Friday 19 November 2010

Economic to top agenda in Z'bar


As Zanzibar ushers in a new political era of Government of National Unity (GNU), the question remains whether the new administration will realise the Isles’ long-held desire to attain economic independence.

Before the union with Tanzania Mainland, Zanzibar was independent economically and politically as a sovereign state. However, after the political marriage some economic issues were treated as union matters to be shared equitably by the two sides.

As time went on sentiments of economic discontent have taken root, and an increasing number of Zanzibaris to-date feel that they are not adequately benefitting from the Union economic set up.

While the issue of how much of the National Gross Product (GDP) should be retained by Zanzibar has all along been an intricate matter, recent voices of economic discontent have included those who want oil, gas and offshore fishery matters to be excluded from Union affairs, amid anticipations of Zanzibar striking oil soon.


The new GNU administration that has just taken over the mantles of leadership in the Isles will have to strike a delicate balance between assuaging growing economic discontent and sustaining Zanzibar within the Union political fold.

Some residents of the isles believe there is nothing wrong for Zanzibar to demand economic independence.

“From the historical point of view, for many centuries before the union with Tanganyika, Zanzibar was an independent country economically...it had a robust economy that was supported by cloves, coconuts and other natural resources as well as commerce, which was conducted mainly using the Zanzibar harbour,” immediate former Finance and Economic Affairs minister Mwnyihaji Makame told The Citizen earlier this year.

According to Mr Makame, the issue of the economy became a complex matter after Tanganyika-Zanzibar union because the extent to which the Isles should benefit from national resources is not clearly stipulated in the Union constitution.

He said that Zanzibar’s share of the General Budget Support, however, was about in 10.02 per cent, and some people felt that it ought to be higher.


“It is difficult to determine how much Zanzibar benefits from the Union because in the union constitution it is not mentioned or clarified how much Zanzibar will benefit from union matters such as higher education, security, foreign affairs and the like,” he noted.

Many Zanzibaris, irrespective of their political affiliation, tend to agree with Mr Makame’s assessment of their economic plight--- and the ushering in of GNU has created renewed optimism to fight for better economic prospects.

Previously, political animosity meant that Zanzibaris could not come face-to-face and work together on many issues, including the economy.


Those now optimistic for the Isles’ brighter economic prospects under the GNU include vice chairman of Zanzibar Association of Tourism Investors, Mr Abdul Samad, who believes they can stand on their own feet to build a strong domestic economy, like other wealthy small island nations.

Ahmed Haji Saadat of Zanzibar Revenue Board (ZRB) also share the opinion that the isles currently benefit very little economically from the Union economic arrangement, and that Zanzibar can do better by fully harnessing her own potentials herself.


“A good example is the tourism sector whose full potential is still untapped. We can also do better as a free port and have a thriving fishing industry... Of course success will depend on how we are more innovative and dynamic, since we are a small community,” he noted.

The advocates of an economically independent Zanzibar say that economic autonomy does not necessarily mean breaking the Union.

However, there are not-so-enthusiastic people on the issue, like taxi driver Haule Kazimoto who says the talk of economic independence is mere politics and not a viable option.

Mr Kazimoto, a native of Mainland Tanzania who has lived in the isles since 1975, believes Zanzibar still has a long way to go before becoming economically independent.


The dawn of a new political era in Zanzibar’s has been confirmed by the peaceful campaigns and CUF’s conceding defeat despite CCM winning the election with a narrow margin. In previous elections such results led to violence and chaos.

Under the new dispensation lawmakers representing CUF will become cabinet ministers in Dr Ali Mohammed Shein’s government in accordance with the power- sharing deal approved in the July referendum.
Advocates of Zanzibar’s economic independence are expected to use the prevailing national understanding to push for their agenda.
“We don’t depend very much on the Union economically. In fact, the current arrangement does not favour us because there are a lot of things which Zanzibar cannot do without consulting the Union government, such as engaging with international organisations,” Mr Saadat of ZRB further noted.
According to him, the current Union setup must change through reforms geared to address current misgivings on many issues, including economic matters.

“There is no need to break the union but it must be revisited for the mutual benefit of the two sides of Tanzania. Most of the current complaints about the union are related to economic issues because many Zanzibaris feel they are not benefitting enough from the union economically,” Mr. Saadat said.

He noted that remaining as part of the union would be an added business, commercial and investment advantage to Zanzibar.

Some economists in Dar es Salaam, who commented on the matter, said it is possible for Zanzibar to survive economically without the union but it would take at least 10-15 years for her to prosper without Mainland Tanzania.

No comments: