Government of the United Republic of Tanzania

Total Page:16

File Type:pdf, Size:1020Kb

Government of the United Republic of Tanzania New Partnership for Food and Agriculture Organization Africa’s Development (NEPAD) of the United Nations Comprehensive Africa Agriculture Investment Centre Division Development Programme (CAADP) GOVERNMENT OF THE UNITED REPUBLIC OF TANZANIA SUPPORT TO NEPAD–CAADP IMPLEMENTATION TCP/URT/2908 (I) (NEPAD Ref. 05/28 E) Volume I of VII NATIONAL MEDIUM TERM INVESTMENT PROGRAMME (NMTIP) April 2005 UNITED REPUBLIC OF TANZANIA: Support to NEPAD–CAADP Implementation Volume I: National Medium–Term Investment Programme (NMTIP) Bankable Investment Profiles (BIPPs) Volume II: Phase II of Madibira Rural Development (Mainland) Volume III: District Irrigation and Water Harvesting Support (Mainland) Volume IV: Crop and Livestock Private Sector Development (Mainland) Volume V: Small and Medium Enterprises in support of Participatory Forest Management (Mainland) Volume VI: Land Management and Development of Irrigation Schemes (Zanzibar) Volume VII: Private Sector Development for Agriculture, Forestry and Fisheries (Zanzibar) UNITED REPUBLIC OF TANZANIA: NEPAD–CAADP National Medium–Term Investment Programme (NMTIP) Table of Contents Currency Equivalents .......................................................................................................................... iii Abbreviations........................................................................................................................................ iii Preamble..................................................................................................................................................1 I. INTRODUCTION........................................................................................................................3 A. The Economy......................................................................................................................3 B. The Agricultural and Rural Sector ..................................................................................3 (i) Mainland........................................................................................................ 3 (ii) Zanzibar......................................................................................................... 5 C. The Strategic Framework .................................................................................................5 (i) Mainland........................................................................................................ 5 (ii) Zanzibar......................................................................................................... 8 D. The NEPAD Vision and CAADP Pillars........................................................................10 E. Existing and Pipeline Interventions ...............................................................................12 F. Development Partners.....................................................................................................14 (i) Donor Objectives and Strategies ................................................................. 14 (ii) Farmers’ Organisations, the Private Sector and Non–Government Organisations............................................................................................... 14 (iii) Regional Economic Cooperation ................................................................ 15 II. CONSTRAINTS AND OPPORTUNITIES.............................................................................16 A. Constraints .......................................................................................................................17 B. Opportunities ...................................................................................................................20 III. INVESTMENT PROGRAMME OUTLINE...........................................................................24 A. Selection Criteria for Bankable Investments and Links to Five Pillars of CAADP .............................................................................................................................24 (i) Mainland...................................................................................................... 24 (ii) Zanzibar....................................................................................................... 25 B. Priority Areas for Investment.........................................................................................25 C. Investment Profiles ..........................................................................................................26 Investment Profiles 1 and 2 (Mainland): Irrigation, Water Control and Water Harvesting......................................................................................... 26 Investment Profile 3 (Mainland): Private Sector Development for Crops and Livestock ............................................................................................... 27 Investment Profile 4 (Mainland): Private Sector Development for Forestry ...... 28 Investment Profile 5 (Zanzibar): Zanzibar Land Management And Irrigation Development ............................................................................... 29 Investment Profile 6 (Zanzibar): Zanzibar Private Sector Development for Agriculture................................................................................................... 29 Linkages Between Priority Areas of Investment and CAADP Pillars ................. 29 NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: National Medium–Term Investment Programme (NMTIP) IV. FINANCING GAP .................................................................................................................... 30 A. Mainland.......................................................................................................................... 30 B. Zanzibar........................................................................................................................... 33 C. Consolidated Tanzania CAADP Financing Gap.......................................................... 34 V. MONITORING AND EVALUATION.................................................................................... 35 A. Implementation Arrangements...................................................................................... 35 (i) Role of Stakeholders .................................................................................... 35 (ii) Financial Arrangements.............................................................................. 36 B. Monitoring and Evaluation............................................................................................ 37 C. Coordination....................................................................................................................37 ANNEXES: Annex 1: ASDP Components Annex 2: List of References ii NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: National Medium–Term Investment Programme (NMTIP) Currency Equivalents Currency Unit = Tanzanian shilling 1.00 US$ = 1,100 TSh 1,000.00 TSh = 0.91 US$ Abbreviations ADB African Development Bank ADF African Development Fund ASDP Agricultural Sector Development Programme ASDS Agricultural Sector Development Strategy ASF African Swine Fever ASLM Agricultural Sector Lead Ministries ASP Agricultural Service Providers ASSP Agricultural Sector Support Programme BADEA Banque Arabe pour le Développement Economique en Afrique (Arab Bank for Economic Development in Africa) BIP Bankable Investment Profile CAADP Comprehensive Africa Agriculture Development Programme CBO Community–Based Organization CBPP Contagious Bovine Pleuropneumonia DADP District Agricultural Development Plan DADS District Agricultural Development Strategy EAC East African Community ECF East Coast Fever EU European Union FAO Food and Agriculture Organization (of the United Nations) FASWOG Food and Agriculture Sector Working Group FBD Forest and Beekeeping Division FFS Farmers’ Field Schools FINIDA Finnish International Development Agency FMD Foot and Mouth Disease FSP Fisheries Sector Policy GDP Gross Domestic Product GEF Global Environmental Facility GoT Government of Tanzania HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome IAEA International Atomic Energy Agency ICIPE International Centre for Insects and Pests ICM Inter–Ministerial Consultative Mechanism IFAD International Fund for Agricultural Development JICA Japan International Cooperation Agency LGA Local Government Authority M&E Monitoring and Evaluation MAFS Ministry of Agriculture and Food Security MANREC Ministry of Agriculture, Natural Resources, Environment and Co–operatives (Zanzibar) MCM Ministry of Cooperatives and Marketing iii NEPAD – Comprehensive Africa Agriculture Development Programme United Republic of Tanzania: National Medium–Term Investment Programme (NMTIP) MDGs Millennium Development Goals MFEA Ministry of Finance and Economic Affairs MIT Ministry of Industry and Trade MNRT Ministry of Natural Resources and Tourism MoW Ministry of Works MTEF Medium Term Expenditure Framework MTITM Ministry of Trade, Industries and Marketing (Zanzibar) MVIWATA Mtandao wa Vikundi wa Wakulima Tanzania (Network of Tanzania Farmer Groups) MWCEL Ministry of Water, Construction, Energy and Land (Zanzibar) MWLD Ministry of Water and Livestock Development NCD Newcastle Disease NEPAD New Partnership for Africa’s Development NFP National Forestry Programme NGO Non–Government Organization NIMP National Irrigation Master Plan NMTIP National Medium–Term Investment Programme
Recommended publications
  • Dollarization in Tanzania
    Working paper Dollarization in Tanzania Empirical Evidence and Cross-Country Experience Panteleo Kessy April 2011 Dollarization in Tanzania: Empirical Evidence and Cross-Country Experience Abstract The use of U.S dollar as unit of account, medium of exchange and store of value in Tanzania has raised concerns among policy makers and the general public. This paper attempts to shed some light on the key stylized facts of dollarization in Tanzania and the EAC region. We show that compared to other EAC countries, financial dollarization in Tanzania is high, but steadily declining. We also present some evidence of creeping transaction dollarization particularly in the education sector, apartment rentals in some parts of major cities and a few imported consumer goods such as laptops and pay TV services. An empirical analysis of the determinants of financial dollarization is provided for the period 2001 to 2009. Based on the findings and drawing from the experience of other countries around the world, we propose some policy measures to deal with prevalence of dollarization in the country. Acknowledgment: I am thankful to the IGC and the Bank of Tanzania for facilitating work on this paper. I am particularly grateful to Christopher Adam and Steve O’Connell for valuable discussions and comments on the first draft of this paper. However, the views expressed in this paper are solely my own and do not necessarily reflect the official views of any institution with which I’m affiliated. 2 Dollarization in Tanzania: Empirical Evidence and Cross-Country Experience 1. Introduction One of the most notable effects of the recent financial sector liberalization in Tanzania is the increased use of foreign currency (notably the U.S dollar) as a way of holding wealth and a means of transaction for goods and services by the domestic residents.
    [Show full text]
  • Economic Growth That Tanzania Has Since Enjoyed
    Public Disclosure Authorized Raising the Bar TANZANIA ECONOMIC UPDATE Achieving Tanzania’s Public Disclosure Authorized Development Vision FEBRUARY 2021 ISSUE 15 Public Disclosure Authorized Public Disclosure Authorized THE WORLD BANK GROUP | EAST AFRICA REGION THE WORLD BANK GROUP | EAST MACROECONOMICS, TRADE AND INVESTMENT PRACTICE GLOBAL All pictures are provided courtesy of TrueVision Productions/World Bank except for the photo on the cover and page 54 (by Sergi Ferrete on Unsplash). The giraffe is Tanzania’s national symbol and, as such, it is protected by law. The giraffe is a graceful animal whose long neck represents the ability to be visionary while still viewing the past and present. The giraffe reminds Tanzanians to increase their understanding by viewing life from all angles. the Bar Raising THE WORLD BANK GROUP | EAST AFRICA REGION Vision Development Tanzania’s Achieving MACROECONOMICS, TRADE AND INVESTMENT GLOBAL PRACTICE TANZANIA ECONOMIC UPDATE | FEBRUARY 2021 | ISSUE 15 | FEBRUARY ECONOMIC UPDATE TANZANIA DEDICATION PROFESSOR BENNO NDULU 1950-2021 It is with heavy hearts that we dedicate this Tanzania Economic Update to the lasting legacy of Professor Benno Ndulu. Many World Bank Group staff had the special privilege to interact with Professor Ndulu–or just ‘Benno’ as he was known to many of us–either while working at the World Bank, or the Bank of Tanzania, or in the many international development activities he was so highly devoted to. A powerhouse in development economics and a remarkable leader with unwavering commitment to the socio-economic transformation of Tanzania, Benno was always at the heart of our work in Africa. This was all thanks to his affability, humility, and immense generosity to share his time and knowledge with others.
    [Show full text]
  • Research of the NICTBB in Tanzania
    Tanzania Country Level Knowledge Network Exploiting the Potentials of the National Information and Communication Technology Broadband Backbone (NICTBB) in Tanzania. A Study Report By Eng. August B. Kowero July 2012 i ACKNOWLEDGEMENT I wish to thank all the friendly and cooperative assistance I received from ESRF, Tanzania Online (TO) and Tanzania Knowledge Network (TAKNET) M/s Margareth Nzuki; and Tanzania Global Learning Agency (TaGLa), Clknet Project staff supported by African Capacity Building Foundation (ACBF), my long time colleagues Mr Masegese Kamulika; Mr Jeremiah Mchomvu and others for their assistance in the preparation of this research document. Special gratitude and sincere thanks are due to Hon. Minister for Education and Vocational Education Dr J. S. Kawambwa (MP) for his attention, constructive criticism and encouragement. My thanks should also go to the higher authorities from the Ministry of Communication Science and Technology (MCST) for their guidance and cooperation. Lastly, I would also like to thank all my friends from TCRA, NIDA, RITA TRA, TIC, both fixed and mobile operators, for their unwavering support to make sure I get all the information needed within their reach. www.clknet.or.tz ii EXECUTIVE SUMMARY This research paper was carried out between June-July 2012 by CLKnet with support of African Capacity Building and the government of the United Republic of Tanzania through the Tanzania Global Learning Agency (TGLA) aimed at the findings out reasons for the underutilization of the NICTBB. The Government of Tanzania spend over 250 billion in investment of this national fiber optic; however, despite of the effort done by the government of Tanzania still the NICTBB is not being fully utilized to its full potential.
    [Show full text]
  • Zanzibar Location
    Zanzibar Location Zanzibar lies in an ocean off the east coast of Tanzania. What is the name of the ocean? Indian Ocean Which continent is Tanzania in? Africa Zanzibar Island Is Zanzibar North or South of the Equator? South The island of Zanzibar • Physical features: • Coral limestone • Flat and low lying • Rocky inlets • Sandy beaches • Lagoons • Mangrove swamps • Coral reefs • Tropical climate Some facts and figures • Location: Zanzibar lies in the Indian Ocean off the North east coast of mainland Tanzania • 6 degrees south of the equator • Made up of 2 large islands, Zanzibar (also known as Unguja island) and Pemba in the north • Topography: highest point is 120 metres • Zanzibar island is approximately 85km long and between 20 and 30km wide • Area: 1,666 sq.km. • Largest settlement is Stone Town • Climate: Tropical • Time Zone: GMT + 3 hours • Population: 1.1. million ( 2011) • Language: KiSwahili but English is widely spoken • Government: Revolutionary Council and House of Representatives whose members are elected • Zanzibar is semi autonomous just as Wales is to the UK so Zanzibar is to Tanzania • Religion: mainly Muslim, but also Christian • Currency: Tanzanian Shilling Views of Zanzibar Historical background David Livingstone Freddie Mercury famous explorer born here Zanzibar became independent in 1963 Zanzibar doors Portuguese first Cloves were main Europeans export Other spices Once the capital of Centre for the exported Oman slave trade People & Religion . Anglican Cathedral Mosque Muslim schoolgirl Muslim wedding People have different ways of showing that they belong to a a particular religion. • Sort the following symbols into two groups - Christian and Islam Daily Life What do these photographs tell you about life in Zanzibar? Tourism in Zanzibar School Life in Zanzibar .
    [Show full text]
  • Webinar-Doing-Business-In-Tanzania
    Doing Business in Tanzania Webinar 13th May 2021 Doing Business in Tanzania Agenda 1 Introduction to Webinar and Hosts (Enterprise Estonia & Stepchange Africa) 2 Welcome to Tanzania (Country Overview) 3 Sector Opportunities 4 The Real Deal: Challenges & Opportunities 5 Doing Business in Tanzania Testimonial 6 Question Time 7 Next Steps 8 Key Contacts 3 Introduction to Webinar and Hosts 4 Doing Business in Tanzania Stepchange Africa Webinar Hosts & Guest Amyn Esmail Andrew Herweg Bhanu Pratap Managing Partner Managing Partner Partner at ALCPA Ltd Finance Business Development Tax International Development Marketing & Strategy Regulatory Commodities International Partnerships Compliance 5 Welcome to Tanzania 6 Doing Business in Tanzania Country Overview: Tanzania Key Information Crossroads of East & Southern Africa Population of ~62 million inhabitants Official Language(s): Swahili & English Dodoma as the capital region holds ~2 million inhabitants Tanzania’s currency is the Tanzanian Shilling (TZS) Dar es Salaam is the economic capital Source: Stepchange Africa, UN; World Bank 7 Doing Business in Tanzania What to Know Key Indicators Economic Performance Indicators Numbers GDP US $63 billion GDP growth rate per annum (‘21) 4.1% GDP per capita US $ 1,122 Inflation 3.5% Sources: World Bank 8 Doing Business in Tanzania What to Know Important Rates Tax Elements Rates Value Added Tax (VAT) 18% Social Security rate (payable by companies) 15% USD Exchange rate *2,309 TZS per $1.00 Corporate Tax rate 30% Source: Bank of Tanzania; PwC 9 Doing Business
    [Show full text]
  • Countries Codes and Currencies 2020.Xlsx
    World Bank Country Code Country Name WHO Region Currency Name Currency Code Income Group (2018) AFG Afghanistan EMR Low Afghanistan Afghani AFN ALB Albania EUR Upper‐middle Albanian Lek ALL DZA Algeria AFR Upper‐middle Algerian Dinar DZD AND Andorra EUR High Euro EUR AGO Angola AFR Lower‐middle Angolan Kwanza AON ATG Antigua and Barbuda AMR High Eastern Caribbean Dollar XCD ARG Argentina AMR Upper‐middle Argentine Peso ARS ARM Armenia EUR Upper‐middle Dram AMD AUS Australia WPR High Australian Dollar AUD AUT Austria EUR High Euro EUR AZE Azerbaijan EUR Upper‐middle Manat AZN BHS Bahamas AMR High Bahamian Dollar BSD BHR Bahrain EMR High Baharaini Dinar BHD BGD Bangladesh SEAR Lower‐middle Taka BDT BRB Barbados AMR High Barbados Dollar BBD BLR Belarus EUR Upper‐middle Belarusian Ruble BYN BEL Belgium EUR High Euro EUR BLZ Belize AMR Upper‐middle Belize Dollar BZD BEN Benin AFR Low CFA Franc XOF BTN Bhutan SEAR Lower‐middle Ngultrum BTN BOL Bolivia Plurinational States of AMR Lower‐middle Boliviano BOB BIH Bosnia and Herzegovina EUR Upper‐middle Convertible Mark BAM BWA Botswana AFR Upper‐middle Botswana Pula BWP BRA Brazil AMR Upper‐middle Brazilian Real BRL BRN Brunei Darussalam WPR High Brunei Dollar BND BGR Bulgaria EUR Upper‐middle Bulgarian Lev BGL BFA Burkina Faso AFR Low CFA Franc XOF BDI Burundi AFR Low Burundi Franc BIF CPV Cabo Verde Republic of AFR Lower‐middle Cape Verde Escudo CVE KHM Cambodia WPR Lower‐middle Riel KHR CMR Cameroon AFR Lower‐middle CFA Franc XAF CAN Canada AMR High Canadian Dollar CAD CAF Central African Republic
    [Show full text]
  • Prospects for a Monetary Union in the East Africa Community: Some Empirical Evidence
    Department of Economics and Finance Working Paper No. 18-04 , Guglielmo Maria Caporale, Hector Carcel Luis Gil-Alana Prospects for A Monetary Union in the East Africa Community: Some Empirical Evidence May 2018 Economics and Finance Working Paper Series Paper Working Finance and Economics http://www.brunel.ac.uk/economics PROSPECTS FOR A MONETARY UNION IN THE EAST AFRICA COMMUNITY: SOME EMPIRICAL EVIDENCE Guglielmo Maria Caporale Brunel University London Hector Carcel Bank of Lithuania Luis Gil-Alana University of Navarra May 2018 Abstract This paper examines G-PPP and business cycle synchronization in the East Africa Community with the aim of assessing the prospects for a monetary union. The univariate fractional integration analysis shows that the individual series exhibit unit roots and are highly persistent. The fractional bivariate cointegration tests (see Marinucci and Robinson, 2001) suggest that there exist bivariate fractional cointegrating relationships between the exchange rate of the Tanzanian shilling and those of the other EAC countries, and also between the exchange rates of the Rwandan franc, the Burundian franc and the Ugandan shilling. The FCVAR results (see Johansen and Nielsen, 2012) imply the existence of a single cointegrating relationship between the exchange rates of the EAC countries. On the whole, there is evidence in favour of G-PPP. In addition, there appears to be a high degree of business cycle synchronization between these economies. On both grounds, one can argue that a monetary union should be feasible. JEL Classification: C22, C32, F33 Keywords: East Africa Community, monetary union, optimal currency areas, fractional integration and cointegration, business cycle synchronization, Hodrick-Prescott filter Corresponding author: Professor Guglielmo Maria Caporale, Department of Economics and Finance, Brunel University London, Uxbridge, Middlesex UB8 3PH, UK.
    [Show full text]
  • Tanzania MFR Summary Report
    TANZANIA August 20, 2018 Market Fundamentals Summary KEY MESSAGES The objective of this report is to document the basic market context Figure 1. Map of Tanzania for staple food and livestock production and marketing in Tanzania. The information presented is based on desk research, a field assessment using rapid rural appraisal techniques, and a consultation workshop with stakehoders in Tanzania. Findings from this report will inform regular market monitoring and analysis in Tanzania. Maize, rice, sorghum, millet, pulses (beans and peas), cassava and bananas (plantains) are the main staple foods in Tanzania. Maize is the most widely consumed staple in Tanzania and the country imports significant quantities of wheat to meet local demand for wheat flour. Consumption of other staples varies across the country based on local supply and demand dynamics. Cattle, goat and sheep are the major sources of red meat consumed in Tanzania. Tanzania’s cropping calendar follows two distinct seasonal patterns. The Msimu season covers unimodal rainfall areas in the south, west and central parts of the country while the Masika and Vuli seasons Source: FEWS NET (2018). cover bi-modal rainfall areas in the north and eastern parts of the country (Figure 5). Figure 2. Tanzania’s average self sufficiency status for key staple foods (2014/15 – 2017/18) As a member of the East Africa Community (EAC) and the Southern African Development Community (SADC), Tanzania plays an important role in regional staple food trade across East and Southern Africa (Annex III). The country is generally a surplus producer of staple cereals and pulses, and exports significant quantities of these commodities to neighboring countries in East and Southern Africa inlcuding Kenya, Malawi, Zambia, Uganda, Rwanda, Burundi and the Democratice Republic of Congo (Figure 2).
    [Show full text]
  • The World Bank
    Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 12444 PROJECT COMPLETIONREPORT TANZANIA Public Disclosure Authorized SECONDTnELCOMMUNICATIONS PROJECT (CREDIT 1810-TA) NOVEMBER2, 1993 Public Disclosure Authorized MICROGRAPHICS Report No: 12444 Type: PCR Public and Private Enterprise Division Country Department II Africa Regional Office Public Disclosure Authorized This document has a restdcted ds oibutimand may be used by redplena only in the pertfonanae of their ,fficd duties Its contents my nt oterwise be diosed w_t Wodd Bank suthulaton. CURRENCYAND EOUIVALENTS Currency Unit = TanzanianShilling (Tsh) Tsh 1 = US$ 83.72 (1987) = US$ 125.00 (1988) = US$ 192.30 (1989) = US$ 196.60 (1990) = US$ 233.90 (1991) = US$ 325.00 (1992) ABBREVIATIONSAND ACRONYMS DEL Direct ExchangeLine EAC East African Community ERP Economic Recovery Program - 1986 ESAP Economicand Social Action - 1989-1992 GOT Governmentof the United Republicof Tanzania IDA InternationalDevelopment Association MTC Ministryof Transport and Communications PPF Project PreparationFacility SAP StructuralAdjustment Program - 1982 TDP Total Demand Potential TPTC Tanzania Posts and TelecommunicationsCorporation TRP TelecomsRecovery Program FISCAL YEAR January 1 to December31 FOROFFICIAL USE ONLY THEVORLD BANK WasIlngton,D.C. 20433 U.SA Office of Director-General Operations Evaluation November2, 1993 MEMORANDUMTO THE EXECUTIVEDIRECTORS AND TUE PRESIDENT SUBJECT: Project Completion Report on Tanzania Second TelecommunicationsProiect (Credit 1810-TA)
    [Show full text]
  • Is Tanzania a Success Story? a Long Term Analysis
    NBER WORKING PAPER SERIES IS TANZANIA A SUCCESS STORY? A LONG TERM ANALYSIS Sebastian Edwards Working Paper 17764 http://www.nber.org/papers/w17764 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 January 2012 Many people helped me with this work. In Dar es Salaam I was fortunate to discuss a number of issues pertaining to the Tanzanian economy with Professor Samuel Wangwe, Professor Haidari Amani, Dr. Kipokola, Dr. Hans Hoogeveen, Mr. Rugumyamheto, Professor Joseph Semboja, Dr. Idris Rashid, Professor Mukandala, and Dr. Brian Cooksey. I am grateful to Professor Benno Ndulu for his hospitality and many good discussions. I thank David N. Weil for his useful and very detailed comments on an earlier (and much longer) version of the paper. Gerry Helleiner was kind enough as to share with me a chapter of his memoirs. I thank Jim McIntire and Paolo Zacchia from the World Bank, and Roger Nord and Chris Papagiorgiou from the International Monetary Fund for sharing their views with me. I thank Mike Lofchie for many illuminating conversations, throughout the years, on the evolution of Tanzania’s political and economic systems. I am grateful to Steve O’Connell for discussing with me his work on Tanzania, and to Anders Aslund for helping me understand the Nordic countries’ position on development assistance in Africa. Comments by the participants at the National Bureau of Economic Research “Africa Conference,” held in Zanzibar in August 2011, were particularly helpful. I am grateful to Kathie Krumm for introducing me, many years ago, to the development challenges faced by the East African countries, and for persuading me to spend some time working in Tanzania in 1992.
    [Show full text]
  • Performance of the Economy Report October 2018
    PERFORMANCE OF THE ECONOMY REPORT OCTOBER 2018 MACROECONOMIC POLICY DEPARTMENT MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT www.finance.go.ug TABLE OF CONTENTS LIST OF TABLES .............................................................................................................................. ii LIST OF FIGURES .......................................................................................................................... iii LIST OF ACRONYMS ..................................................................................................................... iv SUMMARY ........................................................................................................................................... v REAL SECTOR DEVELOPMENTS .............................................................................................. 1 Inflation ................................................................................................... 1 Indicators of Economic Activity................................................................. 2 Composite Index of Economic Activity (CIEA) .................................................................. 2 Business Tendency Index (BTI) ............................................................................................ 3 Purchasing Managers Index (PMI) ....................................................................................... 4 FINANCIAL SECTOR DEVELOPMENTS .................................................................................. 5 Exchange
    [Show full text]
  • Transaction Dollarization in Tanzania
    Bank of Tanzania Working Paper Series Pantaleo Kessy Transaction Johnson Nyella Nicas Yabu Dollarization in Tanzania WP No 1: May 2015 Transaction Dollarization in Tanzania Pantaleo Kessy, Johnson Nyella and Nicas Yabu Bank of Tanzania May 2015 i Disclaimer The views expressed in this paper are solely those of the authors and do not reflect the official views of the Bank of Tanzania or its Management. ii Table of Contents Introduction ….………………………………………………………………..………1 Dollarization: Definition and Dynamics...…………………….……….….9 Methodology.....……………………………………………..........................15 Discussion of the Survey Findings ………………………………………….19 Lessons and Policy Options …………..………………………….…………..26 Reference …………………………………………………….……………………….35 iii Abstract Some observers in Tanzania have suggested that a significant portion of Tanzania’s businesses and service providers are using the U.S. dollar for pricing purposes as well as carrying out transactions. However, very little evidence has been put forward to support these claims. This study examines the evidence of dollarization in Tanzania, focusing mainly on the use of U.S. dollar as a medium of exchange and unit of account. The evidence presented in this study suggests that many of the concerns that have been expressed by some observers about significant use of the U.S. dollar as a medium of exchange in Tanzania are not well founded. The findings indicate that about 3.2 percent of the businesses in Mainland Tanzania and 4.5 percent in Zanzibar quote prices in U.S. dollar, but most of these businesses were willing to accept payments in Tanzanian shilling. Only 0.1 percent of the businesses in the Mainland and none in Zanzibar indicated that they would prefer payments exclusively in U.S.
    [Show full text]