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Private Sector Development

What will 2013 look like for Kenya’s economy?

Wolfgang Fengler's picture

The dawn of a new year is a good time to reflect on the past year and look ahead. As it turns out, 2012 was a pretty average year for Kenya, mainly because the much anticipated national and regional elections, which will determine the course of the nation and its economy for years to come, were postponed to March next year.

Why do I say that 2012 was such a normal economic year for Kenya? Let’s rewind 12 months back. Kenya was facing major macroeconomic challenges: inflation stood at almost 20 per cent, the exchange rate was volatile and public debt increased markedly due to the weakening shilling. Economic pessimists predicted a global economic storm as the challenges in the euro-zone seemed unmanageable.

Promoting private sector development in Tanzania: Don’t ask the firms what they want!

Jacques Morisset's picture

If you are raising your children by focusing on giving them what they want, don’t read this blog. Today most governments want to help the firms operating in their country. But because this task is a complex one, their strategy has been to ask businessmen directly.

In Tanzania, almost every week, there is a new survey reporting firms’ concerns or wishes. If this has proved useful to understand better the entrepreneurs' motivation, in my view it may have led to some misguided policy actions, at least in the formulation of priorities, by the authorities.

Mountains of gold: A blessing or a curse for Tanzania?

Jacques Morisset's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in theTanzanian Newspaper The Citizen every Sunday.

Gold, gems, uranium, coal, iron, copper and nickel…Tanzania is rich in mineral resources. These 'treasures' have attracted considerable attention within the country and abroad. It is estimated that over 500,000 Tanzanians are employed in this sector, principally in traditional small scale activities.

The sector has also attracted enormous foreign direct investment. As a result, the mining sector has been one of the driving forces of the Tanzanian economy over several years as illustrated by the following statistics:

Data – The next frontier of Development

Wolfgang Fengler's picture

How is the digital tide taking care of the digital divide? Do you remember the digital divide? At the start of the new millennium, there was global concern that poor countries, especially in Africa, would be twice left out: economically and also technologically. Fortunately, the digital divide never became a global challenge. In fact, it is closing faster than anyone had imagined. In some parts of the developing world there are even budding signs of possible digital overtaking.

Kenya is one of few African countries driving in the fast lane. Over the past decade, it has experienced a sweeping “digital tide”. Today, Kenya will cross the 30 million threshold of active cell phone numbers, up 29,000 from 12 years ago! Almost everyone can now afford to buy a phone, which sell for as little as Ksh 500 (or US$5) on the flourishing second hand market.

How can the mobile revolution lift up Tanzania’s poor?

Isis Gaddis's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in the Tanzanian Newspaper The Citizen every Sunday.

Sub-Saharan Africa has experienced a boom in mobile phone users over the past decade. The total number of cell phone subscriptions on the continent increased from just over 11 million in 2000 to 463 million in 2011 and is expected to grow even further. This technology not only affects day-to-day life and communication, but has the potential to boost economic development directly and indirectly.

In creating jobs, for instance, mobile phone technology has contributed towards the reduction of poverty. But more important are its indirect effects on the economy such as the increased connectivity of firms and micro-enterprises which increases their access to information and facilitates the movement of money through mobile transfers.

Africa's MICs

Wolfgang Fengler's picture

Hardly a week goes by without an African investors’ conference or growth summit. Portuguese professionals are looking for opportunities in Angola. Silicon Valley companies are coming to Kenya to learn about its homegrown ICT revolution. This is not an irrational fad. Since the turn of the century, Africa’s growth has been robust (averaging 5-6 percent GDP growth a year), making important contributions to poverty reduction. The current boom is underpinned by sound macro policies and political stability. Unlike in some rich countries, public debt levels in most of Africa are sustainable.

One way to track Africa’s progress is by charting the number of countries that have achieved “Middle Income status”.

Is Tanzania attracting enough tourists?

Waly Wane's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in the Tanzanian Newspaper The Citizen every Sunday.

Tourism is among the world’s most lucrative industries. The latest figures from 2009 show that the industry generated US$852 billion in export earnings worldwide, accommodated more than 800 million travelers, and accounted for more than 255 million jobs or nearly 11 per cent of the global workforce in that year. It is no surprise then that this industry is considered a major driver for employment, growth and development.

We want jobs, jobs, jobs

Isis Gaddis's picture

Let's think together: Every week the World Bank team in Tanzania wants to stimulate your thinking by sharing data from recent official surveys in Tanzania and ask you a couple of questions. This post is also published in the Tanzanian Newspaper The Citizen every Sunday.

Jobs are at the very heart of living. Families escape poverty when their members secure gainful employment, and societies flourish when labor markets offer a wide range of job opportunities to citizens. And there is more to jobs than just monetary benefits. Not having a job or working under unfavorable conditions is often associated with low individual life satisfaction. Youth unemployment, in particular, can undermine the foundations of social cohesion, especially in fragile countries with a legacy of civil unrest and conflict.

For shared prosperity Tanzania needs a universal strategy

Jacques Morisset's picture

The figures don’t lie. Today, about 11 million Tanzanians live in poverty. This is too much. Equally worrisome is that since 2001 the national poverty rate appears to be stuck at approximately a third of the total population despite rapid and stable economic growth.

People need jobs

For a long time, the Tanzanian Government has defended itself: poverty reduction will catch up thanks to the massive public investment made in social and infrastructure sectors over the past decade. More children, including girls, are going to school, and the efforts to reduce infant mortality have registered spectacular achievements. However, it is estimated that those improvements will take one generation to translate into actual productivity gains and higher incomes.

Country policy and institutional assessment: How well are African countries doing?

Punam Chuhan-Pole's picture

Every year, the World Bank’s country teams and sector experts assess the quality of IDA countries’ policy and institutional framework across 16 dimensions to measure their strenght and track progess.  

The latest country policy and institutional assessment (CPIA) results show that despite difficult global economic conditions, the quality of policies and institutions in a majority of Sub-Saharan African countries remained stable or improved in 2011.

DOWNLOAD the indicators here: www.worldbank.org/Africa/CPIA

For several countries the policy environment is the best in recent years. Of the 38 African countries with CPIA scores, 13 saw an improvement in the 2011 overall score by at least 0.1. Twenty countries saw no change, and five witnessed a decline of 0.1 or more. The overall CPIA score for the region was unchanged at 3.2.  

In short, despite a challenging global economic environment, African countries continued to pursue policies aligned with growth and poverty reduction. 

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