AfricaPress-Tanzania: ZANZIBAR economic growth is expected to nose dive to below three percent this year from the previously projected growth of between seven and eight percent.
Second Vice-President, Ambassador Seif Ali Iddi told the ninth House of Representatives’ 19th meeting, which started here on Wednesday, that the impressive growth was primarily pegged on the execution of the development vision, MKUZA III and Chama Cha Mapinduzi’s (CCM), 2015/2020 election manifesto.
“But, due to Covid-19 adversity, the economy is expected to grow at the rate of less than three percent…this is a result of shivering key economic sectors like tourism, commerce, investments and dwindling government revenues,” said Ambassador Iddi.
The Second Vice-President, presenting his office’s revenue and expenditure estimates for the 2020/2021 fiscal year in the house, said the economy grew at seven percent last year, crediting tourism and transport sectors with the impressive performance.
He said tourist arrivals increased by 10.3 percent from 520,809 visitors in 2018 to 538,264 last year, while clove exports more than doubled, from 860 to 1,744.9 tons during the period under review.
The Indian Ocean’s semi-autonomous archipelago boosted agricultural production, especially food crops, to 361,205.3 tons in 2019 as compared to the previous year’s 323,170.2, suppressing inflation at a single digit.
Inflation dropped to 2.7 from 3.9 percent in 2018, thanks to declining prices of commodities, especially food items.
Transport sector also grew impressively, with 1,419,000 passengers using air transport last year as compared to 1,350,000 passengers in 2018, while marine vessels recorded a 27 percent rise in customers, from 1,973,789 to 2,505,808 passengers last year.
“All these achievements are a product of prevailing peace and tranquility in the country,” Ambassador Iddi said in his 122-page budget speech.
The national income, said the Second Vice-President, improved last year to 3,078bn/-from 2,876bn/-in 2018, with the per capita income rising to 1,114 US dollars (over 2.5m/-) from 1,026 dollars (over 2.3m/-) over the period.
The new national income level has qualified Zanzibar to the low middle income status as per 1,030 dollar international benchmark.
He said the government intends to reinforce provision of social services to wananchi, saying a system for the local government authorities has been introduced as per the needs of decentralization.
Ambassador Iddi implored Zanzibaris to make full use of all available social services at the regional and district levels at their areas of residence, “This will help in reducing unnecessary congestion at other areas, which offer similar services.”
The Second Vice-President asked the house to approve 75bn/- for all 11 programmes under his office, with 50bn/- and 25bn/- directed to recurrent and development expenditures, respectively.
