alignment of policy, planning, and expenditure review and budgeting, monitoring and evaluation the current process of implementation (PER review) and monitoring of MKUZA needs to be reviewed. The PER review process will the basis for consultative reviews of budgets and priority interventions by MDAs based on MKUZA outcome clusters. MKUZA represents a multi-sectoral/outcome approach and a cluster based PER process will provide the means for sectors to collaborate in implementation by harmonizing and aligning the allocation of resources and analysis of progress towards MKUZA targets and outcomes.

Membership of each Cluster Working Group, including the selection of lead sectors will be based on contributions to each cluster and would be finalized following a review of the entire implementation and MKUZA Monitoring System to align with the MKUZA outcome based approach. Participation by CSOs and Non State Actors in the budgeting, implementation and review process will be promoted as will the involvement of communities (local level actors).

75 Outputs of the PER review process would feed into the comprehensive MKUZA Monitoring System. In turn, the results of the MKUZA Monitoring System that includes analysis and recommendations for improved effectiveness and efficiency of development interventions will feed into the work of the PER working groups. The figure below is linked to the illustration in the M&E chapter.

Figure: Implementation Arrangements

STAKEHOLDER’S FORUM MKUZA Monitoring System

Poverty Social Well Being PER Governance PER Cluster Cluster PER Cluster Working Group Working Group Working Group

MDAs Non State Private MDAs Non State Private MDAs Non State Private Actors sector Actors sector Actors sector

76 CHAPTER VII: COORDINATION, MONITORING AND EVALUATION

7.1 Introduction

This chapter highlights the main issues concerning ZSGRP coordination as well as Monitoring and Evaluation (M&E). Coordination between the implementation of ZSGRP and the budget process, which involve MDAs and various stakeholders, is important for the achievement of ZSGRP. The MKUZA Monitoring System (MMS) will enable the Government and other stakeholders to measure inputs, intermediate outputs, broad outcomes and impact at each relevant level of implementation. The MMS, its structure, membership and Terms of Reference will be elaborated in a separate document.

7.2 The Coordination

The overall coordination of ZSGRP is carried out by the Secretariat, which is chaired by the Deputy Principal Secretary responsible for planning in MoFEA. The Coordinator works closely with the Technical Working Groups (TWGs) of the MMS as well as the thematic PER Working Groups. The Budget Department, the MDAs and the Secretariat will work jointly to ensure that their MDAs annual plans and MTEF are in conformity with the ZSGRP operational targets.

7.3 Monitoring and Evaluation of the ZSGRP

The ZSGRP monitoring system is managed by a Secretariat and four TWGs. Members to the TWGs come from all Ministries, Departments and Agencies, academic institutions, civil society, DP and the private sector. Indicators for monitoring the progress of ZSGRP are to be developed. The indicators will include core indicators for each cluster as well as additional sector specific indicators provided by other stakeholders. The Participatory Service Delivery Assessment (PSDA) is adopted in the ZSGRP as a feedback mechanism from the beneficiaries of the services to the service providers. In a bid to accommodate the voices of the poor in the implementation of the ZSGRP, PSDA will be carried out annually to evaluate service delivery. The previous PMS TWGs included: (i) The Census, Surveys, Routine Data and Community Based Management Information System TWG. (ii) The PER/MTEF and Stakeholder Forum Technical Working Group.

77 (iii) The Research, Analysis and Advisory TWG (RAATWG). (iv) The Information Education and Communication TWG.

7.4. Monitoring at Various Levels

7.4.1 District Level At the District level, the District Administrative Office is the Secretariat to the District ZSGRP team, which include the District Planning Committee. The District Planning Committee will implement its plan and M&E activities as part of the ZSGRP. These activities will need inputs, outputs and outcomes, which should be monitored and evaluated. The M&E system at this level will be manned by the District Administrative Office and later feed to the Ministry of Regional Administration and Special Departments. At this level, the District will have its indicators relevant to its development targets and activities in addition to those prepared for the three clusters at the National level. The other members are the Members of the House of Representatives, MPs and Councilors in the District.

7.4.2. The National Level At the national policy level there are IMTC and the Cabinet. The Principal Secretaries where the TWG are housed as well as the Principal Secretary of MOFEA where the Secretariat is housed are the links between ZSGRP monitoring and the IMTC. The IMTC members are all the Principal Secretaries of the Ministries. The Terms of Reference for this committee is to develop appropriate policies based on the findings of the ZSGRP M&E and inform the Cabinet on the progress of the ZSGRP. The chairperson is the Chief Secretary.

7.4.3 The Cabinet The Cabinet Ministers receive the feedback from the Chief Secretary on reports of ZSGRP issues in the cabinet for appropriate ministerial policy decisions. Here the Chairperson is the President of Zanzibar and Chairman of Revolutionary Council.

7.5 Sources of Information

The decision-making and planning levels in RGOZ are at the national, MDA, District, Shehia, NGO, private sector and community. At the national level the sources of information include the

78 surveys and censuses managed by the OCGS. The data produced is usually at national level and disaggregated to sub-national levels, by gender, rural/urban and so on. At the MDA the sources of data are the surveys and censuses from the OCGS disaggregated to that level, the official statistics collected by these institutions as part of their routine work (routine data) as well as their annual plans and reports, which are reported annually or bi-annual. At districts, the sources of data are the surveys and censuses from the OCGS disaggregated to that level, Community Based Management Information System (CBMIS) and district routine data systems. Likewise at the Shehia, the data sources include the above together with the Shehia register.

7.6 Key Outputs of the ZSGRP Monitoring System

The expected key outputs from the ZSGRP M&E include the sector expenditure reviews based on the three clusters, ZSGRP Annual Implementation Reports where trends and results are detailed and discussed and PSDA reports. PSDA is being institutionalized in the ZSGRP and sectors will be reviewed annually. The results will aid the sectors to be better providers of services that are really needed by the people.

7.7 Challenges

The challenges include revising institutional framework and membership of the TWG so that each ministry is represented in each TWG. The revival of Administrative and Routine Data System should be a priority as well as the strengthening of the CBMIS that are in existence, (Village Register at the Shehia level). MDA should strengthen their Management Information Systems (MIS). There is a need for second level analysis so that the data already collected should provide pointers to policy and decision makers. To make this possible, capacity building is needed at the MDAs, universities and at the research institutions. The availability of both the 2002 Census and the 2004/05 HBS up to the district level necessitates the use of both surveys to produce a poverty map for Zanzibar as a whole and Poverty Profiles at district levels. Also the availability of the 2004/05 HBS should enable the MOFEA to adopt the use of the poverty situation to allocate resources during budgeting.

79 Tanzania Socio Economic Database (TSED) has been adopted as the standard repository of the MMS data. Dataset from TSED are to be used by a wider range of stakeholders for planning and policy formulation. The dataset needs to be updated continuously whenever new data and information are available.

The MDAs and Districts should produce annual reports that show performance appraisals using indicators agreed upon. To be able to do so, the Management Information System (MIS) in each MDA as well as that at the district level must be strengthened. The MDAs and Districts should develop a close collaboration with the OCGS bearing in mind the Statistical Act No. 9 of 1999. This collaboration will avoid having different levels of detail of data obtained for the purpose of monitoring within and between sectors and to get rid of the problem of inconsistency in indicators reported by the various sectors.

80 CHAPTER VIII: RESOURCE MOBILIZATION FOR FINANCING OF ZSGRP

8.1 Introduction

The financing framework for ZSGRP is guided by Zanzibar’s Vision 2020 on increasing domestic financial resource base to support the three clusters namely, Growth and Reduction of Income Poverty, Social Services and Well-being, and Good Governance and National Unity in order to enhance employment creation, boost economic sectors and support other development programmes for poverty reduction and improvement of peoples’ welfare. To support domestic resource base requires improvements in economic development, sound financial practices and capacity to mobilize domestic resources, control of expenditures and sound and efficient management of the budget.

Financing activities of ZSGRP and sustaining the economic viability requires innovative investment programmes that will generate funds to support development activities of the central and local governments. In this regard, it is essential that effective and strong partnership between the public and private sectors and other non state organisation is developed and promoted.

8.2 Review of ZPRP Financing Framework

The financing of ZPRP was based on the strategic priority sectors of basic education and basic health, water, roads, agriculture, good governance and HIV/AIDS. Sources of finance for implementation of ZPRP were hinged on sustaining macroeconomic stability and support to private sector and community-based initiatives in the provision of essential services. Estimated financial requirements were updated annually to factor in full costing of priority activities done as part of the PER process. Specifically, the resource envelop projections considered 2001/2002 as the baseline scenario and factored in tax issues especially improving tax collection and widening the tax base, developments in the world economy and expectations about external resources. Efficiency of resource use was assumed. The shortcomings of the financing of ZPRP included inadequate coordinated strategies for resource mobilisation as well as over reliance on external resources when the financing was assumed to be mainly from domestic sources.

81 8.3. Resources for ZSGRP

The focus of ZSGRP is on promoting growth and reduction of poverty. The strategy depends on the contribution of all sectors in terms of collaboration, linkages and synergies in order to achieve the desired outcomes. Developing a resource allocation framework that supports such a structure poses quite a challenge. The financing framework for ZSGRP is guided by the following assumptions:

i. Real GDP growth rate of 8-10 percent per annum over the period of the Strategy reflecting a growth performance achieved over the last five years, supported by growth in most major sectors of the economy ii. Inflation rate of 5-6 percent in the medium term reflecting such a rate in the Mainland and neighbouring countries iii. A tax to GDP ratio of (tax effort) of 18.5 percent per annum iv. Enhanced Public Private partnerships v. Continued support from development partners

In the medium term the Government will strive to enhance domestic revenue collection and allocate higher share of the budget to support growth strategy and poverty reduction. On the expenditure side the Government will continue to reinforce fiscal discipline.

The full financial requirements for implementing ZSGRP have not yet been determined because scientific and realistic costing of the interventions to support implementation has not been done. In addition, since ZPRP is not a static Strategy, search for information about financial implications for its implementation will have to be an ongoing exercise as new realities unfold. In this regard, in order to inform estimation of a realistic resource envelop for financing ZSGRP, MDAs will have to cost their activities along the thematic areas of the Strategy and review such costs annually. Attempts will also have to be made to determine the part of financing that is done by Non State Actors (NSAs), methodological difficulties notwithstanding.

At the minimum, the Budget Frame for 2006/07 to 2008/9 (Table 1.8) provides the overall resource projections for implementation of ZSGRP. For financial year 2009/10 this Budget Frame will be rolled over. It is emphasized here that this framework has not been developed with consideration of ZSGRP resource requirements, but rather the projects were made by MoFEA to

82 accompany Budget Guidelines and reflect budget ceilings. It is as such a very restrictive framework as far as financing of ZSGRP is concerned, definitely far below the realistic resource requirements. In this regard then mobilization of resources for financing ZSGRP required casting far the net of resources mobilization, beyond what is reflected in the restrictive Macroeconomic Framework for 2005/06. This is in no way an insurmountable task.

Table 8.1: Budget Frame for 2006/07 – 2009/10 (Millions) 2005/06 2006/07 2007/08 2008/09 Budget Ceiling Projection. Projection. 1. TOTAL RESOURCES 161,014 169,947 180,202 189,982 Domestic revenue 76,654 79,414 84,638 86,885 Programme loan and grants 14,976 18,000 20,700 24,840 Other sources (SMT) 0 0 0 0 Project loans and grants 61,555 64,633 67,865 71,258 Non Bank Borrowing 7,829 7,900 7,000 7,000 Bank Borrowing 0 0 0 0 Adjustment to cash 0 0 0 0

II TOTAL EXPENDITURE 161,014 169,947 180,202 189,982

RECURRENT EXPENDITURE 91,939 97,753 104,249 109,933 CFS 19,520 22,230 26,347 28,481 Debt service 7,389 10,500 11,075 11,863 interest 846 1,500 1,575 2,363 amortization 6,543 9,000 9,500 9,500 Other CFS 12,131 11,730 15,272 16,619

Recurrent Exp. (excl. CFS) 72,419 75,523 77,903 81,451 O/W Salaries & wages 51,104 52,263 53,308 54,374 Other Charges 21,315 23,260 24,595 27,077

DEVELOPMENT EXPENDITURE 69,075 72,194 75,953 80,050 Local 7,520 7,561 8,088 8,792 Projects Foreign 61,555 64,633 67,865 71,258 Source: Budget Guidelines, Ministry of Finance and Economic Affairs (MoFEA), 2006.

Additional mobilization of resources can be realized from the following potentials. First are budget reforms which target both revenue generation and prudent spending, which in part have already been undertaken by the Government. Second are the financial gains from the process of

83 harmonizing ZSGRP with Tanzania Mainland’s NSGRP as well as JAST. Further strengthening domestic institutions that collect revenue, mainly TRA and ZRB will in turn boost the mobilization of resources. Increasing support to domestic Non-State Actors (NSA) will serve as a complement to mobilization of domestic resources.

With regard to external resource mobilization, aggressive efforts will have to be made to attract more FDI, partly now made possible through the improved investment climate, as well as sell ZSGRP programmes to potential investors.

The projected resources are expected to increase from Tshs 161,104 million during 2005/06 to Tshs 189,982 million during fiscal year 2008/09. Close to half of the resources derive from domestic revenue, followed by project loans and grants. The structure of expenditure is dominated by recurrent spending at around 57 percent, rising from 57.1percent during 2005/06 fiscal year to 57.9 percent during 2008/09. The financing of development expenditure will mainly be through foreign resources.

8.4 Potential Risks to ZSGRP Financing Framework

Macroeconomic instability, natural disasters, adverse developments in the global economy and unpredictability of external resource flows pose a potential risk to the financing framework. Zanzibar thus will need to hedge against such odds.