It is now about 100 days since President Samia Suluhu Hassan was sworn-in as the 6th President of Tanzania on March 19, 2021 following the death of her predecessor, President John Magufuli, two days earlier. It is normal across the world to make a general assessment of a top leader’s first 100 days in office. The purpose is to paint a broad picture of the performance of the leader in question.
Assessment of 100 days aims at identifying major emerging trends in various aspects that point to the kind of presidency to be expected in one’s tenure. Herein below, I outline major emerging trends in the economy under President Hassan.
Business environment
In the first 100 days, the President’s perspectives on business environment and investment climate has been very clear in words and deeds.
In line with the wishes of captains and titans of the industry, she has been very clear on the need for good, friendly, conducive and supporting business environment and investment climate. This is a very broad area including predictable legal, policy and regulatory frameworks. Others include issues related to infrastructure, skills and talent in the labour force, fiscal issues and others needed to attract and retain investors.
Tax space
In the first 100 days of her Presidency she has signalled implementation of good fiscal policy and fiscal policy instruments. There are signals of friendly and relaxed rather than cohesive taxation; expansionary rather than contractionary fiscal policy and taxing better than just taxing more. It is about making the tax component of business environment and investment climate in Tanzania better. There are signals of solving tax stakeholders’ complaints.
They include issues around predictability of the legal, policy and regulatory frameworks; relatively huge number of taxes and high tax rates; delays in tax refunds; inadequate customer service by the taxman; lack of one stop centre for tax payments; issues around tax appeals process; issues around the use of electronic fiscal devices (EFDs); non-realistic estimations; inadequate participatory approaches in tax matters and much more.
Private sector
The President’s has been very clear on her support to the private sector. This is mainly seen in the context of her directives on business environment in its very broad sense. Among her very clear and loud sound on this is on the tax matter. Another one is on her trip to Kenya that involved meeting both the Kenyan and Tanzanian private sector. All these are very positive signals for better times ahead for the private sector.
Liberal economics
The first 100 days have signalled more free and liberal market economy ahead.
Good as liberalism is, it is clear in the President’s tone that all will be within the ambit of Tanzanian laws, policies and regulations and correctly so. What will be needed include having smart regulations that will not inhibit businesses.
Economic diplomacy
Economic diplomacy is among her top agenda. It has been seen in, among others, her speeches when swearing-in of ministers, in the Parliament and in her trip to Kenya. Key issues in economic diplomacy include attracting and retaining investments and businesses.
Local content
The President has shown the need for local content in the economy. It is about having the needed quantity and quality of domestic factor inputs in production processes. It includes the share of employment and sales of goods and services locally supplied at each stage of various value chains and their nodes. It entails inclusion of competent local companies in production of goods and services.
Fourth Industrial Revolution
The President’s perspectives on the Fourth Industrial Revolution (FIR) can be proxied by her directives on cryptocurrencies. She has directed the Bank of Tanzania to ensure that we are not caught by surprise and left out by the world in the cryptocurrencies space. This is among the key aspects of the FIR. Others include but are not limited to Internet of Things, Autonomous Vehicles such as drones, 3D printing and many others. The key broad message from the President’s directive on cryptocurrencies is for Tanzania’s economy to be future-ready in all aspects.
Going forward…
It is very important to continuously learn, engage, align and advise accordingly on the emerging major economic trends under the President. The purpose is to move Tanzania into newer and higher economic heights.
The author is Associate Professor of Economics at Mzumbe University and Principal of Mzumbe University Dar es Salaam Campus