TANZANIA NOT ABLE TO CREATE 800,000 JOBS ANNUALY

Tanzania's economy is incapable of creating employment for the 800,000 new job seekers every year despite its impressive economic growth of 7 per cent over the past decade and rapid expansion of new sectors like communication and construction.

According to the World Bank the rapid expansion of emerging sectors had not accelerated job creation outside the traditional sectors like agriculture.

New sectors have registered double-digit growth but 85 per cent of Tanzanians are still employed in traditional sectors such as agriculture. This means they have one of the lowest average incomes per worker in the world at $1,200 despite the low unemployment rate.

“Up to eight out of 10 Tanzanians will continue to be employed in these sectors. Even modest improvements will lead to productivity gains and employment; adding one or two employees in small farms and non-farm businesses will create one million jobs every year,” Jacques Morisset, the World Bank lead economist for Tanzania, Uganda and Burundi, said during the launch of a report titled, “Productive Jobs Wanted” presided over by President Jakaya Kikwete.

Mr Morisset said the number of entrants into the job market expected to reach one million a year by 2030.

The report, authoured by the World Bank and Tanzania’s President Planning Commission was aimed at building accountability among policy-makers.

It cites high poverty levels at 30 per cent, rapidly rising population and rural-urban migration as some of Tanzania’s key challenges and advises the government to tap into opportunities presented by the small non-agricultural businesses which have been growing at a fast pace partly due to rapid urbanisation.

The report further recommends that government to considers easing export bans to help farmers to bank on external markets when food prices go up, modernise the port of Dar es Salaam and rehabilitate the central railway.

Dr Josephant Kweka, Tanzania’s country director at Trademark East Africa said the government needed to take bold steps to tackle corruption and inefficiencies at the Dar es Salaam port as part of efforts to help the country move towards export markets and accommodate the increasing labour force.

Infrastructure development at the port was key in addressing jobs since the infrastructure was old and outdated therefore the private sector should be given an opportunity to make financial investments in the port while the government remained the regulator, according to Dr Kweka.

He further recommended that the private sector operates the port and Tanzania Ports Authority (TPA) to be only a landlord to enable business to operate smoothly.

“It is important to consider handing over the port to be run by the private sector. There is need for a mindset change and zero tolerance to corruption. If that is done it would help leverage Tanzania’s position in the region as a transport hub,” Dr Kweka said.

A previous report by World Bank said Tanzania and its landlocked neighbours could boost their annual gross domestic product (GDP) by up to $1.8 billion and $830 million respectively through improving the efficiency of the port of Dar es Salaam.

The East African