Juma V. Mwapachu
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TANZANIA IN THE AGE OF CHANGE AND TRANSFORMATION Juma V. Mwapachu E&D Vision Publishing Dar es Salaam E & D Vision Publishing Limited P. O. Box. 4460 Dar es Salaam Tanzania. Email: [email protected] Website: www.edvisionpublishing.co.tz Tanzania In the Age of Change and Transformation © Juma V. Mwapachu, 2018 ISBN: 979 9987 735 62 4 All rights reserved. No part of this publication may be reproduced in any form without written permission from E&D Vision Publishing Limited. ii Dedication To my wife Rose whose love and care is a gift of God. iii Table of Contents Abbreviations and Acronyms..... ....... ....... ....... ....... ....... ....... ......vii About the Author....... ....... ....... ....... ....... ....... ....... ....... ....... ....... x Foreword . ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... .......xi Preface . ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... .....xiii Part One: The Role of Leadership and its Dynamics ....... ....... ....... 1 Chapter 1: The Dynamics of Change and the Role of Leadership. .. .... .. .... .3 Chapter 2: Leadership for Transformation .... .. .... .. .... .. .... .. .... .. .... .. ....14 Chapter 3: Kikwete’s Deliverology System - Fad or Innovation? . .. .... .. ....22 Chapter 4: Magufuli and the Salary Ceiling Decision ... .. .... .. .... .. .... .. ....26 Part Two: Creating an Entrepreneurial Tanzania...... ....... ....... ......33 Chapter 5: Building an Entrepreneurial Tanzania .. ... ... ... ... ...35 Chapter 6: Tanzaphilia - Is Tanzania Exploiting its ‘Spell’ to Brand Itself? 42 Chapter 7: Kikwete - Tanzania: Shape Up or be Unattractive ...... ...... ......47 Chapter 8: Dar es Salaam City Renewal - An Emerging Silver Lining? ......53 Part Three: Economic Challenges in a Turbulent World Economy...61 Chapter 9: Era of Slow Growth or End of Growth?...... ...... ...... ...... ......63 Chapter 10: Global Turbulence and Vulnerabilities. .. .... .. .... .. .... .. .... .. ....69 Chapter 11: Tanzania: Economic Light in a Gloomy World? .. ... ... ...73 Chapter 12: Obama Visit to Tanzania - the ‘Whys’? .. .... .. .... .. .... .. .... .. ....97 Part Four: Industrialisation for Growth and Jobs..... ....... ....... ....107 Chapter 13: Manufacturing Renaissance for Growth and Jobs .. .... .. .... .. ..109 Chapter 14: Promoting SMEs - Challenges and Options. .. .... .. .... .. .... .. ..139 Chapter 15: Inequality - Tanzania’s Defining Challenge . .. .... .. .... .. .... .. ..143 Part Five: Corporate Governance of State Enterprises .............149 Chapter 16: Corporate Governance in State Owned Enterprises - Dilemmas, Challenges and Solutions ... .. .... .. .... .. .... .. .... .. ..151 iv Part Six: Economic Empowerment of Nationals ....... ....... ....... ....173 Chapter 17: Economic Empowerment Through Resources Nationalism. .. ..175 Chapter 18: State - People Partnership in Capital Mobilisation...... ...... ....186 Part Seven: Private Sector Development and Business and Society....... ....... ....... ....... ....... ....199 Chapter 19: Leadership and Private Sector Development ...... ...... ...... ....201 Chapter 20: Business and Society - Building Trust and Partnership .. .... .. ..206 Part Eight: Challenges of Education Pedagogy ....... ....... ....... ....219 Chapter 21: Transforming Education Pedagogy - Pivotal in Quality Education .. .... .. .... .. .... .. .... .. .... .. .... .. ..221 Chapter 22: Reflections on Education and Intellectualism . .... .. .... .. .... .. ..227 Chapter 23: Tanzania Education Climatology - Turbulence or Tsunami? ....232 Part Nine: The Future of Higher Education ..... ....... ....... ....... ....237 Chapter 24: University of the Future - Perspectives for Tanzania ... .. .... .. ..239 Chapter 25: Role of African Universities for Human Excellence and Economic Competitiveness. .. .... .. .... .. .... .. ..273 Part Ten: Crisis of Knowledge and Skills..................................293 Chapter 26: Tanzania’s Crisis of Knowledge and Skills .. ... ... ... .295 Chapter 27: Challenges and Opportunities for Engineers in SADC and EAC...... ...... ...... ...... ...... ...... ....305 Part Eleven: Social Challenges - Women, Religiosity and People with Disabilities ... ....... ....... ....323 Chapter 28: Women Game Changers - Development and Politics .. ... .325 Chapter 29: Surge in Religiosity - Politics or Social Fractures?. .... .. .... .. ..331 Chapter 30: Dynamics and Challenges Facing People with Disabilities . .. ..336 v Part Twelve: The Role of the Media . ....... ....... ....... ....... ....... ....343 Chapter 31: The Media - ‘Democratising Democracy’?.. ... ... ... .345 Chapter 32: The New Constitution - Freedom and Independence of Media Industry.. ... ... ... ... ... .351 Part Thirteen: Reflections on the Tanzania Union .... ....... ....... ....357 Chapter 33: The Union Politics and Constitutional Dynamics .. .... .. .... .. ..359 Chapter 34: The Union - What is its Future? ... .. .... .. .... .. .... .. .... .. .... .. ..377 Chapter 35: Brexit and its Lessons for Tanzania. .... .. .... .. .... .. .... .. .... .. ..393 Part Fourteen: Challenges Facing the East African Community 403 Chapter 36: East African Community: Challenges of Politics and Institutional Weaknesses ... .. .... .. .... .. .... .. .... .. ..405 Chapter 37: Is the EAC at a Tipping Point? .. .. .. .. .. .. ..420 Chapter 38: EAC - Challenges of Progress and Stability. .. .... .. .... .. .... .. ..441 Chapter 39: EAC - Flip Flops and Search or Leap of Faith .. .. .. ..447 Chapter 40: EAC Integration - Are Citizens Players or Spectators? .. .... .. ..453 Chapter 41: Identities and Their Relevance in EAC Integration. .... .. .... .. ..463 Chapter 42: Role of East African Business Council in EAC Integration. .. ..475 Chapter 43: Magufuli - A New Impetus in the EAC? . .... .. .... .. .... .. .... .. ..479 Afterword . ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....484 References and Bibliography .... ....... ....... ....... ....... ....... ....... ....486 vi Abbreviations and Acronyms AfDB African Development Bank Group AGOA African Growth and Opportunity Trade Pact AU African Union BOT Bank of Tanzania BRICS Brazil, Russia, India, China and South Africa Economic Group CCM Chama Cha Mapinduzi (Tanzania) CHADEMA Chama cha Demokrasia na Maendeleo CAG Controller & Auditor General CIA Central Intelligence Agency CEO Chief Executive Officer CET Common External Tariff CHC Consolidated Holdings Limited COMESA Common Market for Eastern and Southern Africa CSR Corporate Social Responsibility CTI Confederation of Tanzania Industries CUF Civic United Front DART Dar es Salaam Rapid Transport System DSE Dar es Salaam Stock Exchange EAC East African Community EACJ East African Court of Justice vii EALA East African Legislative Assembly EABC East African Business Council ECA United Nations Economic Commission for Africa EPA Economic Partnership Agreement EU European Union ESRF Economic and Social Research Foundation FDLR The Democratic Forces for the Liberation of Rwanda GDP Gross Domestic Product ICT Information and Communications Technology IMF International Monetary Fund IUCEA Inter-University Council of East Africa KMTC Kilimanjaro Machine Tools Limited MCC Millennium Challenge Corporation MDG Millennium Development Goals MVA Manufacturing Value Added MKUKUTA National Strategy for Growth and Reduction of Poverty MKURABITA Programme inspired by Hernando de Soto to promote land registration to be used as collateral for loans. NEPAD The New Partnership for Africa.’ Development NHC National Housing Corporation NIC National Insurance Corporation NSE Nairobi Stock Exchange OECD Organisation for Economic Co-operation and Development PAFMECA Pan-African Freedom Movement of East and Central Africa PDB President.’ Delivery Bureau PEMADU Performance Management & Delivery Unit in Malaysia. PhD Doctor of Philosophy PEPFAR The U.S. President.’ Emergency Plan for AIDS Relief PIMCO Pacific Investment Management Company, LLC PSRC Public Sector Reform Commission viii R&D Research & Development SEZ Special Economic Zone SID Society for International Development SIDA Swedish International Development Agency SME Small and Medium Enterprise SOE State-Owned Enterprise SSA Sub-Saharan Africa TANAPA Tanzania National Parks TANESCO Tanzania National Electric Supply Company TEMDO Tanzania Engineering and Manufacturing Design Organisation TIB Tanzania Investment Bank TIC Tanzania Investment Centre TNBC Tanzania National Business Council TIRDO Tanzania Industrial Research and Development Organisation TPA Tanzania Ports Authority TPDC Tanzania Petroleum Development Corporation TPSF Tanzania Private Sector Foundation TRA Tanzania Revenue Authority TSFYDP Tanzania Second Five Year Development Plan UAE United Arab Emirates UK United Kingdom UN United Nations UNESCO The United Nations Educational, Scientific and Cultural Organization US United States of America or USA WB The World Bank ix About the Author uma V. Mwapachu has had a long Jcareer in government, private sector and civil society in Tanzania, regionally and internationally. He has been Tanzania’s Ambassador to France, Secretary General of the East African Community, Chairman of the COMESA-EAC-SADC Tripartite, Chairman of the University of Dodoma Governing Council, Vice Chairman of the University of Dar es Salaam Governing Council, President of the Society for International Development, Chairman of the East African Business Council and Chairman of the Confederation of Tanzania