HOW RATIONAL DECISIONS YIELDED FANTASTIC RESULTS

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AfricaPress-Tanzania: FOR nearly five years, the government has been engaged in various big and remarkable decisions that have facilitated the improvement of the country’s economy and people’s welfare.

Among the big decisions that have been made over the past four and a half years include cancellation of some national fetes, moving the government to Dodoma, mining reforms, sacking of ghost workers and transfer of all public accounts to the Central Bank.

The firm decisions have helped to make major transformations in the country by effecting social and economic changes.

On cancellation of national fetes and relocation of funds to development projects, analysts said the move was beneficial to the public.

University of Dodoma Lecturer, Dr Paul Loisulie, said the Head of State walked the talk.

“President Magufuli identifies himself as a leader of the poor and a man who is eager to see positive changes in his nation,” he noted.

With the cancellation of national fetes,  the government  expanded the Mwenge-Morocco Road in Dar es Salaam and Makongoro Road in Mwanza Region.

Just days after taking office in late 2015, President Magufuli cancelled the Independence Day fete and directed all the funds budgeted for the event to be used to widen a part of a highway notorious for gridlocks in Dar es Salaam.

In April, 2016, the Head of State cancelled the April 26 Union Day anniversary  celebrations and directed the budget allocated to be spent on road expansion in Mwanza.

Some studies had established earlier that traffic congestion caused up to 4bn/- loss in Dar es Salaam city only every day, and so  easing traffic would boost the country’s economy.

A political  scientist at Ruaha Catholic University (RUCU), Prof Gaudence Mpangala remarked that President Magufuli’s cancellation of celebrations worth billions of shillings was a bold and good move.

On the relocation of the government to Dodoma, it has been established that revenues in restaurants, hotels and hardware stores have increased over the last few years with investors and traders attributing the new development to the government’s decision to shift its administration capital from Dar es Salaam.

President Magufuli issued an executive order in 2016 directing all government businesses are permanently moved to Dodoma.

Speaking to the ‘Daily News’, Ernest Kato of Moonster lodges said business was brisk thanks to the relocation to  Dodoma.

Justine Mongi of Kidia Hotels echoed the sentiments.

Plus,  more people are travelling from across the country to the new city in search of government services or greener pasture.

Veronica Magongo, a sales officer at ALAF Limited said the government decision was pushing more people to build residential houses and commercial buildings there, thereby increasing the demand for construction materials.

By now, offices of the President, Vice President, Prime Minister, ministers and other institutions had already transferred their Headquarters to Dodoma.

On the government directive to transfer all its accounts held in banks by ministries, public corporations and local government authorities to central bank, it has been established that the decision was healthy for the government and the public at large.

In 2016, the Treasury Registrar issued a  government notice requiring public entities to move their banking operations to the central bank.

An economist-cum-investment banker, Dr Hildebrand Shayo, said the move paid off as it managed to improve three key areas on banking and fiscal discipline and increase deposit sources.

Two large banks, CRDB and NMB, last year reported increased deposits, thanks to the innovation.

For instance NMB’s customer deposits rose by 15 per cent from 4.28tri/- in 2018 to 4.871tri/- in 2019.

Also CRDB customer deposits grew by 11 per cent to 5.2trn/- thanks to strong growth by the retail segment supported by a wide distribution network backed CRDB Wakala.

On the mining sector, the country has witnessed a transition in the mining sector following the introduction of new mining laws, which aimed at creating a win-win situation between mining giant companies and the government.

The drastic reforms lead to the positive results after the government posted 346bn/- collections in 2018/19 compared to 194bn/- collected in the same sector in 2016/17 fiscal year.

The collections placed the sector on a good footing, with the growth rate of 17.7 per cent in the 2019.

Zanzibar University based economist, Prof Haji Semboja, told the ‘Daily News’ that the reforms had brought major changes in the mining sector.He said the changes encouraged small-scale miners to participate in ownership, managing and operating mining activities.

“Areas surrounding mining sites have benefitted from mining activities; we witness construction of hospitals, schools, improved water services, roads and availability of employment, all these have been fuelled by mining reforms,” he noted.

1 COMMENT

  1. this kind of information needs to be delivered to the ingenious in the streets who cant read or write so as they are fully aware of the actual goals scored by their government and the country ingeneral, otherwise they will keep on being mislead by hypocrites.

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